Common Mistakes in Financial Planning Approach

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

  1. Don't set measurable goals.
  2. Make a financial decision without understanding its affect on other financial issues.
  3. Don't confuse Financial Planning with investing
  4. Neglect to re-evaluate their Financial Plan periodically
  5. Think that Financial Planning is only for the wealthy
  6. Think that Financial Planning is for when they get older
  7. Think that Financial Planning is the same as retirement planning
  8. Wait until a money crisis to begin Financial Planning
  9. Expect unrealistic returns on investments
  10. Think that using a Financial Planner means losing control
  11. Believe that Financial Planning is primarily tax planning

 

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