This is the third article from our new contributor Vanessa Stoykov. Vanessa's second article can be found here. To learn more about the Investment Series, the Nine Network Show her company created, and the Morningstar companion guide to the show please click here.

 

Of the big five lessons that need to be unlearned about money, I think time perhaps is the biggest missed opportunity.

Why? Simply because the biggest trap of time is that you always think you have plenty of it--and because of this, tend to miss out on one of the biggest opportunities to grow wealth almost effortlessly--as it's time that allows your money to make money for you in the world of investing.

In Australia, our government had the incredible foresight to introduce superannuation--meaning those who start work are putting away 9.5 per cent of their income into investments to support themselves in retirement.

However, it has been proven that 9.5 per cent will not be enough to fund an adequate and dignified retirement--and for many will only cover about 30 per cent of living expenses.

So, why is time a hard thing to master and unlearn? I believe it is because it goes to the very heart of us being human and our unwillingness to acknowledge our own fragility and ultimately mortality.

Sounds deep? It is. Too often we want to live in the moment (which is not always easy), enjoy ourselves now, and let tomorrow figure itself out.

I know I certainly did. I spent my 20s acquiring things I wanted, and chasing the experiences that defined my view of what a good time was. Quite frankly, I don't regret it. What I do regret however, is that I did not have the foresight to tuck a little away and invest it along the way.

When I think of all the clothes, shoes, cars, and stuff I spent my money on, I wish I had that little bird on my shoulder telling me to tuck 10 per cent of it away. Not in a bank account, but in an investment account.

To be honest, I don't think I even knew what a managed fund or a stock was then, or how to access them.

It was the early days of the internet, and the wealth of information and easy access was not there. I did not have family who knew anything about it, and it certainly was not taught at school or university.

Consequently, I missed one of the biggest easy wins in my life when it comes to money. Time passed, as it always does.

Children arrived, and nature kicks in, wanting to give your kids everything you can. This becomes the focus financially, and again, time passes, and the opportunity to make my money work for me slipped further behind.

My awakening to the unlearning of time came during my 40s. Perhaps that is when most of us finally start to understand that time moves quickly, and that we don't have all the time in the world. It's certainly been that way for me and many of my friends.

This is why I have dedicated myself and my company to awakening and helping Gen X unlearn money in time to be able to prepare for the last third of their lives and be able to live it exactly the way they want.

There is still time to change habits around money and start investing. It all begins with an awakening that we should be doing more. For time stops for no man or woman.

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Vanessa Stoykov is the founder and chief executive of evolution media group. This is a financial news article to be used for non-commercial purposes and is not intended to provide financial advice of any kind. Opinions expressed herein are subject to change without notice and may differ or be contrary to the opinions or recommendations of Morningstar as a result of using different assumptions and criteria.

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