9 Financial Advice Myths EXPOSED!
When WE surveyed millennials about money, we found out that some millennials distrust financial advisers. In light of this, our Financial Coaches Rebecca, Garry, Christine and Freya are putting to rest some common financial advice myths.
1) Only rich people need advisers
False. Smart people get advisers as they recognise they need help.
In fact, the less money you have the MORE you actually need advice.
The less you have in savings and investments, the more you rely on your income.
Because you’re so reliant on this income, not only do you need to ensure that you’re making the most of every dollar, you also need to ensure that this income is protected, too!
Financial advice doesn’t start when you have millions of dollars, it starts with the basics and builds on that.
- To get to a million dollars, you need to invest.
- And to invest, you need surplus.
- To have surplus, you need to be better with your cash flow.
- And to be better with your cash flow, you need to learn to budget comfortably.
- To budget comfortably, you need the right bank account structure so every time you’re paid, you know how that money should be allocated.
- And to know how the money should be allocated, you need to work out how you wish to live your life on a day to day basis and what you value.
And to do that… you need help from an incredible coach!
2) I can do it alone
But have you? Do you have a focused plan or really know what you are doing?
There are a plethora of resources available about what you should do with your money. It’s great to be in control of your finances and to educate yourself.
In fact, we financially educate all of our members because it’s so important to be empowered with your money.
But the truth is, it’s hard to know what’s right for you.
Many of the resources available are very generic – they’re written for a wide audience and not tailored to you personally.
A tailored Financial Plan not only will give you strategic advice, but it will also give you strategic advice specifically tailored for you and your circumstances.
3) Advisers only help with investing
As financial coaches, its WAY more than just the money. This is definitely a common misconception. Advice reaches far beyond investing. As well as investing, we cover areas such as cash flow management, long-term wealth and your back up plan.
4) Advisers are only interested in making money
This may be true for some of the ‘old school’ advisers out there, but certainly not for everyone. When choosing an adviser and coach, make sure that they fit in with you are your needs. Ask them why they do what they do! For instance, Rebecca is on a mission to help empower people to take control of their finances, improve their knowledge and gain confidence to turn their life around. She typically works with people who are just starting out on their financial journey.
5) I’m still young, I don’t need to start until I’m 50+
Your youth is your best asset because it gives you time! You have all of this time to make your money work hard for you so that you can live your best life both now and into the future. In Rebecca’s previous role as an adviser to pre-retirees and retirees, she was faced with so much regret from those clients. They regretted not having started younger because it meant that they were in a position where they couldn’t do all of the things that they want to do. We only live one life – don’t risk regret!
6) All advisers are the same
Breaking news, advisers are people too! We’re all different – different personalities, different styles, different expertise. Choosing an adviser for you is like choosing a pair of the right shoes – if you don’t get a suitable style and size for you, it can be uncomfortable.
7) Your adviser should be a millionaire
While every adviser should certainly practice what they preach, you want someone who is in the trenches with you. Someone who has been through the same experience and knows what you’re going through is invaluable. They can provide you with insider knowledge of their learnings and provide you with genuine and sincere empathy and support. (But if it’s really important to you, know that we do have coaches who are!)
8) Advice is just about spending less than you earn
This is a great starting point but it’s what you do next that defines how wealthy you will be. There are two guaranteed ways to build wealth: reducing your expenses or earning more money to create a surplus. While spending less is certainly an important area, what do you actually do with that surplus to help build your wealth and achieve your goals? That’s where advice comes in!Advice helps you find the right balance between your present self and your future self, and everything you need to do to look after both.
9) Advice is too expensive
Do you have any other questions or myths you want to see exposed? Let us know and we’ll bust them!
To chat with any of our Financial Coaches about your finances, book in a Free Strategy Session.
Disclaimer: all information contained within this article is of a general nature and should not be relied upon when making financial decisions. Please consult a professional financial advisor or planner (like us!) before acting.