I hate money..
Alright did you take the bait..? No I’m kidding. I don’t hate money, but what I hate is how people are misusing their money and overlooking the importance of their money.
I am in my twenties and as I see my income increase from the years of casual work and asking my parents for $1 twenty times until it was enough for a few drinks on the weekend. It has become clear that 95% of people my age have no idea about money. I know this seems like a general statement, but let me ask you something. How much money is in your superannuation? Give me a ball park figure...?
I was that nerdy kid at 22 (now 25, still a nerd) who asked my friends this question. I know my personal super account is nothing to brag about, but what I have made sure is that all of my super funds (I had 3) were consolidated and put into 1 account. My belief about most things in life is to be proactive. The more I read and learn about money, I realise a few bad years in the stock market are not the issue, but the high management fees are the silent killer. Don’t believe me.. Do the math.
If you are in your 30’s and earn around $50,000 a year until age 65 (let’s say your salary doesn’t change) and you compare 2 super funds. 1 charging management fees of 1% and the other 2.5%. With an average return of 8% per year, super fund 1 could expect to total around $330,000 and super fund 2 could expect a total of $250,000. That’s a lot of bingo sessions being missed out on. Now just imagine 3 super accounts with your money being spread out and with these management fees.
I admit I have completed studies in Accounting and I am working towards a future in Financial Advising. But I didn’t pick this career to get rich quick, or shake people down for all of their wealth. It is to open the eyes of those taking their money for granted and to make people aware that government support and hand outs are not going to be there by the time we are lucky enough to need it. So having an idea on your superannuation is an important first step to becoming financially independent.
Like the famous Warren Buffet said “don’t underestimate the power of compound interest”. This works both ways, fees and investing. Now lets come back to this question in 1 months’ time and I’ll ask again.. How much money is in your superannuation?
Thanks for reading my first short post. Now, let’s get proactive about our money!