Financial is defined as the management of money and planning is the process of managing money. If you are good at both things you will easily achieve financial freedom in your early 40’s. But, planning personal finance is not an easy task. There are so many misconceptions about financial planning. It’s beyond the proper budgeting plan, a stable income, less debt, and strong control on unnecessary expenses.
Let’s understand the top 3 common facts about financial planning.
A finance plan is not just about your future but also about your present as well:
We cannot see our future; it’s completely an illusion. We save money for the future to navigate from the uncertainties. As a savvy investor, along with the future finance plan, you have to design a financial plan for your present, as well.
When it comes to financial planning, most investors think it’s all about the future. But the matter of the fact is that rather than always worrying about the future securities, it is advisable to look at the present financial needs as well. Investors who have read “The Power of Now book”, they might have understood that the future cannot be predictable; it’s an imaginary. Everything happens in the present and for the present.
Hence, it is advisable to secure your present first than the future. It is best to prepare needs for a day than tomorrow.
Long and lengthy financial documents are just a myth:
What is the financial plan meant for? To enable us to learn about how to save money and control unnecessary expenses. Let’s face it; a lengthy financial plan is a confusing plan for you. It is stuffed with confusing calculations, imaginary debts, heavy graphs and pie charts. These will do nothing only increase your frustration level.
Instead, why not considering the financial plan that you, as an investor, can efficiently execute? This may be a monthly financial plan or half-yearly financial plan, which can be like a one-page document. We assure you that if you go for the short financial plan, you can understand and implement it effortlessly.
The success of the plan only depends on commitment and commitment:
The success of plan means not having a back-up plan, it’s all about commitment. If you have made a financial plan for a month, to achieve the financial freedom, you have to walk as per the route-map.
If you change your direction or use another plan, your destiny will also change. Setting a goal and getting a direction is very simple, but in that direction, until unless you achieve it is very tough. Commitment will let you focus on what is required to achieve financial freedom. Taking the necessary steps for achieving financial freedom shows your commitment.
Let us now conclude this discussion with a smooth note. If you want to achieve financial freedom, then set a finance plan that you can easily hold and implement without disturbing your personal life. To secure your future, never ignore the present responsibilities.