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Financial Planning: 5 Reasons Why People Avoid Doing It

5 reasons why people avoid Financial Planning

By the grace of God, when all my work are going smoothly then why should I do financial planning? We often hear similar such comments when we talk to people about the concept of financial planning.

I found that most people do not appreciate any type of planning. They believe that doing things the most scattered way has a different pleasure altogether.

People avoid financial discussion and also shun learning for which they have to pay nothing. But what are the reasons people tend to avoid financial planning?

Based on our observation and experience, here’s a summary that why people avoid financial planning. See whether if you are still trapped in any of these excuses.

Read: How Investments Can Keep You Out Of Trouble

1. You do not understand Financial Planning

You are still not fully aware of Financial Planning. There are lots of content about it on the internet but just because you have diverted your mind, you are not familiar with it. No issues here as you are “never late” if you have “not arrived”.

In order to know about the concept, it is important to spend some time to know the concept in detail. You should seek the help of professionals who can clarify your queries.

There are so many individuals around you who are spending the stress-free life just because all their investments are routed after proper planning.


2. You think Financial Planning is for Rich people

This is one of the biggest misconceptions that financial planning is for Rich people than it is really important for middle-class people. A Financial Planner is not a guardian of your already earned wealth rather he helps in wealth planning.

The present economic condition of yours has nothing to do with financial planning. You may check NSE Academy Certified Finance for Non-Finance People to learn and develop an in-depth understanding of financial and wealth creation planning.

3. You feel you have already done it

Let’s take a simple example to understand this. Say you have done SIP and have taken insurance cover. You invest in gold regularly and on every dip. In order to avoid tax and invest in reality, you have also taken a home loan.

If this according to you is a diversified portfolio then you are actually moving in a wrong direction. If someone claims this to be financial planning, he is actually misleading you. Financial Planning, in reality, is a very comprehensive field and covers a lot of aspects.

Also read: How to become your own financial planner?

4. You believe only making investments is Financial Planning

You put your money in almost everything that is launched in the market whether it is a new IPO or a new mutual fund. In reality, financial planning not only deals with investment planning.

In fact, it is also needed in other important areas like your insurance, tax planning, estate planning, risk management, etc. It’s really important to seek professional help before you place your foot.

5. You think you can handle it on your own

For everyone who believes that you can manage financial planning on your own, so for them it’s really important to come into the light and face the real world as things don’t hold smooth in reality.

Say if an employer has done your group insurance, hence you do not need a medical cover. Moreover, if you have a real estate investment or you think of digging money from your parents in case of emergency, then you are not going the right way.

Financial planning is not just about managing your financial emergencies. But it is also about planning so that emergency doesn’t arise at all and for any future emergencies, you have a sufficient corpus to face them.


Financial planning is a mechanism that takes care of the overall investment process. From identification of goal, portfolio construction, risk tolerance, asset allocation and also monitoring your investments regularly.

The financial planning is not a one-time affair. In fact, it is an ongoing process and you should be really careful if you are thinking to discontinue.

So, are you planning for your future? If you have already planned, then share with us. Comments below if you want to add other information.

Like this post, then kindly share this with your social networks.


Published on: Sep 28, 2017

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