Financial literacy is an extremely important quality to have. It’s ultimately the ability to understand and effectively use various financial strategies in maximising your wealth and optimising your personal financial plan.
Did you know?
“Almost 1 in 3 Australians are dissatisfied with their financial situation”1
This is commonly due to being significantly overwhelmed by finances and having limited financial literacy.
“About 8 in 10 adult Australians are not receiving financial advice, even though many would benefit.”2
There are many reasons people end up avoiding all forms of financial advice. Some simply don’t find the topic exciting and choose to completely avoid it. While others see money and investment discussions as quite complex or too overwhelming. Some people just don’t have a financial plan or don’t have the time to think about the future just yet.
According to The University of Melbourne research report, How Australians feel about their finances and financial service providers 2019, one of the most common factors in not seeking financial advice was due to a lack of trust in financial institutions and advisors.
After all, trusting anyone with your financial management is a major task and can often seem quite overwhelming.
However, you can feel reassured with a financial adviser who is able to place your financial needs and goals at the forefront of their services. The ones who take the time to build trust and an amicable relationship, are qualities that you should seek in choosing a personal financial adviser.
However, under all of these reasons lies a lack of knowledge. Most aren’t aware of the financial implications that can occur with having a lack of financial knowledge and not seeking advice until it’s too late.
Mismanagement of your finances is the ultimate reason for the majority of Australians feeling dissatisfied with their financial situation.
If you are someone who is experiencing any of the above feelings towards financial advice, it’s important you read below on why financial literacy should matter to you and how the right financial adviser can help you.
Why Financial Literacy Matters
Seeking a financial adviser and following their advice is a form of financial literacy. When you have found the right financial adviser, they should reassure you that improving your financial situation and guiding you on making better financial decisions is their topmost priority. After all they are the financial experts.
Every time you refrain from obtaining financial advice, you may also be missing the potential benefits that can follow.
CoreData research suggests that:
- People who are more educated about the benefits of financial planning and investing tend to save more than those who have limited knowledge on the topics.
- Financially literate people have better-performing investments, and they have enough insurance to cover them, providing peace of mind.
- These people feel less stressed about their current life situation. They feel more in control and experience better financial security.
Seeking the Right Financial Planner and The Benefits
Finding the right financial planner is crucial. It’s important that you feel confident with the guidance you receive from a financial expert and feel on track to achieving your financial goals.
Everyone deserves to understand how to best manage their finances. Being financially literate is a skill that can help people improve their standard of living and achieve financial stability.
With adequate financial literacy, you can make better financial decisions, effectively manage your money and debts, and be well-equipped to reach your financial goals. Having the skills and knowledge can also bring you less anxiety and stress, making you overall happy with life.
The next time you have the opportunity to learn about financial and investment advice, take advantage of the situation. Better yet, get yourself the best financial planner in Brisbane so that you can have a tailored financial plan that suits your lifestyle and goals. HH Wealth aims to help our clients achieve their financial freedom.
CB Wealth Australian Pty Ltd T/As HH Wealth is a Corporate Authorised Representative (No. 1283595) of Axies Pty Ltd ABN 38 136 704 446 AFSL No 339 384. Chris Holme is an Authorised Representative (No. 1004793) of Axies Pty Ltd ABN 38 136 704 446 AFSL No 339384.
Our Financial Services Guide (FSG) and Adviser Profile contains important information about Insight Investment Services Pty. Ltd., any authorisations and the services we provide. The following link will take you to an electronic copy of the FSG, if you would prefer to receive it another way please contact our office. FSG HERE>