A financial coach is someone who will help you understand the basics of personal finance and help you develop and maintain healthy financial habits. Their main job is to empower their clients to reach their financial goals and learn how to handle their finances responsibly. They typically work with clients who want to save money, create a budget, pay off debt, increase their income, save for college, avoid bankrupty, manage their money smarter, grow their business, or just improve their financial literacy in general.
Just like a coach for a sports team, a financial coach teaches you the knowledge and skills you need to play the game, helps you create healthy habits that improve your performance and then encourages you from the sidelines. Same idea, much different game.
A financial advisor is someone who helps you build wealth and prepare for your future through long-term financial planning. While they can advise in all facets of personal finance, they tend to focus on comprehensive financial goals that last throughout your lifetime and beyond. They usually work with clients who want to manage their assets, build an investment portfolio, and plan for their retirement. A financial advisor also helps with taxes, estate planning, health care and long-term care planning.
In simplest terms, financial advisors work to manage and build on wealth that already exists. They can sell you finance products and invest your money for you. Financial coaches provide information that helps put clients in the best position to create that initial and long term wealth. Aside from their job duties, a financial coach and financial advisor differ in many ways, including in their qualifications, how they work with their clientand their cost.
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