Differentiating a Financial Coach from an Adviser

Today, a new concept in the form of “financial life coaching” has been introduced to the public. This is a new profession in the field which is responsible for the treatment of life and money. This is considered to be a holistic approach. Basically, this kind of approach has been adopted by many. For so many times, it is intertwined with the idea of financial advising. Now the question is – is there a difference between a financial coach and financial adviser?

Learning the Difference

Financial coaching is quite a foreign idea to many. What is it all about? How is it far from being a financial adviser? Here are some of the answers:

  • Financial coaching can bring a tenfold of changes to the lives of many clients. They are almost synonymous with being a life coach.
  • In understanding this type of coaching, it is crucial to have an understanding of the distinctions of consumers. There has been a key concept about money here. The other one, on the other hand, has a new set of beliefs and virtues already.
  • The attitudes to money should also be looked upon. For instance, there are those who view money as the end itself. There are those on the other hand who see the money as a means to an end instead.
  • The idea is that the traditional is determined to make money as far as possible. They make use of the best features and deals whenever they can. They would even equate the value of money to status and ego.
  • Freeformers see their money to attain authenticity and express values. They are not going to spend theirs only for irrespective of cost. The spending criteria are usually written based on provenance, authenticity, uniqueness, discovery, and design.

The Attitude

It has been observed that the traditional are very responsive when it comes to financial advice. However, this is not true when it comes to coaching or planning. As for freeformers, they usually value the importance of financial advice because it is supported by unique and individual life. There is also a financial plan which has been born out of a deep coaching and also planning process.

Aside from the aforementioned, Freeformers also have a full understanding of the link involved in life and money. This is why they usually respond to coaching well. They can also address pressing issues regarding the problem. When it comes to Traditional, there is no powerful connection involved in life and money. As this is the case, response to financial life coaching may not be evident at all.

Getting Help with Personal Finances

Financial advice has always been product-focused. This may be linked to financial planning which has a deeper approach than that of advice. This is most likely to ascertain the financial goals of the client. This can be effective to the development of the best scheme when it comes to financing. This should work accordingly. There are also recommendations in this. Check them out too!