People don’t plan to fail, they fail to plan

The oldest cliché in the book is that “people don’t plan to fail, they fail to plan”.  A recent survey shows this rings true when it comes to our finances.

The Financial Planners Association recent conducted a survey which indicated that two thirds of Australians don’t have a financial plan, and many don’t believe they will meet their financial goals.

According to the survey, the most important goal for both Gen X and Baby Boomers was to set themselves up for a comfortable retirement. The most common goal for Gen Y was buying their first home.

Half of Gen X and 40% of Baby Boomers didn’t think they would have sufficient savings for retirement, and 40% of Gen Y didn’t think they would be able to own their own home.

The message here is clear, if you want to achieve things in life, you need to put a plan in place. When it comes to our finances, as a rule, Australians are not establishing a financial plan and, as a consequence, many don’t believe they are on track to achieve their goals.

I believe there are a number of reasons that most Australians don’t have a financial plan. I think that apathy and the “she’ll be right” attitude is a big part of it.  In addition, there are probably concerns with the cost of a financial plan and possibly issues with trust.

My view is that the biggest reason people don’t get a financial plan is that they don’t believe they have enough money to warrant a financial plan. This is a catch 22, you need a plan to build wealth, but won’t get a plan until you already have wealth!

As I always say, you don’t need to be rich to have a financial plan, and it is not cost prohibitive to see a financial advisor. The sooner you put a plan in place the more likely you will be to achieve your future financial goals.