Financial Advice: Do I Need It?

There is a common misconception when it comes to seeking financial advice: that it’s for old, rich people. Many assume they arrive at a point in life where their pockets are bursting at the seams and only then do they decide they need help managing money. There are a few things wrong with this equation. Firstly, unless you have adopted good spending habits, bulging pockets are unlikely. Secondly, waiting until you have a certain amount of money behind you means you haven’t thought about one of the biggest game changers when it comes to investing and financial success: time. Warren Buffett dubbed ‘compounding interest’ the “eighth wonder of the world.” What is it? Effectively, the earnings on your money being reinvested and snowballing continuously. This means the earlier you start saving, the more you will save. Most people aren’t confident in making money decisions. They aren’t sure how to invest or exactly where all their money goes… and instead of reaching for help and guidance, they don’t do anything, in the hopes that soon, things will change. Not having a financial game plan is like driving a car towards your destination without a GPS. Yes, maybe you might reach it. Would it be difficult and stressful not really knowing which way to turn? Most likely. Sitting down with someone and mapping out your financial goals means you have a clear roadmap of what you want to achieve, and most importantly, how you’re going to get there! A good financial adviser Melbourne will help you create a cash-flow plan, so you know exactly where your money is going each month and make sure you are putting money towards those things you said were really important (like buying property, paying down credit card etc). They will also help you ensure you are taking care of the important things probably stuck in the back of your mind that you need to do ‘one day’, such as consolidate all your super, make sure it is invested correctly and that you don’t pay high fees, get things like tax minimisation, asset protection, insurance and also estate protection. These aren’t just for rich people looking to make extra money. So, if you haven’t quite got your financial world sorted, don’t wait. Future you will be very impressed with your proactivity.