Why You Don’t Have to Be Rich to Get Professional Money Advice

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There are so many money management resources out there. 

We live in the Age of Information, and it’s gotten very easy to find help with just about any subject imaginable. Naturally, this has also translated to personal finance and money management advice.

Since so much of this information is free (like the personal finance resources here at The Ascent), you may wonder why you would ever consider paying a professional for help. And this may especially be true for you if you’re an average American, rather than part of the 1%. If you don’t have a lot of money to worry about, why waste some of it on financial advice? According to the Northwestern Mutual 2022 Planning & Progress Survey, just 35% of those surveyed have relied on finance professionals for money help.

Last year, I met a financial planner on social media, by pure chance. We ended up trading professional services, and with his help and wise counsel, I turned my finances around. I was able to get out of debt, bring my credit score up to the highest it’s ever been, and start to save money to buy a home. While I did the work myself (and it has been a lot of work), I know I couldn’t have done this so successfully without the ongoing support and advice of a finance professional. Here’s what a finance professional can do for you, even (and especially) if you’re not rich.

Back to basics

A finance professional has likely heard it all before, so no matter how bad you think you are with money, they’re not going to judge you (and if they do, find a new one — there should be a lot less shame around learning from your money mistakes). If you’ve struggled with money, a financial advisor can help you get back to basics with advice on budgeting and ways to increase your income. We’re not always the best judges of our spending and savings habits. A neutral third party is in a good position to assess your current financial situation and offer useful tips and an action plan to improve.

Managing debt

Being in debt is as American as apple pie. Research from The Ascent found that in 2021, the average household debt was $96,371. Despite what some finance gurus will tell you, it isn’t automatically bad to be in debt. For example, if you took out a mortgage loan to buy a home that is appreciating in value, you have the ability to increase your own net worth thanks to that debt (especially if, like many Americans, you wouldn’t have been able to buy a home with all cash without saving up for many, many years). That said, if you’re carrying high-interest credit card debt, it’s worth paying it off sooner rather than later, and a finance professional can give you advice and discuss the different options you have to pay off debt.

Planning for the future

A major topic of discussion between my financial planner and me has been my plans to buy a home. It’s been helpful to crunch those numbers and see, in black and white, how much I should save and what homeownership costs I’ll have to account for. If you need some help seeing the financial forest for the trees, a professional can help you look for your own “big picture.” That could be a big future expense like a home purchase, or building up a solid nest egg for retirement, or paying for your kids’ higher education expenses.

Professional financial advice is for everyone, regardless of your income level. If you’ve ever thought you would benefit from some help with money, I urge you to find a financial advisor of your very own.

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