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What Does a Financial Coach Do?


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I often get questions from clients asking me what does a financial coach do and how will help guide me. Financial coaching differs from financial planning and financial advising in many ways. Financial coaching empowers clients to develop financial goals and self-control to make sound financial decisions. Financial coaching is about teaching and not doing the work for the client. Here are a few reasons why a financial coaching approach is a needed resource.


What Does a Financial Coach Do? - Seven Goals of Financial Coaching

Developing an Action Plan


During your initial meeting with a financial coach, you will establish the main priorities you want to address throughout the coaching relationship. Your financial coach will ask questions to help you identify what may be holding you back from achieving your goals. If you are on the right track and need additional guidance, your coach will work with you to identify how you can progress in your journey. Your coach will also help you identify achievable goals and help you set timelines for achieving those goals.


Monitoring Client Progress


After your initial meeting, your coach will set up periodic check-ins with you to ensure that you stay on track. Depending on the severity of your financial situation, you may meet with your coach weekly, semi-monthly or monthly. At each session, your coach will allow you to lead the conversation and guide you to where you want to be. The sessions also serve as a check-in to see how you are progressing. Suppose you were given a budget tracker, tasked with identifying your income and expenses, or you planned to talk with your significant other about your financial situation. In that case, your coach will ask you how you have made progress and what additional resource you may need to stay on track.


Changing Your Financial Behaviors


Your financial coach's primary goal is to help you change the financial behaviors holding you back. Were there issues that you had with money as a child? Did your parents spend money all the time? Was the answer always no, when you wanted a toy as a child? The behaviors you witnessed as a child may be why you spend the way you do as an adult. It also may be the reason that you need financial coaching so that you can break the cycle of money mismanagement.




Improving Client Financial Situations


Working with your financial coach will help you improve your financial situation. Each session will get you closer to your goal of getting your finances in order. After the first session with a financial coach, you will walk away with questions and ideas you may never have considered. One of the key questions I ask my clients is, "What has your attention today?". Another important question is, after evaluating your budget, "Where did you find that you spend most of your money?" These two questions immediately help clients assess, identify, and address the major hurdles in their budgets.



Addressing Immediate Financial Issues


A financial coach will help you address your immediate financial concerns. If you have multiple payday loans that make it difficult to make ends meet, they will help you analyze how you can eliminate and reduce the need to use them in the future. Do you find it difficult to afford food for yourself or your family? Your coach will help you map out a plan to work on the most pressing issues that concern you and guide you in preventing them from occurring frequently.


Identifying Resources, Tools, and Additional Services


If you need resources to help you budget your income and expenses, calculate your net worth, or set SMART goals, your coach can provide these resources. Additional tools, such as financial apps, calculators, mindest shifting resources, or printables, can also be helpful as you navigate your financial situation. At the end of the coaching relationship, your coach may recommend additional services that you could use once you gain control of your finances. Some services could include recommendations to a financial planner, financial advisor, or consumer counseling services based on your personal financial goals.


Reducing Anxiety and Uncertainty


Working with a financial coach can help you reduce anxiety and uncertainty surrounding your financial future. The coaching relationship will make it easier for you to talk about money and allow you to address significant financial concerns. It will also help you plan for the future and help you set and achieve your goals. Not only will your finances be more manageable, but you will also gain control over your life and work to achieve the financial freedom you deserve.



Are you ready to work with a financial coach? Schedule your one-on-one consultation today.

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