We all work hard to earn the money in our pockets but do many of us know how to manage that money properly?
We caught up with financial guru Scott Malcolm to get a few tips on how we can maximise our money, so it works for us and not the other way around!
Scott says the most important thing is to pay attention to your money and to learn how to make your money work for you so you can have freedom of choice and freedom from the pressures of debt.
“Money is one of those human-created systems which we are all born into but don’t often spend much time upskilling around.”
Our lack of knowledge and understanding around money can be detrimental to our financial stability and success. One of the most common myths is: that you don’t need a financial plan if you don’t have any assets.
Scott recommends everyone should have a financial plan regardless of how many assets or money they have because it will help to empower them with information about their financial position and help them to make the right decisions about spending, saving, debt and retirement.
The lack of a financial plan is just one of the common problems people have with managing their money.
Scott says the three most common problems he sees surrounding money are:
- Lack of understanding. Most of us do not understand money terms such as; tax, interest and investments, superannuation and we can be easily overwhelmed by dollar signs, decimal points and percentages. Understanding money is a learnt behaviour and a skill that we all should obtain. If we just learn the basics then we’ll be better off.
- Lack of time. We are all busy and don’t often have time to focus our energy on our personal relationship with money or building a financial decision-making framework. If we can invest time into creating a framework then it can make a lifetime of difference, especially with long-term decisions around superannuation and retirement.
- Comparison. When your reality can’t afford your ambition. This can often spell disaster if you are trying to impress friends or family with something you really cannot afford. If we are not in control of our fear of judgement or feelings of shame towards money then it can lead to even more financial hardship. We need to live within our means.
You can savvy up your money wits at our Maximise Your Money short course or Making Superannuation Super, view upcoming dates.
Scott says upskilling and paying attention to your money is integral to financial success. Understanding your money and how it impacts your interactions in life will ensure you have a deeper understanding of any triggers that might knock you off your horse, so to speak, when it comes to money, temptations etc.
“Increasing your skill and understanding around your money and what you can make it do for you is empowering. It helps people to feel more in control of their lives and their long-term plan.”
Scott Malcolm is our Maximising your Money tutor. He entered the financial services industry in 2000 after he discovered his passion for helping educate others about managing their finances. His drive is to empower others to better understand the financial elements of their lives and how this can impact their broader life journey.
Scott is an internationally recognised Certified Financial Planner and has extensive experience in Financial Life Planning, Tax and Superannuation Law.