WHAT DOES A FINANCIAL COACH DO?

An in-depth look at what a financial coach does, and HOW THEY HELP YOU!

So often when I tell people that I am a Financial Coach, I get asked questions such as:

1)     So you sell mortgages?

2)     Do you manage investments?

3)     Retirement planning?

 The answers to those questions are NO. NO. And Sort of, but not what you are thinking. You are likely asking at this point, what is it you DO exactly?

What does a Financial Coach do?

The truth is, I help people I work with gain control and confidence in managing their money so they can set themselves up for success, and get a plan together to achieve their dreams.  Keep in mind, I am a COACH. As any coach would do, I help clients to set goals, motivate them to stay on track, and bring new perspectives when needed to “course-correct” as things start going off-course. Actually carrying out the plan we create together is up to the clients themselves.

To dig into what a financial coach does, I think its best to explain how I have designed my programs. While I do have different programs available (OWN IT: HOW YOU CAN OWN A HOME AND LOVE IT, CHANGE IT: HOW YOU CAN CONTROL YOUR FUTURE AND LIVE THE LIFE YOU WANT, BURY IT: HOW TO BURY YOUR DEBT RATHER THAN LETTING IT BURY YOU!), the work I do as a financial coach is based on three major principles to solve the problems we all face: EDUCATE. MOTIVATE. INNOVATE. 

EDUCATE.

(Teaching to fill in knowledge gaps)

Unfortunately, there has been a major gap in the school system around managing everyday finances. While I have heard of improvements to reform the education system and incorporate additional curriculum around everyday finances, many young adults are graduating with major gaps in some of the essentials:

1)     How to Build a budget

2)     How to STICK to a budget

3)     Student Loan Programs/Paying off-debts (amortization schedules)

4)     What are different mortgage products, and what do they mean?

5)     How much should be saved for retirement each year to be able to retire.

As a financial coach, I am there to “stand in the gap”. I first educate clients where there are gaps, to help set them up for success. While I can help educate on the steps to take, like any coach, I cannot take the steps for my clients.  To best illustrate this, I encourage you to think about a track and field coach. They can provide training on how to sprint, and point out areas for correction, but their client is the one to actually do the sprinting!  As my clients carry out the plans we establish together, I do help by walking with them on their journey. This brings us to the next major principle in my program.

MOTIVATE.

(Helping to set clear goals and a plan to get there so clients say “I can do this”)

Let’s be honest here…building a budget, sticking to it and making trade-offs is not fun. Its just not, and I will be the first to tell anyone that.  However, when you have clarity on your DREAMS, and WHY you have those dreams (ie) better life for family, early retirement to spend more time with them, travel the world etc.), it makes the trade-offs more bearable. This is where I come in.

Step 1 with any client is defining their dreams in crystal clear vision, and “FINDING THEIR WHY”. That is, finding why they have the dreams they do so that they are able to make trade-offs by keeping the long-term in mind and staying the course when things get tough (as they will!).  From there, I work with clients to build a savings plan (or plan of action) out of their budget…mapping out steps to take, milestones to look for, and then a timeline of when they can expect to achieve their dreams. From my experience, once there is a realistic plan in place, and a vision for where to get to, that is 90% of the battle. Of course, I do walk with clients to get them on their way, and offer ongoing “growth and accountability” packages where we meet less often after the initial 90d transformation plan to ensure they stay the course. In reality, setting good realistic goals is typically enough – as the motivation has to come from within the clients and having a sense of “I can do this” is all the motivation that is needed. I will point out potential pitfalls or trip-ups as we walk together, but ultimately I am a guide and the client has to carry out the plan.

You may be asking at this point…”You mean to tell me you can Create a Plan for any Dream I have?“ With 100% confidence, I can say YES I CAN. The suitability of the plan for your desires is something we have to work together on (ie) 3 years vs 100 years), and if needed, this is where the third part of my program, and duty as a financial coach comes in.

INNOVATE.

(Offering new perspectives and ideas to help clients avoid getting “bogged down” by operating in constraints they set for themselves)

When the resources clients currently have don’t quite line up with the dreams they want to achieve (at all, or at least in the timeline they want), this is where my true skills as a financial coach come in.  Let’s face it, when we are in certain situations, it is hard for us to look outside of what’s in front of us – we build parameters and constraints we FEEL we must operate in, or “sure things”. As a financial coach, I bring new perspectives and operate outside of those constraints, with fresh insights and propose “what if’s”. By digging into clients passions, as well as their finances, I can help to generate ideas for secondary income, or to manage existing income more effectively (reduce expenses ie) eating out). This extra cash flow (increased revenue, or reduced expenses), can be put directly towards #ACHIEVINGDREAMS. This will improve the velocity and make dreams become much more of a reality.

To be clear, I do operate under a framework of facts and logic. While I fundamentally believe that everyone has a right to dream and see a way to make these come true, it is about hard work and perseverance. I will map out the plan and help them to find a way to get there, but the goal has to be realistic (see January Blog Post on SMART goal setting). If there are “pie in the sky” ideas and dreams like “I want to be a millionaire tomorrow”, it is my job is to help reveal myths or unrealistic expectations, as they simply set the client up for failure later. No BS, clear vision, realistic plan – that is what I bring.

Now that you have an idea of what a financial coach does based on my program and offerings, let’s revisit the answers to initial questions I mentioned.

1)     Do I sell mortgages? No. As a financial coach, I EDUCATE clients on mortgage products that are available and have trusted referral partners who offer mortgages. I even offer to go with clients to these meetings if they so choose to help remove the anxiety with one of the largest purchases they will ever make.

 2)     Do I manage investments? No. I help MOTIVATE clients on the reasons why they should save by mapping out a plan for their goals and dreams (vacation home, retirement, children’s education etc.). I would never advise on what investments to purchase, but can educate on what they are (ie) a GIC vs a Stock vs a Mutual Fund etc.). As with a home purchase, I also have trusted referral partners who are financial advisors that I can refer clients to.

 3)     Do I do Retirement Planning? As I said before, sort of…but not what you are thinking. I help clients make decisions and understand what following a consistent savings plan, with a certain desired level of return will look like in X number of years. In terms of actually investing the money, I would refer them to a financial advisor (and arm them with questions to ask - that is, I EDUCATE.). I help clients generate savings ideas and understand what it will look like if they “stick to the plan” over the long-term. If they are looking for opportunities to retire earlier or need more cash for daily needs while maintaining savings for retirement, then I look to INNOVATE, by working with them to come up with new ideas to reach their goals.

I hope you see that my role as a coach, is to help “coach” you through decisions. It’s a scary world, and when you just want some independent advice, it can be tough to find someone who isn’t trying to sell you something. That is the service I offer…independent unbiased advice, fresh perspectives, course correction, as well as accountability to help change your saving and spending habits. 

If you are at all like me, you may be saying to yourself: “Those who can’t do, coach”.  Well, let me tell you – that is certainly not true! The reason I am so confident that I can help you to create a workable plan, as well as guide you through the first decade of major decisions, is because I have done it! I paid for my own post-secondary education, purchased my first house at 25, and was mortgage (and completely debt) free at 35.

Did I work hard? YES.

Did I make some sacrifices? YES, but I had a lot of fun along the way too.

Was it completely worth it and something I would do again? In a HEARTBEAT.

And I have the roadmap to help you on your journey!

If you still have questions about what a financial coach is and how they help, do not hesitate to reach out! I’d love to chat with you, and I hope you see that my main goal is to help you get to yours. You can book a free consult here: Book Now!

IN YOUR CORNER!