Business experience: Financial consultant

Typically, when we hear about the profession of financial consultant, we imagine people helping large businesses decide where to invest their spare cash. Is this true? Can a financial consultant be useful to small and medium-sized businesses or individuals working for a salary?

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Vladimir Kazak, a financial consultant with 15 years of experience, shares his experience.

Let's start with the background. How did you get into financial consulting? How did it all begin?

It all started right after university. I worked as a manager at ZAO Upravleniia i Investitsii (Management and Investments), which was involved in investment consulting.

– At what age do people usually start a career as a financial consultant?

– After 30-40 years, when you've gained sufficient experience and developed certain technologies and connections. It's not just education and experience in the financial sector that's important, but also life experience.

– What does it take to become a financial consultant?

"Desire—since not everyone has it—and education—finance, mathematics, or a related field. And practice is essential; without practice, nothing will work here."

– Who needs financial consultants and why?

Financial consultants come in all shapes and sizes. In my case, it's small and medium-sized businesses that need help choosing investment options, business planning, and auditing. But in principle, a financial consultant can help people navigate any financial matters.

– Do you have to advise more those who come with the question “Where should I invest?”, or those who come with financial problems?

Different people have different approaches to the concept of financial problems. For some, multimillion-dollar debts are a normal business situation, while others are afraid to take out a $200 loan. Some fear administrative or criminal prosecution for financial matters if something goes wrong, while for others, lawyers are constantly busy with this. A financial consultant doesn't just advise those looking for ways to invest their available capital. An experienced specialist often helps small and medium-sized businesses find financing for their investment-attractive projects. But there are also clients who come seeking assistance in navigating a difficult life situation. We strive to help.

– Have you ever been able to analyze the average person's financial situation and come to an understanding of where their money was going?

"It's not the most difficult task. Again, the average person is not a uniform concept. A housewife, a student, and a pensioner will have different budgets. Usually, people can manage on their own. Much depends on life experience and priorities. But sometimes, professional advice can be helpful, to point out a non-standard solution for the client."

– How are financial consultant services paid?

– For some services, there are tariffs and rates, somewhere there are contractual terms, somewhere we work on a volunteer basis, if it is needed for some public association, or if a person has a difficult case, you understand that they will not be able to pay, but you want to help them.

– Does it make sense to start investing with small amounts? Where can I find money to invest?

"It's worth learning with small amounts. There are opportunities to invest in the FOREX market even with absolutely no money. You can learn, but it takes time, working on so-called demo accounts. Once you've gained confidence, understood how it works, attended seminars or webinars, and gotten the hang of it, you can practice with smaller amounts. You can earn money for investing simply by earning it, you can take out a loan, you can start a startup and attract investment for it. And there are many other options. The best way to find funds is to work on your personal expenses and understand where you have excesses. These could be things like groceries bought in a quick raid at the store after work when you're hungry and then wasted in the refrigerator. People in the former Soviet Union often have excess property: a dacha that no one goes to, a garage that's never used. It's a kind of frozen capital. It's important to think through, systematize, and understand what you can give up and how much you can put aside."

– Financial improvement training sessions often recommend investing approximately 10% of your income. What can you say about this?

– Yes, there is such a tactic. In a year, you can get about 120% of your income, which you can put into a deposit, invest in reliable, profitable stocks, or spend on self-education, investing in yourself and your development.

– People are divided into those who favor active investing and those who prefer passive ones. And there are far more passive ones. People want to invest a certain amount, then do nothing, and let the money roll in. Is this possible?

"Yes, it's possible, although not everyone succeeds. I know many people living on rent and pursuing projects that interest them, even though they don't generate income, they find it enjoyable."

Do clients return often? Do they start to view their financial advisor as their family doctor and seek advice regularly?

"A consultant isn't a doctor, but sometimes clients come back, maybe after a year or several. It happens, and it's very gratifying, when clients recommend you to their friends, and they come back for a consultation."

– Besides referrals from grateful clients, how do financial advisors find clients? Or, more accurately, how do clients find advisors?

– There are many opportunities. These include exhibitions, seminars, business unions, public and political movements. Any place where there are people. The main thing is the ability to communicate. Having your ownwebsiteand pages on social networks.

– Based on your experience communicating with clients, can you give a more or less universal answer to why people don’t have enough money?

"People lack more than just money. Some lack youth, some lack health, some lack success, recognition, and security. Balanced people are rare. Money isn't the most difficult problem in life, but it often reflects other issues that need to be addressed."

People striving for financial well-being or self-promotion often set goals for themselves: buying an apartment, a car, or expensive items. Do you think it's better to have a nice car and a loan, a simple car, or no car at all but a bank account?

"It's all individual. If someone is a public figure and self-presentation is important to them, if an expensive car will help them create the desired image and secure more lucrative contracts and more expensive orders, then it's necessary, even on credit. If an expensive car is needed to impress friends, then the benefit of such an investment is conditional. But in any case, the choice is up to the individual."

Do you offer online consultations? Is it different from an in-person consultation?

Yes, we do online consultations as well. But in my opinion, offline consultations are of higher quality and more powerful, since being there in person involves a psychological aspect, which is crucial in our business. You see the client, their attitude, their desires. It's impossible to conduct an audit online. Whether it's a factory, a construction site, or a market, you need to visit the site, inspect it, and assess its condition. In this case, being there is, of course, essential.

– What universal financial advice can you give to the average person?

"There's no universal advice. It's all very individual. I'd say money isn't the key to happiness. You need to take it seriously, but without fanaticism."