In this series, I am reveling the most common but dangerous mistakes happening when planning your finance. Remember to go though each of this points carefully to avoid such mistakes if you are planning your finance. These mistakes are not specific to any but regularly happening to the personal financial planning world.
1. Don’t know what is financial planning or starting any planning without any preparation and by following any other personal.
2. Doesn’t have a standard plan to start personal financial plan as early as possible by starting the first job.
3. Starting a personal financial plan very late or starting very late near by the retirement age.
4. Starting a personal financial plan without having well defined goals.
5. Without having proper budgeting in place to control over income and expenses to identify exact savings or possible savings
6. Starting a financial planning before paying of all bad debts like credit card, personal loans etc.
7. Not approaching a well qualified and experienced financial planner to get proper advice and directions
8. Not having enough insurance coverage to self by considering the responsibilities.
9. Not having enough medical coverage to self and family and protecting valuable assets
10. Not having an emergency fund to meet unexpected requirements
11. Improper investment portfolio selection depends on age, risk profile and goals
12. Unnecessary and improper churning of portfolio in wrong times and without advice from an experienced, qualified financial planner
13. Carry forwarding the same portfolio in different ages.
14. Not teaching your kids about money and savings
15. Taking money by stopping the investments or from any savings that is a part of your personal financial plan.
There are various mistakes than the above said but comparatively the above 15 are the most dangerous mistakes that generally happening to personal when dealing with personal financial planning. I hope, you are now well aware about the most avoidable mistakes. If you have any feedback on this, please inform me to have more enhancements to this article by adding any missing points.
