If you’re so smart then why aren’t you rich?

Everybody hears a lot of advice about “having a budget” or “doing a budget” – but how many of you know how to do that or where to start?

It’s one of the most basic financial plans, yet its over-looked by many who work in the financial sector as being something that everybody knows about, and everybody knows how to do.

I beg to differ!

 I’ve just done some stats using 200 of the files in my cabinet. This is what I found…

14% have some savings in the bank.

Of that 14% less than 8% has more than $10,000 in the bank, and only 2% has more than $20,000

Only 7% have more than $100,000 put aside for superannuation (no good blaming the Global Financial Crisis for not saving)

14% have more than 2 credit cards

24% have no credit card debt (that’s encouraging)

39% have household incomes from $50,000 – $80,000

18% have household incomes over $80,000

 6% have household incomes from Centrelink

50% have personal loans.

96% have mortgages.

26% are over 50 years of age.

Now – Don’t tell me that “everybody knows about budgets!” And Don’t tell me “everybody knows how to do one!” –  If that was true – then why are these statistics so appalling?  I just don’t understand it!

Is it Fear, Laziness or Ignorance that stops people from setting up a daily plan to manage their money? Or just maybe it’s pride – being too proud to admit that you don’t know how to start a budget.

If, as the financial ‘gurus’ believe, everybody is so smart – then tell me why there are not more rich people around!

©

One Response to “If you’re so smart then why aren’t you rich?”

  • Some sobering stats, but I think most would know about a budget but either don’t want to or don’t have the discipline to carry it through.

    Many years ago my mother taught me only spend 90% of what you earn and that small bit of advice has been invaluable in having a financially stress free life so far.

Sign up for The Buzzz!

Complete your e-mail address and name to receive our free monthly newsletter full of budgeting and money saving tips and hints.

Contact
  • CALL - 0412 BUDGET / 0412 283 438
  • EMAIL - help @ budgetbitch.com.au

Connect with Budget Bitch on Twitter

Connect with Budget Bitch on Facebook

Subscribe to the BB.Blog RSS feed

Google+