Is the cost of financial planning worth it? I think you already know what my answer to this question is, but I wanted to give you some real-life examples that I have come across as a CERTIFIED FINANCIAL PLANNER™ professional.

When I first started my business I used to worry about charging people $200 for an hour of my time. Now I see what an incredible bargain that is! I can’t even begin to quantify what a good financial planner can do for you, but read on… the value can be many, many, many times greater than the cost.

You’re in Your 20’s and Not Sure Where to Begin

Here is a simple example. I meet with a 25 year old (yay you!) who wants some guidance and to be pointed in the right direction. I recommend to her (based on her unique situation, details which I will not go into here for the purpose of brevity and knowing that this is not blanket financial advice for you dear reader) that she put away some money every year for retirement. If she follows my advice, her account could be worth $1.8 MILLION dollars when she turns 70! (Assumptions: $6000/year savings, 7% interest).

The $200 she paid me for that (as well as a lot of other advice during the hour) was well worth it! I wish someone told me this when I was 25! Even if you are 55, it is not too late to benefit from good financial advice and make adjustments that will help you.

You’re Not Sure Where All Your Money Goes

I am passionate about helping people bring awareness, consciousness, and intention to their spending. I make all of my financial planning clients use budgeting software, because I have found over the years that none of us know where we are spending our money without tracking it! And this is a foundational piece to solid financial planning that many in my industry skip over almost entirely by giving their clients the old “You should save more and spend less.”

I suggest that even if you spend $2000 with me learning a new system, creating intention and questioning habits, is that worth it if even the only thing you changed was to spend just $250 less per month on eating out? Not only do such decisions more than pay for the cost of working together, but if you save that $250 to an account instead, it could be worth over $300,000 in 30 years. All from a simple decision to spend a little less on something — not even eliminate it!

Of course, you would receive many other benefits as well, not just a simple spending cut, but I use it to illustrate the value. Getting clear about your goals and values and making new choices is such an important and life-changing exercise.

You Receive Bad Advice from a Salesperson

Unfortunately, there are a lot of wolves in sheep’s clothing in the financial services industry. It helps to look for a CFP® practitioner, but it’s no guarantee of integrity, because many salespeople have learned that they can “buy” the appearance of integrity by having this designation. I’ve seen this a lot and have even worked with some people whose primary intent is to sell you something, and help you secondarily. It is common with insurance sales. Most people do not need whole life insurance, for example. The commissions paid on it are high though, creating a sales incentive.

I have saved people thousands of dollars in premiums that they were spending on a life insurance product they did not need, or from spending it on a product that was not necessary for their financial well-being.

Is financial planning worth it?

These examples illustrate just a few situations in which advice from a financial planner can be well worth the cost, but of course there are many other scenarios that may call for professional help. A single session with a financial planner can change the course of your financial life, and that is priceless.

If you would like an unbiased second opinion and get answers to your questions, contact me to set up a free chat.