Which of the following is NOT an advantage of personal financial planning?

Among the options provided, the statement regarding reduced tax liability is not inherently an advantage of personal financial planning. While effective financial planning can lead to tax-efficient strategies, the primary goal of personal financial planning focuses on maximizing the use of available resources, enhancing personal relationships through shared financial goals, and maintaining better control over one’s financial situation.

Increased effectiveness with resources is a core advantage, as financial planning helps individuals allocate their income and investments wisely, leading to better financial outcomes. Improved personal relationships can arise from financial planning, as clear communication about financial goals and responsibilities can strengthen partnerships and familial bonds. Increased control of financial affairs is also a significant benefit, as it empowers individuals to make informed decisions about budgeting, saving, and investing, contributing to overall financial stability.

In contrast, while financial planning may indirectly lead to reduced tax liability through strategic investments or retirement planning, it is not a direct or universal advantage for everyone practicing personal financial planning. The focus is more on comprehensive resource management and personal empowerment rather than solely on tax reduction.