Need for Financial Planning
The concept of financial planning is the development and implementation of comprehensive plans for achieving persons overall financial and personal objectives. MOST PEOPLE ARE IN NEED OF FINANCIAL PLANNING.THEY HAVE VARIOUS FINANCIAL AND PERSONAL GOALS THEY WANT TO ATTAIN FOR THEMSELVES,THEIR FAMILIES , and perhaps for charitable entities and others. financial planning is a life long process which aims to impart techniques and plans that enables an individual or an entity to fulfill all the possible goals in systematic prudent manner.
Common Mistakes in Financial Planning Approach
The following are 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.
- 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.