Many people aim to reach their dreams of becoming wealthy, to be financially secured, and to be able to retire from their jobs with comfort. However, these dreams are hard to achieve for most people. The reason is because of the factors that affect financial planning which usually results from money mishandling situations. Let’s go over these factors and see for yourself if these factors contribute to your poor financial planning.
Having a mortgage that last for years
If you’re trying to find out where all your money had gone throughout the years, you better have a look at your mortgage, if you have any. Millions of Americans take more than 15 or 30 years to pay their home mortgage, and they often end up paying more than the actual price of the mortgage by the end of the term. It is not practical to choose a long term mortgage payment scheme because the longer you take to pay your mortgage, the more you have to pay. If you’re going to assess the large sums of money that you have incurred paying your mortgage every year, you are actually looking at a large sum of money that could have been your wealth.
Trusting the control of your money to other people
Be sure that you get yourself involved in the day-to-day financial details of your family such as debts, investments, savings and others. If you’re a married person, don’t put the sole responsibility of financial planning to your spouse. It would be very risky for you in case your spouse became ill or divorced you. If you’re living independently, don’t trust your financial planning matters over to a financial planner without keeping track of the money involved. The final financial decisions should always come from you and not from your financial planner. As a general rule, never give the total control of your money to other people.
Not minimizing spending leaks attitude
One reason why many people are in debt is because of spending leaks. Many people are used to dribbling money while spending. They buy small things that do not seem to cost a lot but when these amounts are totaled up, they may form a substantial part of your overall spending. This is not a good attitude as it will only accumulate your expenses, which will have a negative effect on your financial planning.
Not situating goals
It is better to situate goals for your financial planning, so that you will always have a target to achieve. You can write down these goals and try visualizing them as how they should achieved in your financial plans.
Acquiring too much debt
Refrain yourself from acquiring too much debt such as credit card purchases or personal loans and other related installment debts that only require you to pay high interests.
The abovementioned factors can greatly affect your financial planning, and by avoiding them, you can increase your chances of accumulating your desired wealth successfully.