If you’re considering hiring a professional to work with you on your finances it’s important to know the distinctions between these two. This is one of the most commonly asked questions, but very easily misconstrued. Knowing the difference can help save your precious time, and more importantly, help save your hard-earned money.
What Does a Financial Coach Do?
The main goal for financial coaches is usually just to improve your financial literacy, and teach their clients how to handle their finances responsibly. They act much like a coach where they are improving their client's skills and knowledge to enable them to save money, pay off debt, or create a budget. A good financial coach has the following:
- Completed their formal training and earned their certifications.
- They can help you develop a positive healthy relationship with money, strategically plan for savings, and paying off debt quickly.
- They assist with creating an individualized budget that doesn’t have to be restrictive but will keep you on track for your financial goals.
- They analyze behaviors and help you develop better habits with money.
- They provide accountability and guidance for you to reach and surpass your financial goals.
- Financial Coaches and Financial Advisors can actually work together to help you create your legacy and build wealth.
What Does a Financial Advisor Do?
A financial advisor must be licensed and has more of a hands-on approach to your finances. A good rule of thumb is that you hire a financial advisor when you have disposable income and are ready to invest. They usually have a more in-depth understanding of finance and are qualified to give you financial advice in investing, planning for retirement, estate planning, and long term care planning.
What is the Difference Between a Financial Coach and an Advisor?
The main difference between the two is that a financial advisor is qualified to give you advice on what financial moves to make, where a financial coach is there to increase your financial knowledge and skills to make you more fiscally responsible.
Financial coaches are better for those of you who are younger and still gaining wealth and assets. Financial advisors are usually a better fit for those who have accumulated wealth already or those who are inheriting a large estate and need advice on how to handle all of their assets.
Financial coaches are also best fit for those who are tired of living paycheck to paycheck and are drowning in debt. A financial coach can lead you on the path to wealth and then refer you to a financial advisor. Much like a health journey where one is tired of being overweight, you must make changes in your financial health to make it work!
Connect with Christine Matlock: Reno Bookkeeper and Financial Coach
A financial coach at Prosperity Concierge can help you establish a healthy relationship with money by helping you create a practical budget, creating goals to pay off bills and debts, teaching you ways to modify your money practices, and working towards financial wealth and prosperity.
Not only will learning how to properly manage your money help you financially, but it could also help improve your overall confidence and well-being. Stop stressing about your finances and connect with Prosperity Concierge today! We will help you make appropriate decisions with your money so you can reach your financial goals without complication. Head over to our services page to learn more about our financial coaching services.