Personal Financial Planning Myths and Facts, Try these solutions
Personal Financial Planning Myths and Facts: Personal financial planning is a long-running process, which is only for those who have a lot of money and who can take professional help to do this work.
New Delhi. Planning has to be done for a good future and when it comes to a better future financially, then financial planning becomes very important. Financial planning is about fulfilling one’s life goals correctly. So that that person does not have to face any trouble. Most of the people get this kind of knowledge from elders, family members or friends gradually in pieces, but at the same time our attention is also lost on many misconceptions (Personal Financial Planning Myths and Facts). Let’s try to remove it.
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Myth: To do is to plan and to plan is to do
Imagine a child making a nice building using building blocks. Little does the child realize that his focus is only on the building and not the foundation. Children are expected to recreate, spoil, recreate with these kinds of toys. Imagine if you are doing this with your hard earned money!
Many investors think that doing it yourself is the best way to proceed but this is wrong. However, the fact is that you can differentiate between seeking guidance and implementing guidance. Meaning you can find the difference between what to do and why to do it and how to do it.
You can take the opinion of people in your personal financial planning, but you will have to do the planning about it. Working without a plan is like building a building without a proper foundation. Doing is not planning. Planning is not doing. Plan first, do next!
Myth: Only saving-investing is financial planning
Mental health, physical health and financial health- if any of the three falls short then there can be a lot of difficulties in life. Risks can come at any time in life, so insurance is our alternative financial backup against such risks at the right time. Living with this line “Savings and Investing as proper insurance will not be able to fix the gap effectively” can make your financial matters untenable.
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Myth: The movement of cash is the accountant’s job, not mine. it’s incomprehensible
How much comes in, how much goes out and when? Why does it come in, why does it go out? Is it necessary, is it necessary? Is it enough for the present, or will it take care of the future as well?
Save a portion of your income before you plan to spend. Make a plan to pay yourself with your pay check before investing. This dispels people’s thinking that you should have enough money before you start investing.
Myth: I only want good returns and tax savings
Ever wondered what is the point of giving good returns and saving tax if you have not planned how this money will be used if something happens to you?
Apart from movies and serials, in life, we see people fighting for the property of those who are no more. We always think that this will not happen in our case. What’s put in the way of your child’s future peace! Would you like to leave this as a gift for the kids from your side?
Myth: Asking for help is bad, people are ready to cheat
The best way to understand someone who doesn’t know is to have conversations with people who know the subject or thing better. It helps us understand what we didn’t know! However, given the fact that many stories in the media tell how gullible investors are. “I want to trust someone with this, but I don’t know who to trust”.
Find someone you can trust- the best thing is- a recommendation from your most trusted friend. If they can’t find one, look for one from their most trusted friend. We are sure you will find one with a long line of trusted friends!
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