Episode•June 13, 2023•11 min

Don't Wait Too Long: When It's Time to Get Help From a Financial Counselor | Ep. 237

Confused about when to use a financial counselor? Have questions about the differences between an Accredited Financial Counselor (AFC) and a Certified Financial Planner (CFP)? In this episode, Tiffany will help you understand the roles of various financial professionals and determine which one is right for your needs. Learn how a financial counselor can assist you with budgeting, debt, savings, and more! Plus, find out when it's time to turn to a CFP for long-term financial security. Get informed now and make sure you're on the right track with your finances! To book a consultation with Tiffany to find out if she can help you, visit https://academy.moneytalkwitht.com/15-minute-consultation Additional Resources Get Your FREE Financial Plan What is Financial Counseling? Becoming An Accredited Financial Counselor with Rebecca Wiggins This podcast uses the following third-party services for analysis: Podcorn - https://podcorn.com/privacy OP3 - https://op3.dev/privacy

Apple Podcasts Spotify YouTube Overcast Amazon Music

Key Takeaways

1
Financial counselors (AFC) focus on short-to-medium term goals (0-5 years) like budgeting, debt payoff, and savings, while CFPs handle long-term planning like retirement.
AFCs help with day-to-day money management and accountability
CFPs manage investments and ensure financial security until death
Many clients 'graduate' from AFC to CFP once basics are mastered
2
You should seek a financial counselor when you're on a 'hamster wheel' - not making progress toward goals or lacking clarity on where money is going.
Applies whether you're living paycheck-to-paycheck or comfortably but not advancing
Helpful even if you have budgeting down but need an unbiased second opinion
Useful at any stage for a check-in on whether you're on the right track
3
Financial counselors act like personal trainers for money - teaching proper technique and providing accountability rather than doing the work for you.
Clients range from minimum wage earners to multiple six-figure incomes
No income requirement - everyone needs help at some point
Specialize in handholding and step-by-step guidance that other professionals don't provide
4
Using the wrong financial professional can lead to being 'ghosted' - CFPs may not respond if you're not ready for their services.
Understanding each professional's role prevents mismatched expectations
CFPs typically work with clients who already have basics covered
AFCs bridge the gap for those still building foundational skills

Intro

In this Tiffany's Take episode, Tiffany addresses the nuanced question of when to seek help from a financial counselor versus other financial professionals.
Tiffany is an Accredited Financial Counselor (AFC) and host of the Money Talk with Tiff podcast who specializes in budgeting, debt payoff, and short-to-medium term financial goals.

15-Minute Consultation Free Financial Plan

– Understanding Financial Counselor Roles

Tiffany explains that as an AFC, she specializes in short-to-medium term goals (within 5 years) like budgeting, debt payoff, and savings for vacations, houses, or cars.

An AFC accredited financial counselor like myself helps you with your short to medium term goals. So things that you're trying to accomplish, I would say within the next five years or so.
– Tiffany

– When to Seek Financial Counseling

The key indicator is being on a 'hamster wheel' - not making progress toward goals or lacking financial goals entirely. This applies across all income levels.

If you don't have financial goals, I can help you get those hammered out and help you create those.
– Tiffany

Most clients are people living comfortably but not directing money toward their goals - making minimum payments or not making headway on debt or savings.

– The Personal Trainer Analogy

I like to look at myself and practitioners like me as a personal trainer, right? So you already know how to do your jumping jacks, how to do your sit-ups... But you need someone to teach you the right technique and to hold you accountable.
– Tiffany

Financial counselors provide clarity, help getting on track, and support staying on track - even for those already making progress but struggling with consistency.

– When to Use a CFP Instead

CFPs are appropriate when you have financial goals, are on track with them, make good money, have basics down, and need someone to manage assets and ensure retirement security.

If you are already on track with all your financial goals, you make pretty good money and you got the basics down and you just need someone to manage your assets... that is when you would reach out to a financial planner versus reaching out to me.
– Tiffany

– Avoiding the Wrong Professional

Using the wrong type of financial expert can result in being ghosted. CFPs may not respond to clients who aren't ready for their services, leaving people feeling rejected when they were simply mismatched.

What I don't want is for you to reach out to a financial planner or financial advisor and then they never contact you back because they don't think that you're a client that would benefit from their services.
– Tiffany

Resources

Topics

Financial CounselingBudgetingDebt ManagementFinancial PlanningCFP vs AFCMoney ManagementFinancial GoalsPersonal FinanceFinancial AccountabilityInvestment Management