Managing your finances can feel like an uphill battle, especially in today’s world of rising costs. Rising costs of living have only put more pressure on Australians who are left with dwindling savings after paying their bills. Luckily, there are options for those who are struggling to maintain control over their finances. Working with a financial coach or financial advisor is one way of learning effective money management tips and creating a plan to achieve your goals in life.
The benefits of working with a personal finance coach
Working with a personal finance coach can be beneficial to anyone who wants to improve their financial situation. Here are just a few of the ways a personal finance coach can help you manage your finances.
Aligning finances with core values and goals
Everyone has core values and goals, but actually identifying them can be more difficult than you think. A personal finance coach will work closely with you to identify your core values and financial aspirations. This will help you align your financial decisions and actions.
Once they understand your core values and goals, your personal finance coach can use this as a basis to develop a plan to get you there. Whether your goal is to purchase a home or improve your debt reduction strategies, personal finance coaching will help with your financial goals planning.
Making informed financial decisions and maximising opportunities
Not all of us have extensive financial knowledge – and that’s okay. A financial coach will be able to apply their expertise to your specific situation to help you make sound financial decisions. They will also be able to help you maximise your opportunities and make the most of your finances.
Maybe you’ve just received a large inheritance and are wondering what to do next or have made good capital gains on an investment. Or perhaps you just feel a little lost with money decisions and are looking for some budgeting guidance. No matter your situation, a finance coach can provide you with support, and encouragement, and help you achieve personal finance success.
Improving communication and collaboration in couples’ finances
Financial coaching can be an effective way to improve how couples in a relationship handle their finances. A financial coach can facilitate communication and collaboration as well as mediate any financial disagreements.
Finances can be a tricky subject for any couple. In fact, research conducted by Money.com.au showed that 26% of Aussies thought that their partner was spending too much on non-essential items or services. Unfortunately, ignoring the issue of finances won’t make it go away, so it’s important to be able to sit down and address it as a team. Respect and listening are key here – you should take turns speaking and avoid interrupting each other.
If money is still a tense topic in your relationship, you may want to consider the help of a personal finance coach. Personal finance coaching can help you better navigate your finances as a team. They’ll be able to encourage regular financial discussion and guide you in communicating effectively about your finances.
Acting as an impartial third party for couples
As an impartial third party, a financial coach can provide you with an unbiased view of your finances. Since finance coaches don’t receive any kind of monetary advice or incentives to make particular recommendations, they are able to act solely in your best interest. This is particularly useful if finances are a source of tension between you and your partner. Financial coaches can mediate discussions and help you come up with a plan that you’re both happy with.
Qualities to look for in a personal finance coach
With the number of financial advisories around, it can be daunting to choose a good coach. Here are a few things to consider when comparing potential coaches.
Communication and interpersonal skills
Communication and interpersonal skills are among the most important qualities of a good finance coach. You’ll want to choose a coach that is willing to take the time to listen and answer any questions or concerns you may have.
The right personal finance coach will mesh well with your personality and make you feel like you’re on the same page. Of course, they should have strong communication and interpersonal skills, but sometimes that isn’t enough. Their communication style just might not work for you, and there’s no harm in continuing to look for a financial coach who suits you better.
Experience and credentials
A good personal finance coach will always be equipped with significant experience in the industry and hold industry-recognised credentials. It’s always a good idea to verify your coach’s experience and credentials before choosing their financial coaching services.
Online client testimonials should also give you a good idea of a finance coach’s reputation. You might get a recommendation from a friend or family member for a particular finance coach. Just make sure to do your research before making a final decision.
Difference between a personal finance coach and financial advisor
A personal finance coach is different from a financial advisor in that their advice is more limited. Generally, a personal finance coach doesn’t manage your investments and cannot give you specific investment or insurance product advice. But they can help you transform your money behaviours and guide you in building better money management skills. If you need a more comprehensive service, either now or in the future, a financial advisor may be a better fit as their scope of advice is broader.
If you’re interested in getting a personal finance coach or financial advisor, at Financial Spectrum we offer a complimentary, no obligation financial strategy session. It will give you the opportunity to see whether a personal finance coach or financial advisor is right for you, and you’ll get some useful tips to make the most of your money along the way. Book a consultation with an expert at Financial Spectrum and take control of your finances today.