No matter who you are, or what walk of life you come from, we all have something in common – money. Whether you have a little or a lot, money will be at the top of the list for people to talk about, as Australia experiences its first real property downturn in over 10 years, and banks tighten lending conditions due to the Royal Commission into Financial Services.
While there have been many shocking revelations made to the Australian public because of the Royal Commission, there have also been some good outcomes. Namely, that moving forward people know it is the age of personal responsibility. No longer can people blindly trust institutions to have their best interests at heart. We all need to understand and manage our money with the knowledge that the decisions we are making are the right ones for our financial future. Here’s five ways this will play out in 2019.
1. People will value and respect the educators.
With knowledge comes power, and empowering people to understand money and what choices to make with it will become more of focus moving forward. Companies that continue to flog their own product at the expense of educating people will only build mistrust. It’s the age of organisations investing in their customer’s knowledge.
2. The downturn in property will drive people to understand other investment options.
When there is no longer a gold mine to be made in investment properties, savvy investors will be looking to understand the stock market, fixed income and a whole range of other investment vehicles to make money. Again those with the clearest communication and authentic learning strategy will thrive in this era.
3. Super funds will step up.
In a world where the government tinkering with super rules is making people nervous, super funds themselves will lift their voice to their members, and create education and a platform of stability to keep peoples trust in their super high. We should see less emotive brand ads and more meaningful education via seminars and online.
4. Financial advice will be overhauled.
New education standards set for advisers will mean there will be an old guard who steps away from advice. The new breed of adviser will be highly educated and a trusted partner in getting people money fit. Those who find the right financial adviser will thrive.
5. Personal debt will become a deal breaker for many Australians.
With one of the highest household debt ratios in the world, many Australians will want to work their way out of a stressful debt situation. With no meaningful growth in wages, people will need new skills to help them rise from their personal debt. A strategy of unlearning money and beginning anew will help.
For both organisations looking at their strategy for their staff and their customers, and individuals looking to take control of the money, 2019 will be an important year to start the conversation and give people education they can trust and use. I am looking forward to talking to many of you in 2019 and beyond.
Until next time,