Here Are 3 Reasons To Hire A Financial Wellness Coach

At the end of your time together, you should feel a sense of improved financial literacy, you’ll also have accomplished some of your goals together, and learned to deal with setbacks. Some other benefits you’ll discover after working with a financial wellness coach include:

• You end up with a personalized action plan for eliminating debt or building wealth. This is not a standard cookie-cutter generic plan, it’s customized to your current financial situation as well as your personal skills and resources.
• You’ll know how much money you need to retire and have a realistic plan to make your goals happen.
• You’ll gain accountability over your financial goals and will remain on track despite distractions or interruptions.
• You won’t feel the need to sacrifice your family or health by working extra hours in hopes of gaining financial

Before we discuss the three biggest reasons to hire a financial wellness coach, let’s look at the difference between a coach and a financial planner.

What is a Financial Planner?

A certified financial planner is an expert in estate planning, retirement, insurance, and taxes. They write exams and partake in ongoing education to keep their certification. Financial planners often give advice based on personal opinions about investment products their clients should buy.

The difference between a Financial Planner and a Financial Coach

A coach does not manage your investments or sell you investment products such as stocks and mutual funds.
A planner will help you understand the products they sell such as insurance and stocks, while a coach educates their clients on increasing their financial literacy including how investing works and specific terminology.
A coach will not invest your money for you, you will always remain in control of your finances. Instead they help you plan and create a budget.
A planner charges their clients a percentage based on their wealth and trades they make, while coaches can range from no charge to a fixed fee.

3 reasons to hire a Financial Wellness Coach

1. YOU HAVE QUESTIONS ABOUT MONEY

You may have questions - lots of questions that can’t be answered from a book or online search: What are other people who do my job earning? Is my spending in line with my salary? Am I saving enough?

Financial questions are endless, that’s why you should meet with an experienced Financial Wellness Coach. It’s a non-judgemental space to talk about your money concerns and questions. You work together to break through financial barriers.

2. YOU NEED MOTIVATION

One of the most valuable benefits a financial wellness coach provides is their ability to motivate. They empower you to make smart financial changes… and it seems that most of us need to make at least some changes:
- Approximately 76% of people live paycheck to paycheck, due to poor money management.
- The average household spends 24% of their take-home pay on debt.
- Stats Canada shows us that our debt to income ratio has grown exponentially in the last 20 years, from approximately 105% in 1999 to 175% in 2019A good reference is to compare a financial coach to a personal trainer. They both motivate you to push through barriers for a reward by figuring out where you currently stand, determining your goals, and coming up with a doable plan.

3. YOU WANT A PLAN

One of the goals a financial wellness coach will have for you is to find long-term success. Your coach will help you build healthy money habits by creating a financial plan that reflects your goals. After establishing a plan they provide accountability and support. This prevents people from failing due to a lack of implementation.

When you're done

Referring back to the personal trainer comparison, your coach will work with you until you don’t need them anymore; but that doesn’t mean you can’t go back. Just like all things in life, circumstances change, as do our goals. Checking in with your coach when you’re struggling or flourishing will help ensure you’re making smart decisions either way.