Get ASX Price

 


  Latest Planning News
Hot Issues
Federal Budget 2018 – Overview
Your Budget
4 components of our 2018 Federal Budget
US China trade war fears – Q & A
Tools to help you manage your financial position are available on our site.
7 ways to boost your super
Australians reveal their priority goals
Australia by numbers – Update
Your retirement questions answered
How to make money by turning your unwanted goods into cash
Our website is really our digital office.
Bitcoin – is it really for you?
Spread your money, reduce risk
Love and money? It’s not about control
The pullback in shares - seven reasons not to be too concerned
Australia. All you need to know to be the expert.
Australian’s love affair with debt - how big is the risk?
5 ways to keep a cool head in a falling share market
2018 – a list of lists regarding the macro investment outlook
Sports lovers enjoy better financial fitness
Where Australia is at. Our leading indicators.
The year that was and the year ahead
Add some extra cash to your New Year
New year, new financial resolutions
Our Advent calendar for 2017
Where are we in the global investment cycle?
Australia's vital statistics
12 ways to enjoy summer without spending a fortune
One in three Aussies travel without protection
Digital payment options could see you spend more this Christmas
If you’ve always thought property prices only go up…
Will Australian house prices crash?
Where are we in the global investment cycle and what's the risk of a 1987 style crash?
Money steps for women
Resources on our site to help you, your family and your friends.
Australian Dietary Guidelines and healthy eating chart (PDF)
How to retire, your way
Prepare for retirement without missing out today
Be the boss of your cash
The Australian economy bounces back again
Should you lend money to family?
Money mistakes people make in their 50s and 60s
Australian Dietary Guidelines and healthy eating chart (PDF)
Eight steps to improved cashflow... and lifestyle
Powerful Budgeting, cash flow and Super Tools available on our site.
5 ways Australians will use their tax return this year
Australia's leading causes of death - ABS
The threat of war with North Korea
Six traits of Australians living the dream
The break higher in the Australian dollar is likely to be limited
Money can buy you happiness, you’re just spending it wrong
Key Economic Indicators, 2017 – updated
Helping your kids buy a home
From Goldilocks to taper tantrum 2.0
What’s your debt age?
Doing a budget is a good idea but ....
Planning is the key to making it financially
What to do when you come into money
Managing your money when you move in together
Reduce your bills with these household items
It pays to contribute to your partner's super
How to cope with losing independence
Transition to retirement income streams
The Australian economy hits another rough patch
Watch out for tax scams
The three core pillars of this year's budget
Federal Budget - 2017-18 - Overview
Federal Budget - 2017-18 - Budget documents
Make the most of the current super caps
Five, four, three… it’s not too late to get more in super
Super changes are coming
What’s your debt age?
Australian cash rate on hold
Super changes this financial year - Dr Shane Oliver - video
The door is closing on super’s current caps
Is Donald Trump's honeymoon with investors over?
Estate planning and why you need a super plan
What does a comfortable retirement look like?
Give your career a health check
Super changes from July 2017
Changes to the Age Pension assets test
Keep your money safe over the silly season
Looking ahead at 2017
Review of 2016, outlook for 2017 - looking better despite the political noise
Merry Christmas for 2016, a Happy New Year and a prosperous 2017.
54.2 million worries
Five tips for happy healthy ageing
Thinking about managing your own super?
Sending more to the tax office than you should?
Government pulls back on proposed changes to super
Market Update - What to consider when investing in a low return world
Stop!! Don't do a paper Budget, use our online budgeting tools instead.
Oliver's Insight - Megatrends
Value of Advice
A growing family doesn't have to blow the budget
Blinded by optimism
Thinking about managing your own super?
The investment outlook - it's not all that bad!
What’s your biggest obstacle to financial success?
Ageing Parents
Should you own the roof over your head?
Be a senior entrepreneur on your own terms!
Brexit and other key developments
Brexit wins
Commentary on major issues - AMP
Five money habits for a happy financial year
Are grandparents giving too much?
Remember to factor in parental subsidies at tax time
2016-17 Federal Budget - AMP
2016 Budget in detail
How (and why) to talk to your adult children about insurance
Procrastination: Just do it. Eventually.
Why Australian property won't collapse
The Lucky Country holding up pretty well
Have we reached the bottom?
The evolution of the Chinese consumer
Retirement rolls around faster than you think
Pressed for time?
Changes to the Age Pension assets test
Women are building financial intelligence
Heirlooms no more
Initial market falls precede stronger returns - Shane Oliver
What exactly is income protection insurance and do I need it?
A rough start to the year, which could have further to go
Aged Care - Changes to Assessment of Rental Income
A bump in the road, then a new start
New year, new start – are you ready for retirement?
Review of 2015, outlook for 2016 - Dr Shane Oliver
We wish you a Merry Christmas for 2015 and a Happy New Year
Go easy on the plastic over Christmas
Resolutions for a wealthy future
The Australian dollar doing what it normally does - overshoot. Dr Shane Oliver
How to manage volatility in a low return world
The Australian economy - more help will be needed. Dr Shane Oliver
Insurance through my super
Four tactics to build an investment portfolio
The demand for global infrastructure
Help achieve your investment goals with dynamic asset allocation
The Power of Budgeting
Jump retirement hurdles with a coach
Preparing for the time of your life
A Super Loan for all reasons
Making a smooth transition
Budget 2015 - some professional opinions
Australian Government - Budget 2015
Achieving a comfortable retirement
Is off-the-plan on the money?
Should I take my super as a lump sum or not?
Do you have a key person in your business?
Tips for success in a competitive job market
All you need to know about buying at auction
To sell or not to sell?
Saving in a material world
What’s your biggest obstacle to financial success?

 

Science reveals how our human-hardwiring can get in the way and cost us much more than we think. 



       


 


As humans we have changed a lot over time. Vast periods of time have seen us adapt and evolve—from hunting for food to ordering online and as our behaviour has changed, our brains have developed. 


But even though we no longer live in caves, some of our ancient hardwiring still prevails and designs behaviour. Behavioural science shines a light on the whys and wherefores of human behaviour and shows how, unless we consciously override our hardwiring and put deliberate strategies in place, many of us may pay dearly and live less-than-optimal lives. 


We’re hardwired for now


It’s been said that failing to plan is tantamount to planning to fail. And when it comes to financial success, a plan that enables you to enjoy your current lifestyle and reach your longer term goals often means the difference between a comfortable successful life and the opposite. But planning can be an issue for many people. 


We discount the future


As science(i) shows, we’re hardwired to act in the present moment with little thought of what tomorrow may bring. We naturally put things off and more than that: we discount the importance of our own futures and fool ourselves into thinking an immediate reward is more valuable than a larger future benefit(ii). 


When we were cave people, acting for the moment made sense. We lived for today and dealt with tomorrow if and when it arrived. In fact, our survival hinged on the ability to act quickly and make the most of the present. Life was unpredictable and, as one example, the threat of available food being taken was easily avoidable—simply act now and eat. 


These days, focussing on the moment is something science has shown we are still hardwired to do, but it’s often at the expense of a comfortable future. In this day and age when living day to day or pay cheque to pay cheque can leave us high and dry, our hardwiring is one of the biggest obstacles to effective financial decision making. 


It may be part of being human but the implications that discounting the future can have on our own financial lives can be profoundly negative. 


We can override our hardwiring


Behavioural science helps us understand how our own behaviour can work against us and set us up to live futures which are unpredictable and unstable. But the insights from behavioural science can also help empower us to make more effective financial decisions. 


With an awareness of our hardwired tendency to discount the future and put off important financial decisions we can take a conscious and rational approach and override our natural short-sightedness. 


By setting and achieving goals you can promote positive financial behaviour. The act of consciously setting goals can help you imagine your own future more vividly and in turn, help you act more effectively and realistically in your own best interests. 


Regularly tracking and reviewing goals can help remind you of your future. It can overpower the subconscious hardwiring that works against the need to plan ahead by reinforcing a logical state of mind. 


What you can do


Even if your human hardwiring is presenting challenges for you, you can achieve your goals and be better off. 


As the new financial year dawns, give yourself the future you deserve. Don’t give in to the tendency to put things off and come and meet with us so we can chat about putting plans in place—this time next year you could be in a much stronger financial position. 


 



i Thaler, Richard T, (1991). Some Empirical Evidence on Dynamic Inconsistency. 

ii Such behavioural science concepts which challenge the assumption of human rationality prevailing in modern economic theory, well documented by experts such as Daniel Kahneman, Israeli-American psychologist noted for his work on the psychology of judgment and decision-making and behavioral economics which he was awarded the 2002 Nobel Memorial Prize in Economic Sciences.