New research reveals that 65% of people have worried about not knowing how much money they will need in the next decade, but only 25% have acted to find out the required amount.
The data has also revealed that 17% simply don’t think about the issue at all, 21% are concerned but haven’t done anything about it at all, and 37% have tried to learn but are still feeling clueless.
The fact that such a large amount of people are stressing about their lack of knowledge of exactly how much money they will need to maintain their lifestyle in the next decade – yet doing nothing about it – is shocking.
The research also showed us people’s beliefs around their situation, which was so disheartening to see. A lot of the comments such as ‘I know my super won’t be enough, but there’s not a lot I can do about it’, simply aren’t true.
It’s clear that even though some people are trying to do the right thing by learning more, are failing through traditional means, so I’m hoping that my debut book The Breakfast Club for 40-Somethings, which educates through a fable-like story about friends, is able to offer those people a different and more entertaining solution to improving their financial situation.
To help you better prepare for your future financially, here are a few of my top-line expert tips:
1. Prioritise making changes.
How many times have you said “later” when it comes to doing something about money? Unfortunately, the longer you leave it, the more likely you are to be in real trouble and the less time you will have to get yourself out of it. So start making changes to your money habits today.
2. Pay yourself first – every pay check!
Putting a percentage of your pay into a separate account on the same day you get paid is a great way to improve your ability to save money. Make the percentage a realistic amount and stick to it, regardless of life pressures that crop up. This is money that is not available to you, and becomes your financial safety net for the future.
3. Consolidate your current debt.
If you have more than one credit card or personal loan, roll them into one. By doing this you will reduce the pressure of paying different payments over a month, and just find the money to pay one. You may also be able to access a cheaper rate doing this. Some credit card companies offer 12-month interest free periods to roll over balances, or some banks may give you a personal loan to cover it.
4. Cut costs wherever possible.
Taking steps to cut down your costs now, add up significantly over time. These don’t have to be huge changes, it can be as simply as putting your utilities on direct debit and ask for the corresponding discount (which most companies give), and help you put extra money into paying off your current debt, or into your savings account.
5. Start a side-hustle.
In today’s society, there are more ways than ever to earn extra money. Ask yourself, can you ride share to save petrol money, sell things on gumtree, drive Uber, or rent out an extra room on AirnBnB? Anything you can do to bring home extra money now, will continue to help you long into the future.
It may seem easier to continue living your current lifestyle and worry about how much money you will need to maintain it in the future, but I can assure you it’s not. By taking small steps today, there is no reason you can’t keep enjoying a similar standard of life, with the assurance of knowing you’ll be able to secure a comfortable standard in your twilight years.
Purchase your copy The Breakfast Club for 40-Somethings here. The book is published by Wiley and is available in all major bookstores, including Big W, now. RRP $25.95. For more information visit www.vanessastoykov.com
