Discovering Financial Coaching: A Path to Financial Wellness

Understanding Financial Coaching

About two years ago, I was lying in bed scrolling on my phone (a habit I’m still trying to break!) when I came across a post about different types of coaching. One of them was financial coaching—and it instantly caught my attention. I had never heard of it before. But it sounded exactly like something I’d been wanting to do for a long time... I just didn’t know it had a name.

I stayed up way too late reading more about it and was thrilled to discover it is a real job. I told myself I’d look into it more the next day, and I did. I signed up to get my Certification in Personal Finance Wellness Consultant and I put a lot of time into learning about the coaching aspect of this new role.

My Journey in Finance

I’ve worked in corporate finance for over 25 years. However, I never really focused on my own personal finances while climbing the corporate ladder. If I'm honest, I wish I had. I know I’d be in a better place financially now if I had taken the time to prioritize it.

But it's never too late to start. That’s a key point in my coaching: helping others avoid the mistakes I made along the way.

What Does a Financial Coach Do?

So, what does a financial coach (or financial wellness consultant) actually do? A financial coach is there to help you with various aspects of your financial life. Here are some critical areas where I can provide support:

• Build healthier money habits.

• Make a plan for your income, expenses, and savings.

• Overcome money fears and limiting beliefs.

• Gain confidence in managing your money and eventually start investing.

  
  

Identifying Your Financial Status

Not everyone is in the same place financially. Some people are very organized with their money. Others may feel lost, overwhelmed, or unsure where to start. Most people simply want support, education, and a little accountability when it comes to their finances.

Money Stress and Its Impact

Let’s face it: money can be stressful. It is the number one source of stress for 70% of Americans and poses the greatest threat to their mental well-being.

As an example of the current situation, credit card debt is at an all-time high. As of the end of 2024, credit card debt in the U.S. reached a record high of $1.21 trillion, according to the Federal Reserve Bank of New York. It’s so easy to buy now and worry later.

That’s why I believe financial coaching and financial education are more important than ever.

The Importance of Financial Education

Financial education equips individuals with the knowledge they need to handle their finances effectively. Whether you are just starting your journey or are already on the path to financial wellness, understanding the nuances of spending, saving, and investing can make a significant difference.

Achieving Financial Independence

A financial coach can help you set realistic goals and achieve true financial independence. When you feel in control of your finances, you can make informed decisions that positively influence your future. Imagine knowing exactly how much you can afford to spend and save without feeling guilty.

The coaching process also encourages you to explore your values and priorities. Understanding what is important to you can help shape your financial decisions.

Creating a Personalized Action Plan

A successful financial coaching relationship begins with a personalized action plan. This plan is tailored to your unique situation and goals. It helps to pinpoint where you are now and where you want to be.

Your coach will guide you through various steps, including:

1. Assessing Your Current Situation: Understanding your income, expenses, debts, and savings.

2. Setting Achievable Goals: Establishing what financial success means to you.

   
   

3. Creating Strategies: Developing a clear action plan to reach your goals effectively.

   
   

4. Monitoring Progress: Regular check-ins to adjust your strategies as needed.

   
   

Building Confidence in Financial Decisions

One of the highlights of working with a financial coach is the boost in confidence you gain. When you start seeing the results of your efforts, it reinforces your ability to manage your finances.

With increased competence and understanding of financial concepts, you will begin to feel more empowered in your decision-making.

This transformation can lead to a healthier relationship with money. You can shift from viewing finances as a source of stress to seeing them as a tool for achieving your dreams.

Conclusion

In conclusion, financial coaching is a pivotal step toward reclaiming control of your financial future. It combines accountability, support, and education to help you build healthier money habits.

Financial stress can be overwhelming, but with the guidance of a skilled coach, you can navigate your path to financial wellness. Never forget it's never too late to start your journey toward better financial health.

Whether you are looking to manage debt, build savings, or start investing, a financial coach can help. Embrace this opportunity and take the first step toward financial freedom.