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/.

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