Search for Savings & Loans
Why You Might Need a Financial Advisor
Money Management

Why You Might Need a Financial Advisor

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. 

What Exactly Is a Financial Advisor?

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? 

When Should You Hire a Financial Adviser (Seeking One-Time Financial Advice vs Hiring a Long-Term Financial Adviser)

There are three main reasons why you might need a financial advisor; 

  • You are hopeless when it comes to financial planning. The truth is, very few of us are hands-on when it comes to money. You might be making enough money to set yourself financially free in the next ten years, but you do not have the grace to plan for it properly. So getting a professional to help might go a long way. 
  • You feel financially ‘lost’. Are you deep in debt and feeling hopeless? Do you see no way to get out of the mess you dug yourself in? A financial professional may be just what you need. A financial advisor is someone who can help you assess your debt situation and figure out a way to get your finances in line to be able to finance the debts successfully. 
  • You have the financial planning skill, but an impartial and unemotional professional opinion might benefit your financial plan. Sometimes even the best of the best needs a different opinion and perspective. You might be doing everything right, but you wouldn’t mind a different eye on the situation. 

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.

What Are the Benefits of Hiring a Financial Adviser

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. 

Help you set realistic financial goals.

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. 

Minimise self-doubt and self-bias.

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. 

Help keep your head on the game.

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. 

Help you choose the right investment combinations.

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. 

How to Choose the Right Financial Adviser for Yourself

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. 

Define 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;

  • Retirement plans
  • Debt repayments
  • Investment strategies, etc. 

So, before you make the call, you first need to have a clear understanding of your needs. 

Know Your Financial Advisor

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. 

No items found.

Doris is a finance professional, freelance writer and SEO expert. She has experience helping businesses of all sizes create content that helps improve their site quality and increase their online traffic. She is a personal finance and wealth creation enthusiast and a frequent contributor to Money254. Visit Doris' personal website to learn more about her work.

Get the Money254 App and don't miss out on the next article.

Join 1.5M Kenyans using Money254 to find better loans, savings accounts, and money tips today.

Get it on Google Play
A person holds the Money254 App in their hand.

Welcome to Money254 - your simple way to compare loans in Kenya online.

Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.

Download the new Money254 App and don’t miss out on the next article.

Join 1.5M Kenyans using Money254 to find better loans, savings accounts, and money tips today.
Get it on Google Play

Learn more about Personal Loans available in Kenya on Money254

Money 254 is a new platform focused on helping you make more out of the money you have. We've created a simple, fast and secure way to find and compare financial products that best match your needs. All of the information shown is from products available at established financial institutions that our team of experts has tirelessly collected.

Instantly search loan products from established providers in Kenya and compare on the terms that matter most to you.
Find the best Personal Loans for me

Don't miss another article - download the new Money254 App Today

Get it on Google Play
Download the Money254 app on Google Playstore

Sign up for our newsletter and get weekly money tips to your inbox.

Get updates from the Money254 team on financial news and new Money254 features.