FAQ's About Financial Coaching
Why is Financial Coaching necessary in today's economy with such low unemployment? Regardless of how low unemployment is, if you are unemployed or between jobs or underemployed it can feel like the world is crashing down around you. You can look at the statistics that have been published in any number of studies that show us that:
- 78% of American Households live paycheck to paycheck.
- 81% of American workers say that personal finances have impacted their productivity at work.
- 66% of Americans would struggle with a $1000 emergency.
- 42% of American s will never save $10,000
We can cite more statistics, but the bottom line is that if you can relate to any of those statistics, you don't have to lie that way. There is hope and we can help you to no longer be a statistic.
What is Financial Coaching? Financial Coaching is the process of identifying a clients goals and needs and developing strategies to help them get there. Similar to how a coach helps a professional athlete to perform at their best, a financial coach helps their clients to make better financial decisions for a better financial life. Often, Financial Coaching will begin with identifying and addressing immediate issues such as overwhelming debt, dealing with debt collectors or some other source of financial stress.
What can I expect during a coaching session? During a coaching session your coach will help you to identify sources of stress and financial issues that require immediate attention. During the coaching process your coach will help you to set goals. They will help you to identify resources, tools and services that may help you with immediate problems as well as achieving your goals. Action plans will be developed and in future meetings your coach will monitor your progress and act as an accountability partner to help you stay on track.
Is my Financial Coach motivated to sell me any additional products or services? Absolutely not! Omega Money Coach is strictly fee based. We do not receive any referral fees or compensation from any of the professionals that we may suggest you speak with. While we are well versed in all area of personal finance, we are no longer licensed to sell securities or insurance of any kind. We want to make sure that our guidance is not impacted by any outside factors other than your needs.
Why do people hire a Financial Coach? Typically, people who hire a financial coach have an idea of where they want to go, but not how to get there. Working with a financial coach, they are able to identify their goals, work with a professional to create a road map to get where they want to be, access tools and resources to continue learning and growing and have the support of an accountability partner in a judgment free zone who will help facilitate their financial growth, elimination of debt and accumulation of wealth.
What is the difference between a Financial Coach and a Financial Planner? As discussed above the role of a financial coach is to educate, advise and to guide their clients on all things personal finance related. A financial Coach will walk with their clients on the journey through debt elimination to wealth accumulation. A financial Coach does not typically sell any products and does not offer specific investment advise. A Financial Planner or Financial Advisor on the other hand, will work with you on the accumulation phase by offering products that will allow your money to reach its maximum potential. As your coach, we want to make sure that you have a firm understanding of all of your options so that you do not invest in something that you are not comfortable with or don't understand.
How can I afford a Financial Coach? The better question is why can't you afford a Financial Coach? When you are struggling with mounting debt, it can be overwhelming and it often feels like you are drowning in years of poor financial decisions. When you hire a Financial Coach you are paying for that coach's skills, knowledge and experience to escape those bad choices. Typically, we want to help you to identify areas in your budget where you can make simple changes that may offset the fees for our coaching services. Working with a coach gives you the tools and confidence to make Better Financial Decisions for a Better Financial Life!
I don't have any debt, do I still need a coach? Just like a professional athlete continues to use trainers and coaches, you can use a financial coach to help you achieve your goals and dreams on a more dramatic level. If you currently have no debt, Congratulations!! The next phase is wealth accumulation and in this phase we want to make sure that every dollar is working as hard for you as you did to earn them.
How long do I need a Financial Coach? Every individual or family has different needs and goals. 6 months is the most common. While many issues can be resolved in 3-6 months, we want to make sure that we are creating habits that last a lifetime. We understand that financial issues do not end just because your coaching has come to an end which is why we offer regular "check-ups"to our clients. This check up could be a one time visit to review an upcoming financial decision or answer questions about how to navigate the personal finance world.