Month: February 2019

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,

Have you ever stopped and suddenly realised that you have been making the wrong decisions? Living the wrong choices and now suffering the consequences?

Whether it be in a relationship, a job, or with your finances, sometimes we are just plain blind to it until something, or someone wakes us up.

I know this has happened to me many times. This year marks 20 years of running my own business. Today, while packing up and prepping for an office move, I came across so many items that I’ve purchased over the years, that are no longer of any use. It turns out that many if not most of these things were a poor use of my precious capital. And, I have to admit, most of them were not well thought out investments, made with the aim of making me and my company more money for the long term. Rather, they were things or ideas that seemed appealing in that moment. I didn’t really question what, if any, long term value did they hold.

This spending without a plan didn’t seem to cost me that much at the time. But when I reflect back, I now see it was the opportunity cost that was the real price tag. If I had put that money into something that increased in value, what would it be worth now? If I had spent that time on a project that was successful, how much profit could have been made?

I have realised that planning in business and your life both have to be seen with the overlay of future you. What’s the benefit of this decision in ten year’s time? Will this add to my overall life plans and goals? What time will this take that I could be putting to my family or other more viable ideas? With this in mind, I have developed these three questions which should be asked ahead of every spend decision or choice on where and how to spend your valuable time.

1. What am I doing this for?

Profit? Pleasure? Future growth? Have a clear idea of your endgame. If it turns out to be pleasure more than not, you may find yourself making decisions future you will regret.

2. What’s the best case scenario for this decision and what’s the worst?

Can I afford the consequences? If you can’t afford worst case scenario, don’t do it.

3. How will this fit into my life in ten years?

How can you think it out now so that it is maximised in the future? Make decisions only after careful consideration. Undoing them is costly. Take your time.

As I have seen again with my Five Pillars diagnostic, time is as valuable a resource in growing wealth as money itself. How you invest your time and money now will have a massive impact on how you live your future. I’m definitely a work in progress.

Until next time