Life is expensive. Summer is about fun. Every other season, you’re busy. Why should you take the time and spend the money now to hire a financial planner to create a financial plan? 

Considering who you’re asking, we have lots of reasons why, like how people with a financial plan have almost three times as much money as those who don’t. But a plan doesn’t make you instantly wealthy. In fact, there’s no money move that can guarantee wealth. Which brings us back to the dollar-sign-shaped elephant in the room …  

Is a financial planner worth it ? How do you know when you need financial planning help ? Is a financial plan ever not worth it? These are all valid questions. Here are our honest answers.

But first, what is a financial plan?

A financial plan is a highly personalized document that lays out the strategies and steps to get you and your money where you want to go. It gives you the clarity and confidence that your money is aligned with your goals, needs, and — at Ellevest — your values. 

A good financial plan reflects your whole financial situation: from basics like cash flow, assets, and liabilities to inequalities (like the gender pay gap) to account for. It also provides financial guidance that helps make money decisions easier, along with a realistic timeline so you know that you’re on track.

A financial plan is different from a budget because it goes beyond short-term planning for the upcoming weeks and months. A financial plan considers needs and goals that are years away — five, 10, maybe 20. Because it covers so much ground, you can think of it as your money roadmap. And, like everything in life, your destinations along the way may change. When that happens, your financial plan should be updated to reflect your new itinerary.

Finally, a financial plan isn’t dictated to you — no plan should feel preachy, patronizing, or shamey. It should be carefully developed with you by a financial planner, a money-managing expert and goal-setting specialist. A good financial plan is developed together: You both discuss targets and tradeoffs, review and adjust details, and agree on actionable next steps to get you going. 

Partnering with a CERTIFIED FINANCIAL PLANNER™ professional who can meet you where you are makes all the difference for your financial plan — and your financial confidence. In an Ellevest community survey from 2023, 89% of women said that working with a woman financial planner would make them feel more confident about their money decisions. Given that money is the #1 source of stress for women, that’s a huge benefit of finding the right financial planner — and increases the overall value of a financial plan. 

Do I need a financial planner?

Just like it takes money to make money, it takes a plan to make your plans happen. To get one, you could consult the internet or your friends, or guess what’s best for you. But you probably wouldn’t do that with other things you care about, like your car or your health — you’d see your mechanic when a dashboard light turns on; you’d check in with your OBGYN for regular screenings. To build your wealth and manage your money optimally, you should see a financial planner. 

Now the question is: When does it make the most sense to see a financial planner so you get the most out of your financial plan? Here’s 10 times in your life when a financial planner is worth it (and one when it’s not):

A financial planner is worth it if:

1. You’re stressed out by finances.

Dealing with money can feel overwhelming regardless of your income, the complexity of your financial situation, or the state of the economy. People don’t say it enough, but this general anxiety about managing money isn’t your fault : Women are socialized to believe that money is not for us from a young age. And we don’t know what we don’t know. But our world doesn’t work without money, so managing it is a reality each of us has to face. The longer we don’t, the more likely that a financial setback can have negative consequences on our livelihood. 

A financial plan can give you some relief because it’s like a cheat-sheet to the money “lessons” we never learned — and how they can work best for you. Besides having “the answers” to the questions that have been causing financial stress, a financial plan can give you clear direction on what to do next — and how. It’s broken down into single steps so you only have to think about one thing at a time. Plus, you’d be surprised at how therapeutic it can be to chat with a financial planner, even for a bit. 

2. You want reassurance. 

It can be difficult to feel confident about managing money when you’re up against the long history of harmful messages about women and money and don’t have the visible pack of strong financial role models that men do (although that’s changing). Even if you’re getting by, even if you’re doing just fine, even if you’re more than comfortable, how can you be sure you’re doing the right things with your money? Over time, that worry can damage your money mindset and make you doubt yourself even more.

A financial plan can give you peace of mind because it confirms whether or not you’re on the right track. And, if you’re not, it gives you the tools to course-correct immediately (phew). That said, you’re not not on the right track if you recognize you need help and ask for it. A financial planner can put your mind at ease by giving you the go-ahead or putting something that seems insurmountable into perspective. With your plan, there’s no more “what if’s.”

3. You’re making major life decisions. 

Hitting a milestone can be a strange mix of happy-scary, can’t it? You got that job! You’re hunting for your first home! You’re growing a business! You’re growing your family (and taking a career break, too)! You’re moving to a new state! … Now what ? You could turn to parents for financial advice, but times were different then. Friends can be a good resource, but there’s a high risk of comparing your financial situation to theirs. And that can quickly turn “happy-scary” into “sad-scary.”

A financial plan can offer you support at different stages of your life so that you feel ready for what’s to come. Teaming up with a financial planner means that you have someone to walk you through unknowns and uncertainties before they ever happen, and to write all the financial prep down for you, saving you time and effort. A plan not only accounts for the important details leading up to that milestone, but it also gives you guidance for after — because financial planning doesn’t end on your first day of work or the first day of your parental leave. 

4. You’re in debt. 

Credit card balances are on the rise. The average monthly student loan payment for borrowers with a bachelor’s degree is $500–$600+. Making a dent in your debt or paying it off completely can seem like a fantasy. Because you have other bills. And you have to negotiate the rising cost of everything. And your friend just asked you to plan a trip to Europe. And you just don’t want to deal with debt today. We know debt can feel crushing to think about, which makes it easy to put off. But high interest rates only make matters worse. Even when you commit to paying down debt, it takes time … which can make you wonder if you’re getting anywhere. 

A financial plan can help you steadily chip away at debt and minimize fees to free up your money to live your life. It determines which debts are costing you the most — not just the amount you owe now, but the amount you owe with interest over time . And it lays out a strategy for exactly how to pay it down without derailing your life or your other goals. With a financial planner in your corner, you can get personalized answers to common questions — like “Should I pay off all my debt before I invest (or should I be doing both)?” — and start feeling like you’re in control of your debt, not the other way around. 

5. You’re navigating complex finances. 

We like to say that “wealth happens.” And when it does, it opens up new financial realities with new financial questions. How do you prepare for your company’s IPO? How will the deferred compensation you’ve just been offered affect your retirement plans? Should you consider tax loss harvesting after your capital gains increase? What do you need to know before you start the search for that cabin with the view for your first investment property? It’s a lot of new money issues to work out and those can be stressful, especially with large sums or multiple types of accounts.

A financial plan can set the new baseline for managing your wealth or complex finances for your ongoing needs — with the jargon translated by a financial planner. It details your new normal plainly and precisely. Without a financial plan at this stage, you may overlook technicalities that could cost you and your ability to hit your goals faster or set your sights higher. With one in place, any money issues are flagged for you and handled with care.

6. You’re getting serious with a partner. 

Finances aren’t the most romantic topic. Yet for anyone in a serious relationship — you’re officially dating, you’re moving in together, you’re engaged — it’s an extremely important topic to discuss. It can be an extremely awkward topic, too, which is why many couples just don’t have the money talk. How do two people with different money mindsets, habits, priorities, and triggers get on the same page, let alone commit to and plan for joint goals in a way that feels fair? Because “split the bills” isn’t a one-size-fits-all solution. 

A financial plan can act as the icebreaker for talking about money with your partner and help to establish your roles in your financial future together. It can help to ease the tension surrounding money talk because neither of you is prying or judging or shaming. You’re each revealing it all — to a financial planner — to be the most financially successful couple you can be. In this situation, a financial planner is as much a mediator as she is an expert. As fiduciaries, all of Ellevest’s financial planners legally must work with your best financial interests in mind — there’s no taking sides. With your commitments down on paper, a financial plan for couples also helps you both remain active participants in your finances. This can help avoid negative financial surprises in relationships, a scenario that too many women face. 

7. You’re going through a difficult time. 

It’s tough enough to get through an emergency situation. You were suddenly let go from your job. You want to get divorced. You experience a family-building disappointment. You lose a loved one. Dealing with the financial fallout on top of it is too much. The process — and the paperwork — will undoubtedly be painful in such an emotional state. And making decisions in panic-mode can lead to big money mistakes. At moments like this, it’s normal to wish you had someone to hold your hand through it all. Of course you don’t want to feel alone when the stakes are so high. 

A financial plan can give you the tactical support you need to recover from a crisis and the reassurance that you can reclaim your financial future. A good financial planner will meet you where you are with expertise and empathy during this vulnerable time. Or, ideally, in advance of an emergency situation. That way, if disaster strikes, you can ‌take some solace in having created a crisis game plan. This is why we say every woman needs an emergency fund and every woman needs an estate plan now. A financial planner can help you get started on both today. 

A financial plan can also make receiving an inheritance feel less overwhelming. Working with a financial planner to handle sudden wealth means that your newfound money has the staying power that the loved one who left it to you intended.

8. You’re worried about retiring confidently. 

With the cost of living surging — and with headlines and posts constantly reminding us of it — saving for retirement might seem even less urgent than before. If your retirement contributions are currently nonexistent or inconsistent, retiring on your terms can feel out of reach. Maybe you’re maxing out your contributions and still feel that way. How do you account for everything now and everything in some distant future? What if you’ve never invested before — is it too late to invest for retirement? How do you speed up your retirement timeline if ditching the grind is your top priority? 

A financial plan can help you feel secure about your retirement game plan so Future You doesn’t need to stress about it. A plan will tell you how much you’ll need for the retirement you want and how to budget for retirement savings, even if it’s a small amount. The sooner you start, the better. And the sooner you start investing your retirement savings, the more time you’ll give your money to grow. To get your number, a financial planner should account for your dream life, your current life, your needs, and your specific realities. For example, women retire with two-thirds as much money as men do, but live six to eight years longer. When a plan reflects all of this, it sets you up for the stablest possible financial life now and during your golden years.

9. You’re committed to leaving a legacy. 

It can be challenging enough to build wealth for yourself, let alone for yourself and your kids (and their kids …). Plus, the term “ generational wealth” might evoke Bridgerton-esque images of hand-me-down manors and life-size portraits — so not your reality. But the truth is that everyone owns stuff in life. And that means you probably have opinions on how you want that stuff to support the people and causes you love when you’re gone. It’s likely at the bottom of your financial to-do list, obviously, because no one wants to think about the scenarios that lead to leaving generational wealth. But should it be?

A financial plan can make your money work harder for you today, tomorrow, and for years to come. It’s what puts you in control of your legacy. Without the proper legal documents in place, the courts get the last say on your stuff — not you or your family. Whether you’re starting from scratch or working off an existing foundation (like an inheritance), planning for your legacy starts sooner than you may think. A financial planner can help you put the plan in motion to control what happens to your assets now, later in life, and when you’re gone.

10. You’re going after multiple goals at one time. 

Homeownership. Starting a business. Retirement. How do you get on track to reach all of your big, overlapping financial goals? ​​Traditional investment strategies focus on selecting investments to outperform the market. And if you do, you might. And that’s great … as long as you don’t care about missing the mark on your financial goals. If your investments aren’t aiming directly at that brownstone, that LLC, that Italian shore, there’s a chance they’ll miss your targets. Suddenly, investing to beat the market doesn’t sound so impressive. 

A financial plan prioritizes your overlapping goals so you have the best chance of hitting them. That’s not to say there won’t be trade-offs. But a financial planner will ​​ help you understand your options so you can make the informed choice that’s right for you. An Ellevest financial planner can help you invest toward those goals using investment portfolios personalized to you with specific recommendations for how much you might invest, and for how long. Our financial planners want you to achieve the real-life things you want to do with your money — not just beat a number on a piece of paper.

A financial planner is not worth it if:

• You’re living paycheck to paycheck. 

Almost 73% of Americans live paycheck to paycheck, according to a 2023 survey. That same survey reported that respondents across generations cited “high monthly bills” as the main reason they’re struggling to save or invest. Coming in at number two: “lack of budgeting and financial planning.” Contrary to what society says, it’s not because you buy a daily latte. It’s not because you’re “bad with money” or you don’t know enough yet. It’s this harmful messaging that’s to blame. These relentless money lies make it easy to believe you’re the problem — and it scares you away from stepping into the financial power you do have. 

If you haven’t been able to break the paycheck-to-paycheck cycle, a financial plan is not worth it for you right now. What is worth it? Creating a budget and sticking to it — no matter how many times you’ve tried before. That’s the financial power you have right now. That’s how to start creating the financial life you want. Get started with these tips: 

• Give the 50/30/20 rule a try. Here’s a template to help you sort your anticipated spending into those three buckets (free for Ellevest clients). 

• Only want to keep track of one number? Try the one-number budget instead.

• Save for non-monthly expenses — your annual streaming subscription, your car registration, your holiday gifts — in a “sinking fund.”

• If the girls keep suggesting a trip to Europe, say “pass” by loud budgeting.

• Practice intentional spending to make more meaningful purchases.

• Cut back to an essentials-only budget for now if things are feeling really tight.

• Track your progress and celebrate small wins — it’s what will help you hit bigger and bigger milestones.

Once budgeting becomes routine, and you’re consistently saving money after paying your monthly expenses, you may be ready for a financial plan. Working with a financial planner at this stage can take your confidence in your money management to the next level. You’re ready for a plan that builds a financial foundation solid enough to turn money from your source of stress into your source of strength.

Book a complimentary consultation with a financial expert on Ellevest’s all-women team for help determining your next steps to reach your goals.

Disclosures