Thinking about hiring a financial coach? Do you pay the minimum balances on your credit cards and loans every month just to charge them back up again? Or maybe you’re having difficulty sticking to your budget, or perhaps you don’t even have a budget!
If you find yourself nodding along with any of these, then you’re just like millions of other people who don’t quite know how to handle their debt and income. It may very well be time for you to hire a financial coach!
10 Signs You Need A Financial Coach
You might think a financial coach is for someone who is quite well off, but there’s a distinction here. Financial advisors help people plan for retirement, investments, and so on. A financial coach is a person to help you get your finances in order and set some goals to help pay off debt. Even if you’re debt neutral but are still living paycheck-to-paycheck, a financial coach can help you focus your monetary efforts.
Here’s a list of 10 great reasons to hire a financial coach. It could mean the difference between being in perpetual debt and seeing relief.
Poor Money Management
You have a lot of debt and you don’t know how to pay it off
The first part of any debt solution is creating a budget. A financial coach can help you determine where all your money is going. A coach working with you to create a budget will figure out every single last little thing coming out of your accounts each month. Most people don’t realize they might still have subscriptions, streaming services, or other weird additions to their bills that they’re not even using. A coach will help you identify them all, which you need, and which can be cut.
A financial coach can help you find new ways of making money
Sometimes paring down our spending and budgeting simply isn’t enough. Excessive student loan or credit card debt creates an interest trap that can see you paying on your bills but them never decreasing. This is where having even a small side hustle comes in, giving you the freedom to pay more on certain bills each month. It can also help stretch your budget to meet your monthly demands as well.
You don’t have an emergency fund
For most people, a car repair, medical emergency, or broken water heater will go right on a credit card. It’s not uncommon for even two-income households to be living paycheck-to-paycheck and without even a meager savings pool, one mishap will cause financial ruin. You might think that if you’re significantly in debt that putting money into a savings fund is pointless, but it provides a substantial peace of mind knowing that you can address random bad luck without worry. A financial coach will find the money each month to get you started on saving up that first $1,000 to put your mind at ease.
You don’t have any financial goals
If you’re simply paying your loans and credit cards each month – especially if it’s just the minimum – you need a goal and some advice on how to get out of that rut. For instance, if you owe $1,000 at 18% interest, and you pay the minimum of $37/month, it will take you almost 3 years to pay it off. In addition, you’ll also pay another $292 in interest. A financial coach can help you figure where you need to put your money to pay off your highest interest debts first and get a plan that saves you a ton in interest.
A financial coach can help you find better ways to pay off your debts
In some cases it’s not just about simply paying off your debt but how best to pay it off. Do you do the snowball method, where you pay off your lowest debt and then take that payment and apply it to the next smallest debt? Do you take the approach of paying off your highest interest first? A financial coach can help you see the bigger picture and how to tackle your payments in the most efficient way possible. This also includes knowing how best to approach secured vs unsecured debt!
Moving Beyond Debt
You’re in an okay spot but you have no plans for “after debt”
Most people don’t know what to do with themselves once they have their debt paid off. You suddenly find yourself only with a mortgage and some utilities and that’s fertile soil for making bad financial decisions. A coach can help you invest that “excess” money in ways that will pay off in the long term. Rather than wasting it on pointless stuff, you can set up retirement plans and start saving in a profound way.
A coach will keep you accountable
Just like a fitness coach or a personal trainer stops you from eating bad food or slacking off at the gym, a financial coach will be there to keep you on the right path monetarily. It’s incredibly helpful to have someone who knows what they’re doing and will hold you accountable for every dollar you spend and earn.
You want to buy a house
The dream of home ownership can be scary. A house is a huge investment of time and money – most mortgages are 30 years! A financial coach can set you on the path to improving your income-to-debt ratio and becoming a homeowner.
You and your partner are on different pages when it comes to finances
Just like a marriage counselor can see you through difficult times, a financial counselor can help get you and your sweetie on the same page about money. If buying a brand new car puts a sparkle in your eye but your spouse only sees $40,000 price tags, you need someone to help you figure out a middle ground. Since financial troubles are one of the main stressors in a marriage, not having to worry about them can really improve your life.
You want to retire early (or at all)
The days of working at the same job your whole life and having a great pension to look forward to are largely over. You need to be shrewd, focused, and committed to save enough to retire, no matter what age you intend to stop working. Financial coaches can help you determine how much money you’ll need for retirement, how long it will take to earn enough, and how to set up passive income streams that will pay consistently.
Have you considered hiring a financial coach?
If you’ve never considered hiring a coach, now might be the time. You don’t need to be drastically in debt to benefit from the expertise of a financial coach, and the amount of money and time it could save you, in the long run, can be dramatic. Book a free call with me today and let’s get you started on the road to financial freedom!