The world of savings and finance is ridden with jargon, complex equations, contradictory advice, and endless suggestions. It all gets very confusing very fast. But underneath all this complexity, the stated aim is usually very simple -- to have enough money for our short-term and long-term needs.
Does this require us to seek professional help, or is conventional wisdom sufficient?
The answer differs from person to person. Following are some questions that may help you arrive at an answer best suited for yourself.
Does everybody need professional financial advice?
No. Certain professions though contain more occupational hazards than others. Medicine, for instance. A doctor needs to insure a number of things, especially if they have a practice of their own. But on top of it all they also need to have contingency plans to deal with the ever present possibility of being accused of medical malpractice. Medical money management, therefore, is a dedicated field to help doctors deal with their finances as well as different types of liabilities that doctors typically encounter. It’s better to trust professionals in such cases.
Similarly, people who earn a lot may need slightly more than conventional wisdom to manage their assets well.
What are your financial goals?
If you don’t have any, it’s about time you started setting them. It’s extremely clichéd to ask somebody where they see themselves ten years from now, but regardless of whether you are young or not-so-young, you need to ask yourself this question.
You don’t need any concrete answers yet, a general outline would do. And yes, we know that life seldom unfolds as planned but hey, saving for a rainy day is conventional wisdom. How much should you save though? That depends entirely on what you want that money for.
How much would seeking professional help set me back by?
It need not be a hefty amount; there is professional financial advice available for all salary segments. You need not hire a permanent financial adviser either, there are options to seek advice as and when you need it.
There is a lot of conflicting advice, conventional or professional
This is true. Knowing which bits of financial advice or conventional wisdom to pay heed to and which to ignore is an art in itself. But since common folks aren’t typically accomplished at that, we should err on the side of caution, meaning money. If you end up saving way more than you need that can’t be a bad thing, right?
There are no set ways to accomplish financial security and the resultant mental peace. Different things work for different people. Some are naturally financially astute, and do not need professionals lighting their way for them. Others can’t be trusted with money at all. You should take into account your own realities, earning abilities, saving capabilities, and long-term desires before settling on a path.a