budget planner

As an investor, it is inevitably important to monitor and manage your income against expenditures. This is necessary because it ensures a steady income while maintaining streamlined profits.

However, sometimes it can be so overwhelming to set up a strategic plan for your business or enterprise while juggling numbers and figures. During this moment and time, you require aid from a professional, preferably one with the necessary skill set to make financial decisions on your behalf.

A budget planner will facilitate a close monitoring or follow up of your cash inflow and outflow and at the same time will set up a savings plan to secure the future. Basically, this is known as budget planning.

Apart from delivering financial advice, budget planners also advise their clients on ways they can clear debts obtained from different organizations or banks and giving insights into how they can improve their credit scores.

Anyone can be an advisor or consultant despite your academic qualification. Nonetheless, you can distinctively identify a professional advisor from makeshifts. Professional budget planners are issued with certifications after satisfactorily meeting the requirements to achieve and maintain the designation.

Let’s dive in and figure out how we can distinguish licensed from non-licensed planners.

Distinguishing Licensed from Non-licensed Budget Planners

According to research, licensed budget planners are normally registered and certified by the Department of Financial Services (DFS). These individuals have received authorization based on the following aspects:

  • Education

Licensed budget planners have undergone a series of coursework and workshop training to equip them with the necessary abilities to practice their profession.

  • Examination

After completing their coursework, planners are entitled to sit for compulsory examinations, which test their knowledge base on financial planning. Once a planner successfully attains the minimum qualifications, they are awarded a certificate that allows them to practice their profession.

  • Experience

Apart from coursework, planners can acquire experience through a hands-on approach.

  • Ethics

Planners are entitled to uphold client satisfaction, confidentiality and fair treatment according to the Code of Ethics.
Once out on the field, a planner has to pay a license fee to be allowed to practice the profession. With this license, they (planners) are allowed to contribute to budgetary plans, income, expenditures and savings for a broad scope of clientele.

On the other hand, 95% of non-licensed budget planners fail to have attained professional training and are basically not verified to take part in advisory duties.

Therefore, why should you lean on a licensed budget planner?

Benefits of using a licensed budget planner

Budget planners have acquired the necessary knowledge and have skills on investment, taxation, and estate planning, consequently, becoming more preferred in relation to other practitioners.

Also, planners save precious time which would be spent on research, unnecessary consultations, and managing financial accounts, therefore focusing on more pressing duties.

You tend to build self-assurance about your financial status when it is professionally taken care of as opposed to applying DIY (Do It Yourself) planning techniques at an individual level. Moreover, a licensed planner has a high level of integrity and gives a higher consideration to their client’s interest while treating client information with a high level of confidentiality.

Sometimes we take out debts in the form of nation21loans to finance an investment, but they end up gnawing a lump sum from our savings. Financial advisors have the ability to examine debt burdens while giving appropriate advice geared towards clearing the debt
Budget planners are thorough in their work ensuring that the best budgetary plans are achieved. The main reasons for this is because planners are experienced in matters related to budgeting and have passed the certification assessment before exercising their responsibilities.

Despite all these perks that tag along certified financial advisors, people still fancy non-licensed budget planners for the following reasons:

  • They are easily affordable, because their charges are not as high as licensed planners’. This affordability makes it easy to accommodate non-licensed planners flexible within your budget.
  • They are ideal in tackling short-term crisis as they provide basic information on how to come up with a budget plan and how to stick to the budget plan all the way.
  • It is expensive to acquire a licensed planner because they market themselves depending on their qualifications and therefore service charges are quite high compared to unlicensed planners. The high charges may be attributed to the quality of work delivered, experience, or for the purpose of compensating certification fees.

Reasons you should not use a non-licensed budget planner

As good as it may sound; relying on non-licensed budget planners is not expedient. Reasons, why you should not consult a non-licensed planner, are:

  • Non-licensed budget planners do not have the required documentation to practice advisory roles, therefore are prone to lawsuits by unsatisfied or difficult clients.
  • Non-licensed budget planners sometimes lack definite charging rates and this possibly leads to overcharging and extortion to potential clients
  • Most non-licensed budget planners have not obtained professional training but have acquired their skill set from experience; therefore, they lack a few integrated skills which apparently licensed budget planners have received from professional training.
  • Several non-licensed budget planners fail to have ethics that govern customer confidentiality; therefore, this poses large amounts of risks on clients’ valuable information.
  • A client may not be compensated in an event of being duped by non-licensed budget planners. This is because non-licensed planners are not insured or covered by regulatory agencies.
  • There’s a high chance client may obtain budgetary slack from consulting non-licensed budget planners, thereby reducing profits and increasing expenses ultimately incurring losses in their businesses or investments.

In conclusion, it is always important to seek financial advice from a professional, considering have met education, examination, experience and ethics requirements to carry out management on an individual’s income and expenditures. Their expertise is accompanied by certification and licensing upon designation.

On the contrary, an unlicensed planner has the necessary skills in relation to financial planning but lacks legal proof or certification to ascertain his or her services therefore not to provide services to clients.

These tips will help you make an informed decision as you work on perfecting your finances.

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