The money coach is a professional life coach that is concerned with helping people gain control of their finances. Like any life coach, the financial coach strives to assist people in making realistic decisions about resources on hand, setting goals for the future, and developing a high degree of independence. With money coaches, this means helping people develop financial strategies that lead to little or no outstanding debt, a solid nest egg for the future, and a clear set of goals regarding future financial goals to meet.
People who are struggling with debt often find that a money coach can help them avoid the pain and embarrassment of filing bankruptcy. Because the focus of the money coach is on assessing the current financial condition and coming up with procedures to restore some balance to the situation, the coach will often aid the client to face the hard reality of the current circumstances. This often includes helping the client to break negative spending habits and replace them with more positive approaches to using available resources.
Along with helping the client to realistically understand the situation, the money coach will also work with the client to slow the accumulation of debt. Changing spending habits is the first step in this process. Creating additional sources of revenue, such as taking a second job, may also be advised as part of the debt reduction program. The goal is to identify and implement practical strategies that will result in debt reduction and elimination. This eventually leads to a higher standard of living for the client.
Along with helping the client develop and implement ways to get out of debt, the money coach often aids in the setting of financial goals for the future. These may involve such worthy goals as buying a home, establishing a retirement account, or acquiring assets that can be converted into cash in later years. While financial coaches of this type do not provide investment tips or attempt to steer customers toward a particular retirement plan, they will help the client acquire factual information about various asset creating endeavors.
