An overwhelming majority of Australians have made at least one financial decision that they regret, new data has revealed.
According to new research from Mortgage Choice, 68% of Australians have made a ‘regretful’ financial decision.
“Interestingly, of those who admitted to regretting at least one of their financial decisions, almost one third said they made the decision off the back of information they gathered from friends, family members or strangers,” Mortgage Choice chief executive officer John Flavell said.
“Meanwhile, less than 5% of Australians said they regretted a decision that they made in connection with advice they had received from a finance professional, such a mortgage broker or financial adviser.
“In other words, those who sought professional advice were much less likely to regret a financial choice than those who didn’t.”
While the future is unpredictable, Mr Flavell said Australians who do their due diligence and speak to a professional are unlikely to go wrong financially, regardless of what asset class they are investing in.
“Those who don’t do their due diligence can often be easily swayed by what they hear or even how a question is posed.
Behavioural economist Dr Lionel Page agreed and said studies show people will react to a particular choice in different ways depending on how it is presented.
“We conducted a field study and asked Australians the same question in two different ways.
“As anticipated, people reacted to the choice in different ways, depending on how it was presented to them.
“When it comes to making good financial decisions, it is important to look at your options from all angles. That way, you can be truly content with your choice.”
According to Mr Flavell, the field study shows why it is so important for Australians to seek out professional advice.
“All financial decisions should be based on knowledge, research, and due diligence. Australians should take the time to investigate all of their options and speak to a professional before making any decisions.
“If you take the time to speak to a professional who will help you research all of your options, you will be less likely to regret the financial decision down the track.”
To watch the full field study video, click here.