If you are trying to get ahead financially, it might make sense to hire a competent and professional financial planner who will help you make responsible choices. Their advice can be invaluable. Make sure you do your research ahead of time because you do not want to end up with someone who doesn't know what he is doing or, worse yet, a salesperson who doesn't have your best interests at heart. After all, you are trying to better your financial situation, not make it worse. For this reason and many others, you might decide to either do nothing about your financial picture or manage it yourself.

Ignorance is bliss?

Perhaps you don't have any financial goals and prefer to do nothing regarding your investments. Lots of people follow this path of least resistance. They either don't know or don't care about their overall financial picture. Some blame a busy life that leaves little time for money management. Others might be lazy or unconcerned with anything that requires work and a bit of research.

Just ignoring your financial matters is a risky proposition. Nothing will get better without your interest and involvement. If you aren't saving for retirement and continue to procrastinate, you may not retire until years after you'd like to stop working. What happens if you don't address your rising debt? It will only get worse. Not carrying the right amount of insurance can make certain disasters more devastating than they need to be. If you live in an area prone to earthquakes, fires, tornadoes, or hurricanes, chances are you have seen the havoc that can happen when people aren't protected.

Obviously, if you are getting educated about financial planning, you are ready to stop ignoring and start doing. There are many books available to help you sort through the world of finance and make sense of everything. Getting informed is easier than ever before thanks to the Internet. The financial services industry is filled with major corporations that all have an online presence. You can figure it out in no time.

Going it alone

You might know enough, or are eager to learn enough, to make informed decisions and manage your own financial affairs. This will involve a bit of time in order to get educated about the marketplace and all other related information. You should learn both the basics as well as keep up with frequent changes. Some people get involved in their own affairs and find it becomes an enjoyable hobby. Others just read what they are supposed to and spend little time obsessing over it. You will find your own healthy balance.

This doesn't have to take too much time if you don't want it to. The idea that you will spend hours and hours each week pouring over spreadsheets or studying a new prospectus every night isn't necessarily true. The most challenging aspect of self-management is learning what to change within your own habits, preferences, and investment history in order to get better results. After you are done catching up with and correcting past mistakes, you should be able to move forward comfortably. Unless a major event occurs, like buying a house or beginning a business, you should be able to manage your own finances in no more than a few hours every few months.

Of course, professional advisors and planners do not like to hear about people doing their own money management. They like to think what they do requires a formal education and years of experience. "You wouldn't fix your own teeth," they say. "You'd hire a dentist!" But do not lose heart. You can do this on your own. In many cases you might be the best financial advisor because you certainly will not be distracted by conflict of interest and no one cares more than you do about your own money.

Tips for self-managers

Since you are up to the task of looking after your own personal finances, you should begin this process by --

1. Assessing your own situation. Take a good and honest look at your financial picture. How much money is coming in and how much is going out each month? Determine your net worth and list all assets as well as liabilities.

2. Write down all your short-term and long-term financial goals. When do you want to retire and if so, how are you planning for it? Think about what you would like to do in five, ten, and twenty years. This will help you with setting priorities when working toward something important.

3. Develop a budget. Establish a timeline for paying off your debt and list all other ways you spend your money each month. List your mortgage and car payments as well as groceries, electricity, water, gas, and other incidentals. Be sure to set aside money toward savings and retirement plans. Each family is different; just make sure you list everything. If you find that you are spending more than you take in each month, or you're not putting enough toward insurance or college plans, then figure out where you need to scale back. Perhaps those premium cable channels aren't so important after all.

4. Plan ahead. Make sure you stick to your budget and exercise self-control when you feel a desire to spend beyond your means.

5. Commit to an organized system. Put all your bills in one place and set aside time each week or month to pay them -- hopefully way before the due dates. Also regularly check your accounts and keep on top of your investments and goals.