Discover the Process to Become a Personal Finance Coach
If you feel driven to become a personal finance coach but don’t know where to start, this page can help get you going. The information and resources here provide a step-by-step process toward beginning your personal finance coaching venture, and a case study that offers an example of how it works. Want to learn how to become a personal finance coach – continue reading.
Step 1: How to Become a Personal Finance Coach – Start with Training & Certification
James Sadler was a chiropractor and member of the local Kiwanis Club in his small community. His chiropractic business was slow but steady, but he wanted to pursue other opportunities. He decided he wanted to become a personal finance coach. The first thing he needed to do was get the appropriate education and earn his financial coach certification credentials.
James was aware that he would need more than just knowledge about managing money. He also needed to get background in coaching and teaching methods, behavioral psychology, and the regulations over the financial coaching industry. He discovered that all these subjects were covered in-depth by financial coach certification programs.
Dr. Sadler enrolled in a well-recognized certification program, realizing that successfully completing the coursework would demonstrate his coaching qualifications and compliance with national standards. He also could show potential clients that he was capable and credible.
Step 2: Initial Experience
As he progressed through his personal finance coaching program, James also sought to get hands-on experience. As a chiropractor, he knew book knowledge was just part of the picture; but to become a personal finance coach would require practical application of that learning. He arranged to speak at a Kiwanis Club meeting, where he offered financial coaching gratis to other club members in exchange for a chance to practice.
James soon learned that his clients were very different in terms of their emotions toward money, built-in financial habits, and current personal finance situations. Although these differences were difficult for James, he was up to the challenge. He continued practicing directly with his fellow club members to improve his abilities.
To help him continue making improvements, James enlisted the support of the Kiwanis president, who was also a certified financial planner. James realized that, until he finished his education and received certification, his coaching with clients should be done under supervision.
Step 3: Systems, Processes, & Resources
His ongoing study, client practice, and tracking results paved James’s path to become a personal finance coach. The next step in his process was to develop systems and resources to effectively organize client information to start a financial coaching business.
James had learned in his chiropractic practice that it was critical to set up relationship management systems to guide timely communications with clients. He found software that enabled setting up all a client’s financial documents and information in a single place, including bank account balances, credit reports, insurance, investments, etc.
James found out that one thing ineffective coaches do is fail to provide clients with physical financial plans. To avoid this problem, he developed processes to give his clients personal financial plans with clear action steps and direction. He also designed reports that would let clients track their progress toward goals.
Step 4: Plan & Path – Work for Organization / Start a Business
Step 4: Plan & Path – work for organization / start business
The fourth step was for James to consider how he wanted to coach. He already had a chiropractic practice, so he knew a bit about business planning. He decided not to work for a company, but to start his own coaching business.
Identifying his goals early on helped James prepare for what was to come. He researched financial coach fees and rates that others in the space are charging. In addition, he looked into what a financial consultant does on a day to day basis. As he continued his research on how how to become a personal finance coach, he kept clear notes on his clients’ results and wrote them into case studies. He was sure to maintain confidentiality guidelines and protect their personal information as he did so.
The case studies he was writing would show James’s potential clients and employers that he had become a qualified personal finance coach.
Step 5: How to Become a Personal Finance Coach Key Step – Commitment to Excellent Service & Results
James’s responsibility as a personal finance coach was to help his clients achieve their goals. When they hit roadblocks, he helped them stay focused. When they were feeling optimistic and motivated, he pushed them forward.
James found out he could not help all his clients equally, a fact that was disheartening at times. But when he did see positive progress, all his hard work seemed worth the effort. He saw some clients move from paralyzing money stress to the thrill of being on track toward retirement. Those moments were deeply rewarding.
James committed himself to his clients’ financial wellbeing, which helped more of them enjoy positive results. While he would savor the good feeling when they achieved a milestone, he also would use that feeling to motivate himself to continue perfecting his coaching skills.