Just like playing an instrument, knowing how to manage your money better is a learned skill. But all too often it’s a skill that many of us haven’t had a chance to learn, let alone strengthen.
With growing distrust of financial planners and advisers, money coaches are gaining popularity.
These money coaches are like a cross between a financial planner and a counsellor.
They offer clients individually tailored financial management plans. The services they offer vary, but typically include personal finance analysis, research and planning.
They work with clients on strategies around budgeting and goal planning, while also trying to get to the source of money problems.
Money coaches can help you improve your finance management, but their expertise can be costly.
To determine if you need a money coach, start by asking yourself a series of questions related to your finances.
Do you have a firm grip on your finances? Do you carry balances on your credit cards? Do you pay your credit card bills on time? What is your credit score?
Do you have any current controls in place regarding your spending? Do you follow a monthly budget? Do you track your spending and your income? Do you track your monthly bills?
Do you have any plans for your retirement? Have you set aside anything for retirement? Do you have any idea how much to save for retirement? Do you have any kind of long-term vision for your finances?
These types of questions allow you to pinpoint the areas in your finances that you may need help with. If you only have a few issues and you are not having any money problems, you may not require the services of a money coach and could get by with some straight financial advice.
However, if these questions raise a number of red flags, you may require the services of a money coach to whip your financial affairs into order.
Qualified money coaches can offer clients valuable assistance to help them get their finances on track.
If you have no control over your spending, or if you have no idea how to get out of debt, and if you have no immediate plan for saving for retirement, then a money coach could play a vital role in your financial life. Remember to check the references and success rates for any financial adviser or money coach before making your decision.
What are your thoughts on money coaches? Have you had any positive or negative experiences working with one?
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Seven money secrets of the rich
