Have you ever considered transforming your passion for personal finance into a fulfilling career that makes a difference in people’s lives? If you’re driven to help others take control of their financial future, becoming a financial coach could be the perfect opportunity to turn your passion into a rewarding profession. The best part? You can do this from home. Keep reading to learn how to become a financial coach and make money from home!
A few years ago, I was in the same place as many people who struggle with money—living paycheck to paycheck, feeling overwhelmed by financial decisions, and unsure of how to turn things around. Through trial, error, and a commitment to learning, I transformed my financial habits and developed a healthier relationship with money.
That journey didn’t just transform my life. It sparked a passion for helping others achieve financial clarity and stability. That’s why I share tips and insights on saving money, budgeting, and making money from home on this blog, hoping to empower stay-at-home moms like myself to create a more secure future for their families.
I realized that many people, just like me, needed guidance and support to navigate their finances. That’s when I decided to pursue a career as a financial coach.
If empowering others to take control of their financial future sounds like something you’d also enjoy, then becoming a financial coach could be perfect for you. The best part? You don’t need a specialized degree to get started. With the right certification and training, you can gain the skills you need online and begin making a real difference in people’s lives. It’s a fulfilling career that combines your passion for personal finance with the opportunity to help others achieve their goals.
What is a Financial Coach?
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So, what does a financial coach really do? As a financial coach, you help your clients manage their finances and reach their financial goals. You help others identify bad money habits and instill healthier ones.
Financial coaches often connect with their clients on an emotional and behavioral level. For example, you can help your clients identify financial habits that keep them in debt and hinder them from making financial progress.
Some of the areas you can help your clients with include:
- Setting up a realistic budget
- Track expenses
- Debt management
- Establishing long and short-term savings and emergency funds
- Goal-setting for huge expenses (vacation, wedding, home purchase, improvement, etc.)
- Identifying bad financial habits and instilling good ones
- Preparing for huge life changes such as getting married or having kids
- Money mindset
Most of us face financial problems; sometimes, we must push in the right direction. As a financial coach, you don’t only give your clients support and guidance by identifying habits and mindsets that cripple them financially. You also help them identify the best solutions that work for their unique situation.
Financial Coach vs Financial Advisor
If you’re pursuing a career in financial coaching, it’s important to differentiate between the roles of a financial coach and a financial advisor (or planner).
As a financial coach, you’ll most likely work on your clients’ mindset and behavioral issues. The goal is to develop systems or strategies that will help clients navigate their financial problems and offer the best solutions to their needs.
A financial advisor, on the other hand, tackles strategies for growing wealth. A financial advisor to help with investments and retirement planning.
In short, people seek financial coaching to establish healthy money habits and achieve financial goals and a financial advisor to grow and protect their wealth.
Why Become a Financial Coach?
Becoming a financial coach is a fantastic career choice for many reasons. Personally, I decided to pursue a certification as a financial coach to complement my work as a blogger and deepen my ability to assist my readers in navigating the world of personal finance.
I know what it feels like to be in the shoes of someone struggling financially, and I want to use this knowledge and expertise to improve the financial lives of others.
However, other than personal growth and passion, this career path offers numerous benefits, including:
- Flexibility – Financial coaching allows you to work on your own hours without being tied to a 9-5 cubicle. It can work whether you’re financial coaching to earn a side income or running it as a full-fledged business! You can design a work routine that fits your lifestyle.
- Income – Financial coaching can be a financially rewarding career. According to the National Financial Educators Council (NFEC), financial coaches in the US make an average of $257 per hour. This could still increase as you build your credentials, gain more certifications and experience, and build a solid network.
Photo Credit: National Financial Educators Council
- Low entry barrier – The best part about starting a financial coaching career or business is that you don’t need a specific degree to get into it. However, getting certified can be an essential advantage. The startup costs are also minimal, as you’ll most likely need a website and your social media channels to get started.
Haley and Justin Brown-Woods are two people who inspired me to become a finance coach. Like me, they also struggled with their finances and were heavily in debt. But they turned their situation around by picking the lessons from their mistakes and are now running a thriving financial coaching business. Stories like these bring me back to why I want to become a finance coach myself.
How To Become a Financial Coach
- Find your niche and target audience
Financial coaching might appeal to all sorts of people, but I recommend finding a niche and target audience that you’re most interested in or passionate about.
Would you like first-time parents to manage their income, young professionals or retirees? Do you want to focus on debt management or building savings? You may want to help your clients develop better financial habits or mindsets.
Different people have different needs. It’s good to reflect on your own experiences and identify turning points in your financial life.
For example: did you suffer from a bankruptcy? Did you and your spouse fight a lot about money? Did you fail to save because your parents never taught you? What kind of mentality did you have about money?
Reflecting on your journey could help you determine your best niche. Once you know “who” you want to help, you can market your services more effectively.
- Get Certified
Certification is not a hard and fast requirement in financial coaching, but I believe it does give you better advantage than coaches who aren’t certified. Potential clients are more likely to trust you if you have the proper credentials to show.
A comprehensive training will also help you become a better and effective coach by understanding your client’s situation and goals, identifying problem areas, creating a plan in collaboration with the client and providing support and education.
There are several certification programs you can avail of to solidify your financial coaching business. I can highly recommend the National Financial Educators Council’s financial coaching training .
I love that this training provides everything I need to confidently build my coaching practice.
With 16 comprehensive sections and over 140 subsections, the course has far exceeded my expectations.
The NFEC Financial Coach Training consists of 16 main sections, each diving into a variety of subtopics.
Each section has various topics presented through a mix of learning materials such as videos, written content and infographics, and interactive activities. Additionally, there’s a quiz at the end of each lesson to help reinforce your understanding and track your progress.
There is so much to learn from this training and I think it’s one, if not the most, comprehensive courses there is online to learn how to become an effective financial coach.
If you want to learn more about the National Financial Educators Council Financial Coaching Training, check out their free Financial Coaching webinar.
- Build Your Skill Sets and Knowledge
You want to enforce your coaching skills to provide the best experience for your clients. A good certification training should help you learn important skills and strategies to successfully build your finance coaching practice.
You need more than just listening skills or empathy. You need to learn:
- Professional onboarding process
- Efficient information gathering processes
- Understanding clients’ needs, goals and psychology
- Diagnosing client’s situation
- Inputting data into a coaching software to you can give your client a report
- Goal setting process with your clients
- Breaking down goals into action steps
- Giving client guidance, education, accountability and support
- Communication strategies
- Progress tracking and plan modifications
Furthermore, to effectively understand and analyze your client’s financial situation, it is essential to have a strong grasp of the following key concepts:
- Income, Savings, and Assets
- Loans and Debt
- Budgeting
- Expenses
- Taxes
These are some of the various topics extensively discussed by the NFEC.
I also appreciate that the NFEC Financial Coaching Training delves into the psychological aspects of personal finance. This includes understanding how financial behaviors are formed, exploring the emotional and social factors that influence money decisions, and learning strategies to guide clients toward healthier financial habits.
Check out NFEC’s FREE Financial Coaching Webinar!
4. Build Initial Experience
The NFEC strongly recommends gaining hands-on financial coaching experience under the guidance of a mentor or supervisor with expertise in the field. While theoretical knowledge is vital, applying your personal finance knowledge in real-world scenarios is equally important. Each client you encounter will have unique circumstances and challenges, requiring tailored solutions—something that can only be mastered through experience.
To build this practical expertise, consider offering your services under the supervision of an experienced coach or mentor. Alternatively, volunteering to assist a seasoned financial coach can provide invaluable insights and help you refine your skills. This hands-on approach not only enriches your understanding but also boosts your confidence in handling diverse client needs.
5. Build your Financial Coaching Package
Creating a well-structured coaching package helps clearly communicate your services to clients, making it easier for them to understand what you offer and what they can expect from working with you.
Depending on the training you had, there are many different types of financial coaching services you can offer. You can offer individual coaching, partner coaching, intimate group coaching, or coaching for organizations.
When creating coaching packages, you’ll have to think about your target audience and their needs. Some may have basic personal finance knowledge, but others have more specific goals in mind. Test your coaching packages on your first few clients and gradually improve them as you gain more insight and experience.
Apart from offering one-on-one or group coaching session, you can also offer membership programs wherein clients can access all your materials or exclusive coaching and Q&A sessions.
Also, consider offering essential materials your clients could use to manage their finances. Printables, templates, worksheets, ebooks, and other digital products could be provided alongside your coaching services.
- Land Your First Coaching Client
So you’re certified, your website and social channels are up, and you’ve crafted your coaching package – you’re ready to land your first coaching client.
It’s time to get the word out and let people know you’re a certified financial coach ready to help. Getting your first paying client might seem tough, but you can try a couple of strategies to make it work.
For instance, consider offering a FREE 15-minute discovery call or a discount on your packages for a limited time. You can also try guesting on podcasts or webinars and sending newsletters to your email list. A combination of these strategies is bound to get your first client soon.
Tip: It is essential for coaches to have social proof to establish expertise and credibility, so make sure to have a fantastic working relationship with your first client. If your first client seems satisfied and happy with your services, ask for a testimonial and a referral! From there, you could start building your client pipeline.
- Keep Networking
A coaching business requires ongoing work, and one of the most rewarding things you can do for your business is networking. It’s an excellent way to attract new clients and win referrals from previous ones.
You can start building your network online and in person. LinkedIn is a fantastic platform to showcase your expertise, allowing you to network with companies, brands, and individuals. You can also share valuable content to demonstrate your credibility further.
Other social networks, like Facebook, Instagram, and TikTok, are to be noticed. But if it’s too overwhelming for you, research the best platforms where your target audience hangs out and start from there.
Additionally, explore other opportunities where you can expand your reach. Start a newsletter, and keep posting on your blog and social media. Also, use these platforms to post case studies and testimonials, which could further enhance your online presence and image as a finance coach.
Building personal relationships is also essential in your coaching business. You can reach out to people in your community, alumni, colleagues, family, and friends, and let them know you’ve started your coaching career.
Also, don’t miss opportunities to widen your network by attending local events, seminars, and meet-ups where you can potentially meet your new clients.
Key Takeaways
If you’re like me, passionate about personal finance, and would like to help people manage their money, get out of debt, and achieve financial goals, then financial coaching makes so much sense!
In today’s world, conversations about money, especially around financial hardships, should no longer be taboo. Everyone deserves guidance and support on their financial journey. Looking back, I know I would have greatly benefited from having a financial coach in the past.
Now, I’m thrilled to be on this journey and even more excited to share it with you. Together, we can help others take control of their finances and transform their lives!
