01 Jun 3 Financial Advice Myths– Debunked
Why are most people intimidated by these words—‘financial advice’?
We are living in a generation where people, instead of seeking professional help, prefer to do things by themselves. From renovating their own room to giving a diagnosis out of their cough or joint pain, they’ve pretty much grown accustomed to figuring things out on their own.
And besides, when in doubt, google it, right?
Not everything can be taken from a certain website especially when it comes to something as important as your finances. When your money and future are at stake, there’s nothing wrong with asking for a little help.
According to ASIC, 20% to 40% of the Australian adult population use or have used a financial adviser. This means that 60% to 80% of adult Australians have never used a financial adviser. (ASIC Report 224, Access to financial advice in Australia)* Some people reckon that once they have settled a home loan on their own that they are qualified to be their own adviser. You may fix your bed to make your room bigger or give yourself a home remedy for that cough, but you don’t exactly have the expertise to professionally monitor your loan and/or finances. You need someone who is skilled and knowledgeable to help achieve your financial goals. It is your money that’s at stake so seeking professional help is just as logical.
However, even in that consideration, a lot of people are still not ready and not willing to get financial guidance. This could be because of some myths and misconceptions about using a Finance or mortgage professional.
As a professional Finance Broker, I am debunking 3 financial advice myths in the hopes of breaking your intimidation of seeking financial advice.
“Financial advice is only for rich people.”
Actually, financial advice is for anyone who wish to organise their finances, set financial goals, and create a plan to reach those goals. Just because you think you don’t have enough savings that disqualifies you from seeking financial help. Regardless of your net worth or income, as long as you have a set financial goal, finance brokers like myself, can certainly help you. I offer complementary assessment to find the right loan for your needs. Some people think that a good financial advice would cost more than they could afford. Financial advice absolutely doesn’t discriminate. It is not limited to how much money you have in the bank.
“Financial advise is too generic. It won’t necessarily work for me.”
Financial professionals are stereotyped of wanting to just sell their services and hit their sales target. What people need to know is that we aim to help as many people as we can. Personally, I believe that everybody should be given a chance. It doesn’t matter what walk of life they’re from. Regardless of their background, everybody deserves someone to be on their side, and if I can be that person to help them map out their financial plan, I’m very much willing to do so. I don’t judge, based on ‘how hard’ the loan application is, or ‘how unfeasible’ it can be. Whenever I set a meeting with an individual, I treat them as my only client, I listen to them. Who knows what they have been through. At the very least, they deserve someone to listen to them. I customise a financial plan that will suit their financial capability. There is no generic advise. Everything depends on the financial situation of the client. In some circumstances, I might not be able to help them immediately, but talking through their financial situation may be what they need at that time to put their goals in place.
“I can look after my own finances. I don’t really need a professional.”
Yes, you can look after your own finances instead of taking charge of it. Ultimately, that’s what financial advice is all about: taking charge of your financial life. Finances, of course, aren’t all there is to life. But it’s a vital factor in any other household. Finance brokers like myself help you from preparing all the documents needed, to the approval of your loan, until the end of the life of your mortgage. I can help you monitor your loan and finances and see if there is a better deal. You may have a hard time figuring this out if you are only working on your own. Finance brokers help you find the right loan that suits your financial capability. There’s so much competition and it can be confusing so you need an expert to help you navigate through it all.
* ASIC (2010a) Australian Securities and Investments Commission, Access to financial advice in Australia, Report 224, Australian Securities and Investments Commission, Sydney
Available at: http://download.asic.gov.au/media/1343546/rep224.pdf
Credit Representative (486927) is authorised under Australian Credit Licence 389328.
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