Tons of people know what a financial advisor is, but I find many do not fully understand exactly what it is a financial coach helps with. There is a significant difference between an advisor and a coach in St. Louis (and elsewhere). Advisors offer you an array of investments, and all variations of insurance. While a coach is able to help you evaluate which of these options you are being presented, is best suited for you, they do not personally SELL those products. This is just the first thing many people get confused on, but what I truly want to accomplish within this article today, is to help you understand all the benefits to financial coaching. Also, stay tuned for future articles in this mini series that will go over each of the 6 things a financial coach can help with, in detail!
Why do I even need a financial coach?
Well, that’s a legitimate question. Why would you want to pay someone to tell you how to handle your money? Especially if you are having trouble paying for things already. Let’s think about that for a minute.
What does every successful person have? What do NHL players, MLB players, and famous singers have in common? Coaches! No matter what area of life you want to succeed in, you need an expert in your corner. You wouldn’t tell your kid to become a pro baseball player, and then not get him a coach would you? So why wouldn’t you give your goals and aspirations the same shot at success?
So what can a financial coach actually help me with?
Not everyone’s financial situation is the same. One person could make six figures and be broke, while another person could make $50,000 and be doing well. There are specific things a financial coach can help you with to make sure no matter what your income level, that you are better off. Some areas a financial coach can help you improve are:
- Saving money
- How to pay off debt (and at a much faster rate than you already are… I stress MUCH faster!)
- Strategies on how to improve your net worth
- How to spend LESS than you earn (many Americans do the opposite)
- Demystifying money myths that have been ingrained in you since you were a child
- Determining what types of investments and/or insurances, are realistic and valuable for you (Again, not to sell to you. Solely from an overall consulting perspective.)
I really want to help you learn about taking control of your money in this series! So let’s get you invested in your financial future. I want you to make a list of how you are doing, and what thoughts you have on each of the 6 areas listed, that a financial coach can help you with. Even if you never plan on getting expert help in the finance arena, this will be a beneficial exercise for you.
Like anything else, even when you are doing well with something, it is important to periodically review where you stand. What are you doing well with, and what do you need to improve upon? Nobody is perfect. We all mess up here and there. We all have spent money on something we shouldn’t have. The goal though is to have a strategic plan in place, in order to be able to have a tool to measure your success by.
Go do this exercise, and I look forward to talking to you about saving money next month!