Written

For

The

Australian

-

The

four

biggest

money

mistakes

sabotaging

your

wealth,

from

a

financial

adviser

Money doesn't buy happiness, but in my experience it certainly buys comfort — and yet I see so many Australians unknowingly sabotaging their own financial future through habits that are surprisingly easy to fix.

After advising countless people across all stages of life, four mistakes come up again and again.

The first is a reluctance to embrace property and leverage. Over the past 25 years, the average home loan interest rate has been around 6 per cent, while property growth has averaged about 7 per cent annually. That means homeowners have effectively lived in their properties "for free" — the capital growth has outpaced the interest bill. Investment property owners do even better, adding a 3 per cent net rental yield and negative gearing benefits on top. Yet many people, especially younger Australians, hesitate to take the plunge.

The second mistake is a lack of savings discipline. When we first start earning, spending everything feels natural. The problem is when that carefree mindset never matures. My rule of thumb: park 15 per cent of your after-tax income into a high-interest online account and let it build.

Third, people simply don't pay attention. They renew insurances without shopping around, never review their home loan rate, and hand the bank thousands in unnecessary interest every year. A single afternoon of admin can genuinely save you years off a mortgage.

Fourth — and this one frustrates me most — people fail to structure their finances properly or take advantage of government incentives. Cash sitting in a low-interest savings account instead of a home loan offset. EV salary packaging ignored. Extra super contributions left on the table. When the government offers a tax break, it's essentially waving a flag saying "do this" — and most people walk straight past.

The wealth-building formula isn't complicated: spend wisely, save consistently, invest tax-effectively in ETFs and property with appropriate gearing, and clear debts before retirement. Easier said than done — but absolutely achievable.