Hiring your Personal Budget Consultant

It seems most people would rather visit the dentist for a painful root canal than sit down once and for all to figure out their finances. Just like a root canal will be beneficial in the long run, designing and following a personal budget will contribute to your financial health. Personal budgeting is a necessary fact of life. Yes, it can be unpleasant or even painful, but only if that is the way that you look at it. You would never attempt that dental surgery by yourself. In the same way, it's to your benefit to hire a professional to guide you through the financial maze. That professional is called your Personal Budget Consultant.

The first thing your consultant will teach you is that creating and sticking to a budget doesn't mean deprivation or denying yourself or your family things you need or want. To the contrary, sticking to a budget will free up cash that was previously being wasted, allowing you to begin saving for tuition, weddings, vacations, or retirement. A good consultant will ask you to examine carefully how you have been spending your money, and come up with a plan to reduce waste and pay down debt. Look for someone who is positive and confident. You do not want to spend any time or money on a consultant who is pessimistic about your future or judgmental about your past.

Make sure you understand the length of her involvement. Are you buying a one-time consultation, or is your relationship going to be ongoing? Some consultants operate between these two extremes: they offer an intense initial meeting to get you on track and to develop a budget, and then they are available for checkups or questions for a certain period of time. Others have a variety of services to choose from. You might want help getting finances under control in the short run, and then wish to have someone to advise you about investments and savings once your present situation is under control.

Check the credentials of the professional you plan to hire. Ask what training and certificates she has. Anyone can claim to be a consultant. You really want to be paying for expertise and experience, not for someone who listens well but whose ideas are really no more valuable than yours.

It's important that the person you choose to be your budget consultant is someone you feel comfortable with. If you feel intimidated or that your consultant is impatient with you, look elsewhere immediately. Money is as sensitive a subject as sex or health, and you need to be able to confide in your consultant. He or she should be honest and forthcoming without being judgmental of choices you make. Because it's so important to "click" with your consultant, you should look for a professional who offers free or inexpensive initial consultations so that you have not invested too much if you find you're uncomfortable with the consultant.

Your agreement regarding fees and services should be in writing. Anyone giving advice on financial matters wouldn't be credible if she didn't demand this to protect herself. You should insist on the same protection for yourself.

Ask the potential consultant about her policy on confidentiality. Check to see if she has a written statement guaranteeing that everything you talk about is kept in the strictest confidence. Again, financial matters are as private as personal health concerns, so you want someone who can promise your matters will remain private.

Despite the advice about confidentiality, your potential personal budget consultant should have references you can check. He or she should have a list of people who have benefited from the service who are willing to talk with you about the experience.

A personal budget consultant can be an important ally in your long term planning. Make sure you do your research and choose the right person so you're not adding one more problem to your life. Good luck with your financial fitness.