How Does a Financial Planner Work?

Have you ever been curious about using a financial planner but are unsure of where to start. Dealing with money can be very personal. You are explaining to someone you don’t even know how much money you make, how much money you save, how much you are spending on a regular basis, and everything else that is going on within your account. The good news is that when you meet a good financial planner you will be so happy. You will make way more money, save way more money, and feel that much more confident. Keep reading as the fee only financial planner explains how a financial planner works. 

 

Talk with them about your goals

The first step is to set up an appointment and meet with them. Of course, as we said, it can feel a little bit awkward in meeting with them for the first time. The thing is, you should feel at ease. They are not going to judge you. That is why during the first appointment you are there to tell them why you are there. Are you there to talk about retirement? Are you there learning about money-saving tricks? Are you there because you are interested in finding out what they can do for you? These are things you want to learn and talk to them about. Once you tell them your goals, they can then tell you what their job is in getting you to reach them. 

 

Find out how much you are currently saving

Most people don’t actually know how much they are saving each money. That is why it’s important to sit down with a financial planner and learn exactly how much you are saving each money. Perhaps you are going into the red every month and you didn’t even realize it. Perhaps you are saving money but you are not putting it in a place that will grow over time once it is saved. This is important and a part that you should be making sure you understand about your own finances. A financial planner will help you in laying it all out in a spreadsheet and coordinating it with your goals. This will allow you to learn more about how much you are currently or not currently saving. 

 

See how you can save more money

Seeing it all laid out you are able to see where you are able to save more money. Say you now are realizing you are spending way more money than you realized on going out to eat, or on something that you don’t necessarily need to be spending money on. The financial advisor can show you these and plan together where you can cut costs. You can group your spending habits into things like food which you need, going out for food which you don’t, things like new clothes, or things that are not necessities, and things like your rent or mortgage in which you do need because you need to live somewhere. Learning how you can be saving money is a huge deal. You may realize you can be saving more money than you realized. 

 

Create a game plan for your goals

Now that the financial planner knows more about your finances, it’s time for them to create a game plan with you. They are able to see some goals you are able to achieve by how much money you technically are “waiting” on things you don’t need to be spending money on. They will guide you on how to make those changes and what you need in order to be on the game plan they are recommending. 

 

See if that is what you need in order to reach your goals

You can always have a bit of push back with your financial advisor. It’s good to have an honest relationship. Verify that the goals they are having you attempt to reach are ones that are actually attainable for you and your family. If they are not, say that. Say you won’t quite be able to do that, but this is what you can commit to doing. Communication is key in any relationship, especially one with your financial planner when you are creating goals for your future. 

 

Find out exactly where your money is going each month

It’s important to know exactly where your money is going every month. Is it going to the bank? Is it going towards your debt? Is it being spent and you didn’t realize it. This is important to figure out and your financial planner can assist you with that. 

 

Come back for an update in a couple of months

It’s important to implement what the financial planner has said and gone back a couple of months from then and find out if it has been working. You can make tweaks together based on what you have noticed. If you are not finding yourself doing anything fun and are stretched too thin, let them know so that they can make the necessary tweaks for the plan. If you are finding yourself saving more money because you are not conscious of it, you can also tell them this. 

As you can see, a financial advisor is there to help you. It can feel a little bit overwhelming at the beginning, but just go in there and don’t be shy. Their job is to help you. If you truly want to save money correctly and want to get as much out of the financial planner as possible, you will listen to what they say, implement it, and be as open as possible. You will start seeing so much more saved and be so much happier with the outcome. Good luck!