Key Takeaways:
- Financial coaches focus on behavioral finance, budgeting and helping clients achieve financial goals.
- Financial coaches are different from financial advisors because they don’t recommend specific investments or manage investor portfolios.
- You don’t technically need any certifications to become a financial coach, but they can give you a competitive advantage.
- Operating a coaching business and working with people who have financial hardships can be a challenge.
Mastery over finances gives people more choices. A good financial cushion can make retirement feel more realistic and allow you to go on a vacation every year.
Unfortunately, financial stability isn’t the reality for most consumers. A survey from LendingClub and PYMNTS titled “Reality Check: Paycheck to Paycheck” revealed that approximately 60% of employed U.S. adults are living paycheck to paycheck. This lifestyle can lead to higher stress, especially if an emergency expense comes out of nowhere.
Financial coaches aim to address this issue and others that their clients may face. Rather than recommend investments, as a financial advisor does, financial coaches focus on human emotions and how they relate to money. These coaches help clients create systems that lead to better financial results. They can also help people with their long-term financial goals.
Here’s what you need to know about what financial coaches do and how you can become one:
Not everyone knows how to manage…
