The field of Financial Coaching is relatively new, so it's normal to be confused about exactly what a Financial Coach does. Three common misconceptions are:
It is the same as a Financial Advisor & they help people with investing.
They just help people put together a budget.
They focus on how their clients can cut out expenses from their monthly spending.
I may ask my clients about their 401K contributions, but that's about as far as I go when it comes to investing. I happily refer people to some wonderful Financial Advisors I know if they need investment assistance.
And while I do some of numbers 2 & 3, there is A LOT more that goes into Financial Coaching. :)
Financial Coaching is actually a subset of Life Coaching, with a specialization in personal finances. A good Financial Coach exists to support their clients with achieving more, & in a faster timeframe, than they could on their own. For many people, organization & understanding of personal finances does not come easy. A Financial Coach can support you in feeling more confident & comfortable with your finances through education, encouragement & organizational tools.
We've all heard the saying "Knowledge is Power" but it really should go one step further and say "Applied Knowledge is Power." Simply knowing something cannot help you reach your goals, but applying that knowledge can. A Financial Coach can give you that additional motivation to learn the knowledge AND apply it. I will share more in further blog posts, but hopefully this gives you a good overview & better understanding of what a Financial Coach does!
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