The world of personal finance seems very simple at a glance, yet it is very complicated. However, most people are not able to differentiate the simple from the complex. The goods news is that you can easily get someone who understands the complexity and is able to plan your finances. The small problem is - he costs money. Is it worth it to spend money on a Personal Financial Advisor?

Let us start with the simple stuff which everyone understands. To become financially successful you need to do 3 simple things as a minimum.

• 1) Save regularly
• 2) Invest wisely
• 3) Spend less than you earn

Complexity arises when you consider the myriad tools of finance designed to help you do the simple stuff and the legal and taxation effects of each tool.

For example, how well do you understand the following?

• 1) Investment - Portfolio diversification, Asset allocation and Re-balancing
• 2) Insurance - How to use insurance as an investment tool
• 3) Estate Planning - How to protect your wealth from personal lawsuits, inheritance wars and avoidable taxes

If you wish to pursue wealth building on your own, you need to answer the following 3 questions regarding your Knowledge, Time and Desire.

Knowledge - Do you wish to learn about Money Market Instruments, Fixed-Income Capital Market, Equity Securities, Equity Derivatives, Investment Companies etc, budgets, retirement plans, estate planning, insurance, taxation, personal liabilities and more?

Time - In addition to your regular job, family, hobbies and friends, can you spare at least 10 hours a week, every week, to study the financial market in relation to your wealth building plan?

Desire - Do you seriously consider finance to be so interesting that you can pursue it for the rest of your life?

If you answered yes to all three then probably paying a financial advisor is a total waste of money. Otherwise, you will be penny wise and pound foolish.

Well, before you consider hiring a financial advisor, you need to put your house in order first. Pay off all credit card debt, maximize contributions to your 401K and Roth IRA and have at least 3 months income saved.

Quote: a lawyer who represents himself has a fool for a client.