If you intend to add sugar and mistakenly add salt, you’re left with a sour taste. It’s not the mistake, but the lesson learnt from them that makes experiences valuable. However, mistakes can be costly especially when they involve money, loved ones and opportunities. People price things in life with money, often forgetting value and time are even more important. 

A financial plan account takes all three key factors – time, value and money to balance and keep your finances on track, protect your capital and pave a successful path to financial freedom. If you’re designing a financial plan, or reviewing your drafted plan make sure to avoid these financial planning mistakes.

1.Not Having A Financial Planner On Board 

Consequences of not having an expert devised financial plan are far greater than you can imagine. Would you take medicine for an ailment from unheard or non reliable sources because it was a popular whatsapp broadcast? No – right? If you were cooking, would you prepare a meal without a set menu (plan) and recipe(your execution footprint)? If you do that, chances are your meal can turn out amazing by sheer luck or a disaster. That’s how important a role, financial plan and planner play in money matters. In absence of one or both, you’re likely to take a detour on your monthly spend and money habits. It’s like travelling with no roadmap to your financial destination. Not having a plan is stressful and detrimental to your financial health. Make the shift and get started without a delay and make sure to hire a reliable and trusted planner. 

2.Lack of Communication with Spouse/Family 

People put off money talks with their spouse, grown up children and family to avoid friction, emotional triggers and treat it as a taboo. Without thorough communication of individual wants, needs as a couple and family, how do you ensure accomplishing goals? Make an attempt to bridge the communication gap and open the doors to draw attention to financial need and standing.

3.Putting Off Reserve Fund For Emergencies

An emergency rarely knocks before visiting. If your finances are messy, you’re surely inviting trouble in case of unpleasant situations like death, pandemic or a job loss that is parallel to loss of income. An emergency fund is a relief in times of crisis. Building one is essential to a happy and healthy financial life. 

4.No Insurance Protection

Not being adequately protected is threatening to your income, family survival and money goals. In case you meet with an accident or untimely death, insurance is the way you protect your family and loved ones financially. Make sure you have signed up for term insurance and are well protected. 

5.Higher Spends, Less Savings

A financial planning mistake people make is allocating more towards spends and not saving and investing enough. Time is a key determinant to attaining financial freedom. Don’t live paycheck to paycheck, and not build a retirement corpus or budgeting your expenses to meet your goals. 

6.Not Reviewing Your Plan Regularly

No two days experience the same weather or market conditions. Your financial plan also needs to adapt and keep up with changing times and economic conditions. Make sure to review it regularly. 

7.No Retirement Action Plan

You don’t want to live your golden years worrying about finances. Neither will you be energetic as you were in your younger years to earn a living. Start as early as possible to build your retirement life corpus. And live your golden years doing everything you love. 

8.Stalling Estate Planning

Imagine your sudden death and not leaving your beneficiaries a will. How are they going to figure out everything? How can they stall disputes that could have been easily avoided if you had a legally bound will in first place. Estate plan accounts for the minutest detail you need to fill in to ensure your hard earned money and legacy goes to your legal heir. 

9.Believing you’ve all the time in the world. 

A day is only 24 hours long and you’ve only a few working years , one head and heart to accomplish everything you’ve set your mind on. You cannot possibly be everywhere, know and do everything. 

Time plays an invisible but a key role in building wealth. People often dream and invest toward their goals without considering the time horizon. Don’t make this financial health devastating mistake. If you’re unsure how to time and plan your goals, audit your financial standing or plan your financial journey. It’s best to hire an expert to plan your financial goals aiming towards financial protection and freedom. They will not only guide you but also monitor and track your finances from time to time.