New Delhi [India], January 8 (ANI/SRV Media): Meticulous financial planning and wealth management is required in order to avoid unwanted financial stress. A well-prepared financial plan can help people to achieve life goals. To help people achieve their financial goals and save better, Deepak Jain, CWM®, Director, American Academy of Financial Management has suggested three ways to keep financial mistakes at bay.
1st Financial Mistake: Not speaking truth to yourself about your money
There is a Financial Planner in the US by the name of Suze Orman. Suze Orman has written a book called '10 Lessons of Money'. The first lesson she states in this book is the crux of wealth creation. If you follow this one rule in life I can guarantee you that you will become very-very wealthy. The first rule she writes is 'Truth creates wealth & lies destroy it'. When I first read this rule, I thought nothing great about it as we Indians have been the biggest proponents of truth.
As our ancestors have coined these phrases and sayings " Satyam Shivam Sundram" or "Satyamev Jayate" so I thought what can a westerner teach me about truth which I already don't know. But when I read this book by Suze Orman her meaning when she said 'Truth Creates Wealth and Lies Destroy it was different what she really meant was if you are truthful to yourself about your money you will keep on adding wealth but the day you start speaking lie to yourself about your money you will destroy the wealth you have created. In our consciousness, in our inner self, we always know what the correct money decision is and what is a wrong money decision. The question is do we do what we know is good for our money or do we lie to ourselves and do what we want to do rather than what we should do.
To further add on to the importance of financial management, Deepak Jain CWM®, Director American Academy of Financial Management commented "Whatever wealth you leave behind for the next generation your spouse or children if they are not skilled enough, do not have necessary knowledge and financial acumen to manage that wealth it does not matter how much you leave behind. So, your job as a wealth owner is not just to ensure that your wealth after you goes to the right person in right proportion it is also to ensure that the person acquiring this wealth of yours has the necessary skills and knowledge to take care of this wealth. At no stage of life can you stop learning about money and investments"
2nd Financial Mistake: Not Creating a Wealth Plan and not Following a Wealth Plan
Failing to Plan is actually Planning to Fail. Most of us don't have a wealth plan for our wealth. A wealth plan is a document that has answers to these 4 important and critical questions. Where am I Financially today? Where do I want to be financially in future? What are the paths available to go from my current financial state to my desired financial state? Which is the best path and last question: What are the risks in my journey and how will I mitigate those financial risks. Wealth plan also contains plans to achieve 3 critical wealth objectives all of us should have. How will I enhance my Wealth? How will I protect the wealth I have created and How will I ensure the transfer of this wealth I have created to the correct person after I pass away. Professionals like Chartered Wealth Managers® are proficient in creating comprehensive Wealth Plans capable of achieving these three wealth objectives.
3rd Financial Mistake: Not working actively on increasing your financial knowledge.
Your Financial Knowledge helps you develop good financial habits and make correct financial decisions and your financial habits & decisions decide your 'Financial Future'.
At no stage in life should you stop working on increasing your financial knowledge.
When it comes to Lack of Financial Knowledge my concern apart from your lack of financial knowledge is for the two close members of your family. First the General Lack of Financial Knowledge amongst the females and second lack of financial knowledge amongst the children.
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