Budget Coaching vs Financial Advice: Which is Right for Me?

Are you tired of feeling like for all the good money you make you could be in a better financial position than you are?

Well, you are not alone.  

Many people feel this way, and they turn to financial advisors for help. However, financial planning is not the ONLY option you have.  

Let me explain the differences between budget coaching and financial planning and how they can each benefit you. 

How a Budget Coach Can Help:

A budget coach has expertise in the day-to-day side of money.

A coach will help you develop good money habits, behaviours and mindset - leading to more money in your savings account at the end of the day.

Budget coaches work with clients to create customised money and budget plans in order to help them reach particular savings goals, or to help them pay down debts faster. In order to help clients save as much as reasonably possible, part of their services may include finding you savings on your major bills, keeping you accountable to your discretionary spending targets, and helping you assess how bigger money decisions will impact your budget - such as getting a new car, or buying a house.

Where necessary, they leverage their coach training skills to help clients understand their money mindset and identify any limiting beliefs that may be holding them back from earning more or holding onto the savings they have. They use their training in human behaviour to help clients gain awareness around their spending patterns, as well as broaden their awareness of the possibilities and options available to them when it comes to how they manage money on a day to day basis. 

Budget coaches are trained in money psychology, coaching skills, financial education and/or budgeting methods.

How a Financial Advisor Can Help:

A financial advisor has expertise in the longer-term planning side of money.

Financial planning is focused on helping clients have a strategy for reaching their larger financial goals - such as retirement or building wealth. Financial planners work with clients to develop a comprehensive financial plan that addresses their long-term financial goals. They will use their knowledge of financial markets, financial laws and standards, financial product options (such as different superannuation and insurance companies), and tax laws - to provide you with the best possible advice and strategy for your situation.

Financial advisors are trained in financial laws and standards, insurance advice, superannuation advice, taxation law, and wealth creation strategies.

Budget Coaching vs Financial Planning: Which is Right for You? 

The decision to choose between budget coaching and financial planning depends on your specific needs and goals.

If you are not able to consistently save, then budget coaching may be the right choice for you. 

However, if you already have great savings habits and have a surplus at the end of each month, a financial planner may be the right choice for you. Particularly if you are looking for investment advice, ways to lower your tax bill, or to give you peace of mind around your retirement or insurances. 

Ultimately, as a budget coach, I do work with financial planners because they are complementary services. Whether you choose one or both, seeking professional financial guidance is an important step towards building a secure financial future. But remember that managing money is not just about having a budget or financial plan. It’s about understanding the emotions, attitudes and values that drive our financial decisions. So, take action today and start building a healthier relationship with money.