In a world where do-it-yourself everything is the norm, many people believe they can also plan their finances independently.
Although some great budgeting apps and software solutions are available to help you get a handle on their money, there is no replacement for a proven finance planning strategy.
A good financial planner will help you organize your economic life, protect you from making huge mistakes, and be a sounding board to discuss big life decisions.
And for some, this is your ticket to generational wealth.
In this article, you’ll discover the importance of a financial planner and why everyone can benefit from one, no matter their income level.
Key takeaways
- A financial planner is your tailored ticket to financial freedom
- Unforeseen life changes can have a profound impact on your finances
- A financial planner can help you avoid common money mistakes
- Money never stays the same. Inflation, economic recession, and other global market changes can have a significant impact on your money
- A financial planner can help you think through significant life decisions
- The big question is not whether you need a financial planner but when you will start working with one.
What Does a Financial Planner Do?
A financial planner is a professional who helps you make intelligent choices with your money.
The goal is to help you reach your financial goals and objectives by managing your money in a way that aligns with your life goals.
This might include saving for retirement, buying a home, or sending your kids to college.
A financial planner will take a holistic approach to your finances, looking at all aspects of your life to create a comprehensive plan.
This holistic approach sets financial planners apart from other financial professionals, such as stockbrokers or insurance agents.
Why do you need a financial planner?
There are several reasons why you might need a financial planner.
If you’re like most people, you probably don’t have the time or knowledge to effectively manage your finances on your own.
A financial planner can save you time and headaches by taking care of the heavy lifting.
Financial planning, they say, is easy, but it’s not.
It requires making tough choices and discipline to stick to your plan.
Critical factors like inflation, interest rates, and taxes can significantly impact your financial future. Still, they’re often overlooked by many people who don’t have a financial planner.
So they save a couple of thousands but end up losing out on hundreds of thousands, or even millions in the long run.
A financial planner can help you make sense of it.
Some live below the poverty not because they don’t earn enough money but because they lack the financial plan to make their money work for them.
A financial planner can help you change that.
Others leave below their means, don’t have any debt, and are already on track to a great retirement.
But a financial planner can help you take your finances to the next level.
Who needs a financial planner?
If you’re unsure whether you need a financial planner, here are five signs indicating it might be time to seek professional help.
- You don’t have a budget.
- You’re struggling to pay your bills.
- You’re not saving for retirement.
- You want to buy a house.
- You’re going through a significant life change.
No matter your financial situation, a certified financial planner can help you make the most of your money.
Importance of a Financial Planner
Here are some ways you’ll benefit from a financial planner:
1. Organize Your Financial Life
Disorganized living can harm your finances and keep you living paycheck to paycheck.
A financial planner can help you organize and develop a budget that meets your needs.
Think about the last time you went to the grocery store without a list.
You probably ended up spending more money than you wanted to.
The same goes for your finances.
If you don’t have a plan, you’ll likely spend more money than you need.
A financial planner can help you develop a budget and stick to it.
2. Understand Your Goals and Objectives
Your financial goals and objectives can change 100x over your lifetime.
A financial planner can help you understand your goals and objectives and create a plan to achieve them.
While we dare not predict the future, a financial planner can help you anticipate life changes and adjust your plan accordingly.
A simple change in your lifestyle, such as getting married or having a child, can profoundly impact your finances.
A financial planner can help you navigate these changes and keep your financial goals on track.
3. Protect You from Making Huge Mistakes
A financial planner can help you avoid costly mistakes, such as investing in volatile stock or buying too much life insurance.
A financial planner can also help you avoid common money mistakes, such as not having an emergency fund or not diversifying your investments.
The majority of people have no idea how to invest money wisely.
As a result, they often lose money in the stock market or pay too much in fees.
A financial planner can help you invest your money wisely and keep more of it in your pocket.
4. Be a Sounding Board to Talk Out Big Life Decisions
A financial planner can be a sounding board to talk out big life decisions, such as whether to buy a house or how much to save for retirement.
We make decisions without thinking about the future. This can be extremely harmful to our financial lives.
A financial planner can help you think through these decisions and make the best choices for your financial future.
Sometimes, you need someone to talk to, not just about money but also about life in general.
A financial planner can help you sort out your thoughts and make the best decisions for you.
5. Help Manage Your Money Based on the Things You Want to Accomplish in Your Life
A financial planner can help you manage your money based on the things you want to accomplish in your life.
For example, if you want to retire early, a financial planner can help you develop a plan to achieve that goal.
If you want to buy a house, a financial planner can help you save for a down payment and get a mortgage that fits your budget.
No matter your financial goals, a financial planner can help you develop a plan to achieve them.
The Bottomline
Yes, there are loads of internet articles on how to manage your financial life. But none is tailored to your unique circumstances like a certified financial planner.
If you’re not sure whether you need a financial planner, ask yourself this question:
Do I want to get my finances in order but don’t know where to start?
If the answer is yes, then a financial planner can help you get on the right track.
Investing in a financial planner is one of the best decisions you can make for your financial future.
If you need to discuss this in more detail or have questions, feel free to email me or set up a call.
I respond to every email and call.
I’ll even give you a complimentary 30-minute phone consultation to discuss your specific situation and how you can progress.
Email: info@redwoodfinancialplanning.com
Phone: 1-908-663-2125
