The dangers of financial convenience - Raiz Invest

Man in car with navigation app on phone

By William Jolly from Savings.com.au.

 

The smartphone and the internet are wonderful things, and new technologies can make it easier than ever to save.

On the flip side, they can also make it much easier to spend, posing a threat to your savings.

Here are four ways financial convenience could be hurting your finances.

 

You can overpay for simple things

An obvious example of this is Uber and UberEats. Although they’re great products and can be very useful when needed, overusing them can seriously drain your bank account.

For example, you could pay upwards of $15-$20 to Uber from A to B instead of the $3-$6 it might cost you to catch public transport. Likewise, with UberEats – you might spend upwards of $20 or even $30 for a pizza, instead of driving or walking to the nearest pizza place and picking up your order for less than $15.

Don’t become dependent on share economy apps to get by – doing some things yourself might be harder but your wallet will thank you for it.

 

You can pay for too many things

Credit and debit cards combined with online payments make it all-too easy to double up on the same kind of service. Take, for example, online streaming. You could buy subscriptions to:

  • Netflix
  • Stan
  • Disney+
  • Foxtel Now
  • Amazon Prime
  • Youtube Red
  • Sports streaming like Kayo Sports and Optus Sport

If you paid the minimum subscription fee for each of these, you’d be shelling out roughly $100 a month, more if you upgrade to a bigger plan or must pay things like set-up fees for Foxtel.

So, ask yourself: do you watch $100 worth of content every single month? I’m sure some of you will answer yes, and that’s fine, but this principle can also apply to things like meal deliveries, health and fitness services and more.

Make sure you review your direct debits every few months and eliminate payments you aren’t using.

 

You can pay for things you don’t need

It’s easy to waste money on unnecessary clothing and toys just because you can and it’s right there on a screen in front of you.

According to a recent study from ME Bank, unwanted online purchases cost the average Australian nearly $400 a year. So, think twice before clicking add to cart.

 

What can you do?

Don’t feel bad for one – it’s easy to spend money nowadays and plenty of people do it. But it’s also easy to use this technology to your advantage. Try any of the following methods to keep on top of your spending:

  • Go into your online banking portal, download your bank statements and track your overall wealth
  • Look for unnecessary direct debits and cancel them
  • Use budgeting and savings apps to track your spending

 


 

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Important Information

The information on this website is general advice only. This means it does not take into account any person’s particular investment objectives, financial situation or investment needs. If you are an investor, you should consult your licensed adviser before acting on any information contained in this article to fully understand the benefits and risk associated with the product.

A Product Disclosure Statement for Raiz Invest and/or Raiz Invest Super are available on the Raiz Invest website and App. A person must read and consider the Product Disclosure Statement in deciding whether, or not, to acquire and continue to hold interests in the product. The risks of investing in this product are fully set out in the Product Disclosure Statement and include the risks that would ordinarily apply to investing.

The information may be based on assumptions or market conditions which change without notice. This could impact the accuracy of the information.

Under no circumstances is the information to be used by, or presented to, a person for the purposes of deciding about investing in Raiz Invest or Raiz Invest Super.

Past return performance of the Raiz products should not be relied on for making a decision to invest in a Raiz product and is not a good predictor of future performance.


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