6 reasons to seek expert advice in domestic financial planning

A couple discusses family money matters with a financial planning expert. Involving an expert helps the family set realistic objectives. PHOTO | FILE 

In Summary

• Consultants are crucial in helping individuals to strike balance between income and expenses as well as achieving their money objectives.

How regularly should I seek services of a financial adviser? This is a common question that I usually encounter every time I organise a workshop on financial wellbeing for employees.

Share This Story

0
inShare

Many income earners are beginning to realise the significance of expert advice in achieving individual financial freedom.

Nevertheless, many employees still hold the misconception that in order to take control of personal finances, they need to consult a financial adviser every time they want to spend their money even on shopping.

Although it is a noble thing to do, it is costly. How frequent one should visit a financial adviser depends on one’s situation or the nature of one’s need, which may vary from one person to another.  Here are some of the situations that call for a financial adviser:

1. Making annual financial goals and plans. At the start of every year, most households usually draft financial goals and plans based on the previous year.

The challenge usually comes when the goals drafted either do not take into consideration the financial situation of the income earner or the resources available.

Without some financial guidance, one can either set goals that are easily achieved or beyond their reach and unrealistic. Striking a balance is usually a challenge for many income earners.

An expert guides one in formulating clear and measurable objectives as well as recognising the implications of unrealistic goals in financial plans.

This is a point where most people who seek financial advice do build the notion of incompetency of their financial consultant and part ways.

Once you have drafted your goals and objectives, the adviser should help you to assess your current financial situation to determine the likelihood of attaining the stated objectives.

After analysing your current situation, the practitioner shall come up some recommendations with various alternatives you can pursue to meet your goals, needs and priorities.

Where possible, the financial adviser will always tell whether there is any likelihood of reaching your stated financial objectives under your present financial situation or not.

2. Checking on whether you are on track. Just as a project manager may need to monitor a project for progress, an income earner must regularly check whether one is on track based on financial plans set at the start of the year.

This monitoring could be done quarterly or half yearly to assess the likelihood of achieving one’s financial goals. A financial adviser is needed given the complex nature of the process.   

Any recommendations by the adviser at this point will only work for your own benefit by helping you eliminate any financial distress due to a burnout of not attaining set financial goals or even giving up on your money plans.