Typically, advice pertaining to financial planning and wealth creation deals with things that individuals need to do. At Personalfn, we thought it would be interesting to turn the discussion on its head and consider the same from a contrary perspective. We present five pointers that should serve as warning signs for you. If you fit into any of the situations listed below, we believe its time for you to get your act in place.

1. You don't have an investment plan

Not having an investment plan in place is almost a certain way to ensure that you will encounter financial trouble. Without a detailed investment plan, your finances are as unambiguous as they can get. A steady and sound income stream in the present, makes most individuals victims of "financial myopia". They fail to foresee the situation in the future when income streams could dry up. Even planning for contingencies is something that never features on the "to do" list of most individuals.

Contrary to popular belief, the need to have an investment plan is pertinent even for individuals who are financially sound at present. This is on account of the need to maintain the same lifestyle during their retirement days. Having multiple investment plans for various needs like retirement, buying a house or providing for children's education is a must.

2. You spend in an unrestrained manner

Spending in an unrestrained manner with scant regard for your overall finances is something you should be wary of. This is especially true if your spending comes at the cost of monies that have been set aside for investing. Monitoring expenses using a tracking tool can offer you an insight into your spending habits and the opportunity to evaluate their necessity.

Resist the temptation of indulging in impulse buys. Similarly, beware of misusing credit cards and their facility to make "minimum payments due"; you could land into a debt trap even before you realise it.

3. You are saddled with an incompetent advisor

If your investment advisor's role is restricted to simply delivering and picking up application forms, rest assured, you are dealing with the wrong advisor. In this day and time, quality advice along with prompt service should be the investment advisor's core offering.

With more investment options routinely being made available to investors, the onus to study and assess the feasibility of these options has passed onto the advisor.

Selecting an advisor because he offers rebates is certainly pass�; such a step could prove to be counter productive over the long-term. The advisor should play a proactive role and be in charge of your financial planning process. He is a key link who will help you achieve your financial goals. Ensure that you are dealing with the right investment advisor.

4. Your investments are lop-sided

If your investment portfolio is lop-sided in favour of a single asset class like equity, it could prove to be detrimental to your finances. Asset allocation i.e. holding a portfolio comprising of various assets like equity, debt, gold and property among others in varying proportions is the key to successful financial planning. The investments in various assets should be in line with your risk profile and investment objectives.

A balanced portfolio offers you the benefit of diversification. A downturn in a given asset class can be off-set by the presence of an alternate asset. This is an area where your investment advisor's skill sets and competence will be thoroughly tested.

5. You lack discipline

Broadly speaking, discipline is the cornerstone which will determine whether or not you achieve your financial goals. By discipline, we mean the perseverance to stay the course with your investment plans. It is vital that you maintain the sanctity of your investment plans and stay invested in line with them at all times. Similarly, not dipping into your savings for any purpose other than the earmarked one is important. Score well on this parameter and you stand more than a fair chance of steering clear of any financial mishap.

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