With over 70% of American workers living paycheck to paycheck, achieving financial wellness has never been harder than it is today. Just think about it. What would you tell someone who says you should strive for financial wellness? Chances are, you can’t even spring for a massage without worrying that you’re going to need that $20 later. However, just because financial wellness seems unattainable doesn’t mean it is.
It’s time to start talking about your finances. Not just with your family, but with financial advisors who can help you create more wealth. Why is it so hard to talk about money? As a society, we have a problematic relationship with money. Some consider it the root of all evil. Others put in their daily eight hours (often even more) and know that money is an absolute necessity. When you want to talk about money though, it becomes clear how easy it is to avoid that particular conversation.
Talking about Money Is Vital to Success
Despite the systemic and societal obstacles, we still need to talk about money. In his article for the Economic Times, Hansi Mehrotra coins a powerful metaphor for money. It’s like a language. If you want to become fluent, you need to talk, talk and talk your way to success. Doing so could help you manage it better, worry less, and focus on the goals you want to achieve. The best person to talk to about your finances – the only person who can help you achieve financial wellness as fast as possible – is your financial advisor. You may think: “What can a financial advisor tell me that I don’t already know?” It’s a common line of thought: you know that you should be earning more, getting out of debt, and saving. What a financial advisor can do is tell you exactly how to do it. They can help you see money as a means of achieving your goals so you finally reach the phase where you can smile and say: “My money works for me.”
How Can a Financial Advisor Help You with Financial Wellness?
The first thing a financial advisor can do is demystify the language and the methods of making more money. In high school, no one taught you anything about interest rates or how to find the right loans for what you need. They skipped that lesson and ultimately, it led to a lot of confusion when it comes to handling personal finances. Then, it’s time to map out the path to financial wellness. A lot of people give up at this step because they feel like they can’t reach financial wellness if they have student loans, credit card debt or low-paying jobs. However, a financial advisor will gather all your financial and personal information to create financial projections based on realistic investment returns, as well as saving and earning capabilities.
Once they’ve understood your situation and your goals, they can help you make a strategy. A financial advisor should also help you understand which debts, loans, and mortgages you can refinance or pay off. They can tell you what to invest in, which retirement plan to choose, and show you how to avoid costly charges like overdraft fees with financial wellness products like ZayZoon. They aren’t there to enthusiastically tell you: “You can become a millionaire overnight!” if that’s not possible. Instead, they’ll help you identify areas where you can realistically save more, earn more, or invest more. When Should You Talk to a Financial Advisor? Ideally, you should talk to a financial advisor as soon as you first start earning money. Young people are in the best position to make financial plans for their future by understanding how to maximize earnings, employer benefits, savings, and investments. If you’ve recently experienced a change in family situation (death of a spouse, divorce, birth of a child, taking care of the elderly, etc.) a financial advisor can help you financially make the most out of the changes. These are situations where you may feel confused about money and unsure as to how to plan your financial future. After all, things have significantly changed and by getting expert advice, you can make sure you’re set for financial wellness – despite the obstacles. The same goes for retirement or an increase in your personal net worth.
Finally, you should definitely talk to a financial advisor if you’re struggling with meeting your financial goals. Maybe you want to pay off your student loans and buy a home for your family. Maybe you just think it’s time to plan out your retirement. Regardless, a financial advisor can help bring structure and strategy to any stage of your financial life. After all, the sooner you start planning your financial wellness, the sooner you’ll achieve it.
How to Find a Financial Advisor?
Finally, once you’ve decided to improve your situation, it’s time to find the right financial advisor for your situation.
You can find them through the following sites:
- Financial Planning Association
- Paladin Registry
- Garrett Planning Network
- The National Association of Personal Financial Advisors
The financial advisor should be certified by FPA or NAPFA. Since there are different pricing structures, you should first define whether you need a one-time financial plan, or long-term financial help. Avoid advisors connected to organizations like banks as they may not be keeping your best interests at heart. And finally, your financial advisor shouldn’t just tell you where to invest.
Your advisor should also have plenty of information about instruments that will help you achieve your goals and reduce costs; from ZayZoon which allows you to get your paycheck earlier without high fees, to tax planning. It’s time to make a plan. Financial wellness is right here and with a little help from a financial advisor, you can experience it firsthand.