When it comes to financial planning, many people are confused about when the right time to start is. Some think they are too young or too old, while others think they don't have enough money or assume they have enough to be part of any kind of financial structure. But the truth is, the right time to start financial planning is once you start earning, regardless of your age or income. The moment you receive your first paycheck is the time to start thinking about how best to use it to build your financial future.
This is the time when you will develop your financial behavior. With credit cards, your spending capacity is expanded and you may tend to spend more to take advantage of the benefits of reimbursement, reward points, or EMIs at no cost. Without understanding the impact of these products on your financial life and how they will help you achieve your goals, many people look for easy solutions such as investing for now and leaving the planning part in the background. Salespeople take advantage of this behavior and that's why they present their sales proposals or products in the financial planning package.
This gives them temporary satisfaction that they are on the right path until they face the aftermath and realize their mistake. If you haven't destroyed your cash flow yet, with credit cards, car loans, and personal loans, you might like the idea of buying a home which will help you save even more on taxes and also accumulate one of your assets. To pay the down payment on the home, you'll analyze your investments and take some or all of them out for your biggest expense, which you might call an investment. It's always wise to have a professional by your side to get a second opinion.
A financial advisor can help you identify if you have unnecessary insurance policies or if you are underinsured, if you have gotten into the wrong investment products that don't allow you to grow financially, if you have some bad loans, if you are able to select the right investments for your long and short term goals, and more. Financial planning is a beautiful exercise that controls your misbehavior with money and encourages good behavior, which becomes your habits. Any time is the right time to do the right thing. So don't wait any longer - start working on this structured financial planning approach before ruining your financial life.
