Achieving financial success doesn’t happen by accident. Despite having intelligence and skills, many Aussie tech professionals are not reaching their financial goals. This article is going to highlight 10 reasons why this is the case.
#1 – Too Focused On Problem Solving for Clients
Many techs and IT professionals are natural problem solvers. The issue is, they can get so caught up in solving the problems of their clients that they fail to focus on solving their own financial problems or planning for the future.
#2 – Failure To Seek Professional Financial Advice
While many tech professionals might be tech-savvy, not all are great with figures and finances; especially their own. They may seek the help of an accountant at tax time, but what about the rest of the year? Seeking advice and assistance from a financial advisor really needs to be a mandatory step for busy tech pros.
#3 – Lack of a Financial Plan
Being successful with anything in life usually requires a plan, and a plan is even more important when it comes to getting finances in order. With the aid of a financial planning company, tech workers can formulate a plan that will see their money grow, as well as being able to avoid financial pitfalls and get out of debt sooner. Financial planning professionals are experts in the field and every tech professional needs to have a financial plan to get ahead.
#4 – Failing To Set Financial Goals
Goal setting is about having milestones to aim for. Many tech professionals will go to great lengths to set goals for client work, but neglect to do the same when it comes to their own business or personal finances. As mentioned in the point above, sitting down with a financial planner will help you to think about and set clearly defined goals for your financial future. Have a financial plan that includes your goals mapped out and tailor-made for you.
#5 – A Lack of Investments
One of the very best ways to make your money work for you and to increase your financial status is through investments. Many Aussies like to invest in real estate because it’s a secure market that often gives a positive ROI. However, the property is not the only type of investment tech professionals can look into. You might even want to consider investing in shares in tech companies. Once again, a financial advisor will be able to assist you in finding just the right investments for your needs.
#6 – Not Having a Budget
Budgeting is vital both in business and at home. A well-defined budget that you’re willing to stick to should form a part of your overall financial plan. When you create a business or personal budget, it forces you to really look at your finances, breaking down your expenses, seeing where you’re wasting money and how much disposable income you have left for spending, or to save or invest.
#7 – Failing To Consider the Retirement Years
Tech professionals are not the only Australian workers who often fail to think about the retirement years until the time comes. Planning early for retirement is the most effective way to ensure you have enough money put away when you do retire and once again it’s wise to seek professional retirement planning assistance with this.
#8 – Relying Solely On a Third Party-Operated Super Fund
Third-party-operated super funds are okay, but if you were to set up your own self-managed super fund, you would discover you have a lot more control over how your money is invested. Discuss setting up your very own SMSF with your financial advisor and create your own financial destiny.
#9 – Accumulating Too Much Debt
Too much debt, especially credit card debt, is always going to be a financial killer. If you’re not paying off an asset it’s basically dead money with interest attached. A financial advisor will be able to help you get control of your debt.
#10 – Not Paying Yourself First
Financial freedom can be attained through paying yourself first. Always strive to put money away each week or month before paying out everything else that needs to be paid. If you can’t pay yourself first, you’ll need to discover ways to increase your income until you can.