You don't need a financial advisor, but you do need a financial plan!
Even wealthy people don't really need a financial plan from a financial advisor. However, everyone needs a financial plan.
Money is easy to spend, so it's important to review your spending on a monthly basis. Look at your bank accounts, credit card statements, and cash withdrawals. If you have a spouse, talk about money with them. If one spouse is not open to discussing money, an intervention may be needed.
Here are some tips for creating a financial plan:
- Set financial goals. What do you want to achieve with your money? Do you want to buy a house, retire early, or start a business? Once you know what you want to achieve, you can start to create a plan to reach your goals.
- Create a budget. This will help you to track your income and expenses so that you can make sure you're spending less than you're earning.
- Invest for the future. Once you have a budget in place, you can start to invest your money for the future. This will help you to grow your wealth over time and reach your financial goals.
- Review your plan regularly. Your financial situation can change over time, so it's important to review your plan regularly and make adjustments as needed.
Statistics:
- According to a 2022 survey by NerdWallet, only 34% of Americans have a written financial plan.
- A 2021 study by the Financial Planning Association found that people with a financial plan are more likely to reach their financial goals than those without a plan.
- A 2020 survey by Charles Schwab found that people who work with a financial advisor are more likely to be satisfied with their financial situation than those who don't.
Conclusion:
You don't need a financial advisor, but you do need a financial plan. By following the tips above, you can create a financial plan that will help you to reach your financial goals.