Everyone needs to earn money to live. Unfortunately, for many people, there is barely enough money to survive day to day. It’s estimated that over half of Australians are living paycheck to paycheck. In other words, these people have no means of saving for the future or even for emergencies.
The good news is that, even when it appears this way, with the right financial advice, you can change your budget and spending and start planning for the future. But, who do you speak to? A financial planner or a financial advisor?
Financial Advisors
A financial advisor is someone that offers you advice on your financial status, what you should be doing with your money, or how you can save more. In short, anyone can be a financial advisor as they are simply giving you an opinion regarding what you should do with your money.
Financial Planners
If you want to use the services of a financial planner then make sure you choose a reputable company specializing in financial planning. This will make sure you get all the help you need. Naturally, there are fees associated with financial advisors and planners. Make sure you are aware of what they are before you start consulting.
A financial planner is a financial advisor but they are more qualified as they have spent time studying a specific area of finance. There are many different specialities, including:
- Taxes
As a general employee, your tax is handled by your employer. But, if you have additional earnings or want to make your money work harder you can talk to a specialist tax planner about how to minimize your tax bill.
- Investing
Most people would like to save for a better future. The simplest way to do this is to invest. However, investing is risky and can be complicated. Unless you’re a specialist in investing it is advisable to speak to an investment planner. They can guide you through the risks and where to place your funds, hopefully generating the best possible rewards.
- Retirement
Retirement planning links with investment planning but it’s different. Planning for retirement means making sure you have an adequate income and savings, along with considering whether you’ll downsize the house or what other changes you may make.
Again, this can be complicated which is why professional retirement planners are used.
- Death
The biggest issue upon death is what you leave behind. You need to have financial planning for that today, to mitigate tax charges and ensure your funds are allocated according to your wishes. It’s also a good idea to have funeral insurance, as this alleviates the pressure on your loved ones.
Financial planners are experts in their field. They can assess your current income and expenditure, helping you to find ways to save for the future and achieve your dreams. As is often said, time is the enemy of dreams. With a financial planner, you can make sure you have the time to save and plan for the future, making all dreams possible.