Here’s the deal. Having a financial planner isn’t important, but having a financial plan is critical. Do you need a financial planner to have a financial plan? No. There are many great resources available that you should take advantage of including (WARNING--shameless plug coming…) my book The Six Day Financial Makeover: Transform Your Financial Life in Less Than a Week! But of course there are many others. Whichever you choose, make sure it is a comprehensive financial planning book that covers saving, investing, insurance planning, etc. and not just one that focuses on investing. Knowing your options is a great step in getting organized and can also releave unwanted stress.

There are a few reasons why you might want to hire a financial advisor. First, if you are not a do-it-yourselfer and don’t have the ambition to read a book and implement the advice. Second, if you read one of the financial planning books but need additional help. Third, if your situation is complex and/or unique, a book written for the masses may not address your particular situation.

FPs certainly provide value, but if you're an semi-logical person capable of following a few financial rules -- you really don't need one. Calling FPs a luxury is stretching it b/c they do make you money (or the good ones do), but if you are a semi-logical and intelligent person, they're essentially a frivolous purchase.

I've found that most FPs make their bucks from people who lack the self discipline to manage their own finances, or find managing their own investments more boring than watching the grass grow. That said, there are far more people of this type than self starters and folks willing to roll up their sleeves when it comes to managing a budget.

If you want to go it alone, just follow a few easy rules:

1) Don't spend more than you make. Begin by reviewing your expenses every week and track where you spend your cash.
2) Contribute as much as possible to your retirement accounts. People who do not take free 401k employer matches are morons --> you're saying no to free cash for heaven's sake!!!
3) Create a budget that allows some pseudo luxuries (i.e. a nice steak once a week over Raman noodles).
4) Setup an emergency fund 3 to 6 months of your current living expenses. You never know when your car decides it no longer agrees with you or a tree crashes through your roof.

Once you get these tips down, you can start adding money into a well diversified mutual fund or ETF (i.e. S&P 500 Spyders). For the more aggressive, you can begin conversing with folks such as myself who live, eat, and breath stock analysis and short term trading.

As a stock trader, I get questions 100x a day regarding "how can you make me money?" and my first reply is "how much money do you have in savings to give me so that I can make you money?" It purposely throws people off b/c if they have no savings, I don't want their life savings being placed upon my shoulders.

So get yourself a plan, a regular contribution schedule, and avoid spending it on some random California boy-toy.

The last part was directed solely at Dr. T and not the other PJ readers.

I think it's a luxury expense

"Having a financial planner isn’t important, but having a financial plan is critical. " Exactly.