9 Signs You Need a Financial Coach — Not Just a Financial Advisor
Written by
Cindy Lamothe
Edited by
Rebekah Evans
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Making financial decisions isn’t for the faint of heart — and that’s exactly why you’ve likely ended up hiring a financial advisor. They are pros at helping you sort out all those messy numbers.
But, then, why are you still struggling with finances?
As it turns out, you might need additional help.
“As a financial coach, I know that if a potential client says ‘I just don’t understand why I can never get ahead,’ they likely need guidance to build better habits and skills,” said Ben Klesinger, founder and CEO at Reliant Insurance Group and Helping Hand Financial.
“Simply telling them what to do won’t stick,” he said. “Coaching provides the accountability and hands-on support to make real progress.”
Below are some signs you need a financial coach — not just a financial advisor.
If You’re Feeling Overwhelmed
According to Lauryn Grayes, finance expert and founder of Wealth Gems Financial, when a business owner expresses feeling overwhelmed by the funding process and unsure where to start, a coach can provide guidance and a strategic plan custom to their needs.
“The variety of options from loans to angel investment and venture capital can seem daunting without an expert to help determine the best path forward,” she said.
If You Can’t Stick To a Budget
“When someone admits they struggle to stick to a budget or often make impulse purchases, that’s a sign a coach could help motivate them and identify obstacles to overcome,” Klesinger said.
“I’ve worked with clients to break the cycle of living paycheck to paycheck and find ways to save for important goals,” he explained. “With encouragement, they gained confidence in their ability to improve.”
Grayes similarly agreed and said, “If someone has trouble following through on recommendations or sticks to unrealistic expectations, coaching adds accountability. I’ve worked with clients who were ready to give up but ended up securing the capital they needed with the support of a coach to help overcome obstacles.”
If You’re Dealing With Financial Hardship
For those dealing with financial hardship, coaching is crucial.
“Major funding needs can paralyze small business owners, but a coach knows how to properly determine needs, explore options and negotiate the best deal,” Grayes said.
Their expertise minimizes stress and additional financial strain.
If You’re a High Achiever
Klesinger equally noted that high achievers who want to accelerate their wealth building can also benefit from coaching.
“Learning sophisticated strategies for investing, tax planning and business growth requires expertise and guidance,” he explained.
For these clients, he said a coach provides the challenge and mentorship needed to reach the next level of success.
“Coaching is also ideal for ambitious entrepreneurs wanting to maximize opportunities,” Grayes said. “Learning little-known funding strategies and how to effectively pitch to investors can help secure not just the minimum needed but the optimal amount to fuel real growth.”
The knowledge and guidance of a coach prove invaluable for those ready to take their business to the next level.
If You’ve Had a Recent Career Transition
“Former finance industry employees struggling with a recent career transition often need help navigating their options and choosing a new path forward,” Klesinger said. “Life changes can be overwhelming, but an experienced coach knows how to evaluate choices objectively and find security again.”
He observed that coaching gets you through difficult crossroads and eases anxiety along the way.
If You Need To Pay Off Debt
According to Hanna Morrell, holistic, trauma-informed financial coach, if you need to pay off debt, a financial coach who customizes debt-paydown plans might be best.
“Many financial advisors may provide guidance around this or recommend an app or online program, however.”
If You Need a Personalized Money System
Customized, adaptable money systems — also known as spending plans or budgets — take some work to create on the front end and most financial advisors might not have the time to devote to this.
“While many advisors will do what I call the budget slide (sliding a premade budget across the table), they might not have the time or skills to do much more,” Morrell said.
If you need a customized, evolving spending plan or budget, she said it’s time to seek out a financial coach.
If You Need To Build Wealth
According to Morrell, this might be a question that tips some folks into needing both professionals.
“A financial coach to help with implementation and integration of behavior change and mindsets around wealth growth and a financial advisor to help with products and product advice.”
If You Need To Change Your Relationship With Money
If your relationship to wealth, money, debt, savings, etcetera, could use some improvement, it’s time to talk to a financial coach.
“It’s not that financial advisors don’t want to help, but they may not have the training, skills or experience of a financial coach,” Morrell added.
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