5 biggest fears related to financial planning

The best way to reach your financial goals and objectives comfortably and within the right time frame is to have a solid financial plan. It can not only help you achieve a certain degree of discipline, but also allows you to utilize your income in a more optimal way.

Even though financial planning comes with many benefits, most people tend to keep it at bay. This is primarily due to certain fears associated with it. Here’s a look at 5 of the biggest fears that most people have with respect to the concept of financial planning.

The fear that it is intimidating

People think that financial planning is huge and intimidating and tend to get scared by it. This thought process forces them to overlook it. That said, there is some truth to this train of thought. Financial planning is in fact a huge concept that requires you to get to know about a plethora of investment options, financial jargons, and rules and regulations.

But in spite of the vastness of the concept, it is far from intimidating. With the right tools and guidance, anybody can plan their finances. However, if it is all a bit too much for you, you could always seek the help of professional financial planners and trust them to deliver what’s right for you. 

The fear of complex budgeting

Financial planning as such requires you to chart out a comprehensive budget and forces you to stick to it. This tends to instill a fear in the minds of people. Many people tend to picturize budgeting as a complex process that ends up curbing one’s lifestyle.

That’s simply just not true. In fact, budgeting only serves to tell you how much you possess and how much you expend. Getting to know these two facts can help put things into perspective. Seeing how much you spend versus how much you earn allows you to cut down unnecessary expenses, thereby saving you a lot more money and getting you closer to your goals.

Additional Read: The SMART approach to your first financial plan

The fear of change

Another major fear related to financial planning that most people tend to possess is that it pushes them to change. Change is something that’s usually not very well-received. Breaking a habit or a routine can be extremely tough without any external push, even if the subsequent change is for the better.

That said, change isn’t all that bad especially when it can get you closer to your financial goals and objectives much faster. And, that’s exactly what financial planning does. Yes, with financial planning there most probably will be a change. But if that change can allow you to purchase your dream home or your favorite car much sooner, it is something that’s worth checking out.   

The fear of looking at the unknown

Drawing up a well-thought out financial plan requires you to also plan for all the unknowns in the future. Financial planning steers you towards taking a good hard look at the unknown variables in your life, things that people generally don’t wish to acknowledge. This induces fear into the minds of most people. A financial plan requires you to take a 360-degree approach by facing and addressing your fears, like:

• What if you don’t have enough money?
• What if you lose your job?
• What if your investment option doesn’t perform well?
• What if your financial plan turns out to be insufficient?

But by overcoming these issues, you stand to gain tremendously. You can plan your future finances in a better way and stay well prepared for any curve ball that life throws your way.

The worry that planning takes up too much time        

This might be relatively minor, but it is a fear in the minds of people, after all. As we’ve seen above, financial planning is a vast concept. But when you’re planning your finances, you don’t have to read through and understand every single concept or investment option out there. You would only have to research and understand the financial issues that are pertinent to your goals and objectives, which would hardly take much time.

Setting aside some time for financial planning is only going to make your journey that much smoother. If you’re still not convinced, you always have the option to get the assistance of a professional financial advisor who does all the work for you and can help you save your time and energy.

Additional Read: Financial mistakes to avoid in panic situations

Conclusion

To overcome these fears, you need access to the right tools and resources. And the Moneyfy app by Tata Capital is one such helpful tool. You can use it to diversify your portfolio, so you can achieve your goals as per your financial plan. With this app, you can invest in equity mutual funds, governmental bonds, liquid funds, insta-redemption funds, and even start SIPs. The best part is that you can do all of this from the comfort of your smartphone itself.