Financial problems occur in the best families. In many cases they are temporary and can be solved quickly and correctly by means of simple solutions. Yet that is not always obvious. Indeed, there are also many people or families who have completely lost control of their financial situation. In many cases this starts as a small backlog, but can quickly add up to a considerable debt. These problems can arise from various situations.
For example, unemployment or disability can be a reason, but financial problems can also be caused by a wrong spending pattern. In many cases, the first signals are ignored. Reminders remain, which means that irrevocable collections follow that entail high costs. Often, the resulting backlog can no longer be solved by your own strength. This hopeless situation is depressing so that problems are not effectively addressed. The financial problem is accumulating. In that case, a budget coach offers a solution. But what does this coach actually do? And can everyone use this assistance?
The work of a budget coach
A budget coach is an authorized person whose goal is to bring the financial overview back into the family. A coach ensures that money matters become clear again. This is done initially by comparing income and expenditure. This way the financial situation can be properly mapped out. The budget coach then draws up a tailor-made plan that the person or family concerned must work with.
This can vary from looking for a job to contacting creditors to make an arrangement. A coach also has an advisory role. For example, the person can be notified of certain allowances or tax refunds to which he or she is entitled. A coach also gives savings advice for monthly expenses. A budget coach will provide support for as long as necessary or desired. In this way, control of the financial situation can be resumed and people gain more insight into the importance of this.
Who is eligible for a coach in the event of financial problems?
A budget coach focuses on solving “small” financial problems or debts. If these debts are too large or too complex, families or individuals are usually referred to debt counseling. Both younger and older people can use the financial services of a budget coach. Anyone who has lost the overview of his or her financial affairs can claim this.
In some cases, a budget coach is assigned by the municipality. The costs will then be reimbursed. To be eligible for this, the family or person must remain below a certain income standard. A budget coach can of course also be engaged independently. This applies to private individuals, but institutions and companies also make frequent use of a budget coach. In the event of imminent financial or administrative chaos, a coach can provide clarity and insight.
Learn to save financially with a budget coach
Budget coaching does not only contain guidance that focuses on solving financial problems that arise. A budget coach also gives you new insights so that you learn to use your budget more efficiently. For example, a coach can point you to current subscriptions or services that you hardly ever use. By compiling a monthly statement of expenses you know exactly what you could save on.
A budget coach provides you with useful tips in this regard. As a result, you gain more insight into your income and expenses, and you handle your money more consciously. Even if the administration and associated finances are in order, the budget coach keeps an eye on things. This is of particular importance when it comes to financial problems. This prevents a relapse to the old lifestyle. During the aftercare process, the coach regularly checks whether the financial administration is still in order and how this is done. The coach can also adjust and improve during this phase.
A budget coach prevents a debt restructuring process. That is why you can only use a coach if the financial problems or debts are not too big or complex. Knowing that, it is very important to sound the alarm in time if you risk losing the overview in your money matters. This way you prevent debts from getting too high and you run less risk of the drastic consequences that come with it.