Personal financial advice: what is it and how does it work? Is it worth it?

Personal financial advice: what is it and how does it work?  Is it worth it?

Table of Contents

THE personal financial advice is an orientation service that helps people to:

  • organize your savings;
  • choose the best investment strategies and types;
  • to change consumption habits.

And so, adjust a financial reality to achieve specific financial goals.

Financial education is a need that receives little attention and investment from UK citizens. Therefore, doubts regarding money management, assets, investments, among others, are constant.

And it is there that the help of professionals specialized in financial consultancy for individuals makes all the difference in return on your capital.

Read too: Liquidity: what it is and how it influences your investment

To better understand what personal financial advice is and how it can boost your money's income, follow the post and check out the main information. Good reading!

What is personal financial advice?

As we said, it is common to have doubts about what to do with the money:

  • how to get out of debt;
  • avoid bankruptcy;
  • what are the best ways to apply extra income;
  • what ways it is possible to save;
  • how to pass an inheritance, and so on.

That is why personal financial advice is so important.

Roughly speaking, the individual financial consultancy offers personalized strategies to manage your money.

Through the use of intelligence and financial control tools, professionals consider:

  • the profile;
  • the reality;
  • customer objectives to optimize their profitability.

In other words, whatever the goal, pay off a debt, buy a property, change the car, pay the bills on time, multiply the equity, personal financial advice can help.

Who carries out personal financial consulting?

The guidance service is performed by professionals specialized in financial education, also called financial advisers. They are responsible for the strategic and didactic part of the process.

They organize their clients' financial lives and offer guidelines to protect their investments based on analysis:

  • income sources;
  • expense flow;
  • fixed and variable expenses;
  • reservations, among others.

For example, many people leave their money in savings. But this may not be the best investment for you. Financial advisors will help you to be more profitable with your capital, without you having to risk your rich money!

All of this is done based on a plan that includes 6 areas:

  1. Financial planning
  2. Asset and investment management
  3. Retirement Planning
  4. Risk management
  5. Tax planning
  6. Succession planning

What are the main benefits of having a personal financial advisor?

Now that you know what the role of personal financial consulting is, check out the main benefits of hiring this professional.

  • conquest of security, trust and tranquility when hiring a professional;
  • definition of real action plans;
  • receiving efficient instructions for achieve financial goals;
  • financial understanding detailed about life itself;
  • understanding and results analysis;
  • ability to analyze financial strategies;
  • knowledge to have autonomy in decision-making;
  • conquest of financial empowerment;
  • responsibility development with the money;
  • time optimization to achieve results.

How does a personal financial consultancy work?

Personal financial consultancy is carried out through the interaction of the specialist on the client's financial reality, which is why a profile study is carried out carefully. Among the analyzes that are carried out are:

  • depth of finance;
  • cash flow;
  • investment opportunities;
  • emergency cuts;
  • superfluous expenses and more.

Everything is considered to understand the real needs and possibilities that the client has.

For this, the process follows the following steps. Check out!

Service definition

After drawing the customer's profile, the consultant presents the best service options. In case of hiring, the main or most urgent jobs are chosen together with the client, considering their needs, priorities and conditions.

Obtaining data

Then, the client's personal and financial data are analyzed, both qualitatively and quantitatively.

Bank statements, financial products, identification data, own assets, financing, among others, are collected in order to have sufficient subsidy to diagnose the situation.

Data analysis

With the information organized, the personal financial consultant makes a careful study and outlines the most appropriate strategies to achieve the goals defined in the first case.

The real diagnosis of the client's financial life is structured, so the pain and need for correction are also assessed.

Identification of strategies

With the diagnosis defined, it is time to create the strategies.

Each case is different, so it is essential that the professional hired is reliable and has the necessary expertise to align the most efficient recommendations to your goal.

Implementation of the action plan

With the presentation of the action plan, it is time to put it into practice.

This phase is more delicate, because it depends directly on the efficiency of the client's work.

That is, he needs implement the recommendations and ensure their quality. Therefore, the implementation phase requires monitoring.

Monitoring and adequacy

If the plan is put in place, monitoring should be mandatory. If it's necessary, adjustments and adjustments must be carried out as soon as possible to ensure the financial security of the client.

In addition, eventualities and unforeseen events can also disrupt the plan. Therefore, the personal financial advisor must be alert to unforeseen events:

That is exactly why a large part of the Personal Financial Consulting companies suggest the creation of an emergency reserve. What? Never heard of emergency booking? So watch the video below now!

What is the importance of personal financial planning?

There is no point in creating financial planning at the beginning of the year and abandoning it due to the daily rush.

The action plan must be followed with commitment, otherwise it will be a waste of time and investment.

Personal financial advice offers more than the rules of this administrative process, it offers a follow-up and monitoring judicious of the stages. To thereby, ensure that the bigger goal is achieved.

Planning should be an activity for life and not for a phase of it. Therefore, customer responsibility is indispensable.

This is the only way to ensure good results and to ensure that the practices adopted are the most efficient.

Did you see? Personal financial advice is an essential service for anyone looking to tame your own savings and still dedicate yourself to achieving bigger dreams.

Seek expert knowledge and make smart use of your money.

Speaking of smart ways to manage capital, have you heard of on demand salary? O HR Consultant UKy is an application that allows employees to anticipate part of their wages when they want in a simple and instantaneous way. Believe me, the benefits for the company are also many. To find out more, we recommend the article; “How can I have an on demand salary at the company?”.

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