What Is the Difference Between a Financial Coach and a Financial Advisor?
If you have ever found yourself stressed about money but unsure who you are supposed to talk to, you are not alone. Many people know that financial advisors and planners exist, but far fewer people realize that financial coaches exist, too. Even fewer understand the difference between the two.
Let’s break it down now y’all.
The Big Picture Difference
A financial advisor typically focuses on long-term financial goals. This includes things like retirement planning, investment management, asset allocation, and long-term projections that model how today’s decisions may impact the future.
A financial coach focuses on the day-to-day side of money. This includes creating and sticking to a budget, paying down debt, building savings, managing inconsistent income, and setting up systems that actually work in real life.
You can think of it this way:
A financial advisor helps answer the question, “What should I be doing long-term with my money?”
A financial coach helps answer the question, “How do I actually make this work month to month?”
Both are valuable. They just solve different problems.
Why Financial Advisors Often Refer Clients to a Financial Coach
It is very common for financial advisors to send people my way. This usually happens when someone wants to save for retirement or invest but is not quite ready yet.
A couple of common scenarios I see:
Someone has credit card debt and needs to focus on paying that down first
Someone wants to invest, but doesn’t know how much they can consistently contribute to retirement
One financial advisor explained it to me this way: they do their best work when clients have predictable retirement contributions. The financial advisor can figure out the best way to put that money to work. When someone does not know where their money is going or is spending more than they realize, it becomes difficult to do meaningful long-term planning.
That is where financial coaching fits in.
Real Client Examples
Here are a few real-life examples of the results possible with financial coaching:
One client came to me with $30,000 in credit card debt. Together, we built and implemented a realistic plan to pay it off without giving up everything fun. Not only did they pay it off, but a year later, they are still debt-free!
One needed help figuring out how much to pay themselves from their business to support their personal life. We cleaned up their business and personal finances, cut unnecessary subscriptions, aligned spending with their values, increased prices, and set up a consistent weekly paycheck (amongst other things!). Their money stopped feeling overwhelming and started feeling manageable.
Some clients are already working with a financial advisor. One client had retirement accounts set up, but was considering withdrawing money early to pay off credit card debt. Another had retirement contributions and insurance in place, but was constantly worried about overdrafting their checking account. In these situations, we took what was already set up and figured out how to make it actually work in their day-to-day life.
What a Financial Coach Does Not Do
It is just as important to be clear about what I do not do.
I do not manage investments
I do not sell financial products like insurance
I do not create long-term retirement projections or investment models
I work on a flat-fee basis, which means I am not incentivized to recommend any particular product, account, or investment. My role is not to tell you where to invest your money. My role is to help you build the habits, systems, and clarity that allow you to follow through on your financial goals.
If someone starts asking about what to invest in, needs retirement modeling, or wants to explore insurance or other financial products, that is when a financial advisor is the right professional to bring in.
The “What” Versus the “How”
One of the biggest differences I see is this.
A financial advisor may tell you what you need to do. For example, “You need to save $500 per month for retirement.”
A financial coach helps you figure out how to make that happen. Where does that $500 actually come from? What needs to change in your spending? How do you set this up so it happens automatically? How do you avoid overdrafting your account while still living your life?
Knowing what to do is important. Making it work consistently is the hard part.
Accountability and the Emotional Side of Money
Money is emotional. It is not just numbers on a spreadsheet.
A big part of my work is helping clients reduce anxiety, second-guessing, and overwhelm. We talk through options like debt payoff strategies, not just from a math perspective, but from an emotional and lifestyle perspective, too. We work on habits, emotional spending, values-based budgeting, and creating systems that feel sustainable.
Accountability is also key. I meet with clients regularly, often every other week at the beginning. That consistency helps people follow through instead of giving up when it feels hard.
When a Financial Advisor Makes Sense
I’m very open about telling clients when they are ready for a financial advisor.
If you have consistent cash flow, predictable retirement contributions, and are ready to think about investing, long-term planning, or retirement projections, that is a great time to work with an advisor or planner.
If a client was referred to me by a financial advisor, I always send them back to that person once they are ready. I see my work as complementary, not competitive.
Which One Do You Need Right Now?
If you feel anxious about money, unsure where it is going, overwhelmed by debt, or stuck trying to make financial advice actually work, a financial coach may be the right first step.
If you are ready to focus on investing, retirement planning, and long-term strategy, a financial advisor or planner may be the right fit.
And in some cases, the best answer is both!
If reading this helped you realize you’re ready to work with a financial coach, let’s schedule a free call so I can learn more about your money goals and see how I can support you!
