Sometimes we all need is a little help with our finances. If you have money problems, or just want some advice, you may want to see a financial advisor or a life coach. But how do you know which one you need? They each specialize in different ways of helping people and different methods for working with their clients.
Financial Advisor
Do you need specific finance advice? Which stock to invest in, for example? You may be looking for a financial advisor. Financial advisors can recommend exactly what to do with your money. Financial advisors often help people who already have money to spend. If you have enough spare cash to invest, then that’s great.
Financial advisors are invaluable when your need fits their niche. However, a financial advisor will give you information and help you make decisions, not train you on how to figure things out on your own. Their job security, in part, depends on your need for them.
For many people, a financial advisor isn’t the best answer. Those people are looking for help to make enough money so that they even have enough spare cash to make a financial advisor worth their while.
Life Coach
A life coach who specializes in finance serves an entirely different purpose than a financial advisor, though both people give you advice about money.
You can ask a life coach specific money questions, but their training focuses on learning to help you figure out the big picture. Instead of telling you exactly what stocks you should buy as a financial advisor would, they’ll help you figure out how the stock market works and how to make decisions on your own.
One way to think about it? Financial advisors are for people who already have money, but life coaches are for people who want to make money. Even though you may know that saving your money and investing will generally get you more wealth, a life coach can help you actually do these things. A life coach holds you accountable for your financial decisions and makes recommendations for what you should do, and they do it all without criticizing you.
So...which is best for me?
If you’re considering hiring a financial advisor or life coach, your best course of action is to figure out exactly what you want. Do you want to figure out how the system works so you can handle your money yourself? Or do you want someone who knows the system to work for you?
For some people who are just starting out trying to take control of their finances, you may want to hire a financial life coach. They can help you get a basic understanding of how things work, and work with you on an equal, one-to-one basis to help you develop a personal financial strategy. Then, when you have a good understanding of the system, you may want the specific opinion of a financial advisor. If you know how things work, you may be able to tell if their recommendation is in your best interest, if it’s what you want to do.
