One of my goals is to improve financial literacy in the Central West. Why? Because most people never get taught much about money, how it works and how to manage it. And while some people might not be too fussed about that during their working lives, I’ve seen far too many people who’ve come to get advice at the end of their working lives only for them to say, “I wish someone had shown me all this when I was younger”.

I often run free seminars in town to give people some great quality information and these seminars cover a range of topics. I thought I’d let you in on a few of the light bulb moments people experience:

• Many people think having a budget means they will have less to spend. They are pleasantly surprised to know that when done properly, budgeting finds ways of saving money so you can actually spend more on the things you enjoy.
• Many people think superannuation is some kind of government conspiracy. I ask people two questions. Firstly, ‘What do you think is the biggest disadvantage of super?’ Most people say it’s that you can’t touch it. I immediately follow up that comment with the second question, ‘What do you think is the biggest advantage of super?’… and everyone says, ‘Ahhhhh’, as they instantly realise that not being able to touch our super until retirement is the greatest thing about it! Without superannuation, we’d all likely have next to nothing put away when it comes time to retire.
• Many people also think life insurance and income protection is either a waste of money or that they simply don’t need it. It doesn’t take long to tell a couple of quick stories of disaster before people realise that their most valuable financial asset is their ability to produce an income. As they care about their spouse and kids, they realise they need to make sure they’re protected financially.
• Many people also think investing is risky. That’s because the only finance news most people see is the bad financial news that makes it on to the front page. Bad news sells… Ever noticed how good financial news never makes the front page? Done sensibly, investing is how you create wealth for your future. We’ve just finished the ninth straight financial year of positive returns for superannuation and you can be sure that good news won’t make the front page.

These are just a few of the limiting beliefs that many people carry with them which means when it comes to making financial decisions, they are often their own worst enemy.

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.

Cheers,

Daniel