A Comprehensive Guide on Becoming a Financial Coach

The journey to becoming a financial coach may seem overwhelming at first but following the tips and recommendations in this guide can help you on the path to success. Anyone interested in becoming a financial or money coach can utilize this guide for step-by-step instructions.

1. Why Become a Financial Coach?

   1. Financial coaching gives you the opportunity to help others achieve their financial goals. Financial coaches, also referred to as money coaches, guide their clients towards creating healthy financial habits, including setting financial goals and tracking progress towards those goals.

   2. On top of the opportunity to help others to reach financial wellness, financial coaching is a career opportunity, part-time or full-time. The ability to set your own work schedule and hours gives you added flexibility that you might be missing in your current job. Additionally, financial coaches charge their own prices, allowing for stable financial growth.

1. What Does a Financial Coach Do?

   1. A financial coach helps clients work towards financially related goals, from saving money to paying down debt. Financial coaches meet with their clients regularly to discuss progress and any changes that may be needed. The financial coaching process can last from a week to a year, depending on the client’s needs. Like any other coach, the financial coach helps the client set goals and track progress. Financial goals often include multiple layers. Therefore once meeting the first financial, the financial coach works with the client on the next destination. For example, a personal finance coach can work with a client on how to qualify for a mortgage and then move to another goal, such as building a nest egg for retirement. A business financial coach can start with managing cash flow to set a plan to pay off the business loans.

1. What are the Different Types of Financial Coaching?

   1. Personal Finance Coach: A personal finance coach helps clients understand the basics of personal finance. In most cases, a personal finance coach helps people that are employed. Common goals include paying down debt and saving up money.

   2. Business Finance Coach: A business finance coach works with business owners to take control of business finances. A lot of times, business finance coaches are certified professionals. Common goals that business finance coaches help clients with include obtaining a business loan and improving cash flow.

   3. Business and Personal Finance Coach: A business and personal finance coach works with clients where business cash flow is connected to their personal finances. Small business owners can benefit from this type of financial coaching to learn how to translate business cash flow into a family budget and deal with the business seasonality and the family cash flow requirements. This business coaching and personal financial coaching ensures not only business success but also personal financial success as well.

1. How Can I Earn a Financial Coach Certification?

   1. Most financial coaching certifications are offered online and require studying and hard work. However, you are investing in yourself as a financial coach and can generally charge more if you have a certification on your credential list. Three popular options include:

      1. Dave Ramsey Master Training Program: This course teaches you the ins and outs of guiding individuals and businesses on their financial journey. Also provided are instructions on how to grow your financial coaching.

      2. Udemy: This site gives you a comprehensive list of different coaching programs so you can choose the right one for your business needs. Certifications offered through Udemy vary in price, which can be great if you are just starting.

      3. Financial Coaching Academy: There are four different levels of training to choose from, with the basic one giving a general overview and the top course providing you with a detailed analysis of everything you need to know.

1. How Do I Start My Financial Coaching Business?

   1. The first step in any plan is to start with why (great TED talk). Financial coaching deals with people, and there is a saying that in order to communicate to the head, there is a need to talk to the heart. Take the time to clarify the purpose of your financial coaching business. This document will serve you in the future as the foundation of the communication and marketing plan.

   2. With a clear why statement, the 2nd step towards a career in financial coaching is to get a financial coaching certification. See section 4 for financial coaching training options.

   3. The financial coaches network offers a class on launching a financial coaching business, which is a great starting point. Information can be found here: https://www.financialcoachesnetwork.com/launch

   4. You will also need to check the business side of your coaching business. The IRS has a comprehensive business checklist.

   5. Once you have certifications and your business is correctly set up, it’s time to begin marketing to attract new clients.

1. What Apps and Software Should I Use?

   1. A financial coaching software should provide financial coaches with features to create financial goals, share the financial goals between the financial coach and the client, and track progress. At the time of writing this blog post, there is no financial coaching software used by financial coaches that provides these features (Savings Jar will launch these features in Q1 2022). Standard financial coaching software used by financial coaches includes the following:

      1. Zoom – Great video conferencing tool. During Covid - 19, Zoom provides the opportunity for financial coaches to connect with clients to set and track goals.

      2. Trello – Kanban-style, list-making app. With Trello, the financial coach and client can set goals, prioritize goals, and celebrate accomplishments.

      3. Budgeting tools

         1. YNAB – the choice for hardcore budgeters.

         2. Mint – free personal financial management website with budgeting tools and bank integrations.

1. How Do I Find Community Support?

   1. There are a couple of large Facebook groups for financial coaches to connect and learn from each other. Having a community to turn to for any questions or concerns can help you on the journey of creating a successful coaching business. Some popular financial coaching communities include:

      1. Financial Coaches Unite

         1. Check the video channel.

      2. Financial Coaches Community

         1. Podcast