“What is this planning … slanning???? Weddings use to take place when there were no Wedding Planners. Today also we marry our daughters without these so called money grabbers!!!”
We as Financial Planners also hear similar tunes when we speak about Financial Planning concept. And my inference is that people do not appreciate any kind of PLANNING as a matter of fact. Doing a thing in the most scattered way has its own pleasure. People know that we are talking in their favor but they avoid seeing a Financial Planner. They avoid financial discussions and even shun learning for which they have to pay nothing. Why do people avoid Financial Planning? Based on my interaction I am summarizing why people say no to Financial Planning.
10 reasons (excuses) why people avoid Financial Planning
See if you are still in trap of these excuses or have gone over them:
1. You do not understand Financial Planning:
You still are not aware of the Financial Planning. Although media is over it and web pages are full of it but still, since you had your mind diverted, you are not familiar with it. No issues here as you are “never late” if you have “not arrived”. Spare some quality time and get to know the concept of Financial Planning. Speak to a professional who can clarify your doubts. Try to seek examples where a Financial Planner has changed some one’s life.
2. You do not endorse the concept:
You are well aware about the concept but still think this is not enough. The conviction has not reached the desired levels. Try to address your distrust over the concept. I also advocate that conviction in the concept is the first most requirements. A Financial Planner can convince you but you need to be in sync with him as he will put you on the driving seat as you are the driver and he is simply the maker of that custom-made vehicle, which is called a Financial Plan.
3. You think Financial Planning is for Rich people:
Once I was talking someone who make Rs 8 Lakh annually working for a telecom company and he said “Hemant, after all the budgeting, expenses & tax planning I save Rs 2500/- a month and this makes Rs 30000 a year. And, if I take your services half of this amount will be your fees, so why will I pay Rs 15000/- to manage Rs 15000/-? What a check mate explanation!! I simply answered that it is your misconception that you can save only Rs 2500/- a month. A Financial Planner is not a guardian of your already earned wealth. He is basically the “Creator” and “Augmenter” of wealth. Your present economic condition has nothing to do in engaging financial planning. Some people say they don’t have money for grocery, utility & school fees, yet they throw away and step over money like they don’t need it.
4. You feel you have already done it:
You have already taken a life insurance cover and have a sip. You have bought a bit of Gold every Diwali and have taken a home loan to avoid tax and invest in reality. And you think this is what a financial planning means. No friend, this is not financial planning. You are moving here with no goals. You have no end here and you do not know what you are doing is enough or not. If someone is claiming that this is financial planning, he is misleading you. The Financial Planning is s comprehensive field covering lot of aspects.
5. You believe only making investments is Financial Planning:
You invest a lot. Whatever comes any insurance policy that is launched or any IPO that comes, you eagerly put some money into everything. Financial Planning is not only about investment planning. It deals with other disciplines like risk management, insurance, estate, tax planning etc which are equally important. You need to take a correct guidance and then place the foot.When someone asks you what you really want out of life, you’re probably not going to say you want an investment that delivers best returns. Think..
6. You think you are blessed hence you will not require Financial Planning:
Some of you also think that luck is on your way and you do not require planning. May be you are counting the inheritance money that you might be getting or your parental business or you are just a happy go-lucky character who lives in each moment of life. For you I would just say that you are just enjoying the cherry which is over the cake and forgetting the cake which might turn out to be sour. Hope you do realise this before the cake gets stale to eat while you were too busy with the toppings.
7. You think you can handle it on your own:
You have made your own calculations about your future expenses and have started planning on your own. Your planning can never be comprehensive which will cover all mandatory aspects. What is the use of fighting a war where you have not planned your ammunition? You are not aware of your enemies strengths and even do not know how long this war will continue? Please come into light and face the reality. You are expert in your field but not in financial planning or investments.
8. You are a compulsory procrastinator:
You have a habit of being a non- starter. You do not initiate at once. You wait for other to start then you keep on postponing it till the last minute. You also fear of losing so you do not initiate at all, or start when it is an emergency. Lot of people has this strange thing that despite being convinced they make delays. In investment planning we deal with a genie called “Power of Compounding” and this genie can do wonders if you give proper time to him. Time has a value and delays can be very painful. Delay can have significant impact on your financial life pyramid.
9. You enjoy free lunches only:
You feel that you are made to enjoy the freebies. Nerds make payments and smart ones enjoy the nature. You are wrong my friend. May be in other field of life this might be true but in this field you need to invest. Here you will find lot of sharks with honey draped faces to make a prey out of you. Even a single wrong meeting, advice or transaction may ruin you and future of your loved ones. It is best to engage a professional who can advise over the vested interest of product sellers and can synchronize your financial life. For this you need to pay and over a period you will realise it was worth paying.
10. Don’t read this as a TENTH excuse as it is ’n’ – n number of other reason that people keep giving.
These are the top reasons that came to my mind. And I am sure I have missed many – please share with me in comments.
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