The Three Greatest Money Mistakes
There are three huge mistakes so many Australians make when it comes to managing their financial futures… let’s run through them.
1. Failing to plan
Most people would be happy to pay less tax AND be able to retire earlier… yet most never get around to coming up with a plan to make it happen. As Benjamin Franklin once said, “If you fail to plan, you’re planning to fail.”
In fact, not creating a financial plan is possibly the biggest financial mistake most people make. They’re behind the eight ball from the start!
A financial plan is a living document. It is something that evolves over time as your goals and needs change through various stages of life. But, if you never have one in the first place, then you’re going to struggle. The words of Laurence J Peter are so true, “If you don’t know where you’re going, you will probably end up somewhere else”.
Where are your financial decisions leading you? Having a financial plan is how you create success on purpose.
2. Not investing
The biggest investment mistake of all is not investing. So many people never invest for fear of losing money, not realising there are sensible and logical strategies they can use to avoid losing money AND set themselves up for a wealthy financial future.
The key point here is that you will NEVER save your way to financial freedom. You have to save AND invest your way to financial freedom.
It might feel safe in the short-term, but I can guarantee you that leaving your long-term money in the bank is a recipe for disaster!
Speaking of recipes…
3. Getting the recipe wrong!
You’d know from your own cooking experience that when you try and make something up yourself, it normally pales in comparison to the classics. You’d also know that when people try and mess with the classics it normally doesn’t end well either. When it comes to money, you don’t need to create your own recipe or mess with the classics. The strategies that have allowed those who follow them to become wealthy have always worked and always will. And they are available to everyone!
Use your available ingredients in the right proportions – savings, investments, super and pension – and you’ll have a recipe that works. But this is a recipe that’s all about slow cooking!
Don’t ever be fooled by get rich quick schemes… get rich slowly instead.
And on that note, local mortgage broker, Amanda Gleeson, who runs her own business, Compari, and I, will be running a ‘Get Rich Slowly’ seminar on Monday 15 July from 6pm to 7.30pm. It’s a free event, so if you’d like to hear from two passionate locals who are helping others set themselves up for a better financial future, come along and have a listen. Head to wealthtrain.com.au for more information.
If you’d like to find out more about how INDEPENDENT financial advice could help you manage cash flow, pay off the mortgage faster, get the most out of super and invest wisely, then get in touch on 0411 484 464 or head to wealthtrain.com.au.
Daniel McGregor is the man behind Wealth Train and is a member of the Independent Financial Advisers Association of Australia. This advice may not be suitable to you because it contains general advice which does not take into consideration any of your personal circumstances. All strategies and information provided are general advice only.
Daniel McGregor and Wealth Train are authorised representatives of Independent Financial Advisers Australia AFSL 464629