Did you know that over three quarters of the Australian population are flying blind when it comes to managing their finances?
Often for reasons relating to the below:
- They feel that there is nothing they can do to make a difference to their financial situation,
- They aren’t informed or have difficulty understanding money matters,
- They live for “today” rather than their future – buying things on impulse,
- They find managing money to be a stressful and overwhelming process, or
- They are unaware of the tools available to help them to more effectively manage their finances.
According to ASIC’s 2014 “Australian Financial Attitudes and Behaviour Tracker,” more than a third of the participants surveyed reported that they didn’t use or stick to a budget. A similar percentage only had a short-term financial plan in place, with even fewer having a long-term financial plan. Although the majority of participants reported that they did track their expenses in one way or another, few spent time planning ahead.
These statistics are quite concerning. Especially provided that in most cases, both a short and long-term plan is required to achieve your financial goals, build your wealth, protect yourself and your family and generate good money spending habits.
So, why don’t more people do it?
Why 78% of Australians Have No Plan
As per the Australian Bureau of Statistics, only 9.1% of Australians retire self-funding, with 83% relying solely on the pension to fund their retirement. A study by Suncorp also revealed that 42% of Baby Boomers are expected to work into their 70’s, with a further 23% likely to work into their 80’s – just so that they can afford to retire.
As a species, humans are known for their many talents but we also have our weaknesses. One being our dependence on creating excuses rather than taking action.
If I was to ask why you don’t have a financial plan yet, what would be your response?
Would you be:
- The Busy-bee: “Works been hectic. I’m too busy. I just don’t have time to make a plan.”
- The Unresourceful: “I don’t know how… (and can’t really be bothered finding out).”
- The Day-by-Dayer: “I prefer to live in the moment. I can start saving and planning for my financial future when I’m older.”
- The Procrastinator: “I don’t feel like making a plan right now. I’ll do it later.”
- The Naïve: “I’ll be fine. It’ll all work out. I don’t need a budget or plan for my future.”
- The Plan-ophobe: “Plans aren’t my thing. I’m not good at sticking to them.”
Currently, which one are you?
How To Make Sure That You’re Not In the 78%
People who are financially successful have a plan and they continue to make smart decisions in alignment with their goals to keep them on track. These people include:
- The Savvy Investor, who plans their time and money wisely to maximise their return on investment
- The Innovative Entrepreneur, who’s planning for an early retirement.
- The Successful Stay-at-home “Mumpreneur” who wants to invest her money on the side to provide additional support for her family
- The Young Gun, who has already started building an asset base so that he or she can earn a passive income in retirement.
Wouldn’t you prefer to be like one of these Australians instead? It’s time to get those wheels of yours in motion.
Here’s how you can get started.
At Infinite Wealth, we can offer you a Planning & Strategy Session with one of our specialist Client Managers. Normally each session is valued at $295, but as a gift for registering now, we will give it to you for FREE!
In a one-hour Planning & Strategy Session, your Client Manager will reveal how you’re currently tracking financially, where you’re likely to end up (if you continue doing what you’re doing now) and where you could be by making a few small changes (using only what you have available to you right now).
Regardless of whether your goal is homeownership, travel and lifestyle or early retirement, a Planning & Strategy Session could transform your future.
This is how you can set yourself apart from the 78% of Australians who have no financial plan.
Do you have what it takes? If so, take some action –