Money Magazine - 5 Reasons That Hinder Your Financial Planning!

In today turbulent and uncertain economic conditions, followed by unrest in socio-political factors, financial planning has become order of the day. This holds true for people associated with business or working class professional to a homemaker. It is imperative that one invested money in plans that yield benefit. There are several reasons that might hinder financial planning, even if one has made wise investment.

Not planning for sudden health and medical expenses

Most of the money saved is invested in fixed deposits, post office schemes and mutual funds. Investments are done keeping in mind the interest or additional income that will come through such schemes. But it is important to investment some amount on buying health insurance policies for the entire family. There can be a sudden death, accident or illness, where money will be needed to foot the medical bills. If you don’t have medical insurance all the planning will go in drains.


Putting all the savings in one single scheme

Marketing and promotional companies selling financial products tend to lure customers with higher gains from investment. In such instances one might just end up parking the entire saving in a single investment plans hoping to make windfall gains. In case the investment doesn’t perform as promised by the company then one might lose out on other good offers.


Taking too many risky decisions

Investing in stocks and shares to gain profit is another aspect that hinders financial planning. Those who are not well-versed with the tricks of the trade might end up washing their hands off the hard earned money. Invest in stocks that need less investment and offer decent earnings.


Not taking help of financial experts

Making wise investment needs some level of experience, knowledge and foresight. This can be sought from financial planners and insurance agents who are aware about the volatile market. Seek their help in distributing savings into plans that will give good returns and safeguards family’s financial requirement.


Giving government schemes a miss

Many a times we fail to make use of government schemes that offer healthy returns. Like the Post Office schemes, Binma Joyjana, Public Provident Funds and LIC. These are trusted channels for investment and more secured than other fraudulent schemes. 


Some of the recent schemes that one can opt for are as follows:

Sukanya Samriddhi Accounts that offer 9.2% interest annually at a minimal deposit of Rs 1,000 to Rs 1,50, 000 in a year.
Post Office Savings Account that offers 4.0%per annum interest on both on individual and joint accounts. It can be opened with just Rs 20 and earn tax free interest.
NATIONAL SAVINGS CERTIFICATE are available in denominations (face value) of Rs. 100, Rs. 500, Rs. 1000, Rs. 5000 & Rs. 10,000.
Make sure your follow these tips and overcome the hurdles that stop you from making most of your investments!