How to Afford a Financial Coach?

When faced with financial constraints, the idea of allocating funds to afford a financial coach may seem daunting. It’s a common dilemma: finding the money to invest in coaching can feel like an impossible challenge when you don’t have money to spare. However, it’s essential to recognize that this initial hurdle is often more psychological than practical.

How to Afford a Financial Coach?

Here’s how to shift your perspective and explore avenues to afford a financial coach, even when money is tight.

Acknowledge the Value

Start by acknowledging the intrinsic value of financial coaching. While it may seem counterintuitive to allocate funds when resources are scarce, consider the long-term benefits that professional guidance can provide. Investing in your financial literacy and well-being now lays the foundation for a more secure and prosperous future. The Consumer Financial Protection Bureau shared some insights from a study conducted by the Urban Institute which found increased savings and lower debt to name just a few benefits they found among people engaged with a financial coach.

Redefine Priorities

Take a critical look at your current financial situation and reassess your priorities. While it may feel like there’s no room in your budget for coaching, consider whether there are areas where you can reallocate funds. This might involve cutting back on non-essential expenses or reprioritizing your spending to make room for affording a financial coach.

Utilize Employer Resources

Check if your employer offers financial wellness programs as part of their benefits package. These programs may include access to financial coaching services or workshops at minimal or no cost to you.

Allocate Side Income

f you have a side hustle or are expecting a bonus, consider earmarking a portion of those earnings for financial coaching. Consistently setting aside even a small amount can accumulate over time towards your coaching investment. Don’t have a side hustle? It might be time to consider one.

Barter Services

Consider exchanging your skills or services for financial coaching. Perhaps you’re a talented graphic designer, writer, massage therapist, or handyman. Offer your services in exchange for sessions with a financial coach. Many coaches may be open to bartering arrangements, especially if they have a need for the services you can provide.

Lean on Community Support

Don’t underestimate the power of your social network. Reach out to friends, family, and community organizations for support. Explain the importance of your financial goals and how coaching can help you achieve them. You may be surprised at the willingness of others to lend a helping hand, whether through financial contributions or practical assistance.

Explore Affordable or Pro Bono Options

Begin your search for financial coaching services by investigating low-cost or even pro bono options. Many community organizations, churches, non-profits, and government agencies offer such services aimed at enhancing financial literacy and well-being.

Shift Your Mindset

Finally, recognize that investing in financial coaching is not just about spending money—it’s about investing in yourself and your future. Shift your mindset from one of scarcity to one of abundance. Instead of focusing on what you don’t have, focus on the potential for growth and improvement that coaching can provide.

You may be interested in reading, Finding Extra Money: 7 Easy Ways.

What Is a Financial Coach?

In today’s complex financial landscape, the role of a financial coach as a mentor and guide is increasingly recognized. A financial coach educates on essential money management skills to help you reach your financial objectives. They provide guidance on various aspects, such as building savings, crafting a budget, and tackling debt. However, it’s important to note that financial coaches do not provide investment advice or make definitive money recommendations because they are unlicensed. Instead, their goal is to be the guide and let you be the hero who makes the calls. Financial coaches concentrate on enhancing financial literacy and fostering better money management habits.

Beyond mere financial guidance, financial coaches also delve into money management’s behavioral and emotional facets. They assist clients in understanding the underlying motivations behind their financial decisions, aiming to cultivate healthier attitudes and habits toward money.

Consider reading this article to further your knowledge, Financial Coach: What It Is and How to Choose One.

Understanding the Difference Between Financial Coaches and Financial Planners

In the realm of personal finance, two key professionals stand out: financial coaches and financial planners. While both offer valuable expertise, they serve distinct roles and cater to different aspects of financial management.

Financial Coaches

A financial coach is akin to a personal trainer for your finances. They focus on helping individuals develop better money management habits and achieve their financial goals. Their
services often revolve around budgeting, debt management, saving strategies, and behavioral finance.

Unlike financial planners, financial coaches emphasize education and empowerment, equipping clients with the knowledge and skills to make informed financial decisions. The relationship between a financial coach and their client is typically hands-on and collaborative. Coaches work closely with clients, serving as accountability partners and offering personalized guidance and support along the way.

Financial Planners

In contrast, a financial planner takes a more comprehensive approach to financial management. They offer services aimed at helping clients achieve their long-term financial objectives, which may include retirement planning, investment management, estate planning, tax optimization, and insurance analysis. Financial planners conduct in-depth consultations to assess clients’ financial situations, risk tolerance, and objectives before developing customized plans. While they also establish close relationships with clients, the client-planner relationship may be less frequent and more focused on periodic reviews and adjustments to the financial plan.

On the other hand, financial planners are required to hold licenses with state and or federal agencies depending on their jurisdiction and the services they offer. Common credentials for financial planners include Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), and Chartered Financial Analyst (CFA), and you may also find graduate-level
credentials such as MBA or MPFP. These professionals must adhere to strict ethical and professional standards, providing clients with a higher level of assurance regarding their
expertise and competence.

Cost Structure

Financial coaching services typically operate fee-for-service or hourly, with costs varying depending on the coach’s experience and the level of personalized attention provided. Financial coaches are typically less expensive compared to financial planners. Financial planners may charge fees based on a percentage of assets under management, a flat fee for comprehensive financial planning services, or an hourly rate for consultations. The cost of financial planning can vary significantly depending on the complexity of the client’s financial situation and the scope of services required.

In summary, while financial coaches and planners play crucial roles in helping individuals achieve financial success, they serve different purposes and cater to different needs.
Understanding the differences between the two professionals can help individuals choose the right path toward financial well-being based on their unique goals and circumstances. If you are ready to take the next step in getting financial guidance consider a consultation with BlackBird Finance where we help all income levels with personal finance through financial coaching and financial planning.

This article reflects the insights and opinions of its author and is not a recommendation or endorsement of their views or services.

About the Author