Why it’s important to question your financial assumptions?

There are some investment rules that guide us while planning our personal finances. But many of these rules are based on certain financial assumptions. Depending on your current finances, lifestyle, and circumstances, you may need to challenge these financial assumptions to figure out what works best for your situation. In this article, we shall guide you on how to challenge your financial assumptions related to the crucial decisions of budgeting, insurance, investments, and estate planning.

When it comes to personal finance and investments, our decisions are guided by certain rules that are based on certain financial assumptions. But in real life, everyone’s finances, lifestyle, and circumstances are different. Accordingly, based on your situation, you have to rethink your financial approach to these investment rules and figure out what works best for you.  In this article, we shall guide you on how to challenge your financial assumptions related to the crucial decisions of budgeting, insurance, investments, and estate planning. 1. Budgeting Personal financial planning usually starts with budgeting. While making a budget, the general rule that most people follow is: Income – Expenses = Savings and Investments The above rule usually works for people who are...