`She'll be right' doesn't work in financial planning.
Naveed Balouch
Founder & Managing Director @ Home Advantage Limited | Personal Financial Planning & Business Consulting/Coaching
The `She’ll be right’ approach doesn’t work well at all for creating financial wellbeing.
When it comes to wealth creation and the aspiration to become financially independent, this article explores why 'She'll be right' can become your own worst enemy, and how to overcome the inherent apathy of this term, to turn things around, in your quest to achieve financial independence*.
*Only between 10-15% of Kiwi retirees find themselves adequately prepared for retirement, according to Stats NZ.
Although this may be one of the more endearing of mantras to represent our psyche (mostly related to blokes), the underlying sense of apathy can actually become a major roadblock to financial wellbeing.??
The saying emphasises a satisfaction with the status quo, and/or a reliance on all things to just magically fall into place.
Whereas this ethos may work in a novel, or movie depicting a stoic and resilient character, it certainly is anathema to self-volition that is required to improving one’s personal financial position.
In fact, in the current recessionary and inflation-fueled economic environment - it can prove quite disastrous.??
The fact that just over 85 % of Kiwis are not financially prepared for retirement (at the current retirement age of 65), means that we are able to trace this sorry stat back to elements of inaction and apathy that occurred, along the way.
Some of this comes from an over-reliance on employers for our incomes (current incomes), and the government (for looking after us when we are unable to work).
However, things have drastically changed since the first pension and retirement schemes were designed in the early to mid 20th century- mostly to incentivise older people to retire and give their place up to younger workers.
A. Job security has evaporated in the modern age - and you can no longer rely on your own performance and results to sustain a job. If a business wants to cut your role to increase their profitability, there is little you can do, no matter what great things you have done for your employers*.
*My own experience of being made redundant after delivering a $ 60 M dollar contract with our biggest client is only one of many such stories that abound. The current government's cost cutting exercise is a sad indictment of this modern reality.
B. The government super is also diminishing and currently does not even cover the average cost of living (see below).
Average cost of living (weekly/couples: $ 1,201.70
Govt. super (weekly/couples): $ 817.32
Weekly Deficit: -$ 384.38
Over the 20 years of retirement (and not accounting for inflation) the deficit balloons to just over -$ 400 K!
So - we all are expected to get our qualifications, find a job, work for upwards of 40 years, while paying our taxes and raising our kids and after all of that - we are left with a BIG FAT DEFICIT!
Yet why do we still rely on both (job security for an income while we are working? - and the govt super when we stop working)?
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Then there are other external factors which we have very little control of, such as weather events, the economy, international conflicts and economic events, government policy, et al.
Distracted by the external environment, stuck in our own matrix of the daily grind, and numbed into inaction - we often neglect to look into what we can be doing ourselves, to steel ourselves against the buffeting external fracas, and to improve our own lot, by taking inspired and informed actions, one baby step at a time.
We at Home Advantage can help you take a pause out of your current matrix and identify things you could be doing differently to quietly improve your financial wellbeing and onto a path that takes you towards financial independence, at or prior to retirement.?
You can get in touch with us to start this process here:
We start with helping you make a comprehensive assessment of your own respective financial position, through a thorough review of your entire personal financial landscape, including:
The good news is that this assessment can be guided and facilitated by our team of experienced InHome Financial Consultants.
Contact us here:
The fact that the consultation is complimentary and no-obligation, and can be done at a time and place that suits you makes it a no-brainer.
We have done over 1,600 of these consultations and I am pleased to report that a vast majority of those who went through this process (just over 80%), not only improved their short term financial positions, but created the pathway and blueprint towards achieving their financial goals.
Get in touch here:
It all started with an acceptance that 'She'll be Right’ is not the right approach and mindset to have when it comes to the important aspect of creating financial security and independence.
After this realization, it is then much easier to get started on a self-fueled journey towards financial wellbeing.
Stop hoping that all will be good - and instead start by creating the foundation and means to achieve much better outcomes in the future!?
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