Money hurdles: why we fall short on reaching our dreams

Luxury holiday? Beach house? Boat? Retire early? Many people slip early on the path towards money goals, a new report says.

Dreams are more likely to be reached by people who plan. Picture: iStock

Only one-third of Australians are taking financial steps to make their dreams a reality.

New research from investment group MLC and social research agency McCrindle has found goals are not being achieved because of a lack of confidence about managing money, worries about wealth, and being unprepared for financial challenges.

Less than one in four people are satisfied with their current financial position, and 41 per cent regularly worry about their finances, according to the 2024 MLC Financial Freedom Report.

The research involved more than 2500 people and found Australians’ most common aspirations are financial independence, regular holidays, a good work-life balance and having a trusted group of family and friends. Owning a home ranked sixth on the dreams list, just below having a happy marriage.

It found a majority of Australians regularly thought about their dreams, but just 34 per cent were taking steps to reach them.

MLC head of technical services Jenneke Mills said key barriers to achieving life goals were time, a lack of financial literacy and education, and not knowing who to talk to.

“People are really time-poor,” she said.

“They wear many hats, and 24 hours a day is not a great deal of time to be an employee, a partner, a parent, for some a carer, and that’s on top of all of life’s other responsibilities.

“For some, taking the time really to invest in yourself may feel quite indulgent.”

Other people saw financial matters as a chore, and many people did not feel confident about their circumstances, Ms Mills said.

Australians’ lack of financial literacy is striking given we live in an information age where financial education, tips and tools are available at the click of a button.

Ms Mills said this could lead to information overload that turned people off working on their finances.

“Too much information almost paralyses you and your ability to synthesise it and apply it to your circumstances, and it all becomes too hard,” she said.

Advice can come from financial planners, super funds and a mountain of online tools and tips offered by financial institutions.

“Seventy per cent of Australians are telling us in the report that financial wellbeing is the key to achieving life’s aspirations,” Ms Mills said.

“Taking some action is better than no action,” she said.

JBS Financial Strategists CEO Jenny Brown said having a written plan was the key to achieving money goals and life goals.

“A number of people say they want to do this and that, but they actually don’t have a plan about where to go from where they are today to actually achieve that,” she said.

Kylie Long from Avoca Interiors

MLC head of technical services Jenneke Mills

“You have to have a detailed plan with steps to implement to get you through the process.”

Ms Brown said she had held several “tough love” conversations with clients about planning and sticking to goals.

“It’s about making sure that they understand that it’s not all roses, and get used to making sacrifices to get to what you want to achieve,” she said.

Kylie Long went from single working mother to starting her own business, Avoca Interiors, an architectural hardware shop on NSW’s Central Coast, by taking action on her life goal.

She conducted market research, developed a plan and sought guidance from mentors.

“Chasing my dream has profoundly changed my life in ways I couldn’t have imagined,” Ms Long said.

“I now have a clear path to achieving financial stability, along with a deep sense of fulfilment and pride in my work.

“Setting goals is vital for me because they provide direction and motivation in my life.”

Originally published as Money hurdles: why we fall short on reaching our dreams