The reality is that, in the future, 3 out of 4 people will end up with the pension as their main source of income.

A big reason for this is people’s attitudes toward money. When I drive past my local petrol station and see cars lined up in long queues, I know that fuel prices are down, but I ask myself how much are they really saving for all that effort?

According to a recent study by the Australian Competition and Consumer Commission, if you buy petrol on the cheapest day of the week, compared to the most expensive, you can save up to $200 per year.

I know from the thousands of home loans my company has organised that most Australians can easily save much more than $200 every single MONTH, by spending only 30 minutes of minimal effort every year or two, and from the comfort of their own home, rather than losing hours of their life sitting in line in their cars at a petrol station.

I’m not saying that it isn’t important to put effort into saving money. It absolutely is. However, you should start by tightly organising your borrowing.

Using the methods discussed in ‘The 7 Easy Steps to Mortgage Freedom’, knowing how to pay your home loan off quickly will allow you to start investing earlier – this is the key to financial freedom.

Another reason most people retire with little money is that they change their home many times in their lives, usually upgrading. This is quite normal, as your needs and family circumstances change. It would be nice if we could all afford our dream home right away, but that is very rarely the case.

A better approach when you need to upgrade is to keep your old property and rent it out, if at all possible.

That is exactly what I did and it has paid off many times over for me. I don’t know anyone at retirement who wouldn’t be hugely better off if they still owned at least one of their previous homes, even with their original mortgages still on them (which is now an investment loan).

Stamp duty and other government fees can’t be avoided when you buy a home, but it is the fee you pay for owning the property, so you are getting a lot more for the fees you have paid if you own that property for 50 years than if you own it for 10. Better still, stay in your current home as long as you can and buy investment properties. Of course, this isn’t always possible to do and it will certainly slow down the possibility of upgrading in the short term, but it will give you substantial wealth and financial options later in life.