Better budgeting key to financial freedom


By Sarah Kendell

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The majority of advisers believed budgeting was the main skill clients needed to master to achieve their financial goals, according to new research from Yellow Brick Road.

A survey of the company’s network of wealth managers showed 34 per cent believed failing to budget was the key reason their clients often did not achieve their financial goals.

A further 17 per cent of advisers believed apathy towards their monetary position was a hindrance to clients achieving financial success, while 17 per cent believed clients were fearful of seeing the reality of their financial situation.

Yellow Brick Road external affairs manager Lyndsey Douglas said the results showed budgeting was a major area for improvement when it came to Australians’ financial health and an area where advisers could add value.

“Budgeting doesn’t have to be difficult – it’s about becoming aware of how you’re spending your money each week and setting some goals,” Douglas said.

“Once you have an awareness of your spending habits, you can put an action plan in place to be sure you’re saving appropriately, not overspending and reaching your targets.

“It’s simple – that which is measured, improves.”

She said the amount of advisers who cited apathy among clients was also a concern and it was important Australians sought advice early to feel more in control of their finances.

“While finances may not be the topic of choice at dinner parties, setting some time aside and getting serious about your financial situation is important,” she pointed out.

“Burying your head in the sand won’t help achieve your goals – the earlier you ask for help, the more can be done to help you grow wealth.

“Achieving a financial future that you dream of is a lifelong commitment and getting started early with some expert help can make a big difference.”

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