Four Reasons You Need a Personal Finance Coach
When you want to trim down and firm up, you go to a gym and hire a personal trainer. This trainer looks at your challenges, creates a plan, helps you execute the program, and hopefully, you see results. This path is very similar for people who hire a personal finance coach. Except, in this case, your training and motivation are specific to your finances. Just as most people know they need a personal trainer in the gym because they lack the knowledge and motivation to get the results they want, some people have the same issues with their finances.
If you’ve never considered hiring a personal finance coach, it might be because you don’t need one. Or do you? The following are four reasons you might consider hiring a personal finance coach.
1.Spend less and do smarter things with your money
A personal finance coach sees a bigger picture than your narrow view of your income and debts. This specialized coach can get you out of a rut you might be stuck in just as a habit — but that habit is costing you.
For example, a personal finance coach can look at your everyday spending habits and see issues you think are commonplace, such as stopping at the gas station for coffee before work and then again after work to get a soda. Or, you are going out for lunch three or four days a week. While you might do these activities on auto-pilot, a personal finance coach spots them as the money-wasters that make you short on cash by payday or that keep you from ever saving enough money for that vacation or new car.
By adding up these expenses and putting a number on paper, a personal finance coach can show you how much you spend a month on things that can be eliminated from your habits. And then your coach can help you make a plan for the money you save.
2. Accountability and motivation
Just as a personal trainer in the gym provides accountability and motivation, your personal finance coach can do the same. If you know what you need to do to save enough money to pay down a debt, but you don’t follow your plan, it might be because you have no accountability. If you have someone encouraging you and helping you stick to your goal, it is a lot easier to do the right thing.
It’s just like going on a diet and telling the people close to you. You want them to hold you accountable for eating the right things to stay true to that diet. Your personal finance coach will provide the right amount of encouragement and motivation and hold you responsible for staying the course with your financial goals.
3. Gaining a financial knowledge base
Some people need more information regarding investment opportunities. There are so many ways to save and grow your money; the average person can’t keep up. Personal finance coaches can share this information. They can help you develop a knowledge base that allows you to make informed decisions on which methods of growing your money are best for you. Coaches can teach you the information they know and how to find other information; however, they cannot give you advice on how to invest your money.
4. Reduce stress and eliminate confusion
Organizing your finances can be overwhelming at times, especially if you are trying to pay down some debt. When you look at the bottom line, you see doom and despair and worry that you have no way out. A personal finance coach can look at your situation with a set of fresh eyes and an outside view. They can often offer ideas and plans you didn’t think of. This new perspective allows you to calm down and see the light at the end of the tunnel. And all of that stress you have been harboring due to your financial worries will start to go away. Now that your coach has helped you get over the overwhelming stress, you can start doing something productive to fix your situation.
Even though many people have not thought about hiring a personal finance coach, there are many reasons it just makes sense. Whatever your situation, if much of your time is being wasted worrying about your finances or thinking that you could be doing more to save money, a personal finance coach could fit your needs.