8 Ways Financial Coaches Can Help You Build Confidence — And Wealth

If you’ve ever felt completely clueless about how to manage your finances, you aren’t alone. Many people didn’t grow up with the necessary tools to understand what to do with their money. Budgeting, saving, investing — all of these terms can feel immensely stressful and overwhelming when you’ve never learned how to do them effectively.

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That’s where a financial coach can best help you — by building up your confidence and empowering you with the knowledge to make the right decisions. They take out the guessing game when it comes to finances and help you become more comfortable talking openly about money.

“Financial coaches play a critical role in bridging the gap between knowing what you should do with your money and actually doing it,” said Mike Kojonen, financial advisor and owner of Principal Preservation Services. “Unlike financial advisors, who often focus oninvestment advice financial coaches work on building your financial literacy, helping you understand the basics of budgeting, saving and investing.”

Here are some more ways hiring a financial coach can benefit you.

They Help You Create a Plan

“A common scenario I encounter involves individuals with substantial retirement savings but no clear plan on how to allocate these funds effectively,” said Kojonen. “By implementing a structured plan and teaching them about the power of compound interest and diversification, we not only secure their future but also empower them with the knowledge to continue building their wealth.”

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They Change Your Financial Patterns

Financial coaches focus on behavior modification, said Kojonen. “Many financial challenges stem from habits rather than a lack of resources. Through regular, in-depth conversations, we identify these habits and work on strategies to change them.”

“For example,” he said, “by analyzing spending patterns, I’ve helped clients identify unnecessary expenses or risky investment behaviors that were hindering their financial growth. It’s not just about telling someone to save more; it’s about understanding why they aren’t saving in the first place and addressing those issues directly.”

They Help You Develop a Forward-Looking Mindset

“One of the most fulfilling aspects of my job comes from helping clients develop a forward-looking mindset,” said Kojonen.

“Through education and guidance, I’ve seen clients transform from being overwhelmed by the notion of retirement to having a clear, actionable plan for their future,” he explained. “This change doesn’t just happen overnight. It’s the result of building a trusted relationship, grounded in honesty and consistency, where clients feel supported to take steps towards their financial goals.”

They Build Up Your Confidence

A financial coach offers more than justinvestment advice Kojonen said — they help you build a strong financial foundation through education, behavioral change and strategic planning.

“My journey in financial coaching has shown me time and again that with the right guidance, anyone can gain the confidence and knowledge necessary to not only meet their immediate financial needs but also secure their wealth for the future,” he said.

They Foster Accountability and Financial Independence

According to David Rafalovsky, CEO of Oxygen, a financial coach serves as a personalized guide, offering tailored advice and strategies to help you achieve your specific financial goals.

Unlike other financial experts who may focus on broader market trends or investment strategies, he said a financial coach dives deep into their client’s personal financial situation.

“They provide hands-on assistance in budgeting, debt management and savings, ensuring a comprehensive approach to financial well-being,” he explained. “The coach-client relationship fosters accountability and motivates individuals to stay on track.”

Moreover, he said that financial coaches often prioritize financial education, empowering their clients to make informed decisions independently.

They Offer a Holistic Approach to Finances

Financial coaches take a holistic approach to improve the financial confidence of those they are guiding.

“While some financial experts are only focused on the numbers, financial coaches are concerned about putting the transformation of people over the commoditized transaction of dollars and cents,” said James Robert Lay, finance expert and author of “Banking on Digital Growth.”

“One key differentiator of financial coaches lies in their emphasis on behavior and mindset,” Rafalovsky added. “While accountants and financial planners primarily deal with numbers and transactions, financial coaches address the underlying behaviors and attitudes that influence financial decisions.”

He said this holistic approach sets financial coaches apart, as they help clients cultivate healthy financial habits and overcome psychological barriers to success.

They Provide Ongoing Support

Another distinguishing factor of financial coaching is the ongoing, personalized nature of the coaching relationship, said Rafalovsky. Unlike seminars or one-time consultations with other financial experts, coaching involves continuous support, adapting strategies as the client’s financial situation evolves.

“In a world saturated with financial information, a financial coach provides a personalized roadmap, making financial success more attainable for individuals,” he said. “Through one-on-one guidance, emphasis on behavioral change and ongoing support, financial coaches stand out as instrumental partners in achieving financial well-being.”

They Reshape Your Relationship With Money

“There is such a strong correlation between a person’s financial well-being and their physical well-being,” said Robert Lay. “For example, one could get a gym membership if they want to get in shape, just like one could open a new checking account to get financially fit. However, there is a strong possibility that a gym membership or checking account will not transform their fitness or financial behaviors.”

“That’s why financial coaches create the greatest value by helping people reshape the relationship they have with money,” he said. 

He said this relational transformation with money goes on to make a positive impact in the way you think and feel about money, which then directly influences your financial actions and habits.

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This article originally appeared on GOBankingRates.com: 8 Ways Financial Coaches Can Help You Build Confidence — And Wealth

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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