There’s a very traditional way that people plan their financial futures in Australia… they don’t!

Our knockabout culture has meant that for generations people have relied on the “She’ll be right mate” attitude to guide them through the stages of their financial lives. That is, right up until the time they realise they are not going to have anywhere near enough for retirement. That’s when, “Oh, shit!” becomes the mantra.

Why is this the case? We live in an age with more information at our fingertips than ever before. We also live in an era where long term financial planning has never been more important, yet the vast majority of Australians do not have a financial plan.

Most of us are in a state of inertia and we’re not going to change until we have to. The problem is that by that stage, it’s too late! Without understanding the consequences of not planning for the future, apathy reigns supreme for many when it comes to money.

What’s preventing you from making better financial decisions that will pay off handsomely in the future? Are you talking about these things with anyone?

Money is something most people are uncomfortable talking about. We’re taught from a young age that it’s impolite to talk about money. It’s interesting that there is so much encouragement to discuss our feelings to help with our mental wellbeing yet talking about money is still often taboo.

This is partly because people worry about being judged. They fear looking like they don’t understand money, they fear revealing any financial mistakes they’ve made, and they fear appearing to not have as much money as their peers. And when it comes to getting help, people fear getting ripped off and don’t know who to trust.

There have been numerous recent reports highlighting just how poor financial literacy is in Australia. If people don’t understand money, then it is hard to make well thought out and reasoned decisions when it comes to money. We need to be talking about money!

By all means, start a conversation about money with the closest people in your lives. This can help everyone involved to start to feel comfortable asking the questions they don’t know the answers to. However, I’d strongly encourage you to seek out expert help before taking action. Why? Well, I’ve seen many people over the years who took the advice of their parents, their children, their friend or their colleague… and while that advice was well-intentioned, it’s often been way off the mark or half-right at best.

Money is the number one cause of stress. We all know how important our physical and mental health is… let’s improve everyone’s financial health at the same time! Let’s talk about it.

Cheers,

Daniel