Financial Coaching: What Is It and How Does It Help

Financial coaching is guiding one through a financial journey by taking on a collaborative educational approach that empowers one to achieve financial independence. 

There is no big secret to building wealth, just simple principles to get you there. As such, the biggest problem for many isn’t knowing, its actually getting things done. Things can only get done by taking the small actions that add up to achieving financial independence. Thus, financial coaching seeks to bridge that gap between knowledge and completing actions. This way, the financial coach will take you through a continuous coaching process to try to change negative habits – similar to the approach of a personal trainer.

What is Financial Coaching?

Financial coaching is essentially having individual sessions with you in order to ‘coach’ performance improvement to meet financial goals. In a collaborative coaching relationship, financial goals are mutually set by the coach and the client and monitored in a process largely driven by the client. Through this ‘coach’ performance improvement approach, you receive the much-needed encouragement to drive positive behaviour change, a boost to self-control and flexibility to change strategies as behaviour changes. This is why coaching is so well suited for wealth building programs such as ours.

How Does it Help to Build Wealth?

Financial coaching gets results as it looks beyond education, rendering financial advice and investment strategies. The financial coach looks at the financial habits – thus bridging the gap to ensure positive financial behaviours. The following are the main aims for a financial coaching:

• Address any immediate issues (place plugs to the sinking ship)
• Improve long-term financial behaviour – identify negative financial behaviour, help you practice new behaviour and monitor behavioural changes over time.
• Facilitate you to set and achieve financial goals
• Facilitate decision making, provide tools, resources and referrals.
• Target clients with a minimum level of financial skills and experience

With all these things in place, the collaborative educational relationship changes the behaviour around money and ultimately empowers you to achieve freedom.

How Financial Coaching Gets Results?

Financial coaching focuses on you – not the instruction being delivered.  This might be identifying the obstacles to good financial management. This can be identifying areas to reduce spending to create more savings or help you get out of debt, and understanding your emotions around money. Financial coacting still teaches the essential principles behind wealth building such as risk management, leverage, competitive advantage, mathematical expectation, continuity of income, proven investment principles, techniques and much much more. However, all this knowledge is incomplete without good habits to maintain to help you move forward with whatever plans you may have.

Bottom Line

When you feel confident about their finances, you want to take charge and plan more for their future. You are better equipped to make decisions on their own because you move in primed and perfectly able to understand investment product information. Looking forward, positively and unafraid to make those hard financial decisions.