There are a lot of people out there who know they need financial planning but are still no idea about what financial planning actually is. So to help
you need to understand the importance of financial planning, We’ve narrated four major myths about it.
- Financial planning is not a product.
A lot of people presume that a financial plan is a product they can buy it, and can utilize rest of their life. Truly Financial planning is not a product—rather, it’s an investment in budgeting, forecasting and managing your finances to help you achieve your financial freedom. Financial planning gives you a better picture of where is your position today, and then provides direction to get you to where you want to be tomorrow. Think of it as a road map bringing you from point A to point B in the most efficient and effective way.
A (You stand today) …………………………………………(B)Where you want to be tomorrow
- Financial planning is not for rich people.
In fact, financial planning is a necessity—not for rich people only like most people think—and everyone needs it. Whether you’re making Rs.1,20,000 per year or Rs.80,00,000 per year, financial planning is a way to help you manage your finances and learn what you need to achieve financial freedom.
- Financial planning is not science.
Financial planning is the art of navigating the different challenges and concerns and ultimately gain the goals determined. Yes, of course, you can develop a financial plan that confirm the gap between where you are today and where you want to be later in life, but the art is in finding the most effective way to achieve your financial goals. For example, maybe your financial plan confirms that you will need to save Rs.1500 per month toward your retirement goal. That would be the science to management of money. The art is deciding which retirement account is the best to achieve your retirement goal with your income level, tax bracket, etc., and also identifying the right investments .
- Financial planning is not boring subject.
It can be exciting and fun – but you need to bring passion towards your personal finance. If you’re always overwhelmed and anxious when you think about your money, You are bringing negative energy to deal your finance and ultimately your decision will end in failure. You get out of it and embrace positive energy in it and learn how to handle money and control of your money.
In summary, financial planning isn’t about just about “becoming getting rich”, it’s about helping you reach your financial freedom. It’s a long term process and you start learning as soon as possible.No one is born as financial genius , we are taught through learning.