Monday, April 30, 2018
10 Reasons Why You Should Have a Money Coach
As I roll through my Facebook and Instagram feeds I am inspired by how many coaches there are out there. From personal training and nutrition to productivity and mentorship, there are a lot of ways to get yourself in a better place through coaching. I fully believe in coaching and the effects it can have on one’s life. I am a product of learning the hard way and I know for a fact there are many hardships I could have avoided if I had the right coach. Sadly, when I needed help I didn’t know where to look. When it comes to money coaches, I believe everyone should have one. Today, I am going to show you 10 reasons why having a money coach will change your life. Sometimes you need that pat on the back, or kick in the ass, that only a money coach can provide.
1) You are sick of living paycheque to paycheque
This is gross feeling. Sadly, a huge portion of our society is living paycheque to paycheque. Even sadder is that it is not income dependent. I have clients making well over 100K a year in this boat, similar to ones making less than 40K. What I call this lifestyle is “reactionary living.” Something happens, you react and take care of it. How you react is by scrambling to handle the newest burden on your life. Here is the problem: When you are reactionary, you never get ahead. One thing I guarantee my clients is that if they become proactive, instead of reactive, they will have fewer burdens in their life. Living paycheque to paycheque is a terrible way to live. I know, I’ve been there.
Almost half of Canadian employees living paycheque to paycheque – CBC News
2) You need help getting started
Okay so you know you need to save money and you know you need to eliminate debt. You also want to buy a home and you know protecting yourself with insurance is important. What do you do first? Part of my job is to guide you through the path of financial freedom and it all begins with the first step. Often, the first step is the easiest to take. Most of the time that is starting a savings program or buying affordable insurance. Sometimes it is attacking debt or balancing one’s monthly budget. Either way, identifying what can be done immediately to make the client’s life better is job 1. We then create a plan of action to move forward.
3) You are not good with numbers, or money, or banking, or anything money related
Well, not anything really. Everyone is good at something, but for many, money isn’t one of them. Why is this the case? Why is the public so overwhelming bad with money? I believe that we have a culture and education system that leads to this outcome. No one teaches us the importance of personal finance at a young age. As we get older we are taught some pretty scary things about money like how having a credit card at 18 is okay. Or how having 30K worth of debt at age 25 is normal. Or how buying a home that makes you house poor is perfectly fine. Your money coach takes the complex and makes it simple. The numbers are just numbers. It is the actions and goals that make the plan work. Sometimes being told what not to do is more valuable than being told what to do.
4) You are sick of worrying
The pain in the voice of many people I know, when they talk about money, is intense. Worrying about money or paying the bills is a nasty feeling. Worrying about missing a day of work and the effect it will have on your monthly income is nasty. When you have a plan of action, the worry goes away. I go through a series of questions when I first meet a client. I ask probing questions that should induce an answer almost immediately. Most questions get answered with an, “I don’t know,” or an, “I’ve never really thought about that.” It is a money coach’s job to help you create answers to the questions you don’t currently have one for.
5) WTF is retirement?
Have you thought about it at all? For many, the thought comes into their head for about a second and then is replaced with something more fun or less scary. I always say to people: Either you chose the way you want to retire, or you will have no choice. Getting started, pumping up savings, choosing the right investments, and tax efficiency are all important. Your money coach is there to explain the importance of each one and make sure you follow the right path. I will say this plain and simple: You must save money for retirement. If you do not, you will live in poverty during your later years. That scares the shit out of me and it should to you as well.
6) You need accountability
The best personal trainers are a blend of drill sergeant and best friend. They push you when you need to be pushed and hug you when you need to be hugged. Most of our problems derive from the fact that when we are left alone to accomplish goals, we often get sidetracked. We need to be accountable to someone other than ourselves. Having the money coach watch over your progress and push you along is the key to many people’s success. Outlining your goals from the start and setting achievable points while on the path is crucial. Your money coach needs to be there at those checkpoints to help keep you on track. Sometimes you need the carrot, sometimes you need the stick.
Resolution Checkup: How Was Your First Quarter of 2018? – Budget Boss
7) Investments confuse you
Investments confuse just about everyone. Why are they so confusing? They are confusing because the investment industry makes them confusing. It is the job of your money coach to break down the confusing world of investments and make them easy for you to understand. If you do not know or understand what you are invested in you will get frustrated. If you get frustrated, you might not accomplish your goals. With a money coach, this will not be the case.
8) Insurance confuses you
When most people think of insurance they think of State Farm taking money from them every month for something they never will get anything out of. You probably are protected from a house fire that has almost a zero percent chance of happening. You probably know you need some form of life insurance to protect your loved ones should anything happen. You probably are confused as to what is the best product for you. You probably know that if you get hurt or sick, you won’t be able to pay bills. You may or may not know what disability insurance product is right for you. It is the job of your money coach to demystify these products and show you why they should have a place in your overall financial plan. You must save money and you must protect your savings. Your money coach should show you why.
9) You want simplicity
One of the reasons I love Dave Ramsey is because he lays everything out in easy to understand pieces. Your overall financial plan should have no more than a handful of products working towards a common financial goal. When you start layering product after product on top of each other you get way too confusing and start wasting money. Your money coach should be able to help you make the most effective, simplest financial plan that suits your needs.
10) You need someone that understands you
Your money coach is in it for you. They need to know what makes you tick. They need to know exactly what you care about. What your fears are. What your goals are. They need to know what you are currently dealing with. What your employment looks like. They need to know your entire situation, so they can guide you to where you want to be. No financial plan is the same for each person. They are tailored to your goals and based on your current situation. It is this personal touch that will help you do the things you want to do in life using your money as the tool to get there.
Working alongside a money coach will help you stay on track for your money goals. It is the push that most of us need to get where we want to be in life. Just like having a personal trainer will help you achieve your body goals, the money coach will hold you accountable for your money goals. It is truly an investment worth making.
“Seek out a personal coach or mentor. He/she should push you when you need it by encouraging and motivating you. Don’t be afraid of their honesty.” – Cathy Engelbert
Email – joe@budgetboss.ca
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