Can’t afford financial advice? Here are some alternatives to help you keep track of your budget
Financial advice can be expensive, and at times, good financial advice can be hard to find. Here are some alternatives to help you keep track of your budget when financial advice is not an option.
If you are trying to make sense of your finances, you might think it would be a clever idea to hire a professional for advice. Yet, financial advice can be expensive, and at times, good financial advice can be hard to find.
According to the recent Padua Advice Fee Data Report, the initial advice fees charged by financial advisors increased from $2,859 in fiscal 2021 to $3,315 in fiscal 2022 (on a per advice document basis). That is a 16 per cent jump in initial advice fees. Meanwhile, ongoing advice fees jumped 33 per cent in a single year, from $3,656 to $4,865.
The increased costs for financial advice are driven by internal pressures within the industry, inflation, and the cost-of-living pressures. The cost of running a compliant financial advice practice has also risen with increasing regulation. This creates a massive financial advice gap.
Reports estimate that over 12 million Australians have unmet financial advice needs, with 40 per cent saying they cannot afford advice.
So, what can you do if you cannot afford financial advice?
National Seniors Financial Literacy Service
Did you know National Seniors Australia members have free access to our Financial Literacy Service?
Members can book in to receive up-to-date independent information on retirement options, Centrelink benefits, aged care, superannuation, estate planning, investment choices and more.
Financial technology is on the rise, which makes personal finances simpler and cheaper than ever before.
Back in the day, if you wanted to build an investment portfolio, you might have paid to work with a professional. Today, robo-advisers such as StockSpot or SixPark provide a tech-driven solution, providing the convenience of outsourcing your investments without the cost.
Technology has also made it easier to keep track of your expenses with budgeting apps like PocketSmith or MoneyBrilliant.
Like you would with a financial advisor, make sure the website you are taking information, tips, or tricks from is reputable. Countless websites offer financial advice, but not all of them are accurate. Remember to do your diligence and check their credibility before following any advice.
Along with government agencies, comparison websites such as mozo.com.au are packed with financial guides and calculators. If you want to understand shares and options, the ASX website offers several free online tutorials and often run seminars and webinars that are free to attend.
Podcasts are all the rage
Podcasts are audio programs, like Talk Radio, that you listen to on your smartphone or computer whenever you like.
Many great podcasts talk about finances, including:
There is now an explosion of financial education content on social media platforms, empowering millions to take control of their finances on their smartphones.
Previously, you may have turned to books from your local library (which you can still do). Now there is an infinite supply of podcasts, YouTube videos, Instagram reels, Facebook pages and TikToks dedicated to financial wisdom.
Wherever you look on social media, there are finance hacks, tips, and tricks to help you get your finances in order.
There is nothing wrong with getting excited about an investment or financial tip you hear about on social media. The key is to supplement it with your own research.
The Department of Human Services offers free financial seminars in every state and territory to help individuals learn more about money management, borrowing to invest, retrenchment, property and sharing. Whether you are starting, planning your retirement, or are already retired, these seminars cater for all life stages. To find upcoming seminars, visit their website.
For further reading: Finder, Debt Negotiators and The Sydney Morning Herald
All insights and information provided should be considered general advice for educational purposes only. As we are unaware of your personal circumstances, the information in this article should not be misconstrued as personalised financial advice. We recommend seeking advice from a qualified financial professional before making any major financial decisions.
