7 Money Mistakes That Make People Seek Help From Financial Advisors

1. Not Budgeting and Spending Too Much

Without a budget, it’s easy to lose track of where your money is going. Overspending can lead to credit card debt and not having enough savings. Debt can add up fast when spending is more than income, especially without a plan to pay it back. Many people rely on credit cards to cover their expenses, making it hard to take back control. A financial advisor can help you make a budget, spend smarter, and reduce your debt.¹

2. Not Planning for Retirement and Missing Employer Benefits

Waiting too long to save for retirement is a big mistake. Some people underestimate how much money they will need or just put it off. This can lead to not having enough savings when you retire. Many also miss out on benefits from their employer, like 401(k) matches or health savings accounts, which is like giving up free money. A financial advisor can help you plan for retirement and make sure you get the most from your employer’s benefits.²

3. No Emergency Fund

Unexpected things like medical bills, car repairs, or losing a job can hurt your finances if you don’t have an emergency fund. It’s important to save 3-6 months of living expenses for these surprises. A financial advisor can help you start and grow your emergency fund.³

4. Poor Investment Decisions

Investing without knowing your risk tolerance or understanding how investments work can lead to losses. Many people make emotional decisions, like buying when the market is high or selling in a panic when it drops. A financial advisor can help you create a plan that fits your goals and keeps you on track.⁴

5. Not Planning for Taxes and Insurance

Taxes can take a big part of your income if you don’t have a plan. Many people miss out on tax-efficient ways to save money. Not having enough insurance protection for health, life, or property can also lead to financial trouble. A financial advisor can help you make a tax plan and figure out the right insurance to protect you.⁵

6. Not Planning for the Future

Not having a plan for the future can leave your loved ones with a lot of problems. A will, trust, and naming beneficiaries are all important to make sure your wishes are followed. Without these, your assets may not go where you want them to, and your family might face stress and costs. A financial advisor can help you make a clear plan for your estate.⁶

7. Life Changes and Their Impact on Money

Big life changes like getting married, divorced, having kids, losing a loved one, or starting your career over again later in life can greatly affect your finances. These events & responsibilities and can be overwhelming. Getting help from a financial advisor during these times can help you understand your options and make a plan.⁷

In Conclusion

I’ve spent years helping clients see and avoid these common money mistakes. We all make them, but the key is to learn from each mistake and solve the problems. Working with a financial advisor can help you avoid these issues, make a plan for the future, and give you the confidence to make good financial decisions. If you’re dealing with debt, trying to grow your investments, or planning for retirement, getting the right advice can make all the difference in reaching financial security.

I see myself as a “professional explainer,” especially when it comes to separating fact from fiction in the barrage of information people consume today. I wrote a book called “Castles and Moats: Insurance, Investment, and Life Planning Simply Explained.” In it, I explain why I consider myself a “protection first” comprehensive financial advisor. The title of the book is a metaphor that is at the foundation of how all of a client’s insurance, investment, retirement, and life planning should work. Simply put, if you’re going to build a castle of financial wealth, you need to build a moat of protection around it.⁸

Many thanks,

Brian

**Investing involves risk, including the potential loss of principal. All examples are for illustrative purposes and may not be indicative of your situation. Your results will vary. It is not possible to invest directly in an index.

Sources

1. Financial Industry Regulatory Authority (FINRA), ‘How to Build Your Financial Knowledge’ – Finra

2. Investopedia, ‘Retirement Planning: Why Plan For Retirement?’ – Investopedia

3. National Financial Educators Council, ‘The Importance of an Emergency Fund’ – Financial Educator’s Council

4. U.S. News & World Report, ‘How to Make Smart Investments’ – US News & World Report

5. The Balance, ‘Tax Planning Strategies for Financial Success’ – The Balance

6. NerdWallet, ‘Understanding Insurance: What Coverage You Need’ – Nerd Wallet

7. CNBC, ‘How Major Life Events Can Impact Your Financial Plan’ – CNBC

8. Proactive Advisor Magazine, ‘Helping Clients Build Castles and Moats’  – Proactive Advisor