Thursday, August 16, 2007

Common Mistakes in Personal Financial Planning

Learn from the common personal financial mistakes, avoid them and be successful in life.

1. Not setting measurable financial goals

Remember, we need a clear financial goal. No goals --> we're lost.

2. Not re-evaluating the financial plan periodically.

Another common mistake by a lot of people that they do not aware "plan" is not a fix thing. "Plan" is not dead it is alive! Just like your financial goals, you need to evaluate them often to make sure the plan is realistic but aggressive enough.

3. Waiting for financial crisis to hit before starting a personal financial planning

Sadly, this is how human behaves. When the financial crisis come, we only realize the importance of financial planning. By the time, it is already too late.

4. Expecting unrealistic returns on investments

Quick rich scheme? High Yield Investment Program (HYIP)? Is there a fastest way to get rich? Greedy is one of greatest human weakeness. Who is not greedy in this world?

If we can avoid all these common mistakes, we're one step ahead towards financial freedom. To become a completely freedom and financially independent!


Anonymous said...

I agree all the points. As for 3, I think number it is the most serious mistake that many people made.

nat said...

i hope i can do it! :)

ChampDog said...

I hope I can do it too. :) Steve is right, financial crisis such as our parents medical fees is very scary. When ppl get old, ppl sick before they leave this world. When they sick, it requires huge amount of money which can easily drain out all our savings that we keep for years. The question is how many of us are really prepared for this?

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