The objective behind indulging into financial planning is to become financially free with respect to liabilities during any important personal events like retirement, marriages, education or acquiring assets for comfort lifestyle. The success of the planning however dependents upon your commitment to contribute & liquidate money as per the plan which might demand compromises for many things till the time you are comfortable with enough corpus.
There are many things that might poke you to break you’re planning. One of these is the Social media today. The dark side of social media is that its regular scrolling mindlessly compel us to compare others’ cosy lifestyle with ours ending up disregarding our financial planning discipline. We therefore start getting all those cosy things into our life immediately which should have been considered later. This satisfaction today will make us unhappy and insecure at the right time in your life when you need the most.
Such indiscipline is observed with most of the mutual fund investors in india .We can observe that the mutual funds despite principally being a long term investment instrument that has offered an average of 4 to 5 % actual rate of return in long term has a high liquidity ratio. While the long term instruments like Life insurance endownment policies which offers 2 to 3 % negative actual rate of return get its full term. This untime liquity fails the targeted corpuses and hense fails the overall financial planning.
