Money mentor / coach?

[HeadedWest2029]

Has anyone considered or currently acting as a money mentor as a source of side hustle income?  I don't want to be a financial advisor or planner and all that entails in terms of certifications or dealing with the misaligned incentives for charging sales commissions or % of AUM.  I'm thinking about sitting down with people and creating a system for tracking expenses (Personal Capitol, Mint, Quicken, whatever), and then coming back later and analyzing how they spend money.  Then make recommendations like options for cord cutting / slimming, switching to MVNO cell carriers, tackling high interest debt, reducing expense from the big 3 (housing, transportation, food).  I would market this as a way of increasing savings rate / getting out of debt SO THAT they can invest, rather than dispensing investment advice to avoid liability (even though I'll have a hard time keeping my mouth shut if they're being stupid there).  Is this asinine?  What type of compensation is reasonable on a per hour basis? 

I mean, I find this stuff fun anyway and think 1-1 coaching would be more effective vs robo reports that get spit out and handed to people with little chance they act on it.  I know Dave Ramsey does a financial coach training thingy, but I'm not a Ramsey guy per se myself

[HeadedWest2029]

So this is answering a lot of my questions
https://www.kitces.com/blog/financial-coaching-what-it-is-and-how-to-become-one/

Still, curious if anyone on here actually does it full-time or on the side

[Tobias]

Has anyone considered or currently acting as a money mentor as a source of side hustle income?  I don't want to be a financial advisor or planner and all that entails in terms of certifications or dealing with the misaligned incentives for charging sales commissions or % of AUM.  I'm thinking about sitting down with people and creating a system for tracking expenses (Personal Capitol, Mint, Quicken, whatever), and then coming back later and analyzing how they spend money.  Then make recommendations like options for cord cutting / slimming, switching to MVNO cell carriers, tackling high interest debt, reducing expense from the big 3 (housing, transportation, food).  I would market this as a way of increasing savings rate / getting out of debt SO THAT they can invest, rather than dispensing investment advice to avoid liability (even though I'll have a hard time keeping my mouth shut if they're being stupid there).  Is this asinine?  What type of compensation is reasonable on a per hour basis? 

I mean, I find this stuff fun anyway and think 1-1 coaching would be more effective vs robo reports that get spit out and handed to people with little chance they act on it.  I know Dave Ramsey does a financial coach training thingy, but I'm not a Ramsey guy per se myself

I've thought about doing this too, specifically for grad students and professors as my niche market. I would like to pass on what I learned (and what I'd do differently) by building my assets on a small grad student stipend. However, I still have a lot to learn and right now this is just a fantasy. I will probably start by blogging or writing articles for other sites.

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[sisto]

I do it on the side, but only for friends and family that want help. I've considered doing a real side hustle for it after FIRE, but I've also considered doing it for free to support young people starting out. Basically maybe doing a non profit to help young people get out of debt or maybe never get into it.

[HeadedWest2029]

I do it on the side, but only for friends and family that want help.

Yeah, I've thought about the friends and family model too.  I actually think there are a few avenues for turning it into a real full-time gig if someone was motivated.  You could setup meetings with local financial advisors and make a simple pitch.  They (financial advisor) have people that show up at their door needing help, but have zero money to invest, send them to me, I get them saving money / out of debt so they can invest, I send the person back to them (FA) so they can actually start investing.  You could of course pick the FA's that you like and aren't cons.  Only work with low fee, honest folks

[SlowMustachian]

I think Chris Hutchins, interviewed by the Mad Fientist (see below), is doing something similar but via a company. I like the one on one idea though. Someone would really have to trust you though to open up their finances to you.

https://www.madfientist.com/chris-hutchins-interview/

[missundecided]

I think the Financial Gym does something similar too.

[Laura33]

So this is answering a lot of my questions
https://www.kitces.com/blog/financial-coaching-what-it-is-and-how-to-become-one/

Still, curious if anyone on here actually does it full-time or on the side

Many here do it over on the Case Studies board for free.  ;-)  Sorry, can't help you with monetizing it.

[slappy]

I think the Financial Gym does something similar too.

I think JD wrote about this on GRS recently.

"In February, my friend and colleague Shannon McLay asked if I wanted to invest in her business. You see, back in 2013 I came up with an idea for a store that sells financial advice — a “money store”. This wouldn’t be a brokerage or a financial advisory firm, but a place to get help with your real-world financial problems. That fall, I met Shannon at a financial conference. She had the exact same idea for a business! The difference is, she followed through on her plans. In the fall of 2015, she opened The Financial Gym near the Flatiron Building in New York City. Because I believe in Shannon and her business, I now own 0.86% of the company."

http://www.getrichslowly.org/2018/01/01/2017-year-review/#more-235266

[asauer]

Sort of.  I'm a spending coach.  I help working moms break their spending habit.  I've been doing this about 2.5 yrs and have made a decent side income.  My advice if you're getting into coaching is to find an extremely specific niche.  Your marketing dollars will go MUCH further.

[Ocinfo]

I think the Financial Gym does something similar too.

I think JD wrote about this on GRS recently.

"In February, my friend and colleague Shannon McLay asked if I wanted to invest in her business. You see, back in 2013 I came up with an idea for a store that sells financial advice — a “money store”. This wouldn’t be a brokerage or a financial advisory firm, but a place to get help with your real-world financial problems. That fall, I met Shannon at a financial conference. She had the exact same idea for a business! The difference is, she followed through on her plans. In the fall of 2015, she opened The Financial Gym near the Flatiron Building in New York City. Because I believe in Shannon and her business, I now own 0.86% of the company."

http://www.getrichslowly.org/2018/01/01/2017-year-review/#more-235266

Thank you for posting this! I didn’t realize that JD was back with a revamped GRS. I haven’t been too focused on many blogs recently but still trying to figure out how I missed this. Started reading GRS (2007ish) shortly after it started and watched it fail after being sold.


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[KMMK]

I am, but as a full-time independent money coach/financial planner, with education, various credentials, E&O insurance etc. I'm an all-in kind of person.