What is Financial Coaching?
Contrary to what you may (or not) be thinking, Financial Coaching isn't all about budgets, money envelopes and restriction.
As a Financial Coach I help my clients with the basics of money management. My goal is to help them develop healthy money habits that will last! I educate my clients on the fundamentals of personal finance and help them create a spending plan that reflects their own unique values and goals. I empower my clients to take responsibility for their decisions, support their continual learning and growth, and serve as an accountability partner throughout their journey.
A Financial Coach is NOT an adviser and will not try to sell you products or add on services. Financial Coaches help people transform their own lives and mindsets to move past ‘knowing what to do’ and understanding ‘why’ they are doing it so they can implement the necessary changes to realise their goals and reach financial freedom - as defined by them.
The key difference between Financial Coaches and Advisers is that:
Financial Coaches will work with you so YOU understand the basics of financial principals and money management to help YOU develop healthy money habits to keep you on track to create your own wealth and financial well being;
A Financial Adviser on the other hand are paid by you to manager your investments, they do not help you take responsibility for your own financial decisions. There goal is still essentially the same as a Financial Coach, but you need to have money to invest and even if you do have money, if you don’t implement the ‘complex’ financial strategies you paid an adviser to compile then you have not only wasted your money paying for a strategy but are no longer closer to becoming wealthy.
Financial Coaches don’t just work with clients who are struggling with money, many clients who earn a great income and have lots of assets also have large credit cards debts, anxiety around spending money and or are a pay cheque away from missing a mortgage payment.
Women who are separated or divorced who often have been uninvolved in the finances or have received a settlement is a common scenario and a Financial Coach can help them create intention about how they create a new life for themselves, how they want to live and how to achieve this financially.
Financial Coaches sit somewhere between a therapist. a financial educator and a financial adviser.
You wont be told WHAT to do, rather it will be working out what YOU want to do and a Financial Coach will give you the information and the knowledge and empowerment to do that!
As the saying goes, give the man a fish and you will feed him for a day, teach a man to fish and you will feed him for a lifetime!
- Coach Rach
