With millennials often becoming scrutinized for their spending and savings habits, there has to be a financial planner dedicated to the millennial generation. Here are a few ways to help you find the right financial planner for millennials.
Finding Financial Planners for Millennials
Are you a millennial? There are many reasons why you should consider finding a financial planner.
Why is that so, you may ask.
Well, financial planning is necessary to manage your financial position. Every individual financial situation is different and thus the word personal. However, it is important to consult an expert to help you understand some financial details that you may not be able to comprehend on your own.
A majority of people paint a picture of millennials as that of everything risky but not in financial planning. They are thrill seekers, risk takers, adventurous, you name it, but then, when it comes to financial planning matters, a majority of them have taken a back seat.
According to GenForward Survey, three out of every four millennials in the U.S are in debt including credit card debts and students’ loan debt among others. A large portion of the millennial money goes towards paying off these debts and thus has caused them to place a pause on other major life events. Here are 10 creative ways to pay off your student loans.
If you are a millennial, then you need to realize that financial planning is fundamental and you should start it as early as possible. It is important to have a financial plan in place to help you control and manage your financial position. To help you understand what financial planning entails, maybe I should first explain what it entails.
So, what is a financial plan?
A financial plan is a detailed and well laid out roadmap for all your money aspects and the ways to achieve personal economic satisfaction. Financial planning involves formulating your financial strategies such as budgeting, saving, investing, retirement saving, among other financial goals.
Financial planning helps you to conceptualize the whole picture of where your money is, organize your debt situation, and offer you a guideline of the actions that you need to take and what you need to do with your money in order to achieve your financial goals.
A comprehensive financial plan helps to reduce uncertainty about your future financial situations and thus enhances your quality of life and increases your satisfaction. In addition, a financial plan gives you control of your financial situation in terms of debts and your economic security. I
t also improves your relationship with others because you have your financial decisions well planned and effectively communicated. It also gives you a sense of freedom because your future is anticipated and planned. There are numerous quotes about financial freedom that can motivate the millenials in their journey towards financial freedom.
Consider finding a financial planner for millenials who will walk you through your financial planning and setting of financial goals.
The financial planner will help you to make sound money plans and will even help you understand different aspects of your financial situation. You can get a quick review of your 401(k) by using Blooom. Check out our Blooom review.
To help you with your determination on achieving your financial future, here is one of my favorite quotes from Winston Churchill. This can apply to your financial position. You will always hit bumps in the road, but if you stay motivated you will reach a success point.
“Success consists of going from failure to failure without loss of enthusiasm.”
Financial Planning for Millennials
Financial planners for millennials can help you outline the long-term effects of your financial situations. They provide expertise that enables you to work on a number of different scenarios. You can use a financial planner dedicated for millennials to get a clear path to your financial future then execute on it. A free consultation can go a long way in securing financial freedom.
I use Personal Capital to track my net worth and financial future. I typically pair that with a free consultation now and then to ensure I am making the right moves for my personal financial plan.
Millennial Financial Advice to Ensure Proper Financial Planing
The millennial financial advice can include outlining the logical procedure or the process of financial planning that entails:
- Determining your current financial situation in regard to your income, savings, debts and living expenses. The financial advisors are able to help analyze your personal financial statements and interpret your personal financial ratios. The millennial advisors also help you with preparing a list of the current asset and debt balances to determine your financial position. You can check all of your debt accounts by using Credit Sesame.
- Developing your financial goals periodically to identify how you feel about money. This helps you to differentiate between your financial needs and wants. Some financial advisors can suggest financial goals for you but you are the one who should decide the goals you want to pursue. Some financial goals include saving and investing all of the current net income to help secure your future.
- Identifying the possible alternative courses of action such as continuing the same course of action, expanding the current situation, changing the current situation or taking a new course of action. Different decisions apply to different situations. Choose the one that suits you best.
- Evaluating the different alternatives based on your life situation, personal values, prevailing economic conditions, consequences of your choices, opportunity cost and the possible risk among others.
- Formulating and implementing a financial action plan which involves choosing ways to achieve your goals such as using an insurance agent to purchase property insurance among others.
- Reevaluating and revising your plan to regularly assess your financial decisions.
Understand the difference between a fiduciary and a broker.
The importance of personal financial ratios
I cannot stress the importance of analyzing your personal financial ratios to get a clear picture on what your financial statements look like.
Using numbers in your financial plan only position you for future success. That is the ultimate goal here. We don’t care about the past as much. We need to position your financial plan for the future.
If you need to refinance your student loans, I would totally recommend SoFi. I used them in the past and this helped me save a ton of money. I ultimately was able to repay all of my student loans and buy a house. SoFi was huge for me.
5 Tips to Find a Financial Planner for Millennials
Here are the 5 tips to consider when finding a financial planner for millennials:
Millenials want someone who can be more than an advisor but also a coach.
When looking for a financial planner, you may want someone who not only tell you what you should or should not do. But someone who can coach on vital matters likes career development and business coaching.
Millennials want someone who sees them as individual and not just as clients. Millenials prefer planners that don’t force things down their life but someone who will ask the important questions and suggest the right sequence of things for them to solve their problems on their own.
Millenials prefer to work with financial advisers who understand their generation.
Thus, millenial advisors will understand the dynamics facing people of the same age as them. The millennial generation is likely to face different things in life like a job switch, can have problems finding a job or increasing their salaries especially after the great depression, can decide to do rentals rather than own homes, they are used to getting things done at the click of a button.
Some of these millennials are also overburdened by debts including credit card debts and students loans. It would mean that using the same financial strategies that their parents used will lead to different results.
So finding a financial planner for millennials is more of finding someone in the same age group preferably, with a plus or minus 10 years difference. Millenials have a different way of internalizing information than the older generation did and so financial advisors in their age group are ideal because they would take a more collaborative approach.
Millenials want advice on their day to day financial matters.
Traditionally, financial planning firms’ objective was to manage the accumulated assets of their clients. But the average millennial would be more concerned about ascending the corporate ladder and most of them have not yet accumulated a lot of wealth.
For a wealthy person, the advice would emphasize on estate planning, taxes, and growth in investments which may not be the things the younger generation are faced with.
Millenials want someone casual and not too formal
Millenials are not attracted to the brick and mortar office with a guy in a suit. This generation does not like formality and titles. When financial planners use their titles such as a certified financial planner, for millennials it drives away their interest. They seemingly have an idea of what they have to offer.
To appeal to millennials, financial advisors should focus on guiding them towards financial health, and how to live with their money as a tool to fuel their passion and gratifications.
They want someone who will hold up a mirror for them. The advisor may have all the credentials of a certified planner but needs to also have a creative way to solve the generation Y financial problems. Millennials are known to be DINKS longer.
Millenials have a different set of financial targets.
For generation Y, financial freedom is about being able to accomplish what they want in the near future like advancing their education, traveling and not about retirement and 401(k) options.
Traveling at the 30s is different for them from traveling at 60s and this really concerns them. Millennial financial planners should be able to understand those factors and create plans that suit their needs.
See Related: How to Teach Your Kids About Money
Why millennials need a financial planner
Finding a financial planner for millennials can be a daunting task but it’s worth it. If you are a millennial, do not hesitate to seek the services of the financial planners if you want to manage your financial situation better to achieve your financial goals.
There are ways for you to increase your wealth over time. Our favorite accumulated wealth tips can bring you a better financial future.
Here are a few reasons why millennials need a financial planner:
- You need someone that has an unbiased view on your financial position
- Financial planners have significant data and history to compare your situation to others in your age group
- You can oftentimes get a free consultation from a financial planner specific for millennials that will evaluate your financial situation
- Financial planner for millennials can guide you to the right resources
With Personal Capital, you are able to get a free consultation on your financial position if you sign up today. This helped me a lot understand my current financial position and where to plan from there.
What are you waiting for? Find a financial planner for millennials and get started securing your financial future. Here’s how you know when you are financially free.
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