We received our first money ‘guidance’ from our parents and learnt to spend/save with our pocket money. At the time, the big question was do I spend my $5 now, or do I save it until next week so I can spend $10? Our first exposure to banking was receiving your shiny new deposit book when you opened a ‘Dolomite’ savings account. Whatever it was for you and whether you realise it or not, how you manage your money today is a result of your past experiences and influences. There is no one place where money advice came from. The issue comes when we fall into a habit of seeking guidance from the same sources that we used as a 10-year-old when we reach our 40’s because generally the needs and objectives of the 2 age groups are starkly different. One must constantly assess whether the many sources where we ‘gather’ information from are suitable and serving our current needs.
Gathering information from a variety of sources such as articles, books, blogs, friends, family, peers, financial institutions is great – but remember some information should be taken with a “grain of salt”. With this in mind, here are a few of the benefits and pitfalls of asking our most common sources of information about financial matters:
Parents and Grandparents:
This should not be the only place you seek money guidance from. Your parents are in a very different life stage to you, meaning that what is currently important to you (like making money to buy a property or to invest) is probably not what they are focusing on financially (think retirement, superannuation and downsizing the family home) so unfortunately what is working for them may not suit you or your objectives. What they will be helpful with is that they have been where you are, so they can enlighten you about lessons they learnt along the way.
Workmates and Friends:
The thing to remember here is that they aren’t experts either - they are simply giving you information about what has or has not worked for them. It is a great place to start, and generally speaking friends in a similar life stage to you, but their information and experiences shouldn’t be the only place that you seek money advice from. Everybody is different and no two people’s money situation is the same, so it is great that it worked for them, but you need to ask yourself whether there is something even better for you, based on your situation. As an extra check, ask yourself whether that person is in the financial position you want to be in because modelling someone with bad financial habits will result in similar results for you.
Websites and Blogs:
This is a way to remain anonymous whilst finding out the options or for getting general financial information. You should tread very carefully here though as they may be only showing product bias and they are not normally accredited/authorised to provide financial information. The internet is a wonderful place to start your research-it’s fast, private and the information is abundant. Sadly it is rarely accurate and never most relevant to you.
Financial Adviser:
The great thing about seeking out us as financial advisers is that we are experts, who are authorised to give you specific advice by taking into consideration your individual circumstances. Of all the ways to obtain information to help you with your finances, THIS one is the best. We will offer you a free initial meeting where you get the opportunity to ask questions whilst they get to know you too. After the initial meeting, if you wish to proceed, we will present you with specific recommendations and guide you through the process of getting your financial affairs in order and ensure you track towards any goals you have set with you. What better way to overcome the complexities in navigating the financial world, but with your own personal Financial Navigator?
Hot Tip:
Seek information from only trusted and licenced sources and no matter who you go to and trust for money advice, always consider whether it is appropriate to you and your situation.
Disclaimer
This information is current as at 22/03/17. This article has been prepared by Heart1Stop, a social media brand owned by Heart Mortgage Services and Heart Financial Advisers. The information contained in this article is an overview or summary only and it should not be considered a comprehensive statement on any matter nor relied upon as such. The views expressed here are not those of Heart1stop, Heart Mortgage Services, Heart Financial Advisers, shareholders, directors or staff and associated contractors and business associates. This article has been prepared without taking into account any person’s objectives, financial situation or needs. Because of this, you should, before acting on any information contained in this article, consider its appropriateness, having regard to your objectives, financial situation or needs. Any taxation information contained in this article is a general statement and should only be used as a guide. It does not constitute taxation advice and is based on current laws and their interpretation. Each individual’s situation may differ, and you should seek independent professional taxation advice on any taxation matters. While the information contained in this article may contain or be based on information obtained from sources believed to be reliable, it may not have been independently verified. Where information contained in this publication contains material provided directly by third parties it is given in good faith and has been derived from sources believed to be accurate at its issue date. It is not the intention of Heart1Stop or Heart Mortgage Services and Heart Financial Advisers that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. To the maximum extent permitted by law: no guarantee, representation or warranty is given that any information or advice in this publication is complete, accurate, up to date or fit for any purpose; and no party of Heart1Stop or associated entities as mentioned is in any way liable to you (including for negligence) in respect of any reliance upon such information. This article may also contain links to websites operated by third parties ("Third Parties") who are not related to Heart1Stop. These links are provided for convenience only and do not represent any endorsement or approval by us.
