AIA Chiangmai

Most of us know when we hit a financial disaster, usually we can even trace the beginning of the process that led to the financial failure, but the problem seems to be the fact that some people keep repeating the mistakes, or adapting new problematic methods of trying and solving problems.

The wise financial planner would first consider his own strong and weak points before making financial decisions and would draw conclusions for the experiences he had in the past, the few points that ultimately lead to financial disasters that I will discuss here are very basic and natural, yet many people do not practice the least amount of caution when making plans.

The first and most prominent problem with bad financial planning is that the planner has no financial education, in this case I would strongly advise seeking professional help. Most of do not have formal financial education, and many of us do not understand the financial basics that rule the markets, other do not want to go into these calculations, but all these groups should start by admitting that they do not have the knowledge of dealing with financial planning and look for someone who does. The great benefit of listening to advise of experts is that it teaches you things, the approach to financial planning, the basics of a new financial plan and much more, it is very possible that in a few months you will be much more educated and better informed in a way that will allow you to start making your own calls.

The second problem is making decisions and planes letting other people manage you finance for you, and I don’t mean letting you professional financial planner but friends, neighbors and family. Even though these people have the best intentions, it is very clearly your own responsibility to take care of your personal finance, and as much as it is unpleasant to make financial plans and take care of your personal finance it is a fact of life you must practice.

The third, and last mistake we are going to discuss is choosing the wrong kind of financial advisor, some people are tempted to let the wrong kind of people manage their finance situation, this includes insurance experts, tax experts and other financial experts of all sorts. It is important that you find a person that you have good communication with , that understands you and what financial help you are seeking, and that this expert be an expert on the issues you need help the most, do not let personal relationships, family connections and business relation dictate the financial expert you use, it is of extreme importance that this person is as close to being perfect for you as possible. The best thing to do is to look for a person that works in a financial office and makes his money by advising and managing personal financial accounts, someone that has been around for long and that will have the experience to guide you through the processes.

Simon Oldmann has been studying personality traits for 10 years, with a focus on the effects of financial planning on health and mental stability. Simon is currently writing tips and advice on Financial Planning and becoming a better Financial Planner.

Tags: financial plan, financial planner, making a financail planfinancial plan, financial planner, making a financail plan

Share This

Filed under: aiachiangmai03 | No Comments »

Recently, in our neighbourhood we witnessed a spectacular house fire where the home was completely destroyed. An obvious tragedy to the owner, yet a powerful reminder to be grateful for all we have - including our ability to plan ahead.

Usually these fire stories are reported along with appeals for donations for the unfortunate family who lost everything they owned. Everyone says “how sad” and pitch in with whatever they can. In this tragedy however, it was reported that the homeowner “luckily had insurance.”

Luckily??? Maybe thoughtfully? Or thankfully? But certainly not luckily?? Perhaps simply a poor choice of words, but then again, often what we say is how we think. Is it luck that someone lands a high paying job in his or her field of work? Is it luck that someone is able to retire in their early 50″s? Or live in a big home, drive nice cars and enjoy all the luxuries of a financially successful life? Unfortunately, we often hear people discussing financial success as lucky. Perhaps this is why many people are still “hoping” they will win the lottery to support them in their retirement. Same with the stock market: many people “play” the stock market because they think they are going to “get lucky”. They forget that what they are doing is making business decisions about companies to invest their money into.

There was no luck involved for this homeowner! They deliberately contacted an insurance provider and took precautions to protect their risk. This was part of their financial planning! If you are “hoping” you’re going to “get lucky” you aren’t taking control. Financial planning is about being in control.

There are many financial risks and any one of them could completely wipe you out financially and perhaps emotionally too. So, one of the first steps to establishing a solid financial plan is to understand your risks and to take precautions to minimize them. There is no luck involved in preparing in case a tragedy occurs. If you aren’t aware of where your risks are, or haven’t evaluated them recently, a review with a qualified financial advisor and reputable firm is in order. If a fire isn’t enough of a wake-up call to everyone of the magnitude and impact of financial risk, consider all the potential areas of exposure: death, sickness, loss of income, loss of money, old age, unexpected accidents or repairs, and on and on.

Obviously some areas can be covered by insurance: home, auto, disability, life, medical, critical illness, long term care, credit, business overhead, etc. But consider some of these in your evaluations:

Tags: financial plan, Financial planning, financial success, insurance, money minding, tracy piercyfinancial plan, Financial planning, financial success, insurance, money minding, tracy piercy

Share This

Filed under: www.aiachiangmai.com 0102 | No Comments »