11 Common Mistakes in Financial Planning Approach
Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child's higher education or planning for retirement.
Let us now look at the some of the common mistakes made by consumers in their approach towards Financial Planning
- Don't set measurable goals.
- Make a financial decision without understanding its affect on other financial issues.
- Don't confuse Financial Planning with investing
- Neglect to re-evaluate their Financial Plan periodically
- Think that Financial Planning is only for the wealthy
- Think that Financial Planning is for when they get older
- Think that Financial Planning is the same as retirement planning
- Wait until a money crisis to begin Financial Planning
- Expect unrealistic returns on investments
- Think that using a Financial Planner means losing control
- Believe that Financial Planning is primarily tax planning