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How to overcome financial crisis

Exposed:7 Reasons Why Financial Plans Fail! How to Overcome?

by Holistic Leave a Comment | Filed Under: Financial Plan

Listen to this article


Table of Contents

  • The Habit of Postponement
  • Lack of Self-Restraint
  • Overstretching Your Savings And Spending
  • Lack of long-term perspective
  • Ignorance
  • Aimless approach
  • Lack of investment skills
  • What is the REAL expectation from the Financial Planning Industry?
  • Are you getting an easy-to-implement Financial Plan?
  • A wrong expectation meets the wrong solution

Does it sound crazy that financial planning is a process so simple?

Believe me, it is.

Planning your finances involves nothing else than just building wealth, and having enough for your retirement. You can achieve the first, if you spend less than you earn and wisely invest your savings.

Doing this, you can easily accomplish the later by spending lesser than your investment income and invest the savings wisely. That is all about planning your finances.

Following these two very simple steps, can let you enjoy huge amounts of financial success. However, one might wonder that if financial planning is so simple, then why is not anyone able to do it? Why only a few succeed in attaining their financial goals?

There are several reasons for this. Let us begin with a few evident ones.But before that try answering the following questions.

  • Do you have the knowledge and time for it?

Financial planning is not just dealing with crises and making money grow. You need the knowledge to invest in the optimum investments, and also know how tax and loans can affect your wealth. People often make mistakes in investments, liabilities, and insurance as there is no much knowledge. A financial advisor can help you with all these.

  • Do you know to risk-proof your finances?

Risk-proof is securing your wealth against risk. To explain in brief it is protecting your assets and family against the risks of job loss, death, ill-health, accidental disability, natural calamities, and financial crises. If you don’t know how it is done, a financial adviser can guide you.

  • Have you made any financial mistakes?

It could be anything like a delay in filing the tax returns or forgetting to pay a bill (that may lead to a small penalty). If you have a financial planner, you can avoid these mistakes.

  • Can you reach your financial goals?

Can you calculate the amount you require for your child’s education or your child’s marriage?

Have you calculated the amount required to save for your retirement?

Have you ensured that in case of your death or disability your financial goals will be reached (your child’s education goal, marriage goals, etc)?

Have you enough funds for an emergency?

Do you know which instruments to invest in so that the post-tax returns can help you gather the required amount?

  • If you answered Yes for all the above questions, it’s good, if not you can get the help of a professional financial planner.Do any of the below mentioned financial personalities resemble you?

The 7 reasons why financial plans fail can also be one’s financial personalities. What are those financial personalities?

1) The Habit of Postponement

The postponement of beginning the financial plan is the first of the reasons for financial planning failure. Are you a procrastinator?

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A majority of people tend to delay beginning to save. Eventually, what happens is that tomorrow never comes to make a start. And by the time you realize the importance of an early start enough time would have passed. Building wealth is a gradual process for which one needs to start saving today.

Most of the investors today regret not starting to save immediately after creating a financial plan. It is because they realize the fact that early start gives room for your investments to grow.

The simple factor here is, if inflation is growing exponentially year after year, so does the return on your investments. The key is to start without any delay and use the time for your advantage.

Hence, it is wise to start saving as per your financial plan as soon as you have one.

2) Lack of Self-Restraint

How does one bring discipline in his/her life?

The most valuable result achieved out of any learning or education is an impending ability to do what you have to and when you have to, irrespective of whether you like it or not.

No matter how early a man begins to learn financial planning, this is undoubtedly the first lesson that he ought to learn and probably the last lesson also that he learns completely.

The investors’ life is very much exciting than you think. Almost everything you see will look like an opportunity to invest and make money. And if you go after all of them, do you know what happens?

It will result in dilution of your concentration and failure of the financial plan. Restrain yourself from doing things that are not defined in your financial plan.

Lack of self-restraint will make you expose yourself to bad financial decisions and the eventual financial plan failure. As any wise investor would know, wealth is created not by taking one good financial decision but by keeping yourself from bad financial decisions.

3) Overstretching Your Savings And Spending

This behaviour of investors is what called a rookie mistake.

Saving your money is good until it is not good. When you begin financial planning, it’s a fresh challenge and you are very much motivated. As an amateur, you could fall into two kinds of trap.

i) Overstretching Savings:

Your financial plan looks good. You have put much effort in it to make one that fits your financial goals. You are confident and you want to get the best out of it. You want it to over-perform.

This is where it gets tricky, of course, saving is good. But when you’re too inclined in saving you could end up not spending in vital things. For example, you might cut out all your entertainment expenses to save more, which is effective in the short run. But in the long term, it could cause a burnout and financial plan failure.

ii) Overstretching Spending:

Just having a financial plan is not going to fix everything in your finances. People often do that mistake of signing up for a financial plan thinking it will take care of their finances. They tend to forget the very basic rule of taking control of their expenses.
Also, watch the video here!

For a financial plan to work, you need to develop the discipline it demands. You must not spend too much and lose focus on the financial plan or try and save too much and end up with a burnout.

Financial plans developed by a Certified Financial Planner will give you a clear definition of the discipline you need to develop, to attain your financial goals.

4) Lack of long-term perspective

The crux of ‘spending less than one earns’ is like a tree that bears the sweet fruits of satisfaction, but delayed. Saving is not a sacrifice, rather it is an excellent return-on-investment if you view your goals from a long-term perspective of around 20-30 years. it will change the world for you.
InvestingVsTiming It does two important things to you as an investor. First, it lessens the financial stress of your future self with regards to planning and financial decision making.

And secondly, it gives you a strong reason to save more and spend less. Since, as humans, we’re all reason oriented and anything that has a strong reason will be less difficult for us to accomplish.

It is like remembering what you truly want to achieve, and working daily to accomplish it. Choose big financial goals, have a long-term perspective and create smaller objectives that will lead to your financial goal.

Certified Financial Planners excel at creating such objective oriented financial plans that will strategically avoid reasons that cause financial plan failure.

5) Ignorance

The saying goes “Ignorance is Bliss”, but is it?

This could be true if you are immune to your financial plan failure. And the only person who is immune to financial plan failure is who have unlimited wealth.

Unfortunately, the saying is said by those who want an excuse for not trying. Constant learning is one thing that will push you forward, towards achieving your financial goals. Being ignorant is something that will rather push you amidst the crowd, where you just do not know anything better than the rest.

Even if it is your financial fear, do not ignore them. It is because fear will lead to your financial plan failure. On the other hand, you can choose the right financial planner who can help you address your fear and doubts. When you address them, you can very much easily attain your financial goals as per your financial plan.

6) Aimless approach

At times, we do not connect our spending habits with their long-term consequences. We tend to live unconsciously, and spending without paying much attention to the time that is to come.

You need to be clear about two points of your financial graph.

Point A is where you are financially. Point B is where you need to go financially (with your financial goals).

These two points need to be clearly defined. If these two points are clearly defined, then there will be a clear direction for you to move from point A to point B.

This clarity and direction will avoid distraction. Therefore, there will not be any misbuying of financial products.

Instead of making adhoc investments, it is better to invest with clarity and direction.

7) Lack of investment skills

This is the only area where you need to possess financial skills. This is what can legitimately take your fortune down, and that too when everything else is done appropriately.

No schools here in India teach about personal finance. To develop investment skills, you need to get introduced to the art of personal finance.

On the other hand, you can improve your investment skill by working with a professional financial advisor. Majority of India still, think that hiring a financial planner will be too costly the only rich could afford. But how much does it cost to hire a financial planner and save your financial plan from failing?

From this list of some obvious reasons, what do we notice? Let us find out.

  • All the obstacles, except for the investment skills, are created by one’s mental blocks. Significantly stating, only you have the power to overcome these hindrances. Therefore, developing these crucial personal skills is not rocket science. Anyone can build his financial wealth upon gaining these skills.
  • We may wonder why only one of the causes is financially related, even though building wealth is a complete financial process. It is surprising how achieving financial goals has little to do with finance, but everything related to you and your approach.

Freedom (including financial freedom) is, thus, a state of mind and soul. Only you have the power to choose it.

Why does the financial services industry fail?

What is the REAL expectation from the Financial Planning Industry?

As observed earlier that the reasons behind success in the financial services industry, have almost nothing to do with finances, but everything to do with one’s human nature. Therefore, the only services people need in this industry to do the right thing relates to the accountability, support and the guiding factor.

Are you getting an easy-to-implement Financial Plan?

The technical aspects behind the implementation of one’s financial plan, are thus not very complex. One does not need to be a financial expert to do his job.

The formula for a typical and diversified portfolio should be well-documented, with no serious expertise required.

Also, watch the video here!

It is so simple that anyone can learn everything necessary for the implementation of the investment side of the wealth building process, just in a matter of a few hours or even less.Another reason why people fail is again not due to financial reasons, but because of not doing what needs to be done.

A wrong expectation meets the wrong solution

People look for financial help when they need help with resolving their financial challenges. The expectation is to get a quick solution. e.g. An investment to save tax is what badly needed by many investors during March.

However, an investor should not have waited till March and should have planned in advance. Also when planning, he should not plan for just tax saving also he needs to think about how this tax saving will be linked to his long term goals?

Also, experts are providing solutions to people in the form of investment products. They do so as it is the easiest part, but is that required. If they need a tax saving scheme, they just provide that. They don’t go beyond the basic and check with the investor, “Do you want your tax saving investment to be linked to your long term financial goals?”.

What people need is an expert who can help them with recognizing that personal and complicated stuff that is forbidding them from accumulating wealth. We can also take this as anyone would require help with building his/her wealth in the first place.

On the contrary, they are involved in the business of selling their investment products to achieve their own business target. This is what causes the whole confusion.

When people are looking for guidance, the experts are selling them financial solutions. This creates a mess that does not work at all in the actual scenario.

Click here to know how to choose the right financial planner and also know the traits of a poor financial advisor.

I hope to convey the message that obstacles to wealth are not caused due to one’s financial stature. To get the financial stability and security, to understand our unique Holistic Financial Planning Process we offer

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Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Google Reviews

Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

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