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The good news is maybe you dont have to.
But if you have your own keen eye, you may not even need a financial advisor at all.
It is comprehensive and specific to your needs.
Do you have big trips plans?
Sending a kid to college?
Your short-term investments should include money you expect to make in the next one to three years.
Are you selling property?
Calling in a loan?
Getting a big promotion?
Write all of these goals down and include rough figures.
What does that look like for you, and how are you going to get there?
As Odom said, Awell-articulated financial planwith short-term and long-term goals demonstrates financial literacy and independence.
Disciplined and consistent saving or investing patternspoint towards a strong self-management of finances, Odom noted.
Have you been putting money into your emergency fund every month or every paycheck for years?
Do you have a clear investment contribution every month, like a 401(k) or IRA?
If you dont have this level of understanding, youll want to pay someone for theirs until you do.
Individuals who are knowledgeable aboutdiverse tax benefitscan often navigate financial waters without outside aid, Odom added.
Responsible Debt Management
Odom also added well-debt-managed individuals generally have a sound understanding of financial health.
Debt is not always a bad thing.
A mortgage can be an incredible investment that also happens to be a debt.
We just want to check that your debt is manageable and being responsibly managed.
Are you paying off your debt early to save on interest?
Are you taking out too many credit cards for things you want as opposed to things you need?
On the road tofinancial literacy and freedom, you should be minimizing debt and maximizing income.
If youre doing that, youre in a solid position to run your own finances.
It just takestime, patience, and dedication.
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