Free flow of thoughts 💰: Who does not want to become Financially Independent?

Shashi Singh, Seawood#


 
You will not be able to find a person who would not like to become financially independent and yet there are only a few who follow a methodical approach to financial independence.
Sharing some of the common reasons:

Poor understanding of Financial Planning

People do not clearly understand what Financial Planning is and how it would help them with Financial Independence. For the majority of them, Financial Planning is only about investing, while Insurance Planning, Estate Planning and Goal Based Planning (Risk Profiling, Asset Allocation, Goal Identification and Goal-based investment) are less understood. It is difficult for them to comprehend the benefit of having Term Life Insurance, Health Insurance, Joint Account, Nominee, Will and Trust until an unfortunate event (such as untimely death or major disease) occurs in the family and when it happens, it is too late. COVID taught us this the hard way.

Procrastination

 For many of those who understand Financial Planning, this activity does not show up in their list of high priorities and hence any action on this gets delayed. I have had people who have been talking to me for years before starting their Financial Planning. In the process, they lost crucial time. Any delay in the implementation of this activity deprives people of leveraging their potential to generate higher returns early on when they can afford to take more risk. If not done early, it also reduces theirs ability to make amend for any shortfalls with fewer remaining working years of life.

Taking shortcuts

There is no shortcut to Financial Planning. If you have good knowledge, start on your own but understand that you may miss consideration of some of the industry best practices. For people who are cost sensitive, I would recommend them to take the help of a SEBI Registered Adviser for at least a year, learn the nuances and then drive the on their own.



“The Best Time for Financial Planning Was Yesterday; The Next Best Time Is Today”
I am a SEBI Registered Adviser and Founder of FinMyn

https://finmyn.com

I provide Fee-Only Financial Planning and Investment Advisory. 

To know more about me, click on https://finmyn.com/about/.

Comments

Post a Comment

Popular posts from this blog

Banking to Brushstrokes

Image
  by Rama Sriram, Amalfi It’s not easy to leave behind a stable career, especially one that you have invested in for years and your family has proudly proclaimed as a great feat. Although growing up, I lived in the most humble of homes and studied in the simplest of schools, my aspirations were a cut-above. I wanted to make it big in banking, and tirelessly studied atop hot balconies and shadowy corners of my home to eventually make it a reality. I soon got married to someone who shared my passion for success (Hi Sriram, hope you’re reading this :)) and we found ourselves frequently relocating to different cities. Apart from the plethora of cultural experiences I was fortunate enough to taste, I could no longer ignore the mounting familial responsibilities, especially with two kids at home. Shortly after, I decided to leave the very job I worked all my life for - it was tough to part with something that afforded me the financial security and independence that I craved, but I battle...
Read more

Free flow of thoughts ✨ : The Legacy we leave behind

Image
Sabita Menon, Pinewood Do we want to leave a legacy? This thought-provoking question could spark new insights into our own lives and experiences. Do I wish to leave a legacy behind? YES, I DO! It’s not what I leave for my family, friends, and others. It is what I leave IN them while I’m still here to participate and live through the experience. I sense time fleeting and seem more focused on the present by paying attention to the impact of my words, actions, emotions, and outlook on life. It's become more meaningful to connect with something bigger than myself. My family, friends, and society have long influenced my beliefs, values, and behaviour, laying the groundwork for my legacy. However, as my emotional maturity grows with age, I can see the consequences of a decision far into the future. I remind myself of the possibilities that exist both within and beyond what has been given to me, and what I can create and pass on. A life of fame, accomplishments, and failures d...
Read more

Free flow of thoughts ✨: The Beauty of Co-Existence 🌼

Image
Madumitha Selvaraj, Bridgewood# Human beings have been sharing space since time immemorial. The concept of co-existence is a part of our lives and has multiple aspects and challenges to it. In a gated community like ours, I often wonder how we practice co-existence in a way that does not lead to friction or misunderstandings with others around us. There is an interesting idea in psychology called “Both/and Thinking”. It talks about how two seemingly contradictory thoughts can co-exist. Many times, we follow a rigid way of thinking when it comes to expressing our ideas or emotions. We go by the “either-or”, ”Black or white” or “all or nothing” formula. This means that between two ideas or points of view, one cannot exist while the other does. It’s a surprise that our minds sometimes look at every scenario dichotomously. We forget or realise too late, that, seemingly opposing ideas can and do co-exist.  For example, we feel conflicted about taking up a challenging project...
Read more