You Need a Financial Coach – Here’s Why
When looking to practice principles of healthy living, many of us look to personal trainers and dietician for help. We seek guidance from therapists and spiritual leaders for mental support. Physical and mental fitness are two essential pillars for a desirable life, but often, financial health is overlooked. Financial health opens up the door having more options to live our desired lifestyle and build generational wealth. The importance of financial health suggests that we approach it the same way we do the other two pillars: relentlessly and with the help of a financial coach.
What is a Financial Coach?
A financial coach is someone who is trained to help you set and reach your financial goals by teaching you fundamental principles of good money management. They help you:
- Make and follow a budget.
- Prioritize throughout your finances.
- Understand your spending patterns.
- Create a plan to tackle debt.
Financial coaches are not to be mistaken with financial advisors, professionals who focus on your investment portfolio. Financial coaches help you build your finances to the point where a financial advisor can then help you develop an investment portfolio to multiply your wealth. Financial coaches are not allowed to give investment advice unless they are registered to do so with the U.S. Securities and Exchange Commission (SEC), or a state regulator.
Get a 3-Minute Financial Health Check Up While coaching is important to your overall financial wellness, a free financial assessment from the national nonprofit GreenPath Financial Wellness can provide a clear picture of your financial health. You’ll see how mortgage, consumer debt, student loans or other debt might be impacting your budget. In just 3 minutes, get a personalized report to understand the impact of interest charges to help you reduce your financial stress.
What Are The Benefits of a Financial Coach?
Financial coaches are experienced, analytical people with knowledge on commonly misunderstood financial terms and concepts. Available to answer questions on topics like compounded interest and credit, financial coaches provide necessary services and valuable resources to clients.
Sessions with an effective financial counselor are designed to meet your specific needs. Your financial coach will look at your income and expenses and work with you to develop a plan that suits where YOU are now, and where you want to go.
There has never been more access to affordable financial coaching and then there is right now. In fact, some providers will even offer one or more sessions for free, so that potential clients get a sense of just how much value they provide. One or two sessions might be all you need to get set in the right direction, and if you need more, consultations are affordable and flexible. Many coaches are happy to work with you on payment terms that fit within your means.
Being a great financial coach is not easy. The hours can be sporadic as they try to fit the availability of clients, and there is a ton of news and financial literature that financial coaches must understand to be effective in their roles. And yet even through this, there are thousands of financial coaches ready to help at any time, which underscores how much of their satisfaction is derived by helping other people do better for themselves. They are not there to judge, nor do they make money by giving investment advice (they are not allowed to). Having another selfless source of moral support is never a bad thing.
Choosing The Right Financial Coach
Individuals certified as a financial coach or counselor by the Association for Financial Counseling and Planning Education are reliable options to start with. Debt counselors accredited by the National Foundation for Credit Counseling (NFCC), such as Greenpath’s, are the best place to start.
For financial coaching related to housing, be sure the resource is certified by the U.S. Department of Housing and Urban Development Agency (HUD).
HUD-approved housing counselors are specially trained to provide renters and homeowners with detailed foreclosure prevention and support, reverse mortgage counseling, home buying counseling and renter resources.
100 percent of GreenPath’s housing counselors have successfully completed HUD’s rigorous training program.
Be sure to ask for and research the training of any potential coach before deciding if they are the best person to help. If your coach isn’t doing all of the things described above, it might be time to find someone else.
Taking control of your finances does not mean you have to walk alone. Enlisting the services of a proven financial coach is the best way to create a set of habits that results in your financial goals coming to fruition.
Ready to hire an experienced financial coach, visit GreenPath.com to book a consultation.