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April 01, 2020

How getting good financial advice changed a life

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Ian Fox
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You desperately want to improve your lifestyle, but don’t know how to manage your finances? Maybe it’s time to consult with the experts.

So many try to accumulate their wealth without too much success.

Spending their entire lives trying to change their financial habits. But in the end, those efforts amount to less than what may be possible. Imagine living financially free with lifestyle choices you can only dream of.

Nowadays, it can be hard to manage your cash flow. Taxes and debt are lurking around every corner. Add the constant sales and persuasive ads tugging at your emotional instinct to buy, and now we may have a potential financial issue on our hands.

And unfortunately, this is the case for many. Financial literacy is one of the key factors of a good education, yet it is not taught in school.

It is generally up to parents and sometimes friends to teach our children how to build wealth and be financially independent. In which case, the views of one, becomes the views of many and the question is… are parents and friends financial experts? Equipped with strategies to improve your personal circumstances?

Here’s a story about how proper financial advice can drastically improve one’s lifestyle.

The Change in Perspective – Kelly’s Story

Kelly Burch always took the time to make her decisions.

When she was in her early 20s, financial worries seemed so far away. She thought it was still early to save for retirement, make a will, or get life insurance. After all, she has yet to have kids or start a family.

As time went on, sorting out her financial situation climbed to the top of her priority list. However, Kelly was the type of person who never leaves a stone unturned. So, she started thoroughly researching all the options available to her.

The quest to find the best possible financial plan was overwhelming and exhausting for her. As soon as she was close to selecting a plan, a seemingly better one came up.

Then, Kelly slowly started approaching her thirties…

“I knew I needed to get around to sorting out my finances. But every time I started looking, I became overwhelmed with the options and procrastinated,” Kelly wrote for Business Insider.

Eventually, she got married and had two kids. Two mortgages followed, along with the worries of how to properly maintain her household. She wanted to protect her husband and kids, but she still struggled with her decision-making.

Little did they know that Kelly’s life was about to change.

It was partly inspired by her failure to choose a superannuation fund that suited her needs. While she was working on that piece, she interviewed an expert financial planner.

The financial planner told her something that she couldn’t forget, “the worst financial decision you can make is to not decide at all.”

The consultant explained why being decisive is so important.

First, if you take too much time to decide on a savings account, you’ll lose money. Money you could’ve invested and profited from due to interest rates. Instead, you’ve spent it on unnecessary things, or you’ve left it to lose value over time.

The point is, becoming well-informed and making good financial decisions is the first and the most important step of any financial plan. One can research and research online, only to believe they have made a good decision, without really understanding the implications.

After a brief conversation with a financial planner, Kelly knew what she had to do. She made an initial series of appointments with the Planner – something that she’d avoided for so long. Where they worked together to find out what more was possible for Kelly and her family. Understanding their values, beliefs, investment timeframes, lifestyle goals and protection requirements. ‘The Planner showed me that by taking a bird’s eye view of the situation, they can piece together a financial picture that not only stands the test of time, but set us on a path to financial freedom.’

Today, she says it’s not important to make the perfect decision on your own. Or to research the latest fund or strategy. What’s important is that there is action and a financial expert standing by my side throughout the journey.

“Challenging myself to make decisions swiftly was empowering. Instead of feeling like I was waffling about decisions, I felt that I was taking control of my life and our finances,” she says.

Kelly struggled to pick an option for so many years, yet the solution was right in front of her all along. It was never about what’s on the table, but about the courage to make well-informed financial decisions.

“Thanks to that piece of advice — I do have an insurance policy, a retirement account, and a growing nest egg to support the family long-term.”

Although it sounds simple, she needed someone to point it out to her.

A few key pieces of advice can launch you on the path to significant financial improvement. And here are some of the reasons why you could benefit from financial advice, too.

1. Make Progress

What prevents you from improving your financial position?

It is as simple as….

  • Spend less than you earn
  • Borrow less than you can afford
  • Put your money to work for you, instead of the other way around.

As simple as it sounds, so many seem to find it difficult to follow these 3 simple rules.  A financial planner can put the strategy and place and keep you accountable, focussed and on track to living a lifestyle, often beyond expectation.

2. Protecting Your Family (and Yourself) from the unexpected

It’s far more stressful to manage finances when your family is depending on you. Any risk you take can affect your loved ones, and this makes it harder to decide on what might be best.

Financial pressure is immense when you’re just starting a family. You may need to take time off work to adapt to parenting and spend time with your newborn child.

Additionally, and this may be difficult to accept, life is full of tragic occurrences. If something bad happens, you need to ensure that your family has enough money to cope.

A financial planner can provide you with the perfect spectrum of solutions to manage your personal circumstances.

It can help you plan for your family’s future. You may be able to save money for your children’s education and even help them in later life.

Furthermore, it can help you prepare for situations when you may have a tight budget. For instance, if you lose a job or take time off to be with your newborn child.

In the end, a financial planner will work with you to piece your personal financial puzzle together, from a bird’s eye view. Empowering you to make well-informed financial decisions and showing you how to protect, manage and grow what’s important to you.

3. Create Peace of Mind

Financial consultants are efficient for both short- and long-term money management.

After resolving the present financial struggles, start planning longer-term. Most importantly, you can start thinking about retirement.  It is never too early to start a long-term financial journey.

The financial world can be complicated and difficult to navigate. There’s an abundance of choices and how do you know which one is ideal?

A financial planner helps simplify and navigate the complexities and shares their financial intelligence to help you make educated decisions.

With the long-term future clear and sorted, you can fully enjoy the present.

It’s Time to Start Planning

Make no mistake, managing your finances is a daunting task. It may sound easy on paper, but creating a proper financial plan is challenging if you don’t do it every day.

Great financial advice is the best way to improve your finances over time. On top of that, it will prepare you for unfavourable situations and help you get back on track.

Ready to take control? Contact us on 1300 888 803 to arrange your complimentary series of initial appointments to discover what more is possible for you and your family.

What to know more on financial advice? Read more of our insights:

  1. Are you Investing for Income or Capital Growth?
  2. Busting Super Myths
  3. When Financial Planners and Accountants Collaborate – YOU WIN

IMPORTANT INFORMATION: This blog has been prepared by Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licences (Number 233209). The information and opinions contained in this presentation is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. Any individual making any investment or borrowing decisions should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to borrow funds or purchase, sell or hold any particular investment. Modoras Pty Ltd recommends that no financial product or financial service be acquired or disposed of, credit contract entered into or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog may change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.

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