What to expect from a financial advisor

As a student you only need to worry about seeking out the assistance of a financial advisor in your final year. Because, this is the time you need to concern yourself with paying back your student loan, affording yourself reliable transport and setting up some savings. In other words, in your final year you need to prepare to enter the working world and take on some real adult responsibility.

A financial advisor is hired for a variety of reasons

Most times it’s simply because guidance on how to handle money is really invaluable. Anybody who is feeling undirected about what to do with their money should turn to a financial advisor. They’ll assist you with choosing where to place your money to accumulate interest, help you handle mounting debts and choose the best way to accrue financial growth. Also, if you’ve recently inherited a large sum of money you’d like invested, they’re your go-to advisor.

You’re paying for an impartial plan to realise financial wealth

You’re employing the assistance of a studied professional so you can expect to pay a fair amount for their time and expertise but it’s worth it. They can create a financial roadmap for you and offer you a financial plan that is free from bias or emotion. This is important because often times we make money decisions based on an emotional drawcard. Financial advisors don’t care for your retail therapy, your best friend who relies on you to buy their cigarettes or your need to impress your crush by flashing your cash. They might even tell you to stay at home more often and offer you tips on a more frugal lifestyle.

But, you’ll be sitting pretty soon

Whether you earn R60 000 or R260 000 a year, if you spend a bit of time and money on the services of a financial advisor (and heed their advice) you should see yourself financially stable in a couple of years. You’ll have a retirement fund set up and savings in the bank. There’s no point in waiting until you earn a salary that you feel is enough to afford you the opportunity to invest and save. You must start as soon as you enter the working world.

Don’t shy away from the suggestion of investing

A financial advisor has a fiduciary responsibility that requires them to act in your best interests when it comes to growing your money. Whether you hand them R500 or R5000 a month to play with, they’ll have to choose the best portfolio in which to invest so that you are bound to see returns.