This week, we provide some tips from Greg Bradfield, Alexander Forbes Certified Financial Planner, on how to break bad habits and build wealth.
Today’s lifestyles are busier than ever before, resulting in bad financial habits and the neglect of important issues which inevitably play an important role in securing financial well-being, especially in retirement years.
From a young age we are taught about the importance of being successful. As we get older we reflect on the decisions we’ve made in the past, some of which have benefited us in the long term and some of which haven’t.
Greg Bradfield, certified Financial planner at Alexander Forbes Financial Planning Consultants, says people need to learn to break habits that contradict the good old idea of saving as much for the retirement years as possible, from the soonest day possible, during their working career.
Make saving a habit
“From disciplined monthly savings to accepting investment risks, successful investments are only achieved with patience and by understanding what you need to do to meet your objectives.
“There are a few bad habits that contribute to individuals not meeting their financial goals, such as taking your retirement savings as cash when you resign, not having a budget in place, high debt levels, and a lack of interest in your financial affairs.
“With medical advancements and people living longer, our working careers are becoming proportionately shorter than our retirement years, slowly reducing the amount of time we have to build up enough savings to take care of our needs later. This, in turn, means that there is less room for mistakes as these will be more costly in the long run.
“With the ever-changing financial and investment landscape and expectations of higher inflation and lower growth in future, it’s important to have a clear idea and number of what you need to secure your financial well-being. It’s never been more important for each one of us to take responsibility for our saving habits.
“We also need to discipline ourselves to create a culture of financial planning, and make a commitment to understand the factors that will eventually determine the outcome of the lifestyle we can afford in our retirement years.”
Changes now that benefit you later
“With understanding comes encouragement, with encouragement comes emphasis and finally with emphasis comes the desire to act.
“These actions will help you remain focused on doing what’s best now to benefit you later in life,” Bradfield says.