Financial planning is for the rich? 3 Myths and 5 Important Ideas about Financial Planning
★Most people think that we need money to do financial planning. After all, there is no money, so what else can we plan? The Hokkien proverb: "Eating raw is not enough, leaving it to dryness" expresses this sentiment. It's as if someone said, "I don't dare to think about buying a house anymore, I only dare to think about what to eat next." But if we don't even dare to think about it, how do we devise a way to achieve our goals? If all I have been thinking about is what to eat now, will the problems of marriage, childbirth, parenting, buying a house, buying a car, and retirement disappear before my eyes?
★In fact, the important thing is that planning is more necessary when there is no money . Financial planning is about finding out why you're not getting where you want to be in life, and redesigning the path to get there. It also makes us more aware of what life we want, and because we know the life style we want, we also know how to adjust when encountering situations or accidents.
●3 big myths about financial planning
1. What most people think of financial planning?
Buying financial products is our big myth, but the purpose of buying things is actually to solve problems or meet expectations. The biggest problem with buying financial products is that we don't really understand why we buy this? What can be solved? In what way is it solved? This is not as obvious as buying daily necessities, but an environment full of professionalism and asymmetric information. It's easy to buy things we don't need and don't really want, and end up with a bad experience.
2. Most people think that rich people do financial planning?
Do rich people get richer by planning and avoiding taxes? But is it really so? We often only see that we already have money, and make decisions for certain purposes, such as inheritance and transfer, and mistakenly think that it is the whole picture of financial planning. But what we can do is how to analyze the ways to become rich, to satisfy life, and to replicate the patterns. "Financial planning" is not about planning for wealthy people. "Financial planning" is about planning to make yourself rich.
3. Most people think they know how to do financial planning?
Many people say that they are planning, but in fact they are mostly discussing tool-related issues. It is not easy to make correct assessments, analyses, and judge the impact of decisions on them. Therefore, they must wait until the unwanted results occur before they can think about it. To be avoided, but the lost opportunity cost and time cost may pass. After all, financial products and other tools are actually like the medicine we take when we see a doctor. Maybe someone tells you that his medicine is good, will you pay for it? The premise is that we need to know why we take this medicine? how to eat? Can my disease be treated?
●5 important concepts of financial planning
1. If you don't have money, you need more planning, because financial planning needs to solve the problem of why money can't satisfy your life.
2. Not having money is not just a matter of money, but the impact of our values , such as liking shopping, watching TV shows, what car or house to buy.
3. Money is a medium in exchange for the life we want. We don't like money, but money can bring what we want. Therefore, you need to plan to understand your goals and current situation, establish the desired lifestyle, and adjust your financial situation accordingly. Financial planning is about making a map of where we are, so we can design our lives around where we want to be.
4. When we are getting lost, the map is important. It's not that we don't have money, but because of the uncertainty about life, without a map, we're all lost and don't know where to go.
5. Financial planning is to make the goal we want to achieve, outline the specific appearance , and prevent us from blindly working hard until we finally find that the result is not what we want.
★ "Financial planning is not the patent of the rich, but the right of everyone. Everyone has the opportunity to achieve the goals they want and achieve their dreams."
Podcast Show: Money Meal Tavern
"Can the rich do financial planning? What is the myth of financial planning"
Further reading:
"How to do financial planning? How a Financial Advisor Can Help You Reach Your Financial Goals in Life
"Why We Always Misunderstand Financial Planning"
The Five-Step Process of Financial Planning
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