What is a personal finance coach and why do you need one?

Published on: July 30th, 2021

When you want to get fit, you’re likely to go to a personal trainer because you aren’t a fitness expert. Let’s face it; if you’re new to it, a gym can be daunting, and if you aren’t using the equipment correctly, you could be doing yourself more harm than good.  The same can be said for your finances.  A personal finance coach can help you to get your finances on track and keep them that way.

Going to a financial adviser might seem like something your parents would do, but actually, an adviser is just a personal finance coach.  And, like fitness training, the earlier you start, the earlier you see results.

What can a personal finance coach help me with?

A personal finance coach can help you with anything you need money for, which really differs for everyone. You might want to save for a rainy day or to start investing, or you might want to fund a life goal, like a car, a house, the wedding of your dreams, or starting a family.

Your priorities and goals are unique to you and your life stage. Your personal finance coach (or financial adviser) is there to work with you to help you achieve them – whatever they are.

Your personal finance coach can also help you understand how finances work, providing education, advice, and access to resources to improve your financial knowledge. Your level of financial knowledge or literacy is actually a key indicator of your financial success!

Why do I need a personal finance coach?

Unless you happen to be a finance expert, it makes sense to outsource your finances to someone who is.  Recent research highlighted that after 4-6 years of receiving financial advice, advised clients have an average of 60% more assets than non-advised individuals. And after 15 years, that increased to a whopping 290%.

It goes beyond the financial benefits too.  Those who receive financial advice report a wide range of benefits, from better mental and physical health to improved relationships and even increased happiness. Money is one of the biggest worries for many Australians, and let’s face it – it can be stressful and time consuming to manage, particularly if you don’t have the knowledge and experience.

Outsourcing your finances to a personal finance coach frees up your time to spend it on things you enjoy more, gives you access to expertise, and can even help you develop a better understanding of your money, so it becomes less of a headache.  You can read more about how financial advice improves your health, relationships and happiness here.

How does personal finance coaching work?

Step 1: Understanding your direction and goals

The first step to helping you achieve your goals is defining what they are.  Of course, you can’t have everything in life, so deciding what’s most important is key.  Your personal finance coach will help you think through your lifestyle, goals, and your future to understand what you really want and how to get there.

We start with a free, no-obligation consultation in our office or on a video call.  In this meeting, we discuss where you are at and where you want to go.  Just like a personal trainer, you need a personal finance coach who fits your goals and is the right person to help you on your journey – this meeting is all about determining that fit.

Step 2: Creating a roadmap to your goals

If you and your finance coach decide it’s a good fit, you can engage your finance coach to provide you with a roadmap to reach your goals.  This is called a Statement of Advice and outlines where you want to go and what your finance coach recommends you do to get there.  You can use this information to do it yourself. If you want an expert in your corner who manages it for you, however, you can engage your finance coach to put your plan into action.

Step 3: Putting your plan into action

If you decide to go ahead with implementation, your personal finance coach gets on with actioning your Statement of Advice.  You can have as much or as little input and contact with your coach as you want. We’ll keep you updated regularly, and you can see or talk with your coach as often as you want.

Ready to get started?

If you are ready to get financially fit in 2021, get in touch with Apt Wealth Partners to get started.


General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.