Invest Smart: How to overcome financial obstacles

Setting financial goals is perhaps one of the most crucial aspects of beginning your financial planning journey.

We often talk about creating financial goals and how to reach them. However, sometimes while trying to reach those goals, there could be some unexpected obstacles that could come in the way. It's important to know how to overcome such obstacles or even prevent them whenever possible.

Some obstacles that investors often have to deal with include overcoming a negative cash flow or the problems caused by investing in an illliquid asset.

"The EMI of the loan for some people constitutes 60% of their total monthly income thus rendering them into a cash crunch at the end of each month", says Kalpesh Ashar, CFP & RIA.

Another instance is the fallout of insurnace mis-selling. "There are many Individuals that are stuck in numerous ‘investment cum insurance policies’ where more than 50% of their annual income is used in making the premium payments. Thus, leaving a sum of paltry cash in hand for them to live a comfortable life", Ashar points out.