Why we keep misunderstanding financial planning

Why we keep misunderstanding financial planning

●What is financial planning?

Most people have common troubles financially:

1. How much money do I need to earn?

2. Why can't I save money?

3. Is the insurance I bought suitable for me?

4. Can my investment really help me make money?

5. Financial management, financial management, what should I do?

6. How to solve the above problems?

And "financial planning" is to draw a line that suits you according to the life style you want to live, and this line is called "how much is enough" . Make your own decisions and have lines to follow. You don't want everything, but you can't do it; you don't dare to think about anything, but you give up what you could have achieved.

But in your life, what impact will your retirement, buying a house, and having a baby have on your current salary, firewood, rice, oil, salt, sauce, vinegar, and tea? Different time points, differences in owned assets, what different decisions can be made? This is the reason why everyone can’t deal with financial problems properly. In the end, it often becomes, I want to achieve A, but I don’t know that what I am doing now leads me to B, which I don’t want to go.

●What is the problem that financial planning can solve?

1. Establish your desired present and future lifestyle, what is your desired retirement life? In the end what kind of living style is the most suitable for your needs? How many children can you afford to raise?

2. Use strategies and data analysis to measure the gap between these goals and make a concrete presentation of the goals you want to achieve. Instead of doing something that cannot be achieved, it will not meet expectations until it is done.

3. Under the consideration of the previous 2 points, what execution strategies can you have, and specific plans based on different considerations and bases? Under this premise, when we are ready and executing, we allow ourselves to have the freedom to choose, to determine what we can do and what we can do.

●What exactly are we misunderstanding about financial planning?

Because most people don't understand financial planning correctly, there are usually two myths:

1. Thinking that you can do it, but because you cannot correctly evaluate, analyze, and the impact of decisions on yourself, you must wait until the unwanted results occur before you may want to avoid them, but the lost opportunity cost and time cost may pass. , or cannot be correctly recognized.

2. There is no understanding of what financial advisors can do. Under the existing financial system, even under the influence of fraud and counterfeiting, the understanding of financial planning remains in buying and selling financial products or stock trading. It is also easy to be affected by the words of capital preservation and regular interest distribution.

● How do we really recognize the financial impact on ourselves?

1. Changes in the financial environment:

The current financial situation requires a financial planner or financial advisor to tie the client's interests together. Only when the position is the same, can we start from the position of professionally solving customer problems, and will not end up selling products.

2. Promotion of financial and business education:

After the 108 syllabus, the country began to attach importance to financial and business education from an early age, but the number of lecturers who really conveyed financial concepts is limited, and most of them are at the level of tools. In the past, our financial concepts came from our surrounding relatives, friends and peers, but we never learned a systematic concept, which made it easier for us to encounter financial problems.

3. Establishment of laws and regulations:

We hope to promote the establishment of legal systems, as lawyers and accountants are recognized, and let financial planning have a set of standards as a legal system to follow. On the one hand, it also makes people build their understanding of finance first in terms of legitimacy and universality, and there is no longer the phenomenon of selling dog meat.

Financial problems are definitely not something that can be solved by buying a product. If you can get sick by buying medicines yourself, do we really need a doctor?

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