Who is a Personal Finance Manager?
28 Apr 2022

Who is a Personal Finance Manager?

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Key takeaways: Personal finance managers help you manage your finances better. They offer expert guidance on what, when, and how much to invest to maximise your gains. With assistance from a personal finance manager, you can meet your financial goals more efficiently. The manager also monitors your finances and ensures that your financial goals are constantly dynamic in different life stages.


Managing personal finances has become more dynamic in recent times. It is not restricted to investment and budgeting anymore. There are several courses of action that play an instrumental role inefficient financial management. A personal finance manager offers ways to manage your money better and chalks out plans to help you achieve your financial goals.  This article gives you a comprehensive picture of the role of personal finance managers and how hiring their services can prove beneficial for you.

Who is a Personal Finance Manager?

A personal finance manager is someone who has mastered the skill of customised and personalised financial management. They are professionals who guide you on how to manage your money. This includes planning your investment, expenditure, insurance and tax strategies.

Personal finance managers review your current financial health and curate a plan to help you meet your financial goals. For example, let us say your financial goal is to buy a real estate property a few years down the line. To achieve this goal, you need to make sure that you have a strong financial standing. A personal finance manager helps you achieve this high-value goal through systematic planning and investments.

A personal finance manager essentially assists you to map your dreams to reality. They suggest how much money you should save, the types of accounts you must opt for, the kinds of investment products you should invest in, and much more. Besides financial planning, they also take care of you and your family by urging you to invest in health and term insurance and creating a contingency fund that you can access in case of an emergency.

Another significant advantage of availing of the services of a personal finance manager is that you get an investment plan customised to suit your needs. Such a plan is entirely based on your current financial position – affordability, preferred investment instruments, investable assets, etc. A personal finance manager regularly monitors your money and accordingly make changes in your financial plan to ensure that your financial goals do not become stagnant. Regular monitoring also allows you to analyse your expenditure pattern and cut down on unnecessary expenses.

What Does a Personal Finance Manager Do?

The job description of personal finance managers is a lot more complicated than what it appears to be at face value. They take up multiple tasks to thoroughly study your financial needs and develop the best possible plan.

Understanding your financial health

The first thing that all personal finance managers do is study and understand your current financial situation. Your current financial health plays a crucial role in both real-time and long-term financial planning. Your personal finance manager may ask you to answer a financial health questionnaire designed in such a way to address all your concerns. It will have questions regarding your financial capacity, asset holdings and liabilities. Ensure you answer all these questions accurately to enable the finance manager to allocate your assets for investments accordingly.

Creating a financial plan

Once you have filled out the financial questionnaire, personal finance managers start putting all the data into practice. They create a financial plan based on your financial abilities. They plan your financial activities so that you can save more and cut down on unnecessary expenses. They devise investment plans, tax saving strategies, and look after asset allocation to maximise gains on a broader level.

Implementing the plan of action

Besides planning your finances, personal finance managers also ensure that the planned investment is precisely and adequately implemented at the first available opportunity (keeping the market movements in mind). Proper implementation of plans is the key to efficient financial planning.  During the implementation stage, you need to make sure that you do not follow the advice given blindly. Ensure you ask the necessary questions and raise any doubts you have before the asset allocation process begins.

Regularly monitoring your finances

A significant part of the job profile of personal finance managers is to monitor your finances regularly. They review your portfolio from time to time, suggest new investments and when to redeem them. Essentially, they monitor if the proposed financial plans are proving beneficial for you. Your personal finance manager can modify your investment plans regularly and focus on specific areas that demand more attention.

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When Should You Hire a Personal Finance Manager?

You should consider hiring a personal finance manager if you need guidance with your investments, if you are not well-versed with how the investment market works, or do not have the time or agency to manage your investments. Here are some signs that you should hire a personal finance manager:

When investing seems challenging

The ever-changing financial world can be complicated to navigate through. If you have savings and cannot decide where to invest, hiring a personal finance manager is advisable. Their expertise will help determine the right investment path.

When your investments are not performing that well

If you have invested in securities but are not earning good returns, you can consider hiring a personal finance manager. With their knowledge and experience, they can identify and fix your investment-related problems and channel your money to attain better gains.

When you do not have an estate plan

A personal finance manager also plays a vital role in helping you draft a will. They assist you with asset allocation and distribution of funds, property, businesses etc., among your heirs. This secures the future of your loved ones.

Conclusion: Hiring a personal finance manager is like having a financial partner. By employing their services, you can ensure that your investments and the financial future of your family is secured. Your manager chalks out the path that allows your wealth to grow from strength to strength. This person becomes an extended family member who you can turn to for finance-related advice and suggestions. Ensure you consider the credentials and experience of a personal finance manager before you hire one.

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*Disclaimer: This article is published purely from an information perspective and it should not be deduced that the offering is available from DBS Bank India Limited or in partnership with any of its channel partners.

The purpose of this blog is not to provide advice but to provide information. Sound professional advice should be taken before making any investment decisions. The bank will not be responsible for any tax loss/other loss suffered by a person acting on the above.