Financial Coach vs. Financial Advisor | What’s the Difference?

“Do financial coaches and financial advisors do the same job for their clients?”

I get asked this question a lot. In fact, as I’m writing this, I received an email from a prospective client inquiring about this very subject!

I get it. The two sound like very similar roles.

Case in point – the Oxford dictionary defines an advisor as “a person who gives advice in a particular field” and a coach as, “a tutor who gives private or specialized teaching.”

I’d say there’s some gray area in those definitions, wouldn’t you? However, the time has come that we clear the air and discuss the differences between the two.

Spoiler alert, you might discover that bringing both onboard could be the perfect recipe for your financial success!

What Is a Financial Coach?

First, let’s discuss the role of a financial coach.

These are professionals, like me, whose focus is more on the current state of their client’s financial wellness – their day-to-day utilization of their income.

We’re going to teach you how to nail down that budget, pay off more debt faster than you ever thought possible, and break that paycheck-to-paycheck cycle.

We are typically fee based, meaning, we don’t make a commission from products we sell (unless they are products we create).

Instead, we get paid for the time, expertise, and value we bring during our scheduled appointments and beyond. And above all, clients pay us for results.

What Is a Financial Advisor?

When you are ready to nail down your long-term financial needs, it’s a financial advisor you’ll want to make an appointment with.

Most advisors sell retirement, college savings, insurance, and other investment products while making a commission based off those sales.

A good advisor will be able to listen to your goals and recommend the products that will set your future up for the most success.

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Should I Hire a Coach or an Advisor?

Both coaches and advisors can make wonderful collaborators, complementing one another’s services and expertise while maximizing your fiscal potential.

So, who should you meet with first? Where do you start? The answer is…it depends!

Here at Craig Dacy Financial Coaching, we believe that in most cases you can’t go wrong by choosing to start with a financial coach.

Sure, we’re a little biased here, but there’s a method behind our madness. I Promise! You’re going to be able to save more and faster if you start with a strong foundation.

We recommend hiring a coach to guide you on paying down debt, and creating healthy budgeting habits, which helps free up necessary cash flow needed to start investing in your future.

With a trajectory like this, you’ll be able to save more than you ever thought possible!

I do have clients, however, who have already retired, or are nearing it, and have been working with an advisor to make sure their retirement will be properly funded.

Those clients are working with me as the secret sauce to their success, ensuring that the money they saved up for all these years is being budgeted and utilized to its greatest potential.

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Whatever you do, whether you’re working with an advisor or coach (or both, which is next level awesome) make sure you go with someone who is a good listener and doesn’t shy away from explaining concepts that seem complex to their clients.

This is your money and it’s in your best interest to understand WHY you are being instructed to manage it in any certain way. This will help ensure that you are able to make educated decisions with your hard-earned income.

Looking back to the previously mentioned Oxford Dictionary definition of a coach, it would be my honor to tutor you with private and specialized teachings regarding your specific money situation!

If you’re looking for a coach who will challenge, teach, encourage, and point you in the right direction, be sure to schedule a free Budgeting Kickstarter call with me!