Managing your finances can be a daunting task. Trying to stay on top of bills, debt repayment, and savings goals can sometimes feel overwhelming, especially if you did not learn these skills early in life. That’s where financial coaching comes in. One-on-one financial coaching is an effective way to get personalized guidance and support for your specific financial situation. It is also an opportunity to learn about your money mindset and how the choice you make affect your financial future. A good one-on-one financial coach will help you understand yourself and how you can change your future by making better choices. Effective financial coaching will always be focused on teaching wise financial principles coupled with the goal of personal financial responsibility. In this article, we’ll explore what one-on-one financial coaching is, how it works, and the benefits of working with a personal finance coach to achieve your money goals.
Why is Financial Coaching Important?
One-on-one financial coaching is conducted by a trained coach who helps you identify opportunities and errors in your money habits. One-on-one financial coaches help you learn wise money principles, develop a game plan, and build your confidence to win with money. They help you learn how to pay off credit card debt, build an emergency fund, save for retirement, and achieve the financial future you want. Financial coaching is important for you if you struggle to save money and/ or always feel broke. Building the financial future you want is achievable by learning wise financial principles and choosing to apply them to your life. A good financial coach helps to keep you accountable and on track.
- One-on-one financial coaching helps you organize your income for success.
- One-on-one financial coaching helps you align your spending habits with your goals.
- One-on-one financial coaching helps you develop long-term plans to meet your responsibilities.
- One-on-one financial coaching helps you retire with dignity.
- One-on-one financial coaching helps you make room in your finances to be generous to others.
Benefits of One-on-One Financial Coaching
Stop Money Worry
Does the check engine light cause stress? Paying for Christmas on credit? A financial coach can help you stop the money worry by getting a game plan for your income. They help you organize your income so you can win with money.
Live Your Best Life Now
Nothing changes until something changes. With the right tools and resources and a little hard work and elbow grease you won’t have to worry about how you’ll retire or pay for your kid’s education. A good financial coach will lead you thru the process of eliminating your debt, saving for emergencies, and funding longer-term goals such as your next car or a child’s college education so you can live your best life now.
Retire with Dignity
No one sets out to live in their kids’ basement when they get older. Yet, ignoring sound financial wisdom can land you in that position. A financial coach benefits you by helping you spend, save or invest every dollar you earn with a purpose so you can retire with dignity.
Working with a Financial Coach
How to find a qualified financial coach
There are several organizations that train financial coaches to help others reach their goals. When working with a financial coach be sure to ask about their perspective and philosophy. For instance, if your goal is to get out of debt, you would not want to work with a financial coach that sees debt as a useful tool. So be sure to know what you want to accomplish and select a coaching program that trains coaches toward that end. At Budget Coach USA we believe the fastest and safest way to financial wellness is to achieve and keep a debt-free lifestyle. Budget Coach USA is trained by Ramsey Solutions as a Master Financial Coach and holds a Preferred Coach status.
- Ramsey Solutions – Dave Ramsey has been the voice for his trademark brand “Financial Peace” for more than 25 years and is a trusted voice. The training received by a Ramsey Master Financial Coach is second to none.
- You Need a Budget (YNAB) – YNAB posts a list of coaches right on their website. The coaching program is aligned with their mobile app and budgeting process. While YNAB promotes financial wellness, it does not lean toward debt aversion in the same way Ramsey Solutions does. So if your goal is to be debt free, you’ll likely find more support for that goal with a Ramsey Preferred Coach.
- National Financial Educators Council – This organization provides one-on-one financial coaching as well as literacy programs for schools and institutions.
What to expect during your first meeting
A financial coach (or a budget coach) is not a counselor. We don’t focus on your past. We are focused on your future by helping you strengthen your financial muscles and develop a healthy money mindset so that you can win with money.
A financial coaching session is a meeting between you and your financial coach. You’ll focus on where you are now with your money and where you want to be—and your coach will help you make a plan to get there!
In a session, you’ll get the chance to unpack your financial situation—along with your worries. Maybe you’ve taken on too much debt. Or you can’t figure out how to get on the same page with your spouse on spending. Or you’re a little freaked out about being able to afford retirement. It’ll feel good to share this with someone who’s professionally trained to guide you—someone who’s in your corner and has the compassion, skill, and knowledge to make a real difference in your life.
You won’t need to worry about finding tax forms and bank statements. Financial coaches begin from more of a 30 K-foot view in your first session. You’ll likely be asked to fill out some information on your basic financial situation so that your coach can get a basic understanding of your position. From there, things can get more specific as your sessions continue.
Common Areas Addressed in Financial Coaching Sessions
Budgeting strategies and techniques
Zero-based budgeting is the standard for personal finance. You’ll learn about how to plan for and execute a zero-based budget so that you can make progress toward your goals. A zero-based budget is the pillar of financial control.
Debt elimination plans
Debt limits your ability to build wealth so expect any reputable financial coach to work with you to eliminate debt.
Saving for emergencies, retirement, or other long-term goals
Having an emergency fund is crucial for financial stability and peace of mind. Unfortunately, many people struggle to establish or maintain this important savings account. Being able to save for emergencies and plan for retirement along with other longer-term financial goals will be the coaching priority of a qualified financial coach.
Money Mindset
Have you given yourself permission to be well-off financially? Or have you always seen yourself as less advantaged? A one-on-one financial coach will encourage you to let go of any personal limits you may have (unknowingly) placed on yourself and help you nurture new habits and choices that align with the future you really want. A financial coach is not a therapist but a good one-on-one financial coach can point out if your mindset and choices are not aligning with your stated goals. From there it is up to you to make changes.
Final Thoughts About One-on-One Financial Coaching
Hiring a financial coach can be one of the best decisions you make for your financial well-being. A one-on-one financial coach can help you gain clarity on your goals and develop a plan to achieve them. They can also provide accountability and support as you navigate your finances. With their expertise, they can offer valuable insights and guidance that can save you time, money, and stress helping you live your best life now. Investing in a financial coach is an investment in yourself and your future. Take control of your finances today by seeking out a qualified one-on-one financial coach who can help guide you toward achieving financial wellness.
