Working as a Financial Expert

A financial advisor career is arguably one of the best and well-paying jobs in the business industry. The work of a financial expert is not limited to executing trades in the market. Still, it also deals with insurance, budgeting, savings and implementing tax strategies on behalf of the clients. Financial advisors use their expertise and knowledge to develop financial plans to help clients meet their financial goals in the long and short term. A competent financial expert should regularly check up on their clients to evaluate the current situation and plan to achieve future financial goals or develop a new strategy if the current plan is not working.

Financial experts advise clients on various issues ranging from funding for retirement, purchasing a new home, and planning your kid’s college education. Not everybody is fit for this career. This article will focus on things you should know before becoming a financial expert.

Success Should be Your Driving Force Not Money

Many novice experts or those training to become financial advisors think that this career is all about hunting for big clients to earn high commissions. However, the role of a financial advisor is to help people make wise financial decisions; hence, success-driven advisors tend to perform better in the industry compared to those who are dollar-driven.

Financial Advisors are of Different Types

Many people think that all financial experts perform the same roles. However, this is not true because there are different types of financial advisors. Some of the types of advisors in the finance industry include financial planners, accountants, debt counselors, wealth advisors, and investment managers, among others. This means that if aspiring to become a financial expert, the role may involve more than just concentrating on investments; hence, one may not be stuck in one area forever.

Focus on a Niche

According to the Bureau of Labor Statistics, it’s estimated that there are over 200,000 financial advisors in the United States. Before enrolling for a financial advisor course, it’s important to ask yourself about the niche that will best fit in since you will be competing with hundreds of other professionals in this field for clients. One way to identify a niche is by looking for inspiration from one’s network since it’s easy to find opportunities from people with whom we are already connected.

Identify a Mentor

For a successful career in any field, including wealth management, it’s important to identify a mentor early in your career who will coach, support and give feedback along the way. As a financial advisor, a mentor will help you deepen client relationships and guide you in identifying the right clients in your niche. Experts suggest that financial advisors should choose mentors whose leadership and practice traits they admire.

Different Types of Financial Advisors

Financial advisors come in many names, and you will rarely have problems finding one. However, the challenge is deciding on the type of expert who will help you decide what to do with your money. Not all financial advisors are the same; hence, it’s essential to understand the different services offered by each type of expert and what you will get from each advisor. Below are the different types of financial advisors.

Financial Planner

This is an expert who specializes in helping people reach their financial goals by developing a financial roadmap. This includes guiding clients on how much to set aside each month or after payday as savings, the right investments and how much to invest. Professionals in this field must pass the Certified Financial Planner(CFP) tests administered by the CFP board.

Investment Advisors

Many people think that investment advisors’ and financial planners’ roles are similar because the names are used interchangeably. An investment advisor’s role is to advise clients on the best investment to put their money in while planners look at a wider picture of their financial situation. Investment advisors normally charge a fee for their services depending on the portfolio that needs to be managed or serviced; hence it’s not advisable to hire one if the size of the portfolio is small.


An accountant’s role involves auditing, analyzing, and examining financial statements and mainly work in the accounts department of companies or auditing firms. In most countries, accountants are also allowed to practice individually. As an individual, one may seek the services of an accountant who helps file correct tax returns, looking for deductions that one may have overlooked when budgeting and filling extensions on taxes. For companies, accountants are responsible for the books of account, managing the petty cash and tracking the companies income and expenses.

Brokers and Broker Dealer

Brokers are companies or individuals who buy and sell securities such as mutual funds, bonds and stock on behalf of clients, for their own account or both. Brokers earn a commission for every transaction, and one needs to be registered by the states they operate in. In the United States, stockbrokers are regulated by Financial Industry Regulatory Authority (FINRA), which has been mandated to safeguard the interests of investors.

How to Choose a Finance Advisor

Are you looking for a financial advisor to help you manage your finances? Managing one’s finance requires dedication and discipline; hence, it’s important to engage the services of an expert to manage your money and advise you on the right investments. According to research conducted by National Financial Education Council, it’s estimated that an average American loses $1,200 per year because they lack financial knowledge. This article focuses on tips to consider when choosing a financial planner or advisor.

Decide If You Need an Advisor

Not everybody needs the services of a financial advisor, especially if one is living paycheck to paycheck. However, if one needs to start saving, it’s advisable to hire a financial expert. In most cases, financial experts are interested in working with clients whose portfolio size is reasonable since they also want to make money through commission.

Decide on the Services You Need

Apart from the costs and knowing the amount one wants to invest, it’s essential to think about the service you require from the advisor. For example, if planning for retirement, a retirement financial advisor will come in handy. In this industry, there are many specializations, including divorce financial analysts, wealth planners, and retirement specialists, among others.

Decide the Amount You Want to Pay

Financial advisors make money through commission, or fee charged either hourly, annually or on a flat rate basis; hence, financial advice comes at a cost. Human advisors charge an average commission of 1% annually, based on the size of the client’s portfolio. In contrast, robots, generally referred to as robo advisors, charge between 0.2% and 0.40% of the asset value annually; hence, it’s better to use robos if the portfolio value is small and one does not need to use the services of a human advisor.

Benefits of Budgeting

Budgeting is among the most valuable financial habits individuals and businesses should adopt if they aim at building wealth and being financially stable. Budgeting helps one track expenses, control spending, save more money, prepare for emergencies, make better financial and investment decisions and ultimately focus on the short and long-term financial goals. This post will focus on why you need to prepare a budget.

Helps One Focus on Their Financial Goals

It’s easy for individuals to set financial goal but achieving the goals is a different thing. Having a budget helps one stick to the plan because one can review the progress and re-strategize if some goals are not shaping up as planned.

Ensures That You Don’t Spend More Than You Have

Many people tend to spend more than they have thanks to credit cards, meaning that some live beyond their means. A budget will help you know how much you earn, what you need to spend monthly and how much goes into savings.

Prepares You for Emergencies

We experience many unexpected occurrences in life, such as sickness, divorce, or death; hence, we need to prepare for emergencies. When preparing your budget, remember to include an emergency fund which should be at least four months of your living expenses.

Best Budgeting Applications

Technology has brought innovations and ideas which have helped make life simple. Budgeting applications have helped simplify the budgeting process, especially for those who want to spend less and save more. Most of these apps connect with your financial accounts, such as bank accounts, and track your expenditure or spending, categorizing each expense to help the user see where their money is going. This article will focus on some of the best budgeting tools you can use in your day-to-day life.


Mint is an ideal budgeting app for people who want to track and monitor their credit spending. When they overspend on a specific category, such as entertainment, the app notifies the user, informs you about transactions made via ATM cards, and informs you about upcoming bill payments.


This is a new budgeting app in the market, and it allows partners to see each other’s financial picture. The information partners can access on the app includes credit cards, loans, investments and bank accounts. However, one can choose the information that their spouse can access.

Other popular applications available on both Android and IoS devices include You Need a Budget(YNAB), and Wally, Mvelopes, among others.

Saving Money for Your Kids

Having money in your bank is a powerful tool to pass along to your kids. When one decides to start a family, it’s a fact that they will need to make financial sacrifices because raising children is a costly endeavor. Some costs include college fees, buying birthday presents and going on vacation; hence, to comfortably raise the kids, one needs to have a workable saving plan. Saving money for your children depends on the goal, and here are things to consider when choosing the right saving accounts.

Open a Children Saving Account

Most credit unions and banks offer children-specific saving accounts, allowing parents to be co-owners. By opening a savings account, parents encourage children to learn a habit of saving instead of spending the little money they get. As the child grows, they graduate to teen checking accounts where they are issued debit cards. Parents remain co-owners, helping them learn money management skills as needed.

Opening a Custodial Account

A custodial account is ideal for parents who want to save money for their kids but only want them to access the savings when they are adults. Here, the accounts are opened in the child’s name, but parents can manage and deposit into the accounts until the child reaches a ripe age.

Teach Your Children the Value of Saving Money

While developing a savings plan such as opening a children’s savings account with banks or unions is essential, parents should not underestimate the power of teaching their kids how to save and invest no matter how young they are.

Tips to Teach Your Kids How to Save Money

Parents always want their kids to become financially independent and have a secure future. Hence, it’s important to teach the children about saving money, which is one aspect of wealth building. Many adults can attest that schools do not teach students the essence of saving money but learn through experience after realizing that we have to fend for ourselves. Here are tips on how to teach your children how to save money at a young age.

Use a Piggy Bank or Saving Jars

A saving jar or piggy bank is a good starting point when teaching your kids the importance of saving money. Parents tell their children to fill the piggy bank with coins and dollars until there is no more space left. If the kids want a new gadget or toy, ask them to assign a different saving jar for each item they need and ask them to make savings for each.

Open a Bank Account

After filling up the jar or piggy bank, open a savings account for them. Help them count how much they have saved before depositing the money into the account. You should sit down with the kids and come up with a saving timeline.