Hiring a financial advisor can be a great way to achieve your financial goals quicker and more effectively. These money experts can help you build a clear plan of action in order to get your finances in order. It is not something that everyone can manage to do on their own, since we aren’t taught how to manage our finances in school. Money can be a great source of confusion and of stress. A 2018 survey done by Mentally Yours (Metro's mental health podcast) found that 77% of the UK population is stressed about money. Peabody New Homes dive into the ways financial advisors can save you time, stress, and money in the long run.

When should you consider getting financial advice?

There are key times in your life when you might benefit from working with a certified financial advisor. They can help you sort out financial issues, make sure your taxes are in order, or even guide you when it comes to bigger life decisions. These experts are also qualified to advise on investments and how best to manage them.

If you want to start your journey towards homeownership, it can be a great idea to collaborate with a financial advisor. They can share their knowledge in order to help you map out what steps you need to take in order to get you onto the property ladder.

Sorting out your finances and improving your credit score

A financial advisor can help you take back control of your finances and finally let go of harmful money habits. In order to help you become more confident when it comes to your money, they should ask you as many questions as needed to understand your financial situation. It is important to be fully transparent with them as it will enable them to give you more suitable advice as well as build an efficient plan of action.

By sorting out your finances, you can improve your credit score in a safer way. Since building a credit score can be done by using a credit card, it is important to learn how to be careful with your spending first to avoid any issues down the line.

Saving for a deposit

Being able to save money depends on your income and expenses, but in some cases, your ability to budget can also play a crucial part. On top of that, a financial advisor can recommend products with lower fees which means you are saving money in the long run.

Getting a mortgage

If financial advisors are not mortgage experts per se, they can still be extremely helpful. Because they have a thorough understanding of your financial situation, they can tell you what amount of money you would be able to borrow. They can assess how much money you’d be able to pay towards a mortgage every month without putting you at risk.

Couple meeting with a financial advisor

A financial advisor can advise on your next steps towards homeownership

How do I choose between an independent financial advisor and a restricted financial advisor?

In order to decide who will be best suited to your situation, it is key to understand the difference between independent and restricted financial advisors.

  • An independent financial advisor can recommend any product that they deem advantageous for their client. They are not bound to any specific products or companies.
  • A restricted financial advisor will propose products and companies within the limits of what they are allowed to recommend.

At first glance, an independent financial advisor seems like a safer option. That being said, it does mean the advisor might need more time and therefore more money to research which product they want to recommend. A restricted financial advisor can have an even more in-depth knowledge of their recommendations since they are limited to a certain amount.

No matter which type you choose, always make sure they are authorised by the FCA (Financial Conduct Authority). This is a quick and effective way to prevent you from receiving any fraudulent advice.

Now that you know how a financial advisor can benefit you and your money, you can start your search to find the right person for you. Peabody New Homes has put together a list of trusted financial advisors you can safely get in touch with to discuss your financial situation and benefit from expert advice.

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