Did you know only 74% of Americans partake in financial planning and 90% of people say financial planning helped them achieve their savings goals? Financial planning is for everyone, regardless of income level, as it plays a major role in achieving financial security in the long run. These common financial planning myths often prevent people from engaging in financial planning, and we’re here to debunk them.
Myth: It’s Too Late to Start Financial Planning
Don’t be fooled by this common financial planning myth – it’s never too late to begin financial planning! It is essential to recognize the power of starting now to ensure your financial security and well-being in the years to come. Even small steps can make a significant difference in achieving your financial goals, whether they are big or small. Talk to your financial advisor to begin your financial planning journey and see what steps you can take towards a secure future.
Myth: Financial Planning is All About Investments
While having a diverse investment portfolio is a critical aspect of your financial plan, the financial planning process does not solely involve investments. In reality, it encompasses many elements including the following (and more):
Work with your financial advisor to create a comprehensive plan based on your unique financial situation and goals. Utilize every tool in your financial toolbox to maximize your financial benefits long-term!
Myth: Financial Planning is Too Complicated
Financial planning can seem daunting, but your plan can be as simple or as complicated as you need it to be. You don’t need to be a financial expert with complex financial knowledge to create a basic financial plan! Simplify the process by breaking it down into more manageable steps. There are many resources and tools available for you to begin your plan, and financial advisors are here to assist you every step of the way.
Myth: Financial Planning is Only for Retirement
Financial planning encompasses life as a whole, not just retirement. The process can yield results important to various life stages and goals such as paying for education, buying a home, family vacations, or even simply financial security. Set short-term, mid-term, and long-term goals, and use your comprehensive financial plan to meet these objectives.
Myth: Financial Planning Guarantees Wealth
During the financial planning process, it is important to have realistic expectations for yourself and your finances. A financial plan can significantly improve financial well-being, but it does not guarantee instant wealth. By setting realistic and achievable financial goals, you have the opportunity to build your wealth over time.
A financial advisor can significantly improve your financial planning process and help you lay your path to achieving your financial goals and securing your financial future. Contact Blakely Financial today to get started.