Never Taught In School
Understand some simple principles and practicing them will help us take charge of our financial fitness. It is helpful to spend an hour or two with a financial planner to understand these.
However, most people are hesitant to do this, and there are typically three excuses:
The 3 Excuses
1. My parents did fine without planning
“ All this idea of financial planning is okay. But, my parents did so well financially. They never needed any plan like this! ”
Things have changed. Life different for the earlier generations. The conveniences and luxuries did not exist – which today make demands on our money. We have shifted from joint family to nuclear family. While we will do everything to give the best future to our children, do we wish to depend on them for looking after us in our old age?
We want to become financially independent to live with a sense of self worth and self respect. That’s why, we need planning!
2. Where is the money to save and invest?
“I earn well, and so does my spouse. But we need to keep up our lifestyle. Everything’s getting so expensive”
It is not easy to save money. Just consider – We must give something to ourselves first! We are the two most important people in my life! Look at the equation below.
Income – Expenses = Savings
For financial success, change it to:
Income – Savings = Expenses
3. I am comfortable now, and this is how it is going to remain
“ But I am leading a comfortable life now. Retirement is far away. I will certainly save for retirement, not now, but later – when my income is higher ”
Sounds logical, right? But have we taken inflation into account? Do we want to go through life’s journey without a map? Can I have the freedom to retire early?
To take of these, meet a financial planner. Create your roadmap and,
- Start Early
- Save consistently
- Invest wisely