Australians and Money Management… Where Do You Fit?

August 31, 2014 David Benadretti

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As Australians we love DIY. Consider the popularity of Channel Nine’s rating star The Block. We love watching the transformation of an ugly building into a beautiful home.

But sometimes, especially in the important things such as our financial future, going it alone without any help can actually hinder our progress.

And The Survey Shows…

What Australians think about their ability to manage money and how they actually manage it are two different things! This was revealed by a survey of 7,500 Australians ranging in age from 12 to 75, conducted by the Australian Government’s Financial Literacy Foundation.

The results are very interesting.

money-management-budgeting

As the chart above shows, the difference between knowing how to budget and actually budgeting is a pretty wide gap. Do you think that failing to follow a budget can impact your finances? Of course it does. Consider the next chart.

These individuals realise the importance of investing and learning how to invest, but only a portion of them – approximately 20% of those surveyed – have actually done anything about their financial future by purchasing an investment property.

Now whether these same individuals were getting capital growth and/or cash flow with their investment properties is unknown, but one thing we can glean from this data…people know they need to do something about their financial futures, but they’re not really sure how to go about getting it done!

Finally, the table below reveals what Australians think about financial advice; where they would go to find it and by inference, how much they trust that advice.

money-management-investing

 

Information and Advice Men (Agree) Women (Agree)
Thinking about your situation, for financial information or advice would you consider using…    
Family 62.6 63.3
Friends 57.1 52.9
Newspapers 50.2 44.4
Business/Money Magazines 51.4 43.6
Seminars/Educational Institutions 53.7 50.6
Accountant/Tax Agent 81.3 81.1
Financial Advisor 79.5 84.4
Bank 55.1 65.2
Internet websites 49.5 46.7
Government websites 48.5 50.2
Centrelink 25.2 32.7
     
Have you ever used a financial adviser for financial information or advice? 55.2 53.6
Have you ever used an accountant/tax agent for financial information or advice? 69.3 66.4

 

Interestingly, although “financial advisor” ranked high on this survey (79.5% men and 84.4% women), only a portion of those surveyed actually acted upon their beliefs and sought financial advice from those very individuals they believe are trustworthy!

What About You?

If you had been asked to take part in this survey where would you fit in?

I know that all of the information you get from so many different places can be overwhelming, not to mention conflicting. It’s easy to get overwhelmed simply by the sheer volume of it all.

This is why we have created the Mentoring program. As I’ve always said, you don’t have to be a genius to master property investing, but what helps tremendously is having someone that you can count on to answer your questions and steer you in the right direction according to your individual situation.

We’d like to be that “someone” for you.

I’d like to encourage you to sign up now for a free Positive Real Estate membership. Simply enter your contact information and gain instant access to a world of information put together especially for property investors like you – investors who simply want answers – without weeding through lots of information that doesn’t fit what you need.

To discover all the benefits of a free membership, click here now.

You’re under no obligation and can cancel at any time. We promise!

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