Preventing Financial Follies

Written by admin on December 6th, 2010

Financial planning can provide a wealth of benefits in addition to actual physical wealth.  Getting organized can give investors the peace of mind that their future is financially taken care of, but sometimes these benefits are trumped by financial follies that prevent investors from reaching financial success.  There are four reasons people fail financially.  Understanding these reasons will help investors become successful at reaching their financial goals.

The first reason people fail financially is not having a definite financial goal.  If you aim at nothing in life, it is likely that is what you are going to hit.

Even those who have definite financial goals can fail financially due to procrastination.  Procrastination or inaction can be the greatest deterrent to reaching your financial independence goals.

Once an investor creates a goal and takes action to reach it, he or she must still overcome the hurdle of investment ignorance.  Schools do not teach people effective money management skills.  In order to be financially successful, investors must have the knowledge of what money needs to do to reach those financial goals.

The final reason someone may falter financially is failing to develop a “winning mentality” about money.  Like Henry Ford once said, “Whether you think that you can, or that you can’t, you are usually right.”  Believing in the financial actions one takes can create a positive chain reaction resulting in financial independence.

In order to achieve investment success, one must create a goal and a plan of action.  Working with a certified financial planner can help you create a winning map to financial independence and prevent stumbling over the financial follies.  Identifying your financial goals is the first step to reaping the benefits of financial planning.

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