We all make bad decisions about money from time to time. But what if you could avoid future financial errors by learning from others?
In the FPA’s Live the Dream 2017 National Research Report survey we asked Aussies for their top financial regrets so you can learn from their mistakes.
Ask a financial planner and they’ll tell you that these mistakes are common but can be resolved with a financial plan.
- Not saving enough
Sticking to a budget is top of the list when it comes to setting yourself up for financial success. To be an effective saver you need to set some clear goals to motivate you and come up with a budget to stick to so you’ll have enough to put aside at the end of the week or month.
- Not studying enough
While it’s not strictly speaking a financial goal, not taking the time to study or studying more is a major regret for 22% of Australians. Getting an education after leaving school can boost your average full-time weekly earnings significantly.
- Poor financial planning
Leaving your financial future to chance and relying on luck to take care of your needs is one of the mindsets that can sabotage your financial wellbeing. By taking the time to map out your goals – for your lifestyle and finances – and consider whether your income is enough to help you meet these goals, you can start prioritising how you spend money now and save or invest it for the future.
- Not investing enough
Investing money can be a good way to set up an extra income stream so you don’t have to rely on a salary as the only way to grow your wealth. If you’re new to investing, there are lots of options to consider so it’s important to make sure you understand the pros and cons of different asset classes and products, such as managed funds.
- Investing in the wrong things
Investing is never going to be a surefire way to get wealthy. However, you’re more likely to stay ahead financially when you know what you want to get from your investments and educate yourself about the risks and rewards of different investment approaches and strategies.
Whatever mistakes you’ve made with money in the past, a certified financial planner professional can offer valuable advice on making positive choices for a more secure financial future.