{"id":656,"date":"2019-08-29T17:35:22","date_gmt":"2019-08-29T09:35:22","guid":{"rendered":"https:\/\/www.syfe.com\/magazine\/?p=656"},"modified":"2019-08-29T17:35:23","modified_gmt":"2019-08-29T09:35:23","slug":"financial-planning-myths-you-can-ignore","status":"publish","type":"post","link":"https:\/\/www.syfe.com\/magazine\/financial-planning-myths-you-can-ignore\/","title":{"rendered":"Financial Planning Myths You Can Ignore"},"content":{"rendered":"\n
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Photo by Xing Cheng on Unsplash <\/figcaption><\/figure>\n\n\n\n

If just hearing the words \u201cfinancial planning\u201d feels you with anxiety, you may not be alone. According to the OCBC Financial Wellness Index Report<\/a>, 40% of Singaporeans worry about money. And it\u2019s not hard to imagine why: The economy is in flux; we are living longer but not necessarily more prepared for retirement; and some of us feel sandwiched between caring for our parents and children.\u00a0<\/p>\n\n\n\n

Creating a financial plan that articulates your financial goals and maps out how to meet them is one way to feel in control of your money again. Whether you intend to DIY your plan or consult a professional, don\u2019t let these three financial planning misconceptions hold you back.<\/p>\n\n\n\n

Myth 1: Only the 1% need a financial plan<\/strong><\/h3>\n\n\n\n

Everyone can benefit from having a financial plan, no matter the balance in their bank accounts. A solid financial plan keeps you on track with your saving and investment goals, debt management, insurance coverage, retirement planning, and more.<\/p>\n\n\n\n

If you have limited means, financial planning can be a way to steadily build up your wealth by improving your saving and spending habits and maximising what your money can do for you. And if you do have quite a bit saved up, you may benefit from having professional financial planning advice on how to manage and protect your wealth in addition to estate and tax planning.\u00a0<\/p>\n\n\n\n

The bottom line? Financial planning isn\u2019t a privilege reserved for the wealthy. Putting a financial plan in place today could ultimately get you to the next income bracket.\u00a0<\/p>\n\n\n\n

Myth 2: Financial planning is for people near retirement<\/strong><\/h3>\n\n\n\n

When you\u2019re in your twenties or early thirties, having a long-term financial plan can seem like a chore. But financial planning – like investing – makes the most difference when adopted early in life. Good money habits such as budgeting, saving, using a credit card wisely are easier to adopt and stick to when you\u2019re younger. And the earlier you start investing<\/a>, the greater the effect of compounding will have on your net worth.\u00a0<\/p>\n\n\n\n

Young or not-so-young, mapping out your financial plan can help you meet major life events with more confidence. For instance, a financial planner can provide direction on questions such as:<\/p>\n\n\n\n