There are always advantages of doing things yourself, the biggest and most obvious reason being that you are in complete control. When it comes to managing your money, being in charge can have some great advantages.
First of all, you know exactly what is happening with your money at all times. You know what is coming in and going out on a regular basis. Since you have the same knowledge over what is happening in your own life, both in the present and what you have planned for the future, you can tweak how you spend your money more easily than if someone else was keeping track of your finances. If you want to change your investments because you made more this month than last month, you can do that exactly when and how you want to, instead of having to call your financial advisor and change the plan they have for your money.
Secondly, you don’t have to pay for a financial advisor. This means more money for you! It also means that you get to be your own financial advisor and the advantage to that is that you can make a more specialized plan for your life than an advisor could. By eliminating the middleman of money management, you can also make changes to your financial plan faster than if you had to call an advisor to do so. You also have no one to answer to about your decisions, you get to experience them first hand, whether it is learning from mistakes or enjoying the benefits of being right. If you have a gut feeling that a rash investment move will pay off big, you can make that move without trying to justify it to your financial planner. Similarly, you will never be pressured by anyone else to do anything with your money that you don’t want to do or are uncomfortable with. You are the one calling the shots at all times, no matter what anyone else says.
This hefty responsibility is something that many people want when it comes to your money. You are in charge, so you are also solely responsible. If something goes wrong with your money, or you lose on an investment, you have only yourself to blame. While this may be a disadvantage to some, many people feel much better knowing that if they lose money it will be because of their mistake, not the mistake of another. Money is a hard thing to trust others with, so if you don’t want to give anyone the chance of losing your money, manage it yourself.
Overall, what managing your own money means is that you are in total control. You can do whatever you want because no one else has any part in the decision making process. While this is great, it is also a huge responsibility that can be quite overwhelming and complicated (hence, people hire financial advisors). Make sure that you are ready for the responsibility and the possible consequences of that responsibility before you dive head-first into managing your own funds.