For most of us, the biggest financial enemy we face is inertia. Inertia is a tendency to do nothing or to remain unchanged and when it comes to our money, it can have a massive impact on what our lives are going to look like in the future.

Think about the big pieces of your financial puzzle:

• Mortgage
• Superannuation
• Investments
• Insurance

“I’m really busy at the moment, I’ll get to this stuff later”, we say. We all tell ourselves this when it comes to many things in our lives, but some things have bigger implications than others.

For example, if you don’t mow the lawn this weekend, it is not going to have much of an impact other than looking a bit untidy until you can next get to it.

On the other hand, if you have a mortgage and you don’t do something about how you manage it, it could well cost you a six-figure sum in additional interest paid.

If you’re employed, you will have super. The Grattan Institute has found that on conservative assumptions, a 50-year-old Australian will have his or her super balance reduced by almost $80,000 in fees at retirement. ­A 30-year old will lose more than $250,000, or about a quarter of his or her total balance.

Paying too much in fees on other investments outside of super can also have a significant impact, while paying too much for insurances robs you of money that could be put towards things like higher mortgage repayments, additional super contributions or other investment strategies, reducing your ability to create wealth for down the track.

Inertia is a powerful force. How long will you keep kicking the can down the road, planning to do something later? The clock is ticking and you only have a certain number of pay cheques left to work with.

Part of the problem is the overwhelming nature of financial decision-making. Information overload, analysis paralysis… it can all seem too hard.

However, it’s essential to overcome financial inertia because when you delay taking action, you’re ultimately reducing the amount of money you will have in the future and that will restrict your freedom of choice and lifestyle options.

Overcoming inertia ASAP will enable you to put in place a strategy that can set you up for financial success.

Do you feel like you need help and value advice that is independent? Let’s catch up for an initial chat.

Cheers,

Daniel