How is a Financial Coach Different?

With all of the choices that you have to choose from between financial advisors, financial consultants, investment advisors, etc., why would you choose a financial coach? The simplest answer as that as a financial coach my only concern is about helping you. Let me put it this way…how much better would you feel about your future if you did not have any debt in the world? Imagine how much money you would have to be able to make choices with.

As a financial coach one of my primary concerns is helping you build up an emergency fund and get out of debt. With those two things done the amount of worries that you have in life have been greatly diminished because no longer do you have hundreds or even thousands of dollars to pay each month to those who gave you money. You would also have money saved up in case something happens in life that you need to pay for called an emergency.

These two factors could completely change your life and put you into a position to start investing and saving for your future in the future and are foundation to any advice that you will ever get from me. From there a financial coach, adviser, or other professional resources come into play, but a coach should still be one of your first stops to learn as much as you can about your different options before you go someplace to start buying a product by investing or whatever else. I have personally made the mistake of not having the right information and getting myself into stuff that I should not have. When you have appropriate information you will be able to learn more, ask better questions, and will be able to quickly realize whether the person you are talking to in one of these places has your best interest in mind or if they are just trying to sell you on something.

As an example of what I am talking about, I was with a certain insurance company for the last 15 years and recently changed my provider and saved over $1000 a year with the switch. One of the first contacts that I received from my former insurance agent was asking me to remember them if things changed and then in the next sentence they were trying to sell me life insurance for my two year old. If you want to know why this is something I will never buy read my post on whether to buy whole or term life insurance, but suffice it to say that buying life insurance for children, other than a rider on an existing account, is expensive and is not the purpose of insurance. A child has no income so the only possible insurance on a child should be for burial expenses which can be accomplished with a rider on an existing term-life policy which will cost significantly less than a separate policy. This policy was a far greater benefit to the insurance company than to me. So, as I was saying you need to have information to be ready to make the best possible decision.

The easiest way to change your financial future is to stop using debt of any form , to build up an emergency fund to help protect you from some of the unknowns, start investing a portion of your money, and to be generous with your money. All of these things combined will help you look at money completely different, they will help you gain independence, and they will help you in building a future for you and your family that will be able to be lavishly generous to those in need while providing an inheritance for your children and your children’s children. Financial coaching is not about getting rich, it’s about taking control of your finances so that you can minimize your risk and start investing in your future and that is why a financial coach is different. There will come a time when you will benefit from one of those other people helping you with your investments, but until that time comes a financial coach is in your best interest.

There are no get rich quick ideas that really work. The best way to build wealth is to completely get out of debt and start saving money. Investing your money will generally help you, because you get to capitalize on interest rather than it capitalizing on you. Any plan that does not start with you getting out of debt and building up an emergency fund will greatly increase your risk and stress. Sure you may loose a few years investing if you wait until you get out of debt, but then you will be out of debt and you will be able to do so much more with your money. Another advantage to it is that if something happens you can always put a hold on investing until the turbulent times subside. It’s your choice, but from personal experience on both sides of the matter I would choose being debt free in every circumstance because I know how freeing it is versus the feeling of being in debt.

Blessings,
Jeremy

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