6 reasons why you should hire a budget coach
A friend recently confided in me that she was extremely overwhelmed.
“My best friend just told me she's in $40k worth of debt,” she told me. “And she thinks because my financial situation is 'better' than hers, I can help.”
As her friend explained her plan to get out of debt — which included liquidating a Roth IRA, depleting her Health Savings Account and eating ramen noodles for six months — my friend agreed supportively. "How was I to know these were bad ideas?" she asked.
You might spend hours on WebMD diagnosing that rash on your leg, but to actually get effective treatment, you ultimately go to the doctor. And you would trust an accountant to resolve any tax issues, right? But when it comes to personal finance, we demand advice from parents — who, most of the time, aren't equipped to give it — or from friends whose circumstances are grossly different from (and possibly worse than) our own. We live in a culture that expects us simply to "get it" when it comes to our finances.
So maybe it's time to bring in a professional.
Related: I was $70k in debt, and now I’m a money mindset coach. Here is my story.
A budget coach helps you identify your roadblocks and rewire the beliefs causing your nervous system to panic while also holding yourself accountable for achieving your goals. Hiring a pro also lets you see the bigger picture and emotionally detach from money. Working with a budget coach is not only financially beneficial but can change all the relationships in your life — especially the one you have with yourself.
Here are some of the most common roadblocks that trip up clients before working with a budget coach and how we work through these obstacles together.
You need some filters for information overload
While free information is the gift of the 21st century, most of us don't have the time to sort through all the noise and find the best solution for ourselves. Just search for “where to start with my money,” and the first 15 results will be something like: beginner investing or find money to start a business. When we don’t know where to start, we usually start at step 15 without ever doing the first 14.
A budget coach is an expert. They've done all the research and, perhaps more importantly, know what questions to ask when they don't know the answer. Imagine having someone in your life whose job it is to help you focus on your immediate needs, like calling your student loan providers, negotiating with debt collectors and setting up a high-interest savings account. You don't have to worry about "finding" the information, so you accomplish much more in a shorter amount of time — with fewer headaches.
You need an advocate
The people around us don't always have our back. I genuinely believe that most people have good intentions but are limited by their own beliefs regarding success, wealth and earnings. I have worked with countless clients who lost out on a promotion or raise simply because their boss or manager failed to advocate for them.
Budget coaches help you assess your salary package in two fundamental ways. The first is budgeting. Our clients learn the exact number they need to pay off debt, save and thrive. So if the client isn’t making enough money, the budget coach knows what has to change and what emotions have to be put aside. The second is by analyzing their client’s income and growth pipeline. Budget coaches are good at holding clients accountable to biannual reviews and preparing the necessary documents and requests to have those tough conversations with superiors.
Related: Why you should check your bank account balance — Every. Single. Day.
You need accountability — real accountability
Asking a friend to hold you accountable rarely works. Why? Because a big reason you love and trust your friends is that you usually do things together. Immersing your friends into your personal finances invites them to scrutinize every purchase you make — do you really want someone close to you judging your two-iced-coffees-per-day habit? Be honest. When you see a friend who constantly complains about money making a purchase you think is frivolous, don't you judge them? Even a little?
A budget coach is the tough love you need to help you achieve your goals. Your budget coach doesn't judge you for your two iced coffees, but they’ll undoubtedly run the numbers and see what percentage of your take-home pay is going toward your caffeine habit. Investing in a coach means prioritizing your finances above all else — just like how paying for a gym membership encourages you to go more often. Coaches will hold you to your word and keep you on track so that your spending decisions are intentional and support your values and goals.
Your parents are your parents — not professionals
Your family members are not financial planners. They’re not accountants. Many clients tell me on our introductory call that their parents never taught them how to manage money. Once a client commits to working with us, the very first workbook we give them is called Money Wounds, where we dive into life stories through the lens of money. Most of them quickly realize their parents could never teach them about money. We’ve found that once clients have given up the idea that their parents “should have” done better, their relationships improve, and they feel more in control and independent.
Related: Budgeting (usually) doesn't work. Try this instead.
Every situation is different
Remember my friend from earlier? She has a steady job, an inheritance and a partner. The friend she told me about is in debt, has a dog and a kid and just started a new career. Everyone's financial situation is different, and there is no one-size-fits-all budget. So you need somebody who has seen it all. Working with a budget coach allows you to get the most bespoke plan.
Money is emotional
Our relationship with money is not logical — it's emotional. How we handle and treat money reflects conscious and unconscious emotional reactions that cause us to spend. Having support around the emotional piece enables you to gain control over your financial landscape, allowing you to make strategic financial decisions.
Being ready to face the reality of your financial situation means you understand it's an investment of your time, money and emotions. Your relationship with money deserves the same unconditional love and attention as all other pillars of your life. Ensuring the people around you are the best resource for your long-term success is essential. It's vulnerable work, and you can't do it alone.
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