Without a financial plan, there is no way to gauge your financial status. You would not know how far from financial freedom, also when to retire and again when and what next.
In life, it is just too easy to make mistakes and waste your opportunity to create wealth. Some common mistakes that people make as below:
a) Buy to too big house
Majority of house buyer would consider the affordability, such as down payment, monthly expense and installment. All these consideration are ‘current’ decision, have you think how the purchase affect your future ability to achieve your goal?
Without the financial planning, you would not able to identify the real cost. Example, you may need to adjust your children Collegefees to continue serving the mortgage installments
b) Planning and response too late
Without starting your financial planning early, you would not able to determine or make decision on your expenses versus investment. Normally, we take it easy and until too late to response or do corrective measures.
c) Undersave
Without a financial planning, you would not able to estimate how much to ‘save’. Likely, the actual saving may be lesser than actual. Trouble is just around the corner!!
d) Retirement timing
One of the importance factors to consider during the financial planning is to have good retirement timing. Without a proper assessment on your financial status, you may end up retire to early and finished all savings. Worst case, back to job market at the older age!!
e) Invest in unsuitable products
Without carefully assess your financial goals, you won’t be able to identify ‘what the best’ out of the many investment products. Example, what the ROI and risk?
Finally, the lesson here is that to list down your financial need with a proper assessment without delay. Financial freedom is on the way!! what your thought ?