Wherever you go, you will find misinformed people. They misunderstand something or the other. This could be due to ignorance of facts or laziness to find the facts and understand them.
When it comes to finance, it’s no surprise that many people are misinformed and believe myths. Whether it comes to insurance, investments, maintaining a budget or anything, this set of people unfortunately has wrong ideas and preconceived notions. They often take incorrect decisions and lose money. Not only do they do that, but they also propel other people to believe the same falsehood and lose money! This results in another misunderstanding on the lines of “Financial Planning is only for the rich!” as they are sacred of losing money. That’s why in this article, we decided to bust a few such myths.
Here are a few such popular myths
1. Financial Planning is only for affluent people
This is a misunderstanding at the fundamental level. Just as a child which is learning alphabets may say “B” before saying “A”, people without financial awareness think financial planning is for folks rolling in money. This is wrong as financial planning is something fundamental and is meant for all kinds of people. Financial planning has to be done by everyone as it is imperative and it has nothing to do with how much money you already have. Financial Planning involves achieving your financial life goals by aligning your finances with them. [Get Personalised Advice For Finance – Visit]
2. You can DIY (Do It Yourself)
DIY is great for students who are practicing their lessons after they have been taught the particular lesson. In fact DIY is essential here. However, when it comes to Financial Planning, DIY could turn into a disaster! You might be able to repair your car and fix the roof but you can’t and should not do finances alone as you’re putting your money and future at stake. Owning a DSLR won’t make you a professional photographer, similarly you wont become a professional just because you made something as basic as making a budget or taking care of your day to day expenses. Consulting a professional is better and safer.
3. Financial Planners are looking for money and charge heavily
Now, this isn’t your fault. There are crooks out there robbing people off their money. What you should do here is to find out if the financial planner you consulted is genuine or a crook. For that, you have to ask your financial planner certain questions (we’ve already written an article on questions you must ask your agent/financial planner). [Get Personalised Advice For Insurance – Visit]
4. I inherited from my parents/other relatives so I don’t need Financial Planning
First things first, you neither know when you’ll be getting your inheritance nor how much you’ll be receiving. Secondly, expectations need not be reality. Thirdly, you do not want to be a parasite who depends on inherited wealth (if you’re sane). Out of the odds that you inherit, there are also odds that you won’t inherit money and odds that you will inherit money only to lose it a while later. Also financial planning is for everyone regardless of whether they are rich, middle class or poor.
5. Forever Young and Healthy
There is a breed of people who call themselves forever young and forever healthy. What they fail to realize is that nature will take its course! They will grow old one day! They will get sick one day! They aren’t eternally healthy and youthful. Man is mortal! Get out of the bubble; consult an expert financial adviser and get your finances work for you.
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