I've never used a financial advisor (other than the one who handles my IRA, and I have very little interaction with him) and I never plan to. I'm sure that for many people, a financial advisor would be a huge help to them; however, I don't feel the need for such professional advice. Over the years, I've developed certain skills that have helped me avoid having to pay a financial advisor for his or her services.
1.) Understanding financial calculations and calculators
With the internet, it's so much easier these days to utilize a variety of financial calculators to determine or verify all sorts of data and calculations. Over the years, understanding and using such calculators and calculations has helped me to save money in any number of ways.
From determining mortgage interest, monthly payments and payment amortizations, to figuring out future values of money invested now at certain interest rates, using financial calculators have been extremely useful, has helped me avoid using a paid financial advisor, and best of all, they are completely free and typically quite simple to use.
2.) Tax work
I'm a firm believer in at least attempting to do our own taxes. I've yet to come up against a year where I can't complete our income tax filings; however, I think that even if I did, I'd still give it a shot, since doing our taxes not only provides a clearer picture of our financial situation, but helps me learn about and stay apprised of the tax code and changes to that tax code.
Even for those who don't feel experienced or knowledgeable about personal income taxes, I think that giving them a shot or at least closely reviewing the work of a tax professional once he or she has completed their work is important to staying informed about personal finances. It may even help to learn enough to one day be able to accomplish tax filings independently of such a professional or not need tax advice from a financial advisor.
3.) Asset and expense tracking
I have been tracking our income, expenses, and overall assets for years now. Knowing this information, and being able to utilize it to find ways to cut costs or manage our personal finances helps take much of the need for a financial advisor out of the equation.
Being able to harness this data means that we've been able to drill down on certain expense areas and cut costs significantly. At points, we've cut utility costs by 30 percent, food costs by over 30 percent, and taken home costs down from an average of around $2,300 a month when we owned our home with a mortgage, to closer to $800 a month now that we've downsized to a smaller condo that we could afford outright.
4.) Reading and staying current
Again, with the help of the internet, there are all kinds of ways to learn more about the subjects of finance, personal finance, saving, spending, and more without the aid of a paid professional.
Sites like Bloomberg, CNN Money, US News and World Report, Wisebread.com, Yahoo! Finance, CNBC, AARP, and so many more can be great places to start and are sites that I visit regularly to further my financial and financial-related education. As they say, sometimes knowledge is half the battle, and using such sites to read about other's experiences, insights, and observations - while not always having me acting on such information - at least makes me more aware and allows me to make more informed decisions regarding our personal finances.
1.) Understanding financial calculations and calculators
With the internet, it's so much easier these days to utilize a variety of financial calculators to determine or verify all sorts of data and calculations. Over the years, understanding and using such calculators and calculations has helped me to save money in any number of ways.
From determining mortgage interest, monthly payments and payment amortizations, to figuring out future values of money invested now at certain interest rates, using financial calculators have been extremely useful, has helped me avoid using a paid financial advisor, and best of all, they are completely free and typically quite simple to use.
2.) Tax work
I'm a firm believer in at least attempting to do our own taxes. I've yet to come up against a year where I can't complete our income tax filings; however, I think that even if I did, I'd still give it a shot, since doing our taxes not only provides a clearer picture of our financial situation, but helps me learn about and stay apprised of the tax code and changes to that tax code.
Even for those who don't feel experienced or knowledgeable about personal income taxes, I think that giving them a shot or at least closely reviewing the work of a tax professional once he or she has completed their work is important to staying informed about personal finances. It may even help to learn enough to one day be able to accomplish tax filings independently of such a professional or not need tax advice from a financial advisor.
3.) Asset and expense tracking
I have been tracking our income, expenses, and overall assets for years now. Knowing this information, and being able to utilize it to find ways to cut costs or manage our personal finances helps take much of the need for a financial advisor out of the equation.
Being able to harness this data means that we've been able to drill down on certain expense areas and cut costs significantly. At points, we've cut utility costs by 30 percent, food costs by over 30 percent, and taken home costs down from an average of around $2,300 a month when we owned our home with a mortgage, to closer to $800 a month now that we've downsized to a smaller condo that we could afford outright.
4.) Reading and staying current
Again, with the help of the internet, there are all kinds of ways to learn more about the subjects of finance, personal finance, saving, spending, and more without the aid of a paid professional.
Sites like Bloomberg, CNN Money, US News and World Report, Wisebread.com, Yahoo! Finance, CNBC, AARP, and so many more can be great places to start and are sites that I visit regularly to further my financial and financial-related education. As they say, sometimes knowledge is half the battle, and using such sites to read about other's experiences, insights, and observations - while not always having me acting on such information - at least makes me more aware and allows me to make more informed decisions regarding our personal finances.
