We’ve all been guilty of making excuses when it comes to doing things we don’t like or are scared of. For many of us one of those things is planning our finances. With this in mind, we’ve created a list of the top 5 excuses for putting off planning of your finances and have provided a rebuttal to each one. Hopefully this helps you move past whatever may be blocking you from taking control of your finances and bettering your future financial situation.
1) I DON’T HAVE TIME
This is the most common of all excuses- regardless what the task is. However, often times this excuse carries very little weight as it can be tied directly to our low level of interest (values) or fear in what is being asked. If you want something bad enough or want to make a change, then you have to allocate time to it. In other words, by saying you don’t have time, you are saying that your future is not YOUR top priority. That needs to change!
2) I AM TOO POOR TO INVEST
A common misconception that people have is that they are too poor to invest or would have to dramatically change their lifestyle to be able to do so. A major asset that the majority of people don’t realise they have in their back pocket is the equity in their home. Though one cannot physically see this, equity can be used to borrow against and thus, invest further with. There are several benefits to this including many involving tax. Also, in today’s market, it is possible (under the right circumstances) for people to invest in residential property for as little as $100 a week. So let’s make this the last time you assume you are ‘too poor to invest.’
3) I’LL RETIRE ON THE PENSION OR MY SUPER
If you don’t realise it by now, you should…the pension is almost surely not going to be able to fund retirement for many Australians moving forward. This is no longer a realistic option. And though superannuation can definitely be used as a contributor to help fund retirement, it usually cannot be relied on solely. One option that many people overlook is the idea of self managing their superfunds (SMSFs) and investing through it. This surely is one way to help increase their retirement funding.
4) I HAVE MY MONEY IN MY HOME TO HELP WITH RETIREMENT
In Sydney especially this is very true, many people have very expensive homes. However, even if your home is completely paid off come retirement, that equity cannot be used to pay for things like groceries or bills. The reason being is that even though your home is an asset, it is not a liquid, income producing asset-like investments. The truth is that in today’s world, especially in Australia, some sort of investment portfolio is usually needed to supplement retirement and ensure a comfortable lifestyle.
5) MY BANK GIVES ME FINANCIAL ADVICE
Like most other companies, when a bank gives you advice on things like home loans for example, they are trying to do well by you but are limited as they can only offer ‘their’ own products. The benefit of using an independent financial brokers/advisors is they are not tied to any banks or lenders and therefore, can get you the most suitable product for your situation regardless of where they are coming from.
So make today the day you quash your excuses and start taking control of your finances.
Remember, investing in your future means investing in YOU!