- What Is An Initial Consultation?
- What Is a Financial Coaching Session?
- How Do I Prepare for My Coaching Session
- What Will Happen During My Coaching Session?
- What Will I Walk Away With From My Coaching Session?
- What Do I Do After My Coaching Session?
- I've Got Credit Cards so Why Do I Need An Emergency Fund?
- How Can I Save Any Money? It seems impossible!
- What Is a Budget, and Why Do I Need One?
- Isn't a Financial Coach the Same As a Financial Planner?
Q. What Is An Initial Consultation?
A.
The initial consultation is kind of like a first date.
It gives us the opportunity to get to know each other first, and then you can decide if you want to take the relationship to the next level.
During this time we will talk about your hopes and fears,
where you are financially and where you want to be.
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Q.
What Is A Financial Coaching Session?
A.
A financial coaching session is a meeting between you and me, your financial coach.
We’ll focus on where you are now with your finances, where you want to be, and I will help you make a plan to get there!
In a session, you’ll get the chance to unpack your financial situation, along with your worries.
Maybe you’ve taken on too much debt, or you can’t figure out how to get on the same page with your partner on spending.
Or maybe you’re a little worried about being able to afford retirement.
It’ll feel good to share this with someone who’s professionally trained to guide you.
Someone who’s in your corner and has the compassion, skill, and knowledge to make a real difference in your life.
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Q.
How Do I Prepare for My Coaching Session?
A.
First of all, don’t worry about gathering years of tax documents and bank statements before your coaching session.
I will email you a few simple forms to fill out and submit. No. Problem.
So, what are these forms? One is a short money snapshot, and the other is a basic budget. That's it!
The money snapshot tells me how much you earn, how much debt you owe, and your top concerns or money questions for the session.
The budget is a list of everything you spent last month, from your water bill to your student loan payments.
And hey, don’t be shy or feel ashamed. There is no judgment. You can trust your coach like you trust a friend.
We're on your side.
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Q.
What Will Happen During My Coaching Session?
A.
When you arrive for your coaching session (or call in for a phone or video conference),
I will have already reviewed your forms.
After getting to know you better I’ll dive right into your most pressing financial issues.
Since every client has different needs, every coaching session will be different.
But there are a few common topics, like communication, debt elimination, and saving for large expenses such as college or retirement.
The majority of my clients also need to focus on creating a realistic budget.
That means setting budget amounts that make sense for your life and thinking ahead about purchases that frequently bust your bank account,
like birthdays, vacations, and even Halloween costumes.
I can walk you through how to make a budget that actually works for you.
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Q.
What Will I Walk Away With From My Coaching Session?
A.
Successful clients move the needle as soon as possible after their session. That’s why your coach will give you action steps to follow almost immediately.
These might include tweaking your budget, creating a plan to get rid of debt, and setting goals, big and small, for the next few years.
You might also brainstorm other income opportunities to pay off debt faster (we’re talking a second job or side hustle)
and smart ways to stay out of debt in the future.
You won’t leave your session with all your issues magically solved.
(I'm not a wizard, after all. And there’s no magic money wand.)
But you will leave with a plan in place, and the tools to solve them yourself.
Think of your financial coach as a personal trainer. I’ll show you what to do and how to do it, but the heavy lifting is up to you.
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Q.
What Do I Do After My Coaching Session?
A. Once we have created an action plan
during the coaching session, it is now time for yout to work the plan. There are
many tools that you can use to work your action plan. These can be as simple as
making lists or as complex as task management software. As you complete each
task in the action plan, we celebrate your success and move on to the next step.
Remember, your coach is in your corner, and is there to celebrate with you.
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Q. I've Got Credit Cards so Why Do I Need An Emergency Fund?
A. As the name indicates, this is money
set aside for an Emergency.
Emergencies can happen at any time.
That's why it's recommended to have an emergency fund, ideally with enough money to cover three to six months of living expenses.
If you go through a job loss or any other costly life event, this gives you time to get back on your feet.
But that's a lot of money to save and some people look for alternative options,
and a popular choice is using credit cards as an emergency fund.
While it may be tempting to do this and avoid saving so much, this is one of the biggest personal financial mistakes you can make.
Debt is Bad and Debt is Dumb.
A key benefit of having an emergency fund is that you can pay for emergency expenses without going into debt.
If your car needs a $2,000 repair, you just withdraw it from your savings account.
It's no fun to part with that money, but it doesn't become an ongoing issue or a new monthly payment you need to make.
When you put emergencies on your credit card, they stick around longer.
You'll be paying them off over time and paying interest for each month you carry a balance on your card.
If you put a $2,000 emergency on your credit card and you can only afford to pay $200 a month toward it, that's at least 10 months you'll be in debt.
It's even more dangerous if you have multiple financial emergencies, or one extended emergency.
In situations like these, you'll need to go deeper and deeper into debt to keep paying your bills.
Suppose you lose your job and need to spend $3,000 a month on your credit card to cover your living expenses.
It takes an average of about three months to find a new job, according to ZipRecruiter.
If it takes you that long, you'd end up with $9,000 in debt.
Credit cards have an average interest rate of 21.47%, according to Federal Reserve data.
That's extremely high, and it means using your credit cards for emergency expenses could cost you a LOT.
For example, if your card has a 21% APR, and you pay $300 per month, it will take you 43 months to pay off that balance.
During that time, you'll pay $3,873 in interest!
It may be more convenient in the short term to not bother with an emergency fund.
But it could be much more expensive in the long run when you need to get out of credit card debt.
Credit cards can be useful, but they're not right for your emergency fund.
If you don't have at least three months of emergency savings, make that a goal.
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Q.
How Can I Save Any Money? It seems impossible!
A.
Rather than saying, “I need to save more money,” set a specific savings goal, one that is measurable and inspiring.
For example, “I want to save $3,000 toward a home renovation,” or “I want to contribute an additional 10% each month to my retirement account.”
Look for ways to stay focused and motivated, such as putting pictures of your future home renovation or anticipated retirement lifestyle on the refrigerator or bathroom mirror.
Review your expenses and identify ways you could save more. Do you like competition?
Set up a savings challenge for yourself and commit to putting away a certain amount each week.
It’s ok to start small, such as $10.
Could you eat out less? Use coupons? Once you get comfortable saving that amount, increase your savings in increments to see how much more you can put away.
Are those discounted shoes calling your name even though you went to the store for socks? We’ve all been there. It’s hard to turn away from a great deal.
But those impulse buys can take a big chunk out of your budget. Here are some tips to help keep you on track toward your money goals:
Shop with a list and do your best to stick to it.
Leave the credit and debit cards at home and shop with cash.
If you find a big-ticket item that piques your interest, use the 30-day rule:
Walk away, go home and write down the item, store, price and date.
Then wait 30 days. If you still feel a strong urge to buy it, go ahead as long as it fits with your budget and spending plan.
Think of goal-based saving as a skill you can learn.
Taking small steps is fine – everyone starts somewhere.
Your goal may be to save thousands of dollars but begin by saving something you can manage, say $100 a month.
Treat yourself to a fun and free or inexpensive reward for each goal reached.
Had a setback? Don’t worry. It happens to everyone. Simply get back on track.
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Q. What Is a Budget and Why Do I Need One?
A.
Budgeting is one of the most important financial habits you can adopt.
If you’ve never lived on a budget, or haven’t experienced all the benefits that budgeting has to offer,
it’s easy to wonder why it’s such an important part of personal finance
Budgeting is important because it helps you manage your spending habits, track your expenses, and save more money.
Budgeting can also help you make better financial decisions, prepare for emergencies, get out of debt,
and achieve your long-term financial goals in a shorter periof of time.
Living on a budget is a main part of proper financial management.
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Q. Isn't a Financial Coach the Same As a Financial Planner?
A.
A Financial Coach is different from a Financial Planner (or advisor)
A Financial Coach helps you Build Wealth
A Financial Planner helps you manage the wealth you built
A coach is a person whose job is to help people get better at doing something.
You work with a coach because you want results.
Even pro athletes have a coach so that they can get better.
A Financial Coach will help you get better with managing your money. We can guide you in ways to help you get out of debt, increase your savings,
and Build Wealth.
We have nothing to sell but our time and experience.
A financial advisor (or planner) is someone who can help you develop your investment strategy. They focus on selling investments such as mutual funds, annuities, etc.
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