4 Myths About Financial Planning

By on July 28, 2015
4 Myths About Financial Planning

4 Myths About Financial Planning

We live in a world where the talk is about financial collapse and breaking the financial bubble, but do we really understand these phrases? For many of us, comprehending the financial world, even with the help of a financial advisor, is like learning Greek. We may have the intention and understand a few key phrases, but we will never be fluent in it like a native.

Along the way several myths about financial planning or direction come to our attention. They are almost always financial stories that give us bad ideas or the wrong advice. To winnow out the truth about finances and help us find our own way in the jungle, it is always helpful to first know the difference between myths about financial choices and true advice.

It Will Be Different in the Future

While it may be true to some extent, the reality is that most trends are foreseeable in the long term. As human beings we try to prepare for the worst, while banking on the best. In all likelihood neither scenario is going to happen. While financial crashes do happen, and will continue to happen, they are still the exception not the norm.

Finding Your Financial Guru

It is natural to think that someone has all the answers. Financial planning, especially for personal finances, has become very complex. While it is wise to hire a financial planner or talk to your HR person at work, the final decision always needs to rest with you. Nobody will care as much about these decisions as you, so you need to listen to all the advice and in the end make your own decisions.

Let Me Show You Some Quick Fixes

You will always be able to find someone willing to sell you an idea on how to get rich quickly. It may be borrowing to become a landlord or moving to Thailand. These days it often involves the Internet. Whatever the solution, you can be sure that if it was that simple everyone would be doing it. The bottom line is that if your current guru gives you bad advice it is you that pays the piper, not him. Look at all these get rich quick schemes with a grain of salt.

Tomorrow is Soon Enough

While this may be true for some things in life, when it comes to financial planning this kind of attitude might cost you plenty. Putting off filing for a tax break can cost you money. Delaying that investment may result in less of an earning on it. If a financial task is overwhelming, break it down into manageable pieces and then tackle each one. The myths about financial decisions can come back to bite you later, so paying attention now is worth the time and effort. The bottom line: if it sounds too good to be true it probably isn’t. That hold true for financial planning as it does with just about everything else in life.