Are you in a financial rut? Here are 12 tips to unravel the mysteries of personal finance:
1. Check and balance
A Personal Finance Adviser (PFA) is the best person for you to bounce ideas off and discuss the different possibilities and outcomes to various financial situations.
Ensure that any financial decision you make is backed by research, facts and catered to your exact needs and not emotionally driven.
2. Accountability
You will benefit from encouragement and guidance from a knowledgeable coach who ensures your efforts are directed the right way to keep you on track to achieve your goals.
3. Financial education
Engage an expert PFA who knows best about personal finance practices, performs investment analysis, asset allocation and is knowledgeable to guide you in making informed decisions.
Financial seminars and investment workshops are useful in acquiring specific skills but the onus is on you for lifelong financial learning.
4. One less burden to carry
Your finances need not add to your list of burdens so leave these worries to your PFA. A trustworthy, reliable PFA who places your needs above personal gains is a priceless treasure.
5. Prevent unnecessary financial loss
It is impossible to predict the movement of stocks because of their high volatility but it is possible to avoid unnecessary loss if you have an investment plan, do your due diligence and take the necessary action.
6. Get expertise
Want to learn more about a specific area or need specific advice, but don’t know how to find it? You need a financial educator. Connect with them by asking recommendations from your PFA.
7. Better financial decisions
Making better financial decisions is just a text, call, or email away. How blessed you are in today’s digital age where technology provides such conveniences.
Need advice on stocks you’ve been eyeing? Is Bitcoin a safe investment platform? Your dependable PFA is a mere button-click away.
8. Financial freedom
What does financial freedom mean to you? How much do you need for your retirement fund? Have a customized financial plan tailored by your PFA to reach your financial independence sooner rather than later.
Financial freedom is achievable with early and proper planning.
9. Personal finance goals
Are you able to meet your financial obligations? Is the amount in your emergency savings fund sufficient in case of retrenchment? Which debt should you prioritize to pay off?
Can you travel wherever and whenever you like? Are you a foodie who would like to be able to order without keeping an eye on the right side of the menu?
Your PFA is able to provide these answers and guide you to reach your goals.
10. Risk management
Are you overpaying for your life insurance coverage? Are your current medical and disability insurance coverage sufficient? Is a personal accident insurance necessary?
A trained PFA will help you with solutions catered to your individual needs.
11. Investment planning
How much should you allocate to diversify your investments? What kind of investments should you be looking at based on your age and income?
You need to look at personal finance, risk management, investment planning and financial freedom as separate yet interrelated entities.
Having a qualified PFA helps you make that distinction clearly to make better decisions and guide you in your overall financial portfolio.
12. Taking responsibility
You don’t need to be rich to justify engaging a PFA. Depending on where you are on your journey to financial independence, engaging a reliable PFA helps you grow, maintain, protect, and further increase your wealth.
It is about you taking responsibility for your finances and safeguarding yourself from potential sticky financial situations that negatively affect the quality of your life.
Conclusion
Essentially, you are investing in yourself. Engaging a financial adviser adds value and is a good investment, not an expense.
This article first appeared in https://mypf.my
MyPF is on a mission to help simplify and grow Malaysians’ personal finances through financial education.