09 Aug 4 Common Myths About Financial Planning: Debunked!

When it comes to managing and improving your finances, many Australians don’t know what steps to take and if they are on track. But despite their uncertainty, they continue to do nothing and stress about their finances. 

When you are unwell, you go to your doctor. 

When there’s something wrong with your car, you go to a mechanic. 

People don’t bat an eye paying a large fee to an experienced lawyer when they need legal advice. 

But when it comes to improving your finances, so many people are hesitant to seek advice from a financial planner. 

It can be tough to work your way out of financial hardship or know the right path to save enough for retirement. But if you’ve been wondering what to do with your money for a while now, a financial consultant should be the first person you turn to.

What’s stopping you? Perhaps the thing stopping you is one of these common myths floating around about financial planning. That is why we have debunked the 4 most common myths about financial planning for you…

1. You Can Manage Your Finances By Yourself

Most people do pretty well managing their budgets on their own when they are young. While you are absolutely free to control your finances yourself, most people get to a point in their lives where they don’t know what to do with their finances next.

Whether you’re thinking about investing, or planning for retirement, or looking for ways to protect the money you’ve earned, a financial adviser can help.

There is an enormous amount of financial information out there about all these topics and more but the difference between free online advice and financial advice is personalisation. General information is not specific to your situation so it may not be the best move for you. Following incorrect or vague advice can lead to costly mistakes in your future.

To avoid this, you may like to consider talking directly to a wealth management advisor. They can tailor their recommendations to fit your individual circumstances so you can make smart, informed financial decisions.

2. You Don’t Need Advice Right Now

One of the most prevalent myths about financial planning is that if you’re 30 to 50 years old, you might think you’re too young for advice. After all, you’re likely at the peak of your career and earning more money than ever.

But in reality, this is the ideal time to plan for your financial future. You’re likely to make big financial decisions like marriage, buying a house, and having kids at this time in your life. Financial planning can help you navigate your way through these new life events and make sure you are well-protected and financially secure. 

Starting your financial planning while you’re young means you won’t have to worry about it later. 

Everyone has financial goals they’d like to meet, and getting financial advice from wealth advisors can help you on the path to achieving them.

3. You Aren’t About to Retire, So You Don’t Need Financial Advice

Many people believe they don’t need to plan financially because they aren’t anywhere near retiring. There’s no point in starting to save now if it’s years away right?

However, it will be next to impossible to reach both short and long-term financial goals without a solid financial plan. If you leave your retirement planning too late, you may not be able to afford all the things you want to do in your golden years.

it’s essential to make sure you have enough funds to support yourself throughout the rest of your life. When you plan for your retirement early, you’ll enjoy financial freedom and be ready to retire sooner than later.

4. You Have an Accountant, Which is Good Enough

Entrepreneurs and other savvy individuals likely have an accountant that they know and trust, making them believe they don’t need a financial adviser. 

However, accountants and financial advisers have completely different responsibilities and accommodate different financial needs. 

While accountants take care of your tax returns and help you manage your taxes, financial advisers work with you to develop money-saving strategies to build your wealth.

Financial planning can help you prepare for the future and achieve financial security, helping you to achieve all of your short and long-term goals. 

Now that you know the truth behind these misconceptions, you can make informed decisions about your situation and work with financial consultants to bring you closer to financial freedom.

At Leo Wealth, we have experienced financial advisers on the Central Coast that create personalised strategies and provide financial education to clients of all ages and situations. Get in touch with us today to find the best financial outcome to meet your needs!

This article was written by Lochlan Stuhne-Scott, Authorised Representative (AR) of Leo Wealth, which is a Corporate Authorised Representative (CAR) of HNW Planning.