There was a stage in my life where I considered becoming a financial advisor.
I completed a postgraduate degree in corporate finance in my spare time – but I realised this path wasn’t for me.
Yes – I’m a geek when it comes to numbers.
But… I love people.
I love helping people unlock their potential.
I’ve experienced how financial confidence translates into all other aspects of your life. It’s allowed me to build a life I never want to retire from.
A financial coach is like a personal trainer for your money
This is one of the simplest ways to describe what I do.
Want to improve your physical health and fitness?
Work with a personal trainer.
Want to improve your financial health and well-being?
Work with a financial coach.
People who are ‘interested’ in improving their health will sign up for a gym membership.
But statistics show 30-40% of gym members rarely use their gym memberships. And most stop going altogether after a few months…
People who are ‘committed’ to improving their health hire a personal trainer.
A personal trainer educates you on training & nutrition. They keep you accountable to reach your health goals.
If you’ve ever had a gym membership vs worked with a personal trainer you will know how big this difference is.
Financial coaching is the same but applied to your money.
You could buy an online course to help you improve your finances. But completion rates for online courses are FAR worse than gym membership attendance…
One of the biggest problems with physical and financial health is that most people know what to do, but they don’t do it.
This is why investing money to solve your problems is often helpful. So you have some skin in the game.
Because when you pay, you pay attention.
This is why life-changing free advice is generally worthless – because you place no value on it…
Financial Coach vs Financial Advisor
Tony Robbins said that “money is 80% psychology and 20% mechanics”.
What does this mean?
You can have all the best systems and structures in the world to make, manage and multiply your money. But if your mindset isn’t in the right place then none of this will ever help you.
A great financial coach or advisor will help you with the numbers AND your psychology.
When I teach Money Mechanics I break it down into three core areas:
- Making Money
- Managing Money
- Multiplying Money
For each category there is:
- A mindset to cultivate
- A skillset to learn
A business mentor can help you with the mindset and skillset to make more money
A financial coach can help you with the mindset and skillet to manage your money
A financial advisor can help you with the mindset and skill set to multiply your money
Some of the main roles a financial coach plays are:
- Helping you build great financial habits
- Teaching you how to manage your day-to-day finances
- Helping you upgrade your mindset around money
Once you’ve built the system and habits to manage your money you’re ready to start investing.
This is when a financial advisor comes in.
(Unless you want to self-educate and learn to invest yourself like I did)
The main focus for financial advisors is to help you grow and preserve your wealth.
They’re licensed to give you tailored investment and product advice. Their areas of expertise include investments, insurance and estate planning. Advice in these domains can be worth their weight in gold.
But tread carefully when seeking financial advice. Most financial advisors are salesmen who sell financial products for commissions. These aren’t always in your best interest.
An independent financial advisor is what you want to look for. They are a rare breed. But they always have your best interest at heart and are not not linked to any financial products.
Who’s the right fit for you?
Do you want to learn how to make more money?
Then learn a high-value skill and work with a business mentor.
Do you know how to make money but don’t know how to keep it?
Then work with a financial coach to help you build the systems and habits to manage your money.
Do you know how to make and manage your money but don’t know how to grow and protect it?
Then an independent financial advisor is most likely the best bet for you.
Closing Thoughts
Financial success is not an individual sport.
If you want to win the money championship then you must have the right people on your team.
They all play an important role on your journey towards financial independence.
Who do you need on your team?
