Financial planning is a costly process that requires a lot of time and money. As the future is uncertain, all plans made are limited and unexpected. Rapid changes in industry, such as production methods, marketing devices, and consumer preferences, create new demands that require changes in financial plans. The circumstances and characteristics of one's life can influence their financial concerns and plans.
Factors such as family structure, health, career options, and age can all affect personal financial concerns. To get from where you are to where you want to be, it is important to be realistic and imaginative about your current situation. This will allow you to see the options that are presented to you and the future options that your current choices may create. Young people under 35 are often referred to as Generation Squeeze due to their low incomes and prolonged economic crisis.
They are in debt and have problems with school loans and family difficulties. Setting unrealistic goals or standards that are too high can also be a limitation of financial planning. Financial planning should also take into account the risk that economic factors will affect a person's financial reality. It is important to be aware of the limitations of financial planning in order to make informed decisions.