Is a financial health coach a luxury only the rich can afford? Or, can expert financial advice even help those who are living paycheck to paycheck?
What is a Financial Health Coach?
A financial health coach is a personal financial expert that understands budgeting, debt, savings, credit, providing for college, retirement, spending money wisely, and organizing an individual’s financial future. They are not financial planners, tax specialists, stock brokers, CPAs, or financial gurus Financial coach.
They will explain how money and debt works, and provide pertinent information so individuals or businesses can make their own prudent financial decisions. They are teachers and advisers, not salespeople.
What is Financial Health?
Being financially healthy can mean different things to different people, but there are some basics that apply to everyone:
Financial responsibility – understanding the basics of personal (or business) finance and being able to take care of your financial needs.
Financial Literacy – being able to make sound financial decisions based on available information.
Financial independence – being able to make and implement your own decisions – sometimes with the help of an adviser, but often on your own.
Financial security – having peace of mind that you have the money to support the basics of life, enough to provide some luxury, and plenty to provide for the bigger events in life – college funds, medical needs, and retirement.
6 Reasons You Don’t Need a Financial Health Coach
Now, financial health coaches cost money, and one lesson you will learn from one is to not spend money unnecessarily. So, before you shell out some of your hard-earned cash on a financial health coach, let’s see if you really need one.
Is you household on solid financial ground? Do you have a household budget and are able to stick to it month to month? How about the financial health of your business – is your financial budget working? If all is well with your budget, then you can probably save the money and put it into a family vacation or fixing up the house.
Have you put money away for a college fund? Have you begun funding your retirement account? Do you know the best ways to save for these very expensive needs? If so, you probably don’t need a financial health coach.