Who’s in the Driver’s Seat?

February 2nd 2018 | Categories: Financial Planning |

Do you feel in control when it comes to managing your money? Or do you feel like you’re sitting in the passenger seat watching a stranger drive your car?

Having control of your money is more than having your internet banking sorted or keeping receipts. It’s about being completely aware of your situation, aware of what may threaten your lifestyle, and what opportunities are available to you to make improvements.

As easy as it is to ‘go with the flow’ and ‘watch the balance, just don’t let it get below this much’, this kind of thinking leads to impulsive and irrational decisions. Although it may seem out of reach, you can gain control of your spending and saving habits with education and awareness.

Needing to take charge? Don’t let someone or something else control your money! Work with one of our advisers today and jump back in the driver’s seat!

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Why it’s important to be in control

When you don’t have control of your money you often make impulsive and irrational decisions; decisions that don’t take into account what is truly important to you. Taking control allows you to make decisions that will ultimately help you to achieve your goals and dreams.

The first step to taking control is to identify why you make decisions.

What’s controlling your decisions?

There are plenty of factors influencing your decision making around money from family and friends, to the age-old ‘fear of missing out’. But the most common reason we find people go wrong is that they simply haven’t clearly identified what they want out of life.

Opinions of Family & Friends

When we need advice our family and friends are usually the first people we ask. While their advice and recommendations are something we value highly, they may not always be what’s best for you and your situation. And opinions are often just that, opinions.

It’s extremely important to ensure that any advice around your money is tailored to your individual situation and that it takes into account all possibilities and is backed by research and facts.

FOMO (fear of missing out)

FOMO is almost inescapable in this day and age. With people’s lives being lived out on social media and advertisements almost everywhere you turn it can be hard not to want what everyone else has. FOMO provokes feelings of anxiety and restlessness and is often generated by competitive thoughts, so it can be easy to fall into the trap of unplanned spending.

Whether it be events or family gatherings, the latest health or clothing trends, items that aren’t budgeted for can majorly impact your journey to achieving your goals. For those with strong discipline, it can be easy to avoid the trap of FOMO. But for those with not so much discipline, make sure you budget for the unexpected or spontaneous occasions.

A few other great tips to avoid FOMO:

• Keep a diary or calendar visible to remind you of all the times you’re NOT missing out on

• Unsubscribe from unnecessary promotional material

• Find a cheaper alternative that fits into the budget

Conflicting or unclear goals

The most common barrier we see that stops people from achieving their dreams is that they simply haven’t defined them. You can’t manage your money so that it is working towards what’s most important to you if you haven’t clearly identified what the important things are.

Confused goals = confused spending

Although you’re probably sick of hearing that setting goals will help you to achieve your dream, we live by it. The heart of what we do is to help people to understand what is most important in life and to set a plan to achieve their ideal lifestyle.

By clearly identifying your dream and setting goals to achieve, you create the foundations for educated, and intentional spending, and ultimately, taking control of your financial freedom.

Understand what’s truly important to you! Download our goals worksheet!

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Work with one of our financial planners to take control of your financial future.

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What you need to know

This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.