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As we approach the new year, now is the perfect time to get your personal finances in order. However; I do understand that you might not be clear on where you need to start. So today, I will be providing you with an overview of the top 3 experts to help you reach your primary financial goals, in case you are wanting to work with a professional. These experts don’t just focus on the basics of personal finance, but also on mindset. Please note that none of these experts typically handle financial aspects such as investments and filing of taxes unless they have the qualifications to do so. With that said, let’s go ahead and take a look at the top 3 experts to help you reach your primary financial goals:
1. Daily Money Manager
2. Money Coach
3. Financial Therapist
1. Daily Money Manager (DMM)
If finding time to focus on the daily tasks of money management is becoming more and more difficult for you, then you may want to consider working with a Daily Money Manager. DMM’s actually manage the day-to-day financial affairs of a range of clients by taking the work off your hands. They typically have backgrounds in Accounting, Finance, and Healthcare, but have a range of other expertise as well.
DMM’s can serveas a liaison between you and your CPA, Attorney, Financial Advisor, etc. Theyoffer services such as paying monthly bills, assisting with tax records,balancing checkbooks, decoding medical bills, and negotiating with creditors. Otherservices may include notary services, payroll management, healthcare advocacyor acting in another fiduciary capacity.
Pricing may varyfor utilization of these services, however; there are a few organizationsthroughout the U.S. who offer free or reduced daily money management services. Ifyou choose to take the paid route, Daily Money Managers have the ability toeither meet virtually, in your home or in their office. Contact this expert ifyou would prefer that a professional take over your finances for you. You wouldstill be involved; however; the DMM would do the actual work on your behalf.
The American Association of Daily Money Managers is the only governing organization for DMM’s. They do offer the opportunity for DMM’s to become certified, however; it is not a requirement in order to become a member of the organization. In addition, as of October 1, 2018, all members are required to pass a background check before renewing or becoming a new member. For more information and to find a Daily Money Manager near you, feel free to visit www.aadmm.com.
2. Money Coach
Money Coaching combines sound psychological principles, universal spiritual beliefs, and practical financial guidance to help clients transform their relationship with money. They look at specific patterns that initially led to the issues that clients have with money. Money Coaches help you to develop healthy money habits through services such as establishing a tailor-made budget, reducing debt, and contributing to savings. These experts may also offer other services such as bankruptcy assistance. Money Coaches typically have a background in Accounting or Finance, though some may have expertise in the fields of Education or Counseling. It can truly vary.
They focus onyour education and help you make financial decisions so that you can build theskills you need to manage your own money. You always remain in control of yourmoney, but you learn how to make better financial decisions and manage yourmoney in a way that works for you.
This process is typically done through the use of regular one-on-one sessions done virtually or in-person with clients in order to ‘coach’ performance improvements to meet goals mutually set by the coach and client. Pricing may vary depending upon location and expertise.
While there are no specific regulations currently in place to govern money coaches, there are several organizations that have been proactive in developing these standards to ensure that coaches and their clients stay protected. For more information and to find a Money Coach near you, feel free to visit www.financialeducatorscouncil.org and www.afcpe.org.
3. Financial Therapist
Financial Therapyis a relatively new field that infuses both therapeutic and financialcompetencies. It basically bridges the gap between money and emotions. Utilizingthis approach helps clients think, feel and behave differently with money inorder to improve overall well-being through evidence-based practices and interventions.
Financial Therapistsare equipped to help people reach their financial goals by thoughtfullyaddressing financial challenges, while at the same time, attending to theemotional, psychological, behavioral, and relational hurdles that areintertwined. They typically have a background in Finance, Social Work, Psychology,Counseling or Human Development.
Financial Therapists can help if you fall into any of the following categories:
- Depressed about finances
- Fearful about lack of money
- Frustrated due to inability to reach financial goals
- Continually overspends despite repeated efforts to stop
- Allows unexpected expenses to sabotage spending plan
Dependent upon the Financial Therapist chosen, this process can usually be done through the use of regular one-on-one sessions done virtually or in-person with clients in order to find the root cause of money behaviors and explore emotions around money and money beliefs. Pricing typically varies depending upon location and expertise.
Although Financial therapy, as a specific area of practice, is currently unregulated in the United States, the Financial Therapy Association has been instrumental in developing a certification to professionalize and adopt a standard of practice and code of ethics. For more information and to find a Financial Therapist near you, visit www.financialtherapyassociation.org.
Final Thoughts
As you can see, there are many options as it relates to choosing an expert who can help you to reach your primary financial goals. There are going to be other experts you will need to seek out during your lifetime such as a CPA, Financial Advisor, Attorney, etc. However; the three experts discussed today should be used as a way to kickstart your personal finances. As a recap, the top 3 experts that I have discussed above include:
1. Daily Money Manager
2. Money Coach
3. Financial Therapist
Take a moment to sit down and assess your needs. If you find that you would prefer for a professional to handle the finances on your behalf, then you may want to work with a Daily Money Manager. However; if you decide that you would like to be more hands-on with your finances, then hiring a Money Coach might be best. If you’ve taken some time to think and have come to a realization that your relationship with money goes a bit deeper than just the basic money issues, then it may be best to seek out a Financial Therapist. I hope that I have provided you with enough information to help you make an informed decision regarding the type of expert you should utilize to help you get your finances on track.
