Financial planning refers to a step-by-step approach to meeting your life goals. A good financial plan helps you take control of your money, expenses, and investments to reach the financial goals you have set for yourself.

When planning your finances, you must abide by the biblical principles and ensure you do not make investments that are unrighteous. People who want to live by biblical principles hire Christian financial planning services to manage their money. Here is the roadmap for choosing a Christian financial planning advisor.

Ask for Referrals

You can ask your pastor or church leadership about Christian financial advisors in your city. Other options you have are asking your fellow church members, relatives, friends, and coworkers. When you seek referrals from anyone, ask them about their individual experience working with a Christian financial advisor.

Ask straightforward questions about what they liked or did not like working with the financial advisor. Next, ask whether they had any issues working with Christian financial planning services. Getting the perspective of someone you know can help you decide whether you are making the right decision by selecting a particular financial advisor.

Qualification and Experience

Qualification is an important aspect when choosing a financial advisor. It can be challenging to decide whether the financial advisor you have chosen follows the biblical principles in money management or not. Looking at the qualification of the financial advisor will give you an idea.

Location

Location is an important aspect when choosing Christian financial advisors as it would be ideal to meet in person to decide on the financial plan. Therefore, if possible, you should look for a financial advisor in your city or town, so you don’t have to travel a long distance to meet with them. However, if you are fine with having your discussions or business over the phone or email, you can look for an out-of-town financial advisor.  But it would be nice and convenient to have the option to meet in person and be able to stop by their office without having to make a long drive.

Fee Structure

When you choose a financial advisor, you should ask about the fee structure. Some Christian financial advisors offer fee-based services, while some follow a flat fee model.

Before choosing a financial advisor, you should know the clear difference between both fee models. Here is some important information you should know about various fee structures.

• Fee-based – In a fee-based compensation structure, the financial advisor charges fees based on the assets that should be managed. The financial advisor may charge an annual fee of 1% to 2% of the assets. You should know that the financial advisor’s cost does not depend on the performance of your portfolio, and the advisor may charge a fee even when your portfolio experiences some losses.
• Fee-only – In a fee-only compensation structure, the same fees are charged for all assets regardless of the quantum. The advisor charges the exact fees for all clients.

When choosing a Christian financial advisor to manage your money and advise on investments to grow your wealth, you should consider these kinds of factors.