Money Problems Are Always a Thing. It Just Depends How Big

I often have new people come to me asking very specific questions like:

Should we upgrade or renovate the home
Should we pay down the loan or invest
Should we add more to super

They show intent and they show you care about getting it right.

Each of these questions impacts several areas of your financial life. So looking at one of these in isolation ignores the follow on effects.

The same applies with money problems, people think these will go away but they don’t they change over time. People may be short of money which is clearly not a good problem, but they could then get a good job build good habits so now they have a tax problem (maybe a good problem to have, depends on your perspective).

Recently I spoke to a client who said, we have done the planning ourselves and just want a tidy up.

When he said tidy up I knew straight away that was not what they needed.

They had actually done a lot right. They had built income and they had thought about wealth. This was not a couple who were disorganised.

The issue was not whether things needed tidying. It was whether there was clarity about what this next stage of life looks like and what should matter most right now.

Within minutes of speaking to him and his partner it was obvious they were on different pages.

She was focused on security and the present. Paying the bills, staying ahead on the home loan and making sure there wasn’t too much pressure.

He was focused on growth. Moving toward self employment, investing more and building momentum.

Then we spoke about time.

One wanted less pressure now and more space to enjoy the kids while they are young.

The other wanted to push harder and build more wealth so they could help the kids buy a home one day.

Both were reasonable but they lead you in very different directions.

They did not need a tidy up, they needed alignment.

They needed to define what this stage of life is about. They needed to understand what trade offs they were willing to make and they needed a shared view of success.

Sure I could have helped them invest some extra money. I could have cleaned up super. I could have optimised a few things.

But that would have been surface level.

Over the years I have found there are generally two types of people who seek advice.

Some want to step back and look at the full picture. They are open to having their thinking challenged and they want to make sure they are solving the right problem.

Others feel they are nearly there and just want confirmation that they are on track.

There is nothing wrong with either. But I cannot responsibly make recommendations without understanding the strategy first. That would be like a doctor prescribing medication before diagnosing the issue.

There is also a legal and ethical responsibility to ensure the advice is in your best interests. That means there has to be a process.

Not a process for paperwork.

A process to move you from where you are today to where you want to be.

Managing money is not a one off decision. Life changes, careers change, markets move, tax rules change, your appetite for risk evolves as your world evolves.

Think of it like cleaning your home. It might look tidy on the surface. But that does not mean everything is organised in a way that supports how you actually want to live.

Sometimes you are not building wealth with intention.

Sometimes you are just accumulating things and hoping it works out.

For me the real value of working with an adviser is not picking investments or adjusting super. It is making sure you do not wake up in five years realising you have been busy but not deliberate.

Clarity first.

Then priorities.

Then action.

That is very different to a tidy up.

Want to know more?

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The information contained in this article is general information only. It is not intended to be a recommendation, offer, advice or invitation to purchase, sell or otherwise deal in securities or other investments. Before making any decision in respect to a financial product, you should seek advice from an appropriately qualified professional. We believe that the information contained in this document is accurate. However, we are not specifically licensed to provide tax or legal advice and any information that may relate to you should be confirmed with your tax or legal adviser.