Financial counseling and planning education is the integrative, multidisciplinary field of social science that studies personal finance and helps families from all walks of life make effective financial decisions and improve financial capability.
At a time when the personal debt level and economic inequality are at record levels in our country, many people are unsure who to turn to and trust for guidance. With intimidating investing terms, hidden fees and product sales, how do consumers know where to turn for help or who to trust? With so many financial professionals out there, it can be very overwhelming to know where to start.
Think of financial counseling as the foundation to a solid home structure. Once individuals gain knowledge and resources through counseling and education, they can begin to build their home based on their individual dreams. Financial counselors and educators help move individuals and families along a spectrum of knowledge through behavioral adjustments, with the hope of eventually referring them to investment advisers and financial planners for wealth planning advice.
Financial counseling aims at improving personal financial management education and training. Financial counselor guide clients through a holistic counseling framework of life cycle financial education. This allows to provide a high-level, tailored approach based on the needs of each individual and family to most effectively analyze and positively affect lasting financial behavior change among clients.
Financial counseling help clients through a variety of complex issues. They are equipped to navigate clients through financial crises such as credit and debt issues, bankruptcy, and foreclosure, as well as work with clients to develop and implement effective spending plans, eliminate debt, build savings and create meaningful solutions to maintain financial stability and reach the client’s financial goals.
Spin Track Consultants continues to be a committed in the field of Financial Counseling as a social responsibility with the goal of improving the economic wellbeing of individuals and families. We generally work with people in financial difficulty, particularly those with limited income, as a mission towards give back to the society in which we were brought up and live in.
How different it is with Financial Planning – Financial planners, on the other hand, assist people to create wealth, manage their assets by providing investment advice.
What financial counselors do –
Financial counselors can:
- Suggest ways to improve your financial situation
- Help you organise your finances and do a budget
- Reorganize your cash flows for optimising savings
- See if you are eligible for government assistance
- Help to strategise ways to become debt free
- Evaluate your need for protection and explain ways of minismising cost and maximising coverage.
- Explain your options of savings and investments according to your requirement along with various alternatives
- Guide you to comply with income tax laws
Reasons You Need to See a Financial Counselor
You’re worried about meeting day-to-day expenses or saving for things like child higher education and retirement. You’re juggling between paying EMIs and savings for future. You’re planning for a business venture but finding it difficult to manage some capital. If any of this sounds familiar, chances are you need help straightening out your finances.
Find out why you might want to see a financial counselor.
- They specialize in everyday problems
While a Financial Planner is a good option when you’re trying to grow your investments or plan for retirement, a Financial Counselor focuses on the complex problems you’re facing today.
Specifically we specialize in problems common to low and middle-class families like debt, credit, cash flow issues and building fundamental financial management skills. But financial stress and overspending are not exclusive to one particular income bracket.
One of the big things we, as Financial Counselors, are able to do is help people establish and understand how to maintain a realistic spending plan, live within their means and set goals for a brighter financial future. Most of the time it’s about helping them to see their lives through a financial lens and to find savings opportunities.
- They take a holistic approach to personal finance
Financial Counselors realize a variety of factors affect your financial health. We work to understand what is driving a particular client’s issues and help him or her make the best choices.
We look at the whole individual and their life situation and in turn will help the client understand what the underlying causes are to some of these issues related to emotional connections with money, behavior issues and other things that may be triggers.
- They’re not trying to sell you something
Commission-based financial planners make their money by selling their clients investment packages like mutual funds and other financial products. While these products have the potential to make you some money, the professionals selling them may be placing their interests before yours.
Whereas we provide an education and help the client understand what their options are, but at no point are we try to sell any product, and that’s a big distinction.
- They are expert in tailor made solutions
The financial issues related to different households are different. Hence, Financial Counselors do not generalize any issues and provides tailor-made solutions to different households as per their requirement.
It’s also important to approach counseling with the right attitude. While a single session has its own benefits, don’t expect a Financial Counselor to clear up your financial woes overnight.
You can’t expect to go on a diet for one day and have results. If you really want to not only fix your immediate issue, but go deeper for lasting behavior changes, a several session engagement is ideal.
We think it makes sense to spend time on financial literacy and financial education with our clients. We think it makes sense to discuss various investment strategies, devising a plan and reviewing your investment “road map” through financial planning rather than carelessly darting into different investments and ending up with a haphazard portfolio.
We spend time developing an investment policy statement, taking into consideration your risk profile, time horizon, and life cycle. It’s important that you understand how your investments should be allocated, the different types of investments available to you, and the appropriate expectations for those investments.
We find that when clients take the time with us to develop an investment blueprint, they are able to stay focused on their plan, knowing that they have already considered all the obstacles that could impact them.
