4 Key Signs You Need a Financial Mentor

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Whether you’re facing big financial decisions or just feeling curious about good money management practices, an experienced money expert can offer valuable insights. Unlike professional advisors who might create financial plans or directly manage your investments, financial mentors usually serve as more informal financial guides and educators.

Here are four key signs you might need a financial mentor.

You Struggle With Everyday Financial Management

If you have trouble setting financial goals, managing a budget or paying off your debt, a financial mentor can look at your current financial picture and offer custom advice on how to be more successful moving forward.

For instance, your mentor can investigate your current income and expenses to find any spending issues and suggest ways to cut costs and reallocate funds. You can also work with them to explore options for tackling debts, improving your credit and saving for future purchases.

You’re Considering Major Financial Moves

Navigating major financial moves like starting a business, buying a home, or beginning to invest can be challenging. If you’re unsure whether you’re financially ready or you aren’t sure where to start, you may need a financial mentor who considers your finances and educates you on the steps involved.

Additionally, your mentor can help you weigh the pros and cons of important decisions such as choosing retirement investments. While they won’t select any specific investments or manage them, they could educate you on factors such as the return and risks of different options and the potential impact on your taxes.

You Need To Improve Your Financial Literacy

According to a 2024 TIAA Institute-Global Financial Literacy Excellence Center report, only 48% of U.S. adults are financially literate. Although you might not have major financial issues now, financial knowledge gaps could later hurt your stability or limit opportunities to build wealth. 

A financial mentor can be a low-cost option for learning the basics – such as budgeting, handling credit responsibly and saving – and getting answers to your money questions. Plus, they could help demystify estate planning, insurance and other complex topics.

You Need Some Accountability

Even if you know the basics of managing money, you might struggle with applying your skills or sticking to your plans. Differing from short-term financial coaches, financial mentors can provide long-term accountability and support that keeps you motivated to achieve your financial goals. 

Since you’d have someone to turn to if you feel stuck, you might give up less often. Plus, scheduling regular check-ins with your financial mentor could push you to make progress you can share.

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