Is it silly to see a financial advisor if I don’t have money?

[IWantAMassiveEasterEgg]

Maybe it’s turning 40 but I really would like more knowledge about how to plan for the future and to learn more about money.
My parents openly admit they were rubbish with money and I’ve never been very good either (I can generally live within my means but not great at saving).

I have a small amount on a credit card and I have 10k left on a car loan. I’m a home owner with about 60k of equity in the house. Hardly any savings but my credit rating is brilliant.

my mortgage is due up for renewal in September but I’m in a lot stronger of a position then when I last remortgaged to buy my ex husband out.

I only have one dependent instead of 3 now (others are self sufficient) and I work full time with a salary of 32k instead of a part time salary of about 18.

i pay in to a gov pension.

I just find it all really overwhelming and would like to know should I overpay mortgage or pension? What about savings? I’d like to get some jobs done on the house so should/ could I remortgage to release some equity?
Its only me and I don’t have a partner so don’t know where to turn for money advice.

If anyone could point me in the direction or have suggestions of where I could go I’d be massively grateful.

You should, but the tricky bit will be finding a good IFA that is willing to help you, when you don't have much money to invest to make it worth the time to advise. You'll need to be willing to pay their fees (£100s/hour)

Good luck!

Prioritise clearing your debts asap.

In your situation, I would see a mortgage advisor to start with, about 6 months before the renewal date, so do it now if it's due in September. Find one that works on commission so you don't have to pay anything. They will find the best mortgage for you and often have access to products that aren't on the general market.

I wouldn't see an IFA unless I actually had money to invest/pay into a pension.

I am a single parent and due to divorce, am now mortgaged until I am 67. or rather I was - by overpaying, I have already knocked years off and am hoping to knock more off so in a couple of years, will only have 5 years left when it would have been 10.

I don't have a pension, as I had to prioritise the mortgage.

OP I would really suggest this free course https://rebeldonegans.com/finance/rfs/

Or Evelyn partners (wealth manager) offers one free money coaching session which might answer your queries

In general, IFAs are expensive and geared towards those with money already.

You don't need a Financial Advisor. Go onto YouTube and sign up for the Rebel Finance School course 2025.

It's free and will teach you everything you need to know about budgeting, getting out of debt, savings & investing. Join their FB group too. It's fab!

I think some banks offer a one off chat for free - I have a NatWest account and know they were offering talks to discuss personal finances or goals/plans.

Epic cross post with @achangeofnameisasgoodasarest 😊

I work for a Financial Advisers, and you would have to pay a consultation fee. I'm not entirely sure they would be able to do a lot though. They would advise you to clear your debts and start a personal pension plan, which you can do yourself.

You mention overpaying your mortgage and pension, but if you have home improvements to make, then instead of increasing your mortgage further, perhaps save those overpayments in a high interest (not that they are high at the moment) account and use that money rather than increasing your debt.

Please don't spend money on a financial advisor, basic financial advice is available free on the internet.

This is a useful resource:
ukpersonal.finance/flowchart/

Find where you are on the flowchart and work towards the next step. It sounds like your next steps are clearing your credit card debt and building an emergency fund.

Also I don't know how much your home is worth but 60k equity is not much. Interest rates are more favourable the lower your loan to value ratio is so I wouldn't recommend releasing equity.

I wouldn’t pay for an IFA personally.

I use Dave Ramsey plan for budgeting (ignore the Americanisms!).

In your place, I would follow his recommended steps.

1. save a £1k emergency fund (do you stop using OD/CC if you do)
2. pay off all debt except your mortage
3. save a bigger emergency fund (3-6 months of expenses)
4. save 15% of your salary into pension (you’re probably already doing this if you’re public sector)
5. Overpay mortgage

Money Saving Expert is a really good website for finding best deals on bills, mortgages etc. There are some really good guides on there.

I wouldn’t personally take equity out on your home for home improvements…

Just coming to say look at the Ramsey Baby Steps on you tube and /or download the free app
its helped get me debt free/mortgage free/savings

Highly recommend London and Country for re mortgage- they are a whole of market broker-you pay no fees and they can access every single mortgage which suits your needs, I've used them 4/5 times in the past

Ok thank you all so much.
Will do some investigation on the links you’ve all sent.
i really appreciate the help.

Go to moneysavingexpert- lots of free advice on there.

This may not be helpful, given the OP's circumstances (I'm older), BUT I have to say:

• my sister recommended a super firm of IFA'S.
• They were consistently great with things like 'Make up the deficit with your state pension'. (I did. I now get the full amount for a 66 yr old single woman. Hurrah!)
• They did my tax returns online with me. Worth it just for that!!!!!
• They hunted down (AFAIK) my feeble private pension payments. (I'm useless at that shit.)
• When I had actual money to look after, they suggested NS&I Income Bonds as a safe (I'm risk averse) place to put money in.

Good luck to all women trying to be financially independent.

That's great

Have a look at Pete Matthews Meaningful Money videos and/or podcasts. https://meaningfulmoney.tv/

Theyre grouped by theme, so there will be a series called Basics or similar which would be a good place to start for you. Rebel Finance school also well-regarded. You don’t need an IFA at this point, you just need to take time to educate yourself about the pros and cons of the various options available to you.

In your financial state I would not do anything to the house that was not absolutely necessary. If the roof was leaking, I'd do that. But I wouldn't be improving the kitchen or changing a bathroom suite or anything. I'd get a stronger financial footing before doing anything not 100% necessary.

Financial advisors primarily exist to advise you on what to do with savings. I don’t think they would be right in your case.

In your situation I would prioritise pension over mortgage overpayments. Have you looked at your pension forecast recently? That will tell you if you need to save more.

There is a calculator on Money Saving Expert which shows you whether you’re better off keeping your savings or or using them to overpay your mortgage. You can also play around with changing your mortgage term to see how it effects your monthly repayments.

I think your first stop should be a mortgage advisor. You can lock into a new product 6 months before your term expires and if a better rate comes along before then you can switch

When I looked into this at a similar age I found that most IFAs had a policy of only taking clients with £250k of assets. I ended up going the self education route using these boards, MSE, reading everything I could online. It helped me focus on goals and financial planning and I'm .much more in control of my money, plus have sorted things like a lasting power of attorney, a will and other planning that I wouldn't have thyto do before I became more mindful of my financial planning

Yes I've had a couple of IFAs and my impression is they're not geared towards (or useful for) what to do with normal income/ outgoing decisions. Mine was helpful as I'm self employed for setting up a private pension and has given me some advice on investments and mortgage stuff (my IFA company have in house brokers) but I wouldn't go to them for day to day spending decisions. They're bloody expensive although worth it for the complex private investment stuff.

I think the flowchart a PP posted is really good and practical.

In my opinion they are mainly interested in people with higher salaries. Maybe listen to money podcast, read money saving expert, martin Lewis, etc.

@IWantAMassiveEasterEgg
As pp have said there is a lot you can do yourself. My advice is think of it as building blocks and spend an hour or two each month learning more about each element. Remember you’re only 40 and you are looking at the next 40+ years. It’s worth the investment of your time.

My starting advice is:

• state pension: Each January do a state pension forecast https://www.gov.uk/check-state-pension. It’s much easier to spot any mistakes and get them corrected by checking each year.
• gov pension, you will get annual statements and their should be a good website. Each year when you get your annual pension statement check it for accuracy and project what you are likely to get when you retire. Consider if there are options for buying extra pension. This is where a few hours spent reading the guidance, scheme information will help you.
• Mortgage: Money Saving Expert has a calculator to look at the impact of overpaying has. https://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator/
• Pay Awards: If you get a pay award, enjoy the first month of extra money as a treat. Then set up payments into mortgage, pension or savings allowing some extra money e.g. 30% mortgage, 30% pension/savings 40% day to day/ treats.
• Savings: use ISA allowance as interest is tax free. Also look at regular savings accounts that limit the amount paid in but pay good interest.
• Be aware of the £85k limit with one financial group/institution. NS&I is the only exception.
• Given you have 20+ years to retirement stocks and shares ISAs maybe a good long term option, go for one in a fund rather than individual shares. This is more risky so understand the risks before investing.
• Moneyhelper is the gmt advice website https://www.moneyhelper.org.uk/en

I wouldn't ever go to any high street bank for any financial advice. They are only interested in selling you their products

You are not bad with money if you are living within your means, have an affordable house etc imo.

Sorry I don't have any advice and hope you get to make the improvements you want to your finances and house. You are not starting from a black hole, give yourself some credit and good luck