What Is Financial Coaching? How Does It Help You Build Wealth? (2024)

Financial Coaching Is a Collaborative, Educational Relationship That Empowers You to Achieve Financial Freedom

There’s no secret to building wealth. Spend less than you earn and invest the difference wisely. Everyone knows that.

The problem isn’t knowing what to do – the problem is getting it done.

Financial coaching bridges that gap by providing a powerful, professional partnership designed to produce action.

It can save you time and money by helping you avoid the many dangerous pitfalls and dead-end paths on the road to financial freedom.

Financial coaching can also accelerate your wealth building by taking the most efficient, effective actions toward achieving your goals.

Financial coaching isn't the latest “get-rich-quick” gimmick or trendy how-to seminar that's supposed to reveal the “secrets of the rich”. The secret is there are no secrets.

“Before we started the coaching process with Todd, we had an idea of where we wanted to go, but were having a hard time getting there. We had read books, attended a seminar or two, listened to tapes, and had even taken some actions steps. However, we still knew that to move forward more successfully we needed something more. Until we started the coaching process with Todd we didn't know what that something was. It was this. We needed focus. Todd gives us that. We needed encouragement. He gives us that. We needed someone to take the mystery out of what we wanted to accomplish and he certainly does that. We needed to be able to “think outside the box” and he is a master at that. We are thankful for how he works with us and highly recommend him as a great coach.”– Roy and Loll Martinez; Owners, Construction Co.; Greenville, TX

Instead, your financial coach provides accountability, educational insights, practical experience, and support focused on timeless, proven wealth building principles.

Through a regularly scheduled series of phone calls,you'll develop a personalized plan for wealth and be supported in taking tangible actions to implement that plan.

Related: How to be a pro at growing your wealth

In other words, your coach provides the education and insights, but you'll do the heavy lifting and areresponsible for the results produced. Your coach is the educator and protagonist, but you're the decision-maker and action-taker.

Coaching can't be compared to other educational alternatives like reading a book, listening to a CD, or watching the latest seminar on DVD. These are passive, one-dimensional experiences.

Financial coaching is an interactive, dynamic learning experience uniquely tailored to your needs.

Let’s see exactly how this works in greater detail below.

Financial Coaching Is Much More Than Advice, Consulting or Investment How-To Instruction

You’ve probably noticed that most financial education teaches you how to do something – how to invest in stocks, how to buy real estate, or how to save money.

That's all fine and good, but it’s not enough.

Few people will achieve financial freedom with this type of how-to instruction. It’s worth learning, but it’s not what's necessary to transform your financial situation.

Teaching you how to build wealth by showing you how to buy stocks or real estate is like teaching the obese how to lose weight by showing them how to eat less and exercise more.

Duh! But so what? Anybody who wants to lose weight already knows what needs to be done, yet something is keeping them from doing it.

People want to be lead. We did and we sometimes hoped that in our coaching calls you would have the “magic answer”. You made us critical thinkers to find those answers ourselves. That is your strength. You are a great coach.”– Jeni and Eric Kurowski; Owners, CCR Storage; Willis, TX

Similarly, everyone who wants to build wealth already knows they should earn more, save more, and invest more wisely. It’s not a big secret. In fact, it's obvious.

The problem is not in knowing what to do, the problem is in implementation – actually getting it done in a strategic and efficient way. That's what will make or break your success.

Financial coaching bridges the gap between knowing what to do and actually getting it done. That’s why it works.

The experts sell you information, but what you need is transformation. They teach how-to information, but never provide the transformational tools necessary for you to act on that information and produce results in your life.

In short, they forgot the essential ingredient you need to succeed. They teach you everything except what you actually need to know.

This becomes intuitively obvious when you consider the sheer volume of information available on teaching you how to build wealth.

The libraries and internet are filled with more business and investment how-to instruction then you could implement in a lifetime. Yet, you're still not rich, so it can’t be from a lack of information.

The missing ingredient has nothing to do with “secrets of the rich” or the latest investment strategy. The missing ingredient is the catalyst that helps you bridge the gap between knowledge and effective action.

The key isn't just in knowing what to do, but in actually getting it done. That's how results are produced, and that's what financial coaching is all about.

How Financial Coaching Gets Results

Financial coaching is different because the focus is on you – not the instruction. Sure, we also teach business and investment strategy, but that isn't what will make or break your success.

How well you integrate and apply the instruction is the key to your success. That's what makes financial coaching different.

Your financial coach brings experience and expertise in wealth building. They also have a skilled method of inquiring and questioning that helps you think clearer and prioritize the critical issues that can make a difference in achieving your wealth goals.

It helps you gain a better perspective so that you focus more effectively on the few factors that produce results.

It provides tools that enhance your ability to accomplish more with less wasted effort and includes accountability to maintain focus with enough persistence to succeed.

The result is a complete support system that converts obstacles that would normally stop your progress into opportunities for growth and learning that cause you to take your game to the next level.

This crucial step is ignored by most wealth building programs, yet it's central to financial coaching.

“I got absolutely clear on both my financial strategy and the blocks that were holding me back from moving forward with my plans.”– Barry Bettman, CPPC; Owner, Success Coaching; Half Moon Bay CA

In other words, financial coaching still teaches the essential principles behind the external game to wealth building such as risk management, leverage, competitive edge, mathematical expectation, continuity income, proven investment principles, techniques, and much more.

However, what's unique about financial coaching is how it integrates that instruction with your internal game – your thinking and habitual practices that have held you back from the success you desire.

Financial coaching provides a one-two punch that integrates both the internal and external game of wealth building into a single coaching model that produces more powerful results.

When you add in some of the other benefits of coaching, including accountability, support, and expert insight, you have a complete system that literally pulls you toward financial freedom.

Nothing else works like it.