The financial advisor and financial planning industry is still very big and still doing well. But the growth rates they saw in the 80s and 90s are definitely a thing of the past. The main reason is simply technology. More and more people are becoming their own financial planner thanks to software apps that are easier to use than ever along with tons of free information and courses online.

Should you be Your own Financial Planner?

Not everybody should be a do-it-yourselfer when it comes to financial planning. Some people aren't cut out for it and some people simply don't have the time. 

How do you know if you are ready to be your own financial planner and take control over various facets of your financial life? You might be a good candidate to do this yourself if you can do the following:

1. Create the Time for More Learning

First, you must have the time to be able to read more. Bone up on personal finance books and understand the basics of finance and investing. Read financial news and keep up to date with what is going on. Find good forums like Bogleheads to ask questions and get answers to questions you might have.

One of the first things you should do is read about different investment account types. If you don't know the difference between a Roth IRA and a traditional IRA, this definitely applies to you. Read about how markets work and why investing in index funds is usually the best move for most investors over the long run. 

It is also important to understand how debt, interest rates, and compound interest work. Too much debt has crushed the hopes and dreams of millions of people over the past fifty years and most of them didn't even understand what they were getting into. By understanding how quickly debt can escalate, it will help you make better decisions and possibly stay out of debt, such as credit cards, that charge the highest interest rates.

2. Track Your Finances With Budgeting Software

If you are not already good at being disciplined with tracking your spending and how much you save, you need to work on this before becoming your own financial planner. There are great apps out there such as EveryDollar.com for tracking you spending and creating a budget. This app is very intuitive and easy to use. Even if you don't use EveryDollar.com, make sure you are using some type of software and/or an app to track your spending and saving.

3. Create a Retirement Plan

This is one of the most important things you will do when you become a do-it-yourselfer with your finances. You will need to buy software that will help you build your retirement plans. One caveat: don't use free calculators. None of them are accurate enough and might tell you that you can retire earlier than what is actually feasible. Many of these calculators don't even tell you the assumptions used for inflation, taxes, investment returns, and many other important variables.

Spend the money on good retirement software that is actually accurate, detailed, and will allow you to link your investment accounts. One of the most well-known software packages geared towards retirement planning for individuals is WealthTrace. Although it is pricier than most, you will get detailed and accurate analysis of your retirement situation. 

With accurate retirement software you can really dial in how much you need to save today in order to meet your financial goals when you retire. Good planning software will also help you make better decisions on spending and which accounts you are saving to in order to minimize taxes over time.

A retirement plan is also about more than just projecting how you will do in retirement. It can involve figuring out how to save money for children's college education expenses. It can also help you budget for large items like cars, home improvement, and vacations.

4. Make Decisions on Your own Without Stressing out About it

If you are going to tackle being your own financial planner you have to be able to make decisions confidently. It is usually not a good idea to constantly look at the financial markets. This leads to a lot of hand wringing and unnecessary anxiety. If you are waking up at night, stressing out about financial decisions constantly, maybe you do need some help with this aspect of your life.

It Could all be Worth it

It might sound daunting to take on the role of financial planner, but it is also very empowering. Imagine having full control over you own financial life. Imagine having software and apps at your fingertips where you can see how you are doing financially at any time. You can run your own retirement scenarios without having to call a financial advisor and wait days on end for a response. And finally, the savings to you over time could be massive. Financial planners charge well over $2,000 these days for a financial plan. Financial advisors who manage money charge an average of 1% of investment assets to manage a client's money. This is money you can save and invest for retirement. By doing it yourself, you might actually be able to retire earlier than you had hoped.

If you think you are up to the task of going out on your own with your finances, stop waiting around, buy some good personal finance books, and get started today!