By Ramesh Vishwanathan, CEO, FPSB India ( in picture)
Financial decisions are not only shaped by just a number, but they are also influenced by the beliefs and assumptions individuals develop around money, such as when to start planning, what financial planning truly involves and whether it is relevant to their current situation.
Over time, these perceptions can shape financial behaviour. Some individuals believe they should wait until their income increases, while others associate financial planning primarily with investments or feel they need complete clarity about their finances before seeking guidance. These beliefs can delay important decisions around financial goals, retirement, managing uncertainties and preparing for major life needs. Recognising and revisiting such perceptions can help individuals adopt a more informed, structured and goal-oriented approach to their financial future.
Waiting for financial stability before starting your plan
Many individuals believe that financial planning becomes important only after they reach a certain income level or achieve greater financial stability. Until then, they focus on managing their current expenses and assume that planning can happen later.
This belief can narrow the way people understand financial planning, often reducing it to investments or wealth creation. In reality, financial planning is about gaining clarity on financial priorities, setting meaningful goals and making informed decisions for both present needs and future aspirations. By taking a structured view of income, expenses, goals, risks and long-term needs, individuals can better prepare for uncertainties and make more confident financial decisions.
Financial planning does not need to begin with a particular age, income level or life milestone. It can start with understanding where you stand today, identifying what matters most and preparing for the financial needs you are likely to face ahead. Whether it is building financial discipline, managing current responsibilities or preparing for long-term goals, starting early can provide greater clarity, structure and direction to everyday financial decisions.
Managing investments is not the same as having a financial plan
Many people actively monitor their investments through financial apps, market updates and investment platforms. While staying informed is valuable, tracking investments alone does not represent a complete financial plan.
The FPSB Value of Financial Planning Global Consumer Research highlights that financial planning covers various aspects of an individual’s financial life, including retirement planning, wealth management, cash flow, goal setting and protection against uncertainties. The study found that investment planning (40%) was one of the areas where individuals received support, along with retirement planning (36%), wealth management (35%), cash flow management (25%), defining financial goals (23%) and insurance planning (18%).
A financial plan is not just about where your money is invested; it is about aligning your financial decisions with your larger life goals.
Financial planning begins with questions, not all the answers
Many people delay financial planning because they believe they need complete clarity about their finances and goals before seeking guidance.
However, gaining that clarity is an important part of the financial planning process itself. A structured approach can help individuals understand their priorities, identify their goals and make informed decisions based on their needs.
A certified financial planner professional can help individuals bring structure to this process by guiding them through their financial decisions with globally recognised standards of competency, ethics and practice.
Financial planning does not begin with having all the answers, it begins with understanding where you are today and creating a clearer direction for the future.
Financial planning means giving up the things I enjoy
For many young individuals, financial planning is often associated with restricting their spending and giving up the experiences they value today. However, this belief comes from a limited understanding of what financial planning truly means. Financial planning is about creating a balance between today’s priorities and tomorrow’s goals. It helps individuals make informed decisions about their money while preparing for important milestones in their lives.
The FPSB Value of Financial Planning Global Consumer Research highlights that financial planning can help individuals feel more prepared and confident about their financial future. The research found that key benefits reported by people who engage with financial planning include improved financial wellbeing and peace of mind (38%), greater confidence in financial decision-making (37%) and help simplifying financial matters (36%).
A financial plan is not about saying no to the things you value today, it is about making thoughtful choices that help you work towards the future you want to build.
I will start planning when I really need to
Many people believe financial planning is only needed when they face a major life event or financial challenge, such as retirement, buying a home or managing unexpected expenses.
However, financial planning is also about preparing for future goals and making informed decisions before challenges arise.
The FPSB Value of Financial Planning Global Consumer Research found that people who do not seek financial planning support often have unmet needs, including having enough money to live on (36%), achieving their desired lifestyle (35%), creating a realistic retirement plan (32%) and reducing financial worries and stress (32%)
Moving beyond money beliefs towards better financial decisions
Financial planning is a continuous process that evolves with changing goals, responsibilities and life stages. Moving beyond common money beliefs can help individuals look at their finances with greater clarity and take steps that are aligned with their future aspirations.
As we recognise the importance of financial awareness through World Financial Planning Day, it is a reminder that planning is not about waiting for the perfect time or situation. It is about understanding your financial priorities, making informed choices and building a stronger foundation for the future.
By rethinking common money beliefs and taking a more structured approach towards financial planning, individuals can move closer to achieving greater confidence and control over their financial journey.
