We all make money mistakes, but it’s a frustrating feeling, isn’t it?
You’re working hard, trying to get ahead, but no matter what, it feels like you’re just not making the progress you should be. And sometimes, it seems like everyone else around you is making strides while you’re stuck.
As a financial advisor in Geelong, I’ve seen it all before. Professionals in their 30s and 40s come to me feeling defeated because they’re not seeing the wealth they thought they’d have by now.
The good news is that it’s not too late.
But if you’re making these four big mistakes, you’re probably holding yourself back from the financial success you deserve.
Let’s break them down, and more importantly, let’s talk about how you can fix them.
1. Spraying and Praying Instead of Having a Solid Financial Plan
The Problem:
Too many people try to build wealth by throwing money at anything that seems like a good idea in the moment. This is our first big money mistake!
You might jump into an investment here, pull out of another there, and maybe even get tempted by the latest “hot tip” from a friend. But that’s no way to build real, lasting wealth.
It’s a classic case of spraying and praying. Hoping something sticks without any real strategy behind it.
The Solution:
To succeed financially, you need a solid financial plan.
No more random investments. It’s time to step back and take a holistic view of your financial situation. As a financial advisor, I help my clients build a plan that works for their specific needs and goals, whether investing, saving for retirement, or buying a home.
With a plan in place, you’ll have the confidence to make informed decisions and start working toward your financial goals with clarity..
2. Over-indulging in Debt
The Problem:
We’ve all been there. You buy that shiny new thing, treat yourself to that night out, or splurge on a holiday. It feels great in the moment, but then the bills come in, and the reality sets in.
Over-consumption is a common money mistake and can quickly lead to spiralling debt, especially credit card debt, which can eat into your cash flow and limit your ability to save and invest.
The Solution:
Debt isn’t necessarily bad, it’s about what kind of debt you’re taking on. If you’re loading up on high-interest consumer debt, it’s time to make a change.
Start paying down that debt ASAP so it doesn’t hold you back.
A better strategy is to focus on building wealth through smart investments. Once you’ve freed up your cash flow, you can start working toward bigger goals like retirement, buying a property, or growing your investment portfolio
3. Over-Investing in Your Home
The Problem:
Homeownership is a dream for many, and while it’s important, over-investing in your Principal Place of Residence can be a trap.
Putting too much of your money into your home ties up your cash flow limits your ability to invest elsewhere, and can prevent you from building wealth outside of your property.
The Solution:
While your home is an important asset, it shouldn’t be your entire financial focus.
There are many ways to build wealth including vehicles such as investment properties, shares, bonds, or even superannuation.
By diversifying your investments, you’ll be better positioned to grow your wealth and have the financial flexibility to take on new opportunities.
4. Shrinking Yourself Wealthy
The Problem:
We’ve all heard the old advice: “Pay off your home loan and put everything into your superannuation.”
While these are both important financial goals, they can also trap you in a mindset that keeps you tied to your job until you’re in your 60s.
If you want financial freedom before that, you need to think bigger and avoid this money mistake.
The Solution:
Instead of just paying down debt and stashing money away in super, focus on compound investing.
The sooner you start investing in assets that generate passive income (like stocks, real estate, or even starting a business), the sooner you’ll be on your way to making work optional.
Compound investing is one of the best ways to grow your wealth and free yourself from the 9-to-5 grind.
Time to Take Control of Your Financial Future
Building wealth doesn’t happen by chance—it happens through intentional decisions and consistent action.
If you’ve recognised any of these mistakes in your own financial journey, know that it’s not too late to make a change.
By understanding your financial picture clearly, managing debt wisely, diversifying your investments, and embracing smart strategies like compound investing, you can put yourself on the path to financial freedom.
The key is creating a strategy that’s tailored to your personal goals and values. Financial success isn’t just about making more money—it’s about making smarter choices with what you have and setting yourself up for long-term security and peace of mind.
Whether you want to focus on retirement planning, growing your investments, or simply getting a better understanding of where you stand financially, there’s always a way forward.
Remember, wealth isn’t just about numbers, it’s about having the freedom and peace of mind to live life on your own terms.
Any questions or concerns?
If you’re ready to take the first step, it all starts with having a conversation about your financial goals.
Cheering you on!
Certified Financial Planner®, Director
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Note: The information contained in this update has been provided as general advice only. The contents have been prepared without taking account of your personal objectives, financial situation or needs.
You should seek advice before making any decision regarding any information, strategies or products mentioned to consider whether that is appropriate to your own objectives, financial situation and needs.