For most people, the topic of personal finance and financial planning brings about a lot of anxiety. Most usually outsource the management to someone else without understanding risks and rewards associated with the decisions. The goal of our Financial Planning 101 series will be to make you comfortable with the basic concepts of personal finance and give you some tools to take back control. The ultimate goal is to guide you towards financial independence.
Some would ask Why bother? Financial advisors are trained to understand and manage money. They charge me a fee to handle my finances the same way a barber charges me to cut my hair. Let the experts take care of my money while I focus on my career. Yes and No.
- Not all financial advisors are the same and not all have your best interest in mind.
- I would argue the stakes are much higher compared to a haircut where your hair will grow back (hopefully).
- Even if you go with a financial advisor, it’s a good idea to understand the basics of what they are doing with YOUR money. Consider it “Shared Decision Making”.
The best part of understanding your finances is that you can make better decisions from handling your own finances to picking the right financial advisor. I suspect that once you go through the process of learning about your finances you will feel empowered to do it yourself.
Where to Start?
When embarking on your financial planning journey I always advise people to keep it simple and then add-on more layers. The last thing you need is to get more frustrated or anxious and retreat back to the easy way out and outsource it to someone else.
Financial Planning Lessons