What is the difference between a financial coach and advisor?

If you’re looking to get your finances in order, a financial coach may be just what you need. A financial coach can help you create a budget, track your expenses, and save for your future goals. A financial coach is different than a financial advisor. They both fall under the umbrella of financial planning.

Financial coaches work with you to explore your money habits, help you develop financial goals and better money habits, think about your financial future while providing a type of financial counseling. A financial coach helps you build your financial skills leading to better money management. Most financial coaches charge an hourly rate or per session fee for coaching. The cost can vary depending on the client, and the amount of financial coaching needed.

A financial advisor/financial planner/certified financial planner will create a comprehensive financial plan consisting of investment advice, tax planning, retirement planning, insurance, and education planning all designed around growing wealth for their clients. Some financial advisors charge a flat rate for their services while others charge a commission on the financial products they manage.

A financial coach will work with you on understanding your relationship with money and financial advisors will work on your money’s relationship with the world. Having both is important to your financial life.

Here are some tips for working with a financial coach:

1. Be honest about your spending habits.

Your financial coach will need to know how much you’re currently spending in order to help you create a budget that works for you. Knowing how much you spend is important. Do you have credit card debt? How much is in your emergency fund? What is your income? Do you receive any type of financial support?

2. Be willing to make changes.

Creating and sticking to a budget takes commitment and discipline. Your financial coach will help you make the necessary changes so that you can reach your goals. Working with a financial coach can help you with your money management skills which include your financial decisions, recognizing your financial behaviors, and your financial literacy.

3. Set realistic goals.

Trying to save too much or pay off debt too quickly can be frustrating and counterproductive. Work with your financial coach to set achievable goals that will help you improve your financial situation. Financial coaches tend to evaluate your current situation and help you plan for your future financial situation. Figuring out the cost of retirement, education, how much social security you might receive, and overall wealth you might have will help you and your coach not only set goals but a plan to meet them.

4. Stay accountable.

One of the benefits of working with a financial coach is having someone to hold you accountable. Make sure to follow through on the plans and recommendations made by your coach. This will help you create healthy financial habits. Just like you would with a fitness coach, life coach, career coach, etc if you don’t follow through you won’t make progress.

If you’re ready to take control of your finances, a financial coach may be the right solution for you. Contact Joey at J.R. Financial Coaching to learn more about working with a financial coach. We are here to serve our clients, provide training, education, and help you make better financial decisions. No debt is too big, no income too small. We create a plan of action to complement your financial planning experience.