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Startup Costs for Becoming a Financial Coach

finance weekly roundup Jul 10, 2020


How much money do I need to get started as a financial coach?


Garrett -
 I started Be Awesome Not Broke with approximately $25k in the bank, enough to last me just over a year if I were to make $0 over that time. I got this number by adding what my bare-bones living expenses could be, with what I thought business expenses would average out to a month for the first year. I had side-hustles up my sleeve if I needed to make additional money (which I did over the first few months to stop the hemorrhaging), and doing so ended up giving me additional peace of mind.

On a specific-to-me side note, one spending category I highly underestimated that first year was my professional development expenses. I was transitioning into an entirely different industry and while many of the skills I needed I already had, I realized that I wanted/needed to take some coaching courses to help me grow as a coach and entrepreneur. The downside: I spent about $5k dollars on personal coaching that first year that I hadn’t planned for. The upside: I learned a heck of a lot. I also got comfortable with what it felt like to pay a lot of money for coaching, which served me when I eventually started having those same conversations with prospects.

You don't need any

Brittany - I had none. House was in foreclosure. And account was negative. Literally.

I just started doing the mindset work on myself first and then I focused on creating income instead of coming from a place of lack. Someone out there needs your specific way of teaching finances so just go out there and do it!! 👊🏼

Start with free version of everything

Ben - I used the free version of just about every app I was able to, so I originally only put $100 into a business account. Once I had paying clients and some revenue, I used that money to fund more expensive items like training and apps once I outgrew them.

Invest in certifications/trainings

Alta - there seems to be a lot of free resources out there to get you started. I opted to pay for a certification, which I'm working on now, to get over my imposter syndrome. I learn better with structure and I believe this will help me give my clients a better experience.

Start part-time to minimize risk

Brad - I went part-time with no money in. When I went full-time I had super large savings account to live on for a while in case the worst happened. I replaced my full-time income within two months of leaving my JOB. Also, I should note, I initially invested $2,500 into the business when I first started full-time. Haven't had to put anymore in from my own pocket since I started.

 

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