Everybody wants to be financially successful. What that looks like may differ from person to person, but everyone wants to have enough money to do the things they love and (probably most importantly) no longer have to worry about money.
While you may be able to get there on your own, you’re much more likely to achieve your financial goals if you work with a financial adviser.
And yes, of course we’d say that. enable.me is a financial advice service company!
But we’re also not the only ones to say it.
One report found that Kiwis who work with a financial adviser are better off financially than those that don’t. In fact, 70% of people who’ve arranged a product or service through an adviser say they achieved a better outcome than if they had arranged it themselves.
So, what is it about a good financial adviser that helps you achieve better results?
They understand money
Not everyone is born with a head for numbers, and some financial concepts can be incredibly confusing.
One of the most powerful financial concepts has even been dubbed the ‘8th wonder of the world’ showing just how elusive (yet important) this concept is when it comes to finances.
This concept is, of course, compounding interest: the money your money makes from making money. Simple – right? Yet only about third of us understand what it is or how it works. A financial adviser does and knows how you can use it to your advantage.
Alongside knowing how you can make your money earn you more money, they can also show you how best to structure your mortgage so it’s more favourable to you than the bank. They understand why putting the money that’s currently sitting in your bank account towards your mortgage is a much better way to grow your wealth in the long term because of how interest and inflation work for and against you. And they know how even small changes can have a significant impact on your long-term financial progress.
As well as this, if you’re needing to get a better idea of what insurance is best for you and your family, the best way to grow wealth, or how to make the most of your KiwiSaver investment to help you buy your first home or live a comfortable retirement, they’re the best people to talk to for advice on the most appropriate solution for you.
They understand people
While knowing stuff about money is incredibly helpful, the most financially literate person may still not be financially successful if they don’t understand how their money mindset and behaviours impact how they manage their money.
And good financial advisers take this into account.
They know that habits can make or break us and that our relationship with money has a significant role to play in the financial decisions we do (or don’t) make.
As one behavioural economist put it, “People don’t make bad financial decisions because they’re foolish, they do it because they are wired to make them.”
So, a financial adviser will take the time to dig deep into your unconscious beliefs, see how they’ve been impacting your financial decisions, and work with you to change them to achieve better results.
A good example of how the wrong behaviour can impact financial outcomes – and how seeking advice could have prevented a significant amount of money lost – was witnessed during the recent COVID pandemic. Thousands of Kiwis unnecessarily switched their KiwiSaver fund to a conservative one when markets began to drop.
The result is that about $1 billion ‘missed out on the rebounding market’ because people didn’t switch their fund back when markets began to recover.
If these people were to have consulted a financial adviser, they would likely have been advised against this natural knee-jerk reaction and been given the confidence to ride out this dip in the economic cycle.
They help you get ahead (and get ahead faster)
While financial advisers, of course, do the work they do to put food on their table, they also acquired all that expertise with the aim to help you achieve financial freedom – whatever that looks like for you.
According to a report by Financial Advice New Zealand, “Advised individuals are more financially free than unadvised New Zealanders and, in turn, more financially capable of living the life that they want to live, unconstrained by how much money they have in the bank or worries about their financial future.”
That same report shows that advised Kiwis are twice as likely as unadvised Kiwis to feel prepared for retirement – one of the biggest milestones you will be preparing for financially during your lifetime.
Regardless of where you start out with your finances or the outcome you’re trying to achieve, a financial adviser will find opportunities to help you do better: find ways to leave you with more money in your pocket after your expenses, find ways to pay off your mortgage faster, and show you how you can begin on your investment journey even if you didn’t think those things were possible.
Like enable.me’s financial advisers did for Scott and Hayley who never thought it would be possible for them to purchase a property in Auckland. With the help of their financial adviser, they were able to purchase their new home in Pukekohe. Or Shane and Toni who were able to pay off a large chunk of their mortgage and buy an investment property – something they don’t feel they could have achieved without the help of enable.me.
Even if you’re sceptical, and think that a financial adviser isn’t going to be able to help you – or you think you’ll be fine on your own, why not see what’s possible?
You can book a consultation with an enable.me financial adviser who will dig into your current financial situation, find out what you want to achieve with your finances and then show you how you can achieve that, or how you could do even better. Even if you don’t have a specific goal in mind, they can show you how you can improve your current financial situation to improve it, and open up opportunities in the future.
This initial consultation – which is valued at $400 – will cost you just $249, and there’s no obligation to continue with a recommended enable.me programme. Book that consultation and see what might be possible today.
This blog post is for informational purposes only and does not constitute individual financial advice. If you’re interested in receiving financial advice, you can book a consultation with an enable.me coach. Costs apply.