My smart brother-in-law and I were talking last night and he brought up a good analogy about why some people are uncomfortable talking about setting financial goals and then developing a plan for achieving them. He said that much like knowing you need to go to the doctor, there is a fear that you’re going to be told something that you don’t want to hear.
He went on to say that most people have that internal voice telling them “you should be saving for retirement”, or “you should cut back on your spending”, but to have someone present you with a written plan that tells you the same thing with all the charts and graphs demonstrating not only why you should but also pointing out the problems if you don’t is uncomfortable. Add to this the complexities and technical jargon of taxation, IRA-contribution limits, investment choices, etc., and it is no wonder that many people have a natural inclination to put off creating a formal financial plan.
I find this very insightful and very true. Bothered by this, I called a friend this morning whom I think has done a tremendous job of becoming more financially happy and I asked her about her fear of financial planning.
She claims to have been quite uncomfortable when she received her first financial plan. She had a lot to do and a lot to change. But she says she’s now a total convert and an evangelist for financial planning because it has given her the motivation and the design for creating small habits that over time have helped her tackle some of her bigger goals, like retirement. “Nobody likes the start of an exercise regimen, but everyone sure likes the results once it has become a habit. My financial plan was hard to start, but it is now exactly why I am so much happier with my financial situation. I know what I’m doing and I know where I’m going.”
