Signs you need help to manage

money
1) You don't know where your money goes
• You know how much you earn, but are you aware where the money is
spent? 'I don't know where all the money goes,' is a common enough
refrain among investors.
• The proliferation of plastic has made matters worse, for credit cards are
a convenient way of slipping into the debt trap.
• You could fix the problem by drawing up a household budget and
establishing some ground rules about spending. However, this is easier
said than done, especially if you have been a spendthrift.
• If you are living beyond your means and don't have any money to invest
after all your expenses, you certainly need professional guidance.
• A financial planner could bring order to the mess by prioritizing your
spending and allocating resources to your crucial goals.
 2) You have insurance plans, but don't
understand
• Insurance is the bulwark of any financial plan, and it is critical that you
understand the features of the policies you have bought.
• Policyholders typically know how much premium they pay every year, but
don't have a clue about the life cover or extent of coverage. It's difficult to
blame them because there is a vast array of choices.
• If you don't know the features of your policies, you will not be able to
face the disaster it is supposed to cover.
• A professional planner will be able to guide you on the policies that meet
your requirements.
• For instance, the adviser may suggest term insurance, instead of the
costly endowment policy the agent is trying to push.
• He may suggest a basic floater health insurance policy for your entire
family, instead of a critical illness plan that covers specific diseases.
 3) You have no provision for a contingency
• 'What if' are probably the two most unused words in the financial
space.
• There are millions of people who have made no arrangements for
eventualities or emergencies.
• The question they need to ask is: what would my family do if I
died today? Besides buying adequate life and health insurance, an
individual must also have indulged in basic estate planning.
• Writing a will allows you to choose who receives your assets after
your death. Without a will, your heirs may find it difficult to
access what is rightfully theirs.
• A financial planner will not only help you draft a will, but also
advise you on the most appropriate ways to distribute your
assets.
4) You are not prepared for your retirement
• Retirement planning should be a primary financial goal, but not many
investors consider it one. They think about retirement in their 30s, but start
investing only when they have reached their 40s.
• Do you also fall in this category? A qualified financial planner may be able to
help you get started. The first step is to estimate the cost of your retirement.
• This is not as easy as it may sound because there are so many variables at
work.
• At what age do you want to retire? What is your life expectancy? How much
have you already saved and what are the returns you expect to earn on it?
• A professional adviser will be able to identify the most suitable investment
option for you depending on your age, risk profile and expectation of
returns.
 5) Your investments are not linked to
specific goals
• You invested in a mutual fund three years ago on a friend's advice.
Then you bought some gold ETFs because they promised good returns.
• An insurance policy was purchased during the tax saving season two
years ago.
• You also have some money in a mutual fund that protects the capital,
as well as fixed deposits. These are a lot of investments, without any
goals.
• Experts say that every investment should be done to meet a specific
goal.
• Random investment decisions lead to a haphazard portfolio. A
financial planner will be able to chalk out an investment road map for
you, formulating a plan to reach each of your financial goals.