Financial Advice Blog

Is it better to use a financial advisor or do it yourself?

How you manage your money will significantly impact your lifestyle, both now and in the future. So deciding on who gets to help you make decisions about money will be an important consideration.

Money is one of the most important resources you will ever manage.  How you manage it will significantly impact your lifestyle, both now and in the future. So deciding on who gets to help you make money decisions will be an important consideration.

In Australia, you have two options: seeing a financial advisor or managing your money yourself. Making the right call between a financial advisor or a do-it-yourself approach depends on several factors. These include your time, money habits, financial knowledge, portfolio and goals for the future.

So let’s walk through the decision-making process so that you can apply this to your circumstances.

What does a financial advisor do?

A financial advisor is a professional who helps others make smart decisions with their money. This applies to individuals, couples, families, or business owners looking to meet long-term financial goals.

The services provided by a financial advisor depend on your individual needs and often include:

  • Financial advice
  • Financial goal setting
  • Financial decision-making
  • Asset protection

Each of these is combined to create winning outcomes for clients, their families, and their future goals.

Should I use a financial advisor or do it myself?

So is it worth paying for a financial advisor in Australia?  If any of the below situations apply to you, the answer is almost always yes. Financial advisors are an excellent investment for those seeking expert advice or want an edge on their finances.

You may want to use a financial advisor if:

  • You are a young professional — Time is your biggest asset due to the power of compounding returns. So the earlier you start getting your money working for you by investing, the more you’ll be able to achieve. Expert financial advice will help you maximise your savings and invest for a great future.  It can also help you kick goals such as buying your first home.
  • Your financial knowledge is limited — If you don’t have extensive financial knowledge, a financial advisor can help you make sound financial decisions.  Even if you’re financially astute, a financial advisor can still add a lot of value.
  • You don’t have the time — You may not have enough time to keep your finances under control. A financial advisor can make it simple and easy, helping you to invest efficiently and effectively.
  • You have complicated finances — If you have multiple investments or financial activities, a financial advisor could help you navigate them more effectively.  This not only saves you time but optimises your returns.
  • You feel lost with money decisions — Perhaps you don’t know where to start to make the most of your money. Or maybe you have earned a decent amount but have little to show for it and want to make better decisions in the future. If either of these situations apply to you, seeing a financial advisor is a great place to start.
  • You want better cash flow — Even if you earn a high income, you may feel as though you can’t get ahead.  A financial advisor can help you take control of your money.  They can help you manage it with more ease so you can reach your goals faster.
  • You want help with setting goals — Want to give your children a private education, upgrade your home, or retire by 40? A financial advisor can help you create a defined path toward your goals.
  • You want to overcome financial disagreements — Money fights are one of the most common pain points in any relationship. Financial advisors can help you to get aligned and set shared goals. They can also provide an objective perspective on your money issues.
  • You’ve received a windfall — If you’ve received a large inheritance, made good capital gains on an investment or have been lucky enough to win the lotto, a financial advisor can help you benefit from your windfall over the long term.
  • You are approaching retirement — As you start thinking about winding back work, a financial advisor can equip you to make informed decisions for your nest egg.  Additionally, they can help with transition to retirement strategies to minimise tax.
  • You want peace of mind — A financial advisor can help you make the best possible decisions for your family.  They can also protect their future through investment, insurance and estate planning.  That way, you can rest assured you’re doing all you can.

Myths of DIY money management

Many people believe that DIY money management is required under certain circumstances. However, this is simply not true. There are benefits to working with a financial advisor at any age, income, or portfolio size.

There are several big myths to dispel here:

  • You can DIY money management if you have a high level of financial knowledge —Financial advisors only enhance rather than detract from your money knowledge and investing skills. For example, they can advise regarding the broader impacts of your monetary decisions, such as tax implications.  They can also help provide an objective perspective to decision-making or get you a better deal on financial products such as your insurance.
  • You can DIY money management if you do not have an extensive portfolio — Financial advisors can help you with practical strategies regarding better day-to-day saving, buying a home, or starting a family. If you earn a decent income but have little to show for it at the end of each month, a financial advisor can help you establish good money habits.  They can also assist you in setting future goals and keep you accountable.
  • You can DIY money management if you do not want financial planning services — Professional advice allows you to make more informed decisions about your money at just a fraction of the cost of a financial mistake.

Get started with the team at Financial Spectrum

Financial Spectrum has the expertise and insight to support your future with wealth-building practices regardless of your financial standing. We’re so confident about creating value for you quickly that we guarantee it with a 100% money-back guarantee.

If you’re still unsure if it’s worth paying for a financial advisor, book a chat with us. Financial Spectrum is one of the most trusted financial advisory services in Australia. We’ve helped hundreds of clients build long-term wealth and have many rave reviews. All things considered, with our 100% money-back guarantee, you have nothing to lose and everything to gain.

Book your free strategy session today to unlock the potential of your most valuable resource. We look forward to serving you soon.


Is hiring a financial advisor worth it?

Almost everyone can benefit from a financial advisor. If you’re interested in making smarter decisions about your money, an advisor can help you manage your money more effectively and build a better future.

What are some risks of managing money myself?

There are a few risks associated with managing your finances on your own, the most common being:

  • Making suboptimal decisions
  • Misallocating investments
  • Paying too high fees
  • Failing to plan for the future
  • Failing to take action
  • Lack of accountability

These potential risks can be navigated with careful planning using the services of a financial advisor.

Why should I use Financial Spectrum as my financial advisor?

Financial Spectrum believes in planning every part of your life, not just your investments. We help clients envision a future they’ll love and create a winning plan that puts their money to work.  As a privately owned, Sydney-based financial advice firm, you can rest assured you’ll receive unbiased advice tailored to you.

Call our Sydney-based office today to book an appointment.

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