Since I am certified through the Ramsey Solutions Financial Coach Master Training program, people wonder if I’m also part of the Ramsey Preferred Coach referral program. I get this question mostly from folks wanting to start their own financial coaching business, but I’ve gained several clients from my answer.
If you want to become a Financial Coach, you may like these videos from my YouTube channel called Picture It Profit and Financial Coaching:
Do I Still Recommend Financial Coach Master Training?
Kickstart Your Online Business: Essential First Steps
Coaching People vs Coaching a Process
I coach people. You might think that all coaches are in the business of coaching people, and you’re kind of right. Financial coaches all work with individuals, couples, or teams comprised of (you guessed it) people. However, many of these coaches are not truly curious about the person in front of them, the full picture of their lives, and the future they want to create. Many of these coaches focus on teaching a “how to” of personal finances. They often have a “proven method” or program. This program becomes the foundation of your discussions with them. These coaches walk you through their steps and help you navigate common pitfalls and challenges that they’ve helped others overcome.
This is what Dave Ramsey does, and he’s amazing at it. He has the Baby Steps, and he has walked so many people through that process that he knows, with zero doubt, that you will have financial success if you do it his way.
He’s not wrong; you will succeed. But does that make it the right path for you?
My Family’s Deviated from the Baby Steps
I love Papa Dave. I binge watched the Ramsey Show on YouTube for years. I read The Total Money Makeover twice. And yet, I still didn’t follow the Baby Steps 100 percent.
- Firstly, we made our starter emergency fund $5000 instead of $1000 (baby step 1) because that was about one month’s worth of living expenses.
- Then while in debt repayment (baby step 2) we continued to contribute at least 6% to our 401(k) accounts to take advantage of company matching.
- We never had the Dave recommended “plastic-ectomy!” My husband and I both retained a credit card to use for travel and large purchases. It offered better identify theft protection and we like the rewards.
- Lastly, we drew a mortgage for our investment property, rather than save up to buy it outright. We chose to get the loan and then use both rental income and make our own extra payments to aggressively pay it off.
While I used the Baby Steps as a framework, I tweaked it to better match my family’s risk tolerance, values, and willingness to reduce lifestyle.
My Biggest Lesson After Years of Personal Finance Coaching
I learned a lot from Dave Ramsey, but I did things my way and still ended up in an amazing financial position. Paying off debt and building up savings gave me the financial security to walk away from a draining corporate career so that I could focus on family and starting my own business. You can read my story here.
Now, after years of entrepreneurship as a financial coach, I realize that even my “proven” steps – a.k.a what specifically worked for me – is not always the best way to do things for my clients. The best approach for them is unique and involves understanding three things clearly.
- Their Goals – The goal behind the goal. Why do they really want to get out of debt or clean up their finances? Is it to start a new career or business? Is it to move cross country or travel? Is it to grow their family? Or figure out when and how they can retire? We need to know this first and foremost.
- Their Willingness to Sacrifice – Knowing their goal and what they’re striving for will help them make the decision on what they’re willing to sacrifice. For example, the dream of working for myself and being more present with my kids was something I was willing to sacrifice my luxury handbag obsession for. It’s what pushed me to aggressively pay off debt.
- Their Values – It’s important to not sacrifice a person’s values toward accomplishing their goal. You must know what your client values and then incorporate it into their budget. Otherwise, they will fall off the wagon. For instance, if their biggest values are tied to family and relationships and they cherish Sunday dinners, slashing their grocery budget will not work for long.
Understanding goals, what people are willing to sacrifice, and their values should be covered within the first few sessions of any package. From there, you craft an individualized plan to improve money management in pursuit of bigger dreams. This approach leads to goal success with greater confidence because clients don’t “fall off” the plan. They build trust in themselves.
This is how I coach my clients – staying focused on them as unique people – not trying to convince them of a one size fits all solution.
For The Prospective Financial Coach Reading: 4 Reasons I Didn’t Become a Ramsey Preferred Coach
The Cost of Joining RPC
The last time I looked, the referral program cost $149 per month. Honestly, this does not seem like a lot to me now, but when I first started my business this was a steep price. I had no recurring income, I was bootstrapping and running the tightest budget possible. Also, the little excess cash I had was better used to get my own sales coach or training. What good were leads that I didn’t know how to convert.
The Leads May Not Be a Good Fit
There’s no way to specify the type of leads you receive from RPC. After researching with other Financial Coaches, I’ve learned that RPC may send you 5-10 leads per month and they are chosen based on zip codes. However, many of these prospects are looking for Dave or somebody like him. They respect his story and his style.
I am not overmuch like Dave. My history and story don’t resemble his at all. He created the Baby Steps and his strong aversion to debt in the aftermath and recovery of a stressful bankruptcy. He shares stories of the shame and ridicule that credit card companies put him through. I can’t relate to any of that. I don’t have personal experience with going to collections, foreclosures, or a demolished credit score.
The one thing Dave and I have in common is that I also coach from the lessons I learned while overcoming my trials. I was transformed by my financial triumphs too. And the people who resonate with my store are much more likely to be my ideal clients. Sometimes she is a high income earning professional, living paycheck to paycheck, and struggling with debt. Often he is an entrepreneur who needs help paying himself consistently, preparing for taxes, and managing his cash. I enjoy focusing on helping the people I am best equipped to serve.
RPC Contractual Stipulations
My next reason for passing on the RPC referral program is that the contract would prohibit me from modifying the Ramsey material provided. I may love Dave Ramsey, but I’m not trying to further his branding. I want to grow my own brand and company. One way I do that is by putting my own logo and designs on exercises and worksheets.
I appreciate that RPC gives you access to coaching materials and exercises, but there are other toolboxes you can purchase which let you private label. I personally used the Financial Coach Toolkit.
Authenticity is Foundational to Trust as a Financial Coach
When people talk with you about their money, you get a much bigger and deeper picture on who they are and what they prioritize. There’s a saying to “put your money where your mouth is.” Well, as a financial coach, you’ll see exactly where people are putting their money – both when it does and doesn’t match with who they say they are. This is personal, highly personal, and for some people it can be embarrassing, nerve-racking, or even shame-filled.
If I’m going to ask a client to do that much show and tell, I better be prepared to show them who I am and not mislead them in any way. Joining RPC would pull me out of integrity in one of two ways. Either I give recommendations aligned with the Baby Steps that are not genuinely what I would do in their shoes, or I tell Ramsey Solutions I’ll stick to their process but then I coach with my honest recommendations. Frankly, as a believer in the Way, the Truth, and the Life, it’s important that I stay in integrity so neither option will do.
As a point of note, Ramsey Solutions surveys a sample of the referred clients to confirm that you are indeed sticking to the Baby Steps. They are a business and have made the Baby Steps household language. They want to make sure that you’re talking their language if they are going to give you their stamp of approval.
Who is the Ramsey Preferred Coach Referral Program Good For?
While I don’t feel RPC is right for me, it has its audience. This program is for you if you’re a financial coach and you are 100% down for the Baby Steps, you practice Dave’s approach, you love everything about it, and you have zero desire to deviate from it. If this is you, then most of the concerns I raised above are resolved. Additionally you’ll get the benefit of collaborating with other like-minded coaches and having access to Ramsey Solutions for additional guidance. If you fully intend to coach the baby steps, and you can afford the monthly fee, I don’t see why you wouldn’t move forward with them.
So what do you think, is the Ramsey Preferred Coach a good fit for you?
