Goal Setting Challenges
It is best to be aware of any financial challenges ahead so that you can take control of the situation in advance. Generally, a person avoids structured planning due to a tendency to procrastinate. Some of the most common excuses include: "I don't have time", "It's very difficult", "I'll take care of that later" and "I have other things to do". Another challenge is avoiding the tendency to live above one's means.It is difficult to sacrifice immediate needs for future needs when done without guidance. But the most important of all challenges is the lack of financial literacy. Most people don't know how to write financial goals and evaluate available strategies. They make mistakes like delaying the accumulation period, setting unrealistic goals, and looking for quick financial fixes instead of long-term strategies.Often, most of us start expecting unrealistic returns on our investments while ignoring the fundamentals. A large number of people do not give enough importance to insurance, which helps to solve unforeseen events that affect finances. Other challenges might include confusing investing with financial planning, investing only to save on taxes, and not doing regular reviews of your financial situation. If you can overcome them, you can do your own financial planning. The above concerns are notFreedom.
Basic Knowledge
Financial planning can be defined as the process of achieving life goals through proper financial management. Identifying and setting goals is at the beginning of any financial plan. Financial planning helps to see the future clearly.The financial planning process can help you determine where you are right now, what you may need in the future, and what you need to do to achieve your goals.
The three biggest setbacks in this process: Procrastination and not doing structured planning; The tendency to live beyond one's means; and lack of financial literacy, setting unrealistic goals, etc.
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