Author Topic: 'Finances Coaching' as a job-hobby?  (Read 1701 times)

daverobev

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'Finances Coaching' as a job-hobby?
« on: January 20, 2023, 06:06:40 AM »
I'm pretty good at finding deals, collecting information, and optimising or at least improving.

I think it would be possibly interesting and fulfilling to help other people sort out their finances.

I like being paid for my time, but this would be a pocket money type idea. But I'm wondering if it's more trouble than it's worth - would I need some level of financial accreditation? How would it work cross border (I live in France, I would want to deal with mostly British or Canadian people I suppose as I have reasonable knowledge of those systems, and can research easily enough; I wouldn't mind English speakers in France by my French is not good enough at this point to try and do this in French... though that could be a goal of its own).

I know that I cannot offer "financial advice", ie a specific product, without certification. I suppose the coaching would be more general - I see these things on your budget, can you replace with x, y, or z; you should open and use this kind of account; and so on.

I'm wondering - is this worth the hassle? More trouble than it's worth? I guess the liability thing kicks in when money is exchanged, and that's mostly what I'm concerned about (this is not the USA; I'm unlikely to be sued, but still, I don't want to take the risk for 50 Euros for a couple of hours or more of work!!).

Jaybo

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Re: 'Finances Coaching' as a job-hobby?
« Reply #1 on: April 04, 2023, 05:04:23 PM »
I’m actually in the process of making a career change into financial planning, but am seriously considering starting a financial coaching business to start out and gain some hands-on, client-facing practical experience helping people as well as generating some money.  When I was an NCO in the Air Force, I did this for several of our new Airmen who came in; kids who often were still teenagers, just got married to their high-school sweetheart and had no clue why renter’s insurance was important or why it was important to have an emergency fund, etc.  I loved it and found it very personally fulfilling, hence the carer change.  I’m sure you’ll find it very rewarding, too.

Financial coaching is different than financial planning in several regards.  I’m in the U.S. so that is the only perspective I can give, but much should apply to your situation.  It’s kind of the wild, wild west in that there are currently no regulations for financial coaching.  There’s certain things you can’t legally do such as give investing advice, i.e. you can educate them on ‘this is what the Régime général des salariés is’ and ‘this is what index funds are and why they tend to make a good investment vehicle’ but you cannot recommend anything specific such as ‘open a plan épargne action and invest the money into Vanguard VTSAX’ for example.  In the United States you have to be licensed to give investment advice but as long as you are not doing that or selling financial products, you’re good, France, most likely the same.   Financial coaching isn’t so much about telling them what to do, but educating them and guiding their decisions-you don’t make recommendations but help them see their options and help them decide which are the best options for them.  Also, because they are making the decisions, not you, you are not liable for the decisions they make.  I know in the U.S. at least, if you wanted to you could get what’s called E&O insurance (errors and omissions) which can cover you for liability and is relatively inexpensive.  France may have something similar, I don’t know for sure.  As for accreditations, there are none that are currently required in Canada or the U.S., though one that is quickly gaining steam is the “Accredited Financial Counselor” or AFC offered by the Association For Financial Counseling & Planning (AFCPE).  You may have something applicable where you are.

As for income, you get to set your rates.  In the U.S. it’s not entirely uncommon for financial coaches to make the equivalent of about 36-46,000 Euros before taxes their first couple of years and around 90,000 Euros a year before taxes after 4-5 years doing it if you’re dedicated and build your client base.  I know the U.S. perspective isn’t necessarily what you’re looking for, but I hope I’ve been of some help to you.  Good luck! 

daverobev

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Re: 'Finances Coaching' as a job-hobby?
« Reply #2 on: April 05, 2023, 08:23:36 AM »
Thanks for the reply! It's probably not for me, too many hurdles for a hobby - I'll just keep on trying to get the people I come into contact with to think about things differently.

Jaybo

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Re: 'Finances Coaching' as a job-hobby?
« Reply #3 on: April 07, 2023, 09:56:55 AM »
You're welcome, and if there's anything I can help with just reach out!

JupiterGreen

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Re: 'Finances Coaching' as a job-hobby?
« Reply #4 on: April 07, 2023, 11:36:59 AM »
I believe a few people here do this. There is also always blogging and I don't know if it is still profitable, but some people have made money on those short ebooks on Amazon. If the market is not too saturated and you have a niche, perhaps you could a series of financial ebooks.

Michael in ABQ

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Re: 'Finances Coaching' as a job-hobby?
« Reply #5 on: April 17, 2023, 08:14:21 PM »
I think the main problem is that the kind of people who could use this advice aren't willing to pay for it.

A 22-year-old starting their first job isn't going to pay $500 to have someone teach them why it's important to save for retirement and not go spend their paycheck on a new car, etc.


Most financial planners make their money by managing assets and taking a percentage fee. Find a few hundred people that have collective assets of millions of dollars and extract a small percentage of that asset base every year. Or as a fee-only advisor you're charging a few thousand dollars to provide one-time services that would include that kind of investment advice that is regulated.


As a company commander in the National Guard, I had 130 Soldiers - most of whom were around 18-25 and did not have a lot of financial literacy. I tried to address that and had certified financial planners come and give classes but most of it didn't stick. We were deploying and many of them would be making a lot more money and have lots of tax advantages like a savings account that paid 10% interest (a few years ago when a high-yield savings account paid 2% at best). I could barely get any of my Soldiers to participate in that - or contribute tax-free pay to a Roth IRA. Even the basics of just putting in enough money to their 401k to get the free 5% match was a challenge. I drove a car that cost $3k and was making more money than almost any of them. But they would come to drill in trucks that cost $40k+ while working a job making less than that per year.

You can lead a horse to water, but you can't make it drink.