Demystifying the Financial Planning Myths that may Aggravate your Debt Problems

Today’s article was shared by Stevan Robart who sent us an email on contributing to AAFP Phils. Stevan talks about Financial Planning Myths that may aggravate your debt problems.

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It is certainly tough to plan your finances alone. While some people have enough time and ability to manage all their finances alone, others don’t. The professional advisors usually offer great insight and judgment during countless tough instances but they usually charge exorbitant costs for it. Financial planning may mean different things to different people but taking the wrong steps during planning your finances may not help you lower your debt problems; rather you may aggravate your credit card debt worries. Running to a bill consolidation company or a debt settlement company is not all that you can do to curb your debt worries. You also need to manage your personal finances after dispelling the myths that are associated with them. Have a look at the various personal finance myths that can break your attention from getting back a firm grip on your finances.

Personal finance planning is only meant for the wealthy: The most common myth that is believed by the people is that personal finance planning befits only those who are rich. However, the truth is that financial planning is much more important for all those who are not rich and yet have to stay within their means and also make ends meet. If you do not have enough savings and you don’t know where your pennies are going, you can never even dream to become rich. So financial planning is for all and sundry.

[ad#content300] Personal finance planning only includes investment: This particular myth is associated with the above mentioned myth. Investment may be just a component of financial planning but this is not all that it means. Financial planning even includes estate planning, savings, insurance and budgeting.

Financial planners will not take all the decisions: There are some lazy consumers who feel that hiring a professional financial planner will help him stay on top of his finances. But you can’t simply rely on him as you also have to take the responsibility of improving your personal finances. You have to save money and cooperate with the financial advisor so that you can easily get back on track.

Planning finances can be done later: Yes, the most harmful myth that is there among the consumers is that they feel that planning their finances for their retirement can happen later as there is lot of time. But this is a myth as the truth is that you should start planning your retirement finances way before time so that debts don’t mar your financial future.

Shun all the above personal finance myths so that you can easily get out of credit card debt without having to rush to the bill consolidation and the debt settlement companies. Ensure managing your money in the best way possible and stay out of revolving debt that can act as a menace to your credit score.

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Garry Zaldy de Castro is an advocate, Financial Advisor, Certified Investment Solicitor (Mutual Fund Representative), blogger, IT practitioner, husband to Aileen and a dad to Jacob and JohnD. He started Financial Planning Philippines in 2008 just to share his financial learning to friends, relatives and anyone who wishes to be financially independent.

One comment

  1. Stop being a victim with your finances. Most people will not study how the system works because its complicated – now ask yourself why you just pay what your asked for without questioning why. If any company had your best interests at heart they wouldnt make you sign away your rights with a long winded contract would they? You are in a game and just do not know what the rules are. Think Monopoly as a game and your getting close to the answer. Knowledge is power and its being kept from you on every level. Stop being afraid to take charge and play the game with confidence –
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