If finances feel intimidating for you, you’re not alone. How you handle your finances is very personal; not all advice works for everyone. Instead of relying on trusted family and friends for advice, sometimes it pays to turn to a professional, whether it’s in the form of a financial literacy online course or a face-to-face financial coach.
What Does Financial Coaching Do?
Financial coaching helps you understand the basics of personal finance. The purpose is to help you develop and maintain healthy financial habits and to help you set financial goals. Financial coaching helps clients who want to get their finances in order and can help with specific problems or objectives like saving money, creating a budget, paying off debt, or improving their general financial literacy. In some cases, people need help even figuring out what their financial goals are. Coaching can help you voice your goals, or figure out what they should be.
Common Goal #1: Saving Money
If you spend more than you need to on a regular basis, that’s an expensive problem. Financial coaching can help you get your spending sorted out. A good financial coaching service will help you get in touch with your financial priorities so you can keep spending money on what really matters to you, but cut back where it makes sense. This will help you save money sustainably. By setting realistic savings goals, you can put aside the money you need over time. The value of this help is often well worth the initial expense of the coaching itself.
Common Goal #2: Creating a Budget
This goal often goes hand in hand with other goals, especially saving money. That can make it complicated and hard to navigate alone. Financial coaching usually involves having someone sit with you and outline a plan. This is a good step no matter what your other goals are because it helps you set aside realistic amounts for your other goals, like budgeting for savings.
Common Goal #3: Paying Off Debt
If you owe more than you’re worth, that’s a big financial problem that can get expensive over time. But paying off debt can feel overwhelming. Financial coaching can help you feel like you have someone on the sidelines, cheering you on while you tackle your debt and achieve your financial goals.
Common Goal #4: Improving Your General Financial Literacy
Finances are a big part of our lives, but most people never receive any formal education or training for handling their finances. This can make managing finances intimidating. Financial coaching helps you understand the basics of how to manage your life, but will also help you learn about intangible things like the emotional parts of dealing with money.
Whether you’ve noticed a mismatch between your priorities and your spending, are just starting out on your own and aren’t sure where to start, or are undergoing a big life change that’s affecting your finances, those can all be challenging to handle on your own. If you know where you want to be, but need support getting there, a financial coach or financial literacy course can help.