In order to manage your personal finances you first need to learn about personal finance and personal financial advisors.
I'm sure the that question you are asking yourself as you read this is "What exactly is personal financial advising and what is a personal financial advisor?" These terms can mean a lot of different things to different people and I'm here today to tell you what Personal Financial Advising is, what a financial advisor does and exactly how all of this can help you on your path to financial freedom.
The National Association of Personal Financial Advisors (NAPFA) defines personal financial advising as a situation where professionals help people to manage their money for both the short and long term by assisting them in deciding which stocks, bonds, mutual funds, and other financial products to invest in. This is an excellent explanation of what a personal financial advisor does at its most basic level but does explain everything.
A personal financial advisor is usually hired because someone needs assistance in managing their money but does not have the time, knowledge, or resources to do this in the most effective way.
The goal of a Personal Financial Advisor is to help their clients reach all of their personal finance goals. A Personal Financial Advisor should be involved in every aspect of a clients financial situation beyond their day-to-day finances. In doing this one might be involved in helping clients save and invest for retirement, save and invest for a child's college, make the correct investment choices, or even help with mortgages or car loan advice.
When someone uses a Personal Financial Advisor there is often a fee associated with the use of their services. Often times though the fee is largely outweighed by the financial gains one notices from the advice they receive.
In the end though Personal Financial Advisors are exactly as they seem. They are merely advisors who gives clients educated advice on how they should handle their money so that it works for them instead of them working forever because they have no money. When it comes down to it, it is ultimately the individuals decision on how they want their money to be allocated. Using a personal financial advisor is a great idea for anyone who wants to seek financial freedom but does not have the knowledge, time, or resources to do it on their own.
I hope this article has at least shed some light on what a personal financial advisor is. This article merely skimmed the topic of Personal Financial Advising and a whole book could most certainly be written to explain exactly what it is.