You don’t have to be wealthy to hire a financial advisor
Many people think they don’t make enough money to warrant having a financial planner or advisor, or they cost too much.
There’s a big misconception that only the rich need a financial advisor.
The truth, however, is that financial advice is not just a preserve of the rich, and anyone can benefit from the services of a financial provider.
Johnson Nderi, Manager of Corporate Finance and Advisory at ABC Capital Ltd, says a financial advisor can help anyone manage their money, plan for the future, and improve their financial life.
“Not everyone can be wealthy, but the average person has an income, and a financial advisor would provide the principles needed, from a financial perspective, to have a good life now and in the future. And because you are not rich, every coin counts, so you’ll need to plan properly. Therefore, you’ll need professional input from day one,” says Nderi.
Many people think they don’t make enough money to warrant having a financial planner or advisor, or they cost too much. Or if their fortunes do not include millions of dollars, real estate property and a luxury car or two, they don’t need assistance in financial planning.
Nderi says that perception is wrong.
“My experience in life is that one of the things financial planners or advisors teach you is what constitutes good and bad money habits. They teach you which habits to pick or avoid and the habits to cultivate. So, even if you have no income now, it is still a good time to develop these habits early.
There are various types of financial advisors, and the most common range from Retirement planning, Tax advisors and Investment advisors.
A financial advisor who works with the wealthy will typically have clients with expansive financial needs and help them manage their assets. For these clients, they offer services ranging from estate planning, investment management, tax strategies, legal guidance and so on.
On the other hand, an ordinary individual will benefit from the services of a financial advisor, which include:
- Getting a handle on their savings and budgeting
- Creating an emergency fund.
- Guiding you on how to map out and plan your short-term and long-term financial goals.
- Researching and recommending the various investment products that suit your financial situation.
- Helping you with strategies on how to pay off your debt.
- Investment management
- Retirement planning
- Healthcare planning
However, choosing the best type suited for you will depend on your financial goals and needs.
Today, quality financial advice is more accessible than ever, and depending on what you are looking for, it could either be inexpensive or free.
So, what can you do if you can’t afford a financial advisor yet?
“A lot of books have been written about financial planning. The internet is one of the biggest reservoirs of free information, so you can always start your research there. You can attend online classes. Many people also give free financial advice on platforms like X and YouTube through webinars,” says Nderi.
If you are strapped for cash, there are several ways to find free financial advice until you can afford advice tailored to your situation. For example, Saccos or banks offer free webinars to educate customers on improving their finances. You can also talk to friends or family members who are well-versed in financial matters.
Financial advisors, however, charge for their services, and there are plenty of platforms and organisations that offer affordable, valuable, unbiased financial advice.
For instance, Abojani, a digital-first personal finance management company, offers personal finance classes with different plans. There’s a cost to each plan, which unlocks different topics, and the more you pay for a particular package, the more information you get.
Centonomy, a financial consultancy firm, also teaches people to manage their finances and create wealth. The company offers training on different programmes, at a fee, ranging from entrepreneurship, personal financial management to building a successful career and creating wealth.