Are you tired of living paycheck to paycheck? Do you find it difficult to stick to a budget and save money for your goals? If this sounds familiar, you may benefit from the services of a budget coach. A budget coach is a personal finance professional who specializes in helping individuals and couples manage their finances effectively. In this article, we will explore what a budget coach is, what they do, and what to consider when selecting one to help you achieve your goals. Whether you’re looking to pay off debt, save for a big purchase, or simply gain more financial freedom, a budget coach can provide the guidance and support needed to win with money.
What is a Budget Coach?
Budget coaching (sometimes called a money coach or personal financial coach) is a trained coach who helps you identify opportunities and errors in your money habits. Financial Coaches help you develop a game plan and build confidence so that you can win with money. They help you learn how to pay off debt, build an emergency fund, save for retirement, and achieve the financial future you want.
A Budget Coach (or a financial 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 coach helps you align your actions with your goals.
What Does a Budget Coach Do?
Essentially, a budget coach meets you where you are in your money management journey and helps you organize your money to better meet your needs and goals. But let’s take a closer look at the details of budget coaching.
Role and responsibilities of a budget coach
- A budget coach should understand your current situation and offer guidance that aligns with your goals.
- A budget coach should help you develop a game plan to achieve your objectives such as paying off debt or saving for a major purchase like a house.
- A budget coach should lead you to actionable steps to achieve your goals.
- A budget coach should always hold you accountable when you have not acted in a way consistent with your stated goals.
Helping clients create their budget
Healthy personal finance begins with a budget. A family/ couple/ person without a budget is like a ship without a compass. Reaching any destination will be near impossible. So your budget coach will begin by helping you develop a monthly zero-based budget which will serve as the basis for your entire experience with your coach.
Understand your struggle, empower you with tools, encourage your success
A good budget coach will work to understand your underlying struggles with money management and empower you with the tools and knowledge to make changes. A good budget coach will be your biggest cheerleader, recognizing your growth and successes while encouraging continued progress toward the life you want.
Benefits of Hiring a Budget Coach
Does the check engine light cause stress? Paying for Christmas on credit? You can stop the money worry by getting a game plan for your income. A budget coach helps you organize your income so you can win with money.
Accountability and motivation in sticking to a budget
Budget coaches help to keep you on track via accountability and motivation. They help you understand and remember that your budget is your friend and ultimately, the tool that will help you win with money.
Overcoming obstacles and avoiding common mistakes
Life happens and your budget coach will help you prepare for and navigate surprises while avoiding common mistakes that can sabotage your success. Learning how to deal with unexpected financial events without losing your direction is an important function of a budget coach.
Gaining confidence in handling personal finances
Online Financial Coaches help you develop a game plan and build confidence so that you can win with money. Budget coaches help you stack successes which in turn builds confidence moving forward.
Qualities to Look for in a Budget Coach
Anyone can create social media profiles and print business cards that look slick and convincing. But do they really have the background, experience, and skills to help you win with money? Look for these things before hiring a budget coach.
Experience and expertise in personal finance
Don’t feel awkward during your consultation asking your coach what qualifies them to be a budget coach. Anyone can create social media profiles and print business cards that look slick and convincing. Ask about credentials and or training. And don’t be afraid to ask your coach to verify that they follow (in their finances) what they teach.
Strong communication skills
Most coaches will offer a free consultation. During your consultation are they communicating with you well? Are they making sense to you? If you are struggling to connect during your consultation you might be better served to look for another option. It is your money and your life.
Excellent listening ability
A budget coach should have plenty to offer but not before you’ve communicated your story. If you are getting lots of advice and don’t feel like you have been heard your coach likely struggles with listening.
Non-judgmental approach toward clients’ financial situations
A Budget Coach (or a financial coach) is not a counselor. We don’t focus on your past and you should never feel judged. 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 budget coach should be genuinely excited to help you move forward. You should feel encouraged and empowered by your coach. If you feel judged in the least bit, look elsewhere for another coach.
How Much Does a Budget Coach Cost?
Budget coaches range from almost free to pretty pricey. The key to remember is that you get what you pay for.
Hourly rate
Some coaches will work on an hourly rate that can range from $50 to $300 per hour/ session.
Subscription structure
Some budget coaches offer a subscription service with automatic monthly billing in which you get a predetermined number of sessions and email or phone support. On average, a typical budget coaching client can expect to pay from $100 to $175 per month for coaching services.
Potential cost savings resulting from improved financial habits
Many people feel that if they are already struggling with their finances they cannot afford a budget coach. But almost always, a coach can find savings in your spending to more than cover the cost. This is done via your first budget creation process. Ultimately a person has to decide what they want. If they are willing to make changes, they will look back at it as a great investment. Or, they can keep doing what they are doing and get the same results. It’s their decision.
Tips for Finding the Right Budget Coach for You
It’s your money and your life. You should feel comfortable with whomever you are paying to guide you thru your money journey.
Assess their philosophy
Many coaches have a personal money philosophy. Sometimes this centers around the issue of debt. If your coach is tolerant of personal debt as a “tool” and your individual struggle is centered around becoming debt-free then you’ll want to look for a coach better aligned to your needs. Ask about their philosophy on personal finance.
Research qualifications, certifications, and client testimonials
Who trained your coach? Do they have any certifications? Ask for client testimonials. DO NOT be afraid to ask for these credentials and proof before hiring. It’s your money!
Schedule initial consultations to determine compatibility
Lastly, take advantage of the free consultation to see if you connect with your potential coach. At the end of your consultation, you’ll likely know if the relationship feels right.
Final Thoughts – What is a Budget Coach?
Budget coaches should never offer gimmicks or quick fixes. Save that for the shady types. They should provide tools, resources, and education to help their clients identify the problems causing financial stress and create a game plan to win with money. They offer know-how, encouragement, and support. You supply the elbow grease. It is a winning combination!
A person without a budget is like a ship that ignores its compass. You might just end up stranded on a sandbar without any food, water, or shelter.
