3 Financial Planning Myths - BUSTED: Here's what you got wrong about financial planning
There is a myriad of myths floating around on financial planning.
To set the record straight and debunk major personal finance myths, we have packed this article with some eye-opening insights and information.
Financial Planning has been confused and mistaken for almost everything except what it truly stands for.
What exactly is financial planning, anyway?
Read till the end to find out. Let's begin by busting some major financial planning myths.
Myth #1: Financial Planning is for the rich
Many people don't feel the need for financial planning because they are not "rich".
However, this is far from reality. Be it a small goal of a short vacation or a long-term goal of buying a house, Financial planning is for everyone, no matter their income range.
Financial Planning can dramatically improve your success rate no matter the size of the goal.
You can reap tremendous returns just by the effective use of debt management and cash flow management.
Financial planning is one of the best investments you can make in your life. It is about understanding and estimating how you can reach your life goals.
Apart from the purely monetary returns, you get amazing qualitative benefits like the reduction of financial stress, a big boost of confidence, and most importantly peace of mind.
Myth #2: Our relatives are the best financial planners
Financial Planning requires a comprehensive and effective methodology. There are numerous aspects that you don't take into consideration while doing it on your own or seek advice from someone who doesn't understand your finances.
Market volatility, inflation, cash flow modelling, debt management, your risk appetite, your current financial status, your desired financial situation - a lot goes into creating the best financial plan that's right for YOU.
You can manage your finances on your own but you are bound to hit a glass ceiling. Hence, it can never be as comprehensive or effective as it would have been if done using the right method tailored to suit your goals.
But what's wrong with following your own methods or those suggested by your uncle?
The problem is that you will continue to make the same mistakes.
Chances are you will never be aware of your mistakes and limitations until you get a fresh and accurate perspective on your plans.
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Using a financial planning platform or service pays off for sure. In most cases, you might see the ROI right away but it is totally worth it.
Myth #3: Financial Planning can be done later
It may just be habitual procrastination.
Whatever the reason, we tend to postpone planning our finances.
But, why?
Because it requires you to take action. It requires you to start thinking about your goals in life. Financial planning is actually a lot like a fitness workout. The best time to get started is right NOW.
If you keep delaying, you will lose out on the power of compounding.
Especially in the long-term goals like buying a home, investing for a child's education, or retirement.
Conclusion
Most myths around financial planning are due to lack of awareness. Financial Planning is for everyone but it isn't something one can do on their own without any aide.
In the space of financial planning that is clogged by archaic user experiences, lengthy 20-page reports, and expensive (at times, ineffective) advisors, MoneyPlanned is creating something new, unique and unprecedented.
Through deep reinvention of the process, we believe in delivering delightful experiences to our customers by making financial goals easy and fun.
We at?MoneyPlanned?are here to simplify the entire process of your financial planning!
For more exciting and fun bits of financial wisdom, do follow?MoneyPlanned and check out our blogs on Quora and Medium!
This post first appeared on the MoneyPlanned blog at?https://www.moneyplanned.com/post/