You Can't Afford a Financial Advisor. Here's What to Do Instead.

The financial advice industry has a dirty secret: most of what they charge hundreds of pounds for, you can do yourself.

Independent Financial Advisors (IFAs) typically charge £150-£300 per hour. A full financial review costs £500-£2,000. For many families earning £50-100k, that's money you simply don't have sitting around - especially when you're already stretched thin with a mortgage, childcare, and trying to save for the future.

Here's the good news: 80% of family financial planning is common sense, freely available information, and a bit of organised thinking. The expensive advice? That's for the 20% of complex situations that most of us don't have.

Let's separate what you can absolutely do yourself from what genuinely requires professional help.

What financial advisors actually do
Free resources that replace paid advice
The DIY financial plan for families
When you actually need professional help
Frequently Asked Questions
Next Steps

What Financial Advisors Actually Do {#what-financial-advisors-actually-do}

Let's demystify this. Financial advisors provide:

1. Information gathering and organisation They collect all your financial data - income, expenses, debts, assets, pensions, insurance - and put it in one place. You can do this yourself in an afternoon.

2. Gap analysis They identify what's missing: no life insurance, inadequate pension contributions, no emergency fund. You can figure this out with a simple checklist.

3. Product recommendations They suggest specific products: this pension fund, that insurance policy. Comparison websites and free guides do this.

4. Ongoing management They review your situation annually and adjust. A calendar reminder and 2 hours once a year does this.

5. Complex tax and legal planning This is where advisors genuinely add value - inheritance tax mitigation, business structures, pension lifetime allowance strategies. Most families don't have these problems.

The expensive part is often just organised common sense wrapped in jargon. Let's unwrap it.

Free Resources That Replace Paid Advice {#free-resources-that-replace-paid-advice}

These UK resources provide genuinely free, genuinely good financial guidance:

MoneyHelper (formerly Money Advice Service)

Website: moneyhelper.org.uk What it covers: Budgeting, debt, pensions, insurance, mortgages, family finances Best for: Comprehensive guides on almost any financial topic, free tools and calculators Note: Government-backed, completely free, no sales agenda

Citizens Advice

Website: citizensadvice.org.uk What it covers: Benefits, debt, employment, housing, consumer rights Best for: When you're in financial difficulty or need to know your rights Note: Can arrange free face-to-face appointments for complex issues

Pension Wise

Website: moneyhelper.org.uk/pension-wise What it covers: Free guidance for over-50s on pension options Best for: Understanding your pension choices before retirement Note: Free 60-minute appointments (phone, online, or face-to-face)

StepChange

Website: stepchange.org What it covers: Debt advice, budgeting, debt management plans Best for: If you're struggling with debt Note: Free charity, no fees, can negotiate with creditors on your behalf

MoneySavingExpert

Website: moneysavingexpert.com What it covers: Everything - insurance, banking, credit cards, mortgages, savings Best for: Finding the best deals, understanding products, weekly email tips Note: Independent, funded by affiliate links but recommendations are unbiased

Which?

Website: which.co.uk (some free content, full access £10.75/month) What it covers: Product reviews, financial guides, consumer rights Best for: Comparing specific products (insurance policies, bank accounts)

Gov.uk

What it covers: Tax, benefits, pensions, legal requirements Best for: Official information on what you're entitled to and what you owe Note: The authoritative source for HMRC rules, benefit eligibility, etc.

The DIY Financial Plan for Families {#the-diy-financial-plan-for-families}

Here's the framework a financial advisor would charge you £1,000+ to create. Do it yourself in 2-3 hours.

Step 1: Know Your Numbers (30 minutes)

Income:

Combined household take-home pay
Any benefits (Child Benefit, Tax Credits)
Other income (rental, freelance, etc.)

Fixed expenses:

Mortgage/rent
Council tax
Utilities
Insurance (home, car, life)
Childcare
Commuting
Debt repayments

Variable expenses:

Food
Entertainment
Clothing
Everything else

Net position: Income minus expenses = what's left each month

Step 2: Build Your Emergency Fund (ongoing)

Target: 3-6 months of essential expenses in an easy-access savings account.

Why: Job loss, boiler breakdown, car failure - life happens. An emergency fund stops you going into debt when it does.

How much: If your essential monthly expenses are £2,500, aim for £7,500-£15,000.

This is your first savings priority. Before pension top-ups, before investments, before overpaying the mortgage. Emergency fund first.

Step 3: Check Your Protection (1 hour)

Life insurance: Do you have enough? Quick calculation: 10x main earner's salary + mortgage balance. If your employer provides death-in-service benefit, subtract that.

No life insurance? Compare quotes at comparethemarket.com or moneysupermarket.com. A healthy 35-year-old can get £500,000 of cover for £20-30/month.

Critical illness cover: Pays a lump sum if you're diagnosed with a serious illness. Worth considering if losing income would be catastrophic.

Income protection: Pays a percentage of your salary if you can't work due to illness. Often overlooked but arguably more important than life insurance - you're more likely to be off sick for 6 months than to die.

Will and LPAs: Without a will, you don't choose who raises your kids or who gets your stuff. Without LPAs, no one can manage your affairs if you lose mental capacity. Both can be done online for under £200 total.

Step 4: Optimise Your Pension (30 minutes)

Are you getting the full employer match? Most employers match your pension contributions up to a certain percentage. If you're not contributing enough to get the full match, you're leaving free money on the table.

Example: Your employer matches up to 5%. If you're only contributing 3%, you're missing 2% free money. That's potentially thousands over a career.

Where is your pension invested? Most workplace pensions default to a "lifestyle" or "balanced" fund. If you're decades from retirement, you can probably afford more risk (growth funds). Closer to retirement, dial down the risk.

Check your pension provider's website. Most have tools showing your projected retirement income.

Step 5: Tackle Debt Strategically (varies)

Not all debt is equal:

Debt Type	Typical Interest	Priority
Credit cards	20-30%	Pay off ASAP
Personal loans	5-15%	Pay off after high-interest debt
Student loans	Plan 2: RPI + 3% max	Usually not worth overpaying
Mortgage	4-6% (2026 rates)	Overpay only after emergency fund built

The avalanche method: Pay minimums on everything, throw spare cash at the highest-interest debt. Repeat until debt-free.

Step 6: Start Investing (when ready)

Only after you have:

Emergency fund in place
Adequate protection (insurance, will)
Pension contributions optimised
High-interest debt cleared

Then consider:

Stocks and Shares ISA: Tax-free growth, up to £20,000/year allowance
Junior ISA: For children's future, £9,000/year allowance
General investment account: For amounts above ISA allowances

Keep it simple. Low-cost global index funds (Vanguard, Fidelity, iShares) beat most actively managed funds over time.

When You Actually Need Professional Help {#when-you-actually-need-professional-help}

DIY isn't always the answer. Get professional advice if:

Your estate will exceed inheritance tax thresholds If your assets (including property, pensions, investments) exceed £325,000 (or £500,000 with the residence nil-rate band), inheritance tax planning can save your family tens of thousands.

You're self-employed or own a business Business structure, tax efficiency, directors' pensions, shareholders - this gets complex. An accountant and/or financial advisor pays for themselves.

You have a defined benefit pension Transferring out of a final salary pension requires mandatory financial advice for transfers over £30,000. This is one area where free guidance isn't enough.

You're going through divorce Splitting pensions, assets, and future finances is legally complex. Get a solicitor and, if assets are significant, a financial advisor.

You have complex family arrangements Stepchildren, previous marriages, dependents with special needs, family trusts - these need professional structuring.

You have significant investments to manage Once you're dealing with portfolios over £250,000+, professional management or advice may be worth the fee.

How to Find Affordable Professional Help

Restricted advisors: Some advisors only recommend products from certain providers but charge less than whole-of-market IFAs.

Fixed-fee advisors: Pay £500 for a one-off plan rather than ongoing percentage fees.

Unbiased.co.uk: Find regulated advisors in your area, filter by specialism.

VouchedFor: Reviews and ratings for financial advisors.

Frequently Asked Questions {#frequently-asked-questions}

Key Takeaways

Most families don't need a paid advisor. The expensive stuff is usually common sense wrapped in jargon
Free resources are excellent. MoneyHelper, Citizens Advice, Pension Wise - use them
The DIY financial plan is simple: Emergency fund, protection check, pension optimisation, debt strategy, then investing
Know when to pay for help. Complex tax, big pensions, business finances, divorce - these justify professional fees
Action beats perfection. An imperfect plan you implement beats a perfect plan you never make

Next Steps {#next-steps}

Today (10 minutes):

Calculate your monthly net position (income minus expenses)
Check if you're getting your full employer pension match

This week (2 hours):

Build a complete picture of your finances (assets, debts, insurance, pensions)
Identify gaps using our protection gap finder
Set up automatic transfer to emergency fund (even £100/month helps)

This month:

Get life insurance quotes if you're underinsured
Make your will if you haven't
Review pension fund choices

Related Articles:

The Complete Family Protection Plan - Everything you need in one guide
How Much Life Insurance Do I Need? - Calculate your actual requirement
LPA Explained: The Document You Need Before You Need It - Protect yourself, not just your family

Last updated: January 2026. This article is for informational purposes only and does not constitute financial advice. Your circumstances are unique - if in doubt, seek professional guidance.