Before this year started, you probably wrote down your new year’s goals.
We all do that, right? And most likely, there was some kind of a financial goal on top of that list — maybe it was to start another revenue stream, save more for a ‘kaplot hapo Kamulu’ or something as simple as finding a way to afford to upgrade your wardrobe.
Today, almost 10 months in, how can you describe the progress? Satisfactory?
Did you manage to stick to your budget? Did you start a side hustle? How much did go to that investment spot you were eyeing? Did you save enough for that ‘kaplot’ down payment?
We all want financial freedom. But the road to this destination is not for the faint-hearted. It is full of uncertainties, and without the correct formula, succeeding is a steep climb.
Most of us are very confident that we can handle our financial decisions. We make detailed plans, and we have all the confidence we can stick to them. But then life happens. Disasters strike, our careers stagnate, and our needs expand.
As the changes occur, so does our motivation to follow our financial plans. Life starts getting in the way, and before long, our goals become something we were supposed to do.
That is why sometimes we all need an unbiased anchor on our team. A professional equipped with the proper knowledge can help you survive those pitfalls.
Yes! Financial advisors aren’t only for the rich people.
Although personal financial planning is a learnt skill, few of us have what it takes to be master planners. So why not get a professional to help? Because let’s face it, you might know your way around a computer, but do you know how to build it? Even with a lifetime of experience driving a car, can you fly a plane?
Yeah! That is the same with finance matters.
The truth is, as elite as you are, there is always someone who knows better in certain life aspects than you are. This also applies to your finances. A professional with the right experience and skill will likely propel you to financial freedom faster than you could if you did independently.
So take your time and consider it. But before you start making those calls, let’s first equip you with the basic information you need for this challenge.
A financial advisor is a ‘street name’ for professionals who provide financial advice and guidance to individuals (or businesses) based on their current situation and financial goals.
So, a financial advisor is someone who helps people with money issues.
But don’t get it wrong, a financial advisor is not a magician that will make you a millionaire overnight. The role of a good financial advisor is to skillfully but objectively guide you and give you an expert perspective on your financial situation.
For example, they will guide you to assess your financial situation, set realistic goals and then provide support and encouragement along the way — more like an accountability partner with a hat.
But how do you determine whether it is the right time for you to have professional help in your financial life?
There are three main reasons why you might need a financial advisor;
Depending on your situation, you can choose to get one-time advice or hire one to walk with you through your financial journey.
For example, if you are fine with managing your own money, a one-time expert eye is enough to give you an unfiltered third party opinion. On the other hand, if you have dug yourself into a debt hole, it might benefit you more to have a capable hand to walk with you along with your recovery.
The truth is, everyone could potentially benefit from hiring a professional financial advisor — it doesn’t matter your income bracket. Even large businesses with specialised professionals sometimes need an independent financial advisor.
Here are some of the benefits of a financial advisor to your financial journey.
Setting your financial goals is easy. You can build giant castles in the air and thrive in your own imagination. However, having someone who is qualified tell you whether or not those goals are realistic and achievable goes a long way in making your financial freedom journey a reality.
It is also essential to have someone to encourage and support you as you achieve those goals.
Yes! Sometimes you might not be very convinced of your own potential. On the other hand, you might be aiming way beyond your own ability. For example, although it might be possible to own a private jet, it might not be realistic with your current financial situation.
Having a professional pair of eyes will quickly and skillfully bring you back to reality when you stray too far from reality.
When life happens, it is very easy to forget your purpose and your end goal. This can be stressful and lead to delays in achieving your goals. A professional eye keeps you grounded and often gently nudges you not to forget your goals.
This is one of the key benefits of a financial advisor - and probably the most important. A financial advisor will advise on the best financial strategy based on your current situation.
For example, how much should go to your retirement plan based on your age? How do you quickly and effectively make up for the lost time?
A professional eye will offer expert advice on where you will get the best returns on your investments. If you invest in the stock market, they can analyze and advise on the best investment combination for maximum returns.
Now that you understand who a financial advisor is and how they can benefit you, you need to know how to choose the right one for your needs. Here are the simple steps to follow to find the right financial advisor for your needs.
First, figure out what aspect of your financial life needs professional help. In reality, the best financial advisor is one who can help you analyze and chart a course for all your financial needs, but you also need to have a grasp of exactly what you need to achieve by hiring them.
Many aspects of your finances may need expert financial advice;
So, before you make the call, you first need to have a clear understanding of your needs.
After defining your needs, you want to ensure you get the right person to meet those needs. There are different types of financial advisors in the market today. Not everyone calling themselves a financial advisor can meet your needs efficiently.
Hence, do your homework and ensure that you understand their expertise, credentials and what type of services they are qualified to offer. It is also crucial to hire someone with good experience in the industry. They will give assurance that this person will be able to help you meet your financial needs.