Analysis conducted by fintech firm Moneysoft has found advised clients dramatically decreased their discretionary spending over the first 12 months of tracking.
Moneysoft said in a statement that 101 of its advised clients were able to, on average, reduce their spending on irregular discretionary items from $11,400 to $5,730 after 12 months, representing a reduction of almost 50 per cent.
The most marked reduction in discretionary spending came from clients within the 25 to 35 age bracket, the statement said.
Irregular discretionary spending was defined in the analysis as items such as entertainment, travel, hobbies and existing credit card repayments.
Moneysoft managing director and founder Peter Malekas said the results represent an opportunity for advisers to offer cashflow as a service given the size and transparency of the financial benefits that can be easily demonstrated to clients.
“Reining in bad debt is one of the biggest challenges that many people will face but this new data demonstrates that it can be done,” Mr Malekas said.
“However, average expenses were still fairly flat over the first six months, showing how important ongoing tracking software combined with regular advice from a financial planner can be in cementing good financial behaviour.”
Stimulate new ideas. Stimulate new thinking. Top up your CPD points and hear from industry experts with ifa’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD hours. Explore the Knowledge Centre now.
The acting AFA chief executive has come out swinging in the defence of financial advisers. ...
AFCA has confirmed it will not appeal the Supreme Court’s decision that it had acted against its obligations in January. ...
Financial advisers who engaged in mediation with AMP after being terminated by the wealth giant over the past two years have been left “dissatisfie...