Blog - Page 21 of 21 - Raiz Invest

By RateCity

We
all know that travel can be expensive. By the time you add up your flights,
accommodation and insurance costs it almost feels like there’s no money left to
go out and enjoy the city to which you have travelled.

Finding
new ways to come up with the cash for your holiday, and to keep costs down
while you’re on vacation, is a must for every travel addict.

Here
are some of the best ways to pay for your holiday necessities and still have
enough money left over for those once in a lifetime travel experiences.

Saving
up before you go

Saving
enough to go away on a trip is often the first and most difficult hurdle for
cash-strapped travellers.

Incentive
based savings accounts are a great way of stashing some cash for your next
holiday as they tend to both require a minimum monthly deposit and discourage
you from making any withdrawals.  By sticking to the account’s basic terms
and conditions, you effectively sign yourself up to a relatively simple savings
plan.  By doing so you are rewarded with bonus interest which can go a
long way to making your trip even more memorable.

The RAMS Saver account is a great example of an
incentive based saving account.  It has some conditions in order for
customers to earn bonus interest (on top of the variable base interest rate the
account offers). Firstly, customers must deposit at least $200 each month.
This could be as easy as getting a portion of your salary paid into the
account each month.

Secondly,
in order to be eligible for the bonus interest rate, customers must not make
any withdrawals each month. This effectively makes customers think twice about
whether they really need to spend money now or instead build up the spending
money for their trip. Bonus interest is only payable on balances up to $500K.

Apart
from the traditional savings account, new apps can help you stay disciplined
and save extra cash before your big trip. An example of this is the Raiz app
that can be a useful tool for savers who find it hard to stick to a financial
plan.

The
app helps in identifying areas of your spending where you can cut back, and
setting reasonable short and long term targets for yourself. Raiz allows you to
automate how much you save by allowing you to save & invest any amount on a
daily, weekly, or monthly basis.

Another
key feature of Raiz that helps relieve the stress of saving is Round-Ups.
Round-Ups takes any transaction you make on your credit or debit card, rounds
it up to the nearest dollar and invests the change into your portfolio. By
linking saving to spending, it is a great way of showing that you can save
without affecting your lifestyle.

Saving
on insurance

Travel
insurance is a must for any holiday. While it will involve an initial cost, the
cost of not having insurance if something goes wrong could be infinitely
higher.

Online
travel insurance specialists, InsureandGo, suggest buying directly from a
specialist to help cut out middle man fees on travel insurance. Buying your
insurance direct from an online supplier can work out cheaper, but make sure
you shop around for cover that is appropriate for you – not just cheap.

It’s
also recommended to read the terms and conditions and take note of any
inclusions and exclusions on your policy so you know exactly for what you are
covered. This should help you avoid running into any surprise costs down the
track.

While
most policies will cover you for standard items – like medical/hospital and
emergency, trip cancellation, liability, baggage. Before you purchase your
insurance think about what other unique areas you will need cover for.

Will
you be doing any risky sports or activities that required extra cover? Perhaps
you taking an expensive camera or renting a car? These are just some of the
things that you should take into consideration when choosing your cover so you
are not left out of pocket if something goes wrong.

Another
tip is to look out for discounts and promotions. Just like your favourite
clothing store, travel insurers also offer coupon and discounts. If you’re a
regular traveller, it may be worth signing up to their newsletters or checking
out their social media pages is a great way to find out about these limited
time offers.

Saving
on accommodation

For
those looking to pay less for accommodation and more for experiences, house and
pet sitting is the ideal option. By providing free pet care when you travel,
you can enjoy the opportunity to spend time with a pet and live like a local in
the places you visit.

You
could reduce the cost of your trip by over a third and help pet owners find
peace of mind while they are away from home. Instead of checking into a hotel
you can stay for free in homes across Australia and all over the world.

This
style of accommodation is an experience in itself and gives you the chance to
make connections with local people, discover off-the-beaten-path destinations,
and take advantage of the companionship having a pet can provide. By organising
house and pet sitting stays through a community like TrustedHousesitters, for
less than the cost of one night in a 3-star hotel, you could save thousands of
dollars on your holiday accommodation.

TrustedHousesitters
is an online community of pet lovers who engage in a mutually beneficial
exchange to ensure all members can find the freedom to travel. Providing a
simple solution to a universal problem, they help home and pet owners connect
with caring, verified sitters who offer free pet care in exchange for a free
retreat, because they want to spend time with pets when they travel.

Saving
on the road

Apps
are not only for saving before your trip, they can also make life a lot easier
when you’re out on the road. One way that apps can make your travel experience
better (and cheaper) is by helping you avoid those “tourist trap” restaurants
that give you inauthentic food for double the price of a true local feed.

Using
the Townske app, you are able to easily uncover the places that locals go to
again and again. These are the places that are doing amazing things, providing
amazing experiences and are often at or below prices of more touristy places.
With Townske, you could improve you travel experience and have the opportunity
to enjoy the true richness of cities.

Another
hot tip that could see you saving thousands over your travels is getting access
to an International Student Identity Card (ISIC). Full time students, teachers
and anyone under the age of 31, qualify for one of 3 lifestyle and discount
cards.

First
established in 1953, all bona fide students over the age of 12, regardless of
their nationality, race, gender or religion can purchase an ISIC card at an
affordable price. Via one single card, ISIC students gain preferential and
discounted access to products, services and experiences relevant to all aspects
of student life, from software licenses, cinema access to bookstores, public
transport, cafés and eateries and much more.

Whether
you’re staying put in Australia or heading off on an overseas adventure, these
internationally recognised discount and lifestyle cards are the real deal when
it comes to savings.

ISIC
gives you a choice of up to 42,000 lifestyle and travel benefits in over 133
countries, including more than 5,000 in Australia and New Zealand. For example,
you could get 20 per cent off your meals at over 2,500 restaurants, cafes and
takeaway outlets across Australia and New Zealand.

There
are also exclusive discounts on flights and other travel products through STA
Travel and negotiated discounts on train, bus, tram & ferry tickets around
the world. There is an ISIC app that can be downloaded to help you check for
discounts while you’re on the go.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

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.

Read Post

By Clayton Daniel

Creating
wealth is a long-term process, and in the same way that being a small degree
off-course can have a huge impact while navigating a long journey, small
effects add up to big outcomes over long-term investing.

As
such, tax efficient investing creates better returns for no extra investment
risk. For example if you built two identical portfolios in two separate
entities, with the only difference being the tax rate applied to the earnings,
the result will be better returns for the entity with the lower tax
environment.

With
that in mind there is a tax structure in Australia you can build assets in, so
tax efficient it makes seeking a tax dodging strategy like an offshore bank
account in the Isle of Man redundant.

Why
risk either being ripped off or going to jail by siphoning your money offshore
to avoid tax, when there is a perfectly legal way to reduce your tax right now?

Very
few people understand how attractive this tax vehicle is, as it has a very
boring and bureaucratic name. Considering the advantages of ending up with more
money in your pocket over the long term, it’s strange you never see this tax
structure up in lights.

However,
for those in the know, it has such unbelievable advantages that the government
built restrictions on how much you can put in. They did so to stop those who
bother to wade through the technical data from pouring as much money in as
possible.

Lucky
for you, I’m going to save you the hassle of peeling through hundreds of pages
of dry government fact sheets, and instead put all the tax benefits here for
you in plain English.

The
crazy thing is, you would already have heard of this tax structure before,
probably even own one, but found it to be as stimulating as a Top 40 dance
track from the 1990’s (Except The Prodigy, they were awesome, and I won’t hear
another word about it.) It’s called Superannuation.

The
misconception about Superannuation is that it’s an investment. It isn’t. It’s a
tax structure. Think of it as a car. Just as you can put almost any kind of
person in a car, you can build almost any kind of investment portfolio inside
of Superannuation (restrictions exist: here for summary, here for in-depth).

It
will save you money right now today, save money every year, and save money in
retirement. Put simply, with the choice to build an investment portfolio in
your own name, compared to building an identical portfolio in Superannuation,
you can ensure a better after-tax result by using a tax-efficient entity while
not taking on additional investment risk.

1)
SAVE MONEY TODAY

As
an ex-tax accountant, I can’t tell you how many people ask this question around
tax time: ‘What can I do to reduce my tax?’ Most people hate paying more tax
than they must, and will do anything to reduce it. Think Negative Gearing, the
purposeful loss in income to pay less tax.

What
if there was a way to reduce your income, but rather than losing your money
through Negative Gearing, you kept the money instead?

This
strategy is called salary sacrifice. It is redirecting a portion of your salary to Superannuation and is taxed at 15% (for incomes <$300k). For example, if
your salary is above $180k, you pay close to half your income in taxes and
levies. By redirecting a portion of your salary to long-term investments, you
immediately save over 30% in tax.

2)
SAVE MONEY EVERY YEAR

Investments
should earn the investor income every year. If you hold investments in your own
name, this income goes on top of your salary. For example, if you earn $80,000
per year from employment, and a further $20,000 per year in investment income,
the investment income is taxed at almost 40%.

If
instead, you earned the $20,000 investment income inside of a Superannuation
tax structure, you would have only paid 15% tax. Saving over 20% tax on your
investment returns every year of your wealth creation is going to have a
substantial positive effect on your long-term results. Also, as franked
dividends are taxed at 30%, and the tax environment for Superannuation is only
15%, you’re able to claw back the other 15% tax from the government. Imagine
that! The government paying you tax instead of the other way around!

3)
SAVE MONEY IN THE FUTURE

The
benefits of the Superannuation tax structure are impossible to beat once you
hit the age you are finally going to start using your asset base for the
purpose it was designed for: to pay you an income when you no longer work. It
is impossible to beat because these three points have a tax rate of 0%. And you
can’t beat 0% tax. It’s truly an offshore bank account within our own borders.

3a.
SELL ASSETS FOR 0% CAPITAL GAINS TAX (CGT)

When
a couple in their sixties is sitting in front of me and about to declare
retirement, they often tell me with pride the size of the investment portfolio
they have built up over the last forty years in their own names. Properties,
shares, managed funds etc.

The
pain in their eyes when I tell them the size of their tax bill because of their
success has stayed with me. It’s not fun learning you have to pay the
government hundreds of thousands of dollars just as you’re about to start
surviving on the spoils.

If
they had only known about the ability to transfer assets held inside of
Superannuation into tax-free environments before selling, they could have
avoided every cent of tax payable.

As
soon as you ‘flick the switch’ on the Superannuation tax structure from
‘accumulation’ to ‘pension’, every asset immediately becomes tax-free (assuming
your super account allows this).

3b.
TAX ON EARNINGS DROP TO 0%

For
the entire wealth creation journey inside of Superannuation, you only pay 15%
tax on all earnings by investments. And it gets even better from there. Once
you hit pension phase, the tax then becomes 0%.

From
the moment you start receiving income from your assets, your investment
portfolio will live in an entirely tax-free environment, never to pay tax on
investment earnings again.

3c.
INCOME FROM SUPERANNUATION IS TAXED AT 0%

And
finally the last benefit of reaching pension phase and having your assets
inside of a Superannuation tax structure, is the income you draw down to fund
your ideal lifestyle when you no longer work is taxed at 0% also (Only after
age 60. From age 55 – 60 the income is taxed Marginal Tax Rates less 15%. This
age 55 access is only available to those born before 1 July 1960. Sounds
complicated but it isn’t. If you are under age 50 now, you have to wait until
you’re 60.)

From
the benefits above, you can see the Superannuation tax structure is the best
entity for you to build an investment portfolio in the short term as you pay
less tax today, the medium term as you pay less tax every year, and the long
term when all assets and income become tax-free.

Now
consider the only ‘downside’ of using Superannuation to build an investment
portfolio: you can’t spend the funds until you reach retirement. But investing
is a long term endeavor, so I have no qualms in putting forward the merits of
Superannuation.

So
how do you get money into your superannuation? Firstly you can use Salary
Sacrifice to get pre-tax money in there. This can be helpful to save tax today,
but it has low thresholds (found here note this limit includes your mandatory
super contributions from your employment).

You
can also simply deposit money into super from your bank account as it is
after-tax money and the threshold is much higher (found here), however when was the last time you did
that?

Raiz
again have come to the rescue by bringing this valuable tax entity to the
fingertips of the money-smart. All you have to do to start being proactive in
using this tax effective vehicle to build your long term asset base is 1) click
Settings, 2) click Super Fund and follow the prompts. The simplest way I’ve
seen to start using the benefits already afforded to you under law.

Disclaimer:
While deep diving into topics and education is great, we have a responsibility
to ensure you don’t make any mistakes so please read this statement first:

Superannuation
is not an offshore bank account, and the term is used as an entertainment
analogy only. Thresholds and super laws are notorious for changing, and the
rules change frequently. As such, Clayton Daniel nor Raiz cannot be held responsible
for the validity of the information contained in this article, nor the outcome
you achieve with this information. This article gives an overview of the tax
benefits of superannuation, but it does not reference the returns of the
investments within any Superfund. It neither takes into consideration your
personal situation or your needs. Therefore the information is general in
nature. This article – and indeed any article – is not capable of being used as
personal financial advice nor is it intended to be. If this isn’t clear enough,
before taking any action with superannuation, get professional advice first.
More information can be found here.

Clayton
Daniel is a financial commentator best known for reducing decision fatigue
through financial automation. He is the author of upcoming book Fund Your Ideal Lifestyle.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

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.

Read Post

By Clayton Daniel

I
love it when a simple mathematical illustration can explain things clearly.
Think the Pareto Principle of 80/20. Pretty much a well-established fact you
will get 80% results from 20% of the effort. Simple, easy to understand, and
pretty accurate.

“People
are split almost down the middle 50/50 between savers and spenders”

The
same goes with standard deviations. We all know the bell curve, but the fact it
almost perfectly summarises the population in terms of whether they are a
Spender or a Saver is almost uncanny.

Based
around research from a range of sources and my own experience as a former tax
accountant and financial adviser, I’ve come to the conclusion people are split
almost down the middle 50/50 between savers and spenders. Half the population
spend everything they earn, and the other half manage to put some money aside.
It gets a little more interesting when you break those two halves up even
further between moderate and extreme.

Run-of-the-mill
Spenders

By
that I mean, the first deviation of Spenders are your everyday, run-of-the-mill
Spenders. They are the type of person that runs out of money just before pay
day, and are relieved when the next pay cheque comes in. They don’t really get
themselves into too much trouble, but aren’t really interested in doing
anything to ‘get ahead’ other than focusing on the next pay rise or promotion.

Pay-check
to Pay-check Spenders

The
second deviation Spenders get a little more serious as these people start to
get themselves into a little bit of trouble. The first filter they gauge each
decision with is ‘what do they want’? The basic premise is if they can’t afford
something now, they will with next month’s paycheque. These type of people
carry around the $10-$20k debt in credit cards and personal loans and don’t
really think it’s a problem. The idea of putting money aside for the future is
redundant as they have ‘bills to pay now’.

Train
Wreck Spenders

The
third deviation on the Spenders are train wrecks. The problem is, by looking
from the outside in, you can never tell. These people make up the 2.5% of the
population that look amazing on the outside, but peer beneath that surface and
things are going to hell in a handbasket. These type of people are in
astronomical amounts of credit card and personal loan debt and really only have
two ways out, lots of hard decisions or bankruptcy. The problem is generally
too big to admit to themselves, and instead they focus on a mythical ‘big pay
day’ to solve all their problems.

The
Savers on the other side of the divide may sound like they have everything
together, but they too experience their own set of problems.

Save
to Spend Savers

Let’s
first examine the first deviation, the regular Savers. Interestingly, these
type of Savers only save to spend. That’s right, the majority of Savers are
really just delayed Spenders. These Savers will save for a specific purpose, be
it a holiday, a new vehicle, or a home. The purpose of their savings is to
facilitate the purchasing of things they want to spend money on without going
in to too much debt.

Savers
with Intent

The
second deviation Savers have a little more intent in their savings. It’s only
at this point do we finally meet people who are interested in putting money
aside for later in life. They will put aside the classic 20% of their salary to
build long term wealth, have no personal debt, but struggle to find the balance
between reaching lifestyle goals and not spending too much money. I understand
this issue, because if you are disciplined enough to stick to putting money
aside, it’s hard to turn that switch off.

Dollar
Saved is a Dollar Earned Savers

And
finally the third deviation or most extreme Savers are the one’s solely focused
on building wealth from a young age and put every single cent aside to achieve
that goal. They want to save every single cent, any money spent is money lost.
To them ‘a dollar saved is a dollar earned’. They are the kind of people who
never do anything social, and on the off chance you get them to join you, don’t
get stuck on a round of drinks with them as we both know you’ll end up carrying
them.

“The
mentality of each side means that once the grooves of consistent behaviour have
set in, it is extremely hard to change”

So
you have your Spenders on one side and your Savers on the other, and never the
both shall meet. The mentality of each side means that once the grooves of
consistent behaviour have set in, it is extremely hard to change. Not to say it
can’t be done, but it’s hard. And if there is ever any conversation around
change, it is always to move someone from being a Spender to a Saver.

“It’s
as if the answer to all of life’s issues can be solved as one moves from being
a Spender to a Saver….and here in lies the problem”

The
problem the Spenders will attest to here, is it’s much more boring on the
Savers side. And let’s face it. They have a point. It is. But I think this idea
epitomises the major flaw in our corrosively boring ‘personal finance’
education. It’s as if the answer to all of life’s issues can be solved as one
moves from being a Spender to a Saver.

“The
answer is not to go from spending to saving, it is to exist simultaneously
everywhere on the divide. To save like a vault and spend like a Rock Star”

And
here in lies the problem. What self-respecting Spender is going to hang up the
gloves and become a penny pincher? It’s not going to happen. In fact it rarely
does happen. So do we just leave it there? An endless array of personal finance
specialists, one after the other repeating this advice to no avail? Is this the
only answer? Or once again, have we all just taken this advice from people with
no real world experience?

“
The answer is not to feel bad about spending your own money, but instead to
have an amount set aside for guilt free spending”

After
managing the cash flow of people on all ends of this divide, I can tell you the
answer is not to go from spending to saving, it is to exist simultaneously
everywhere on the divide. To save like a vault and spend like a Rock Star.
The answer is not to feel bad about spending your own money, but instead to
have an amount set aside for guilt free spending. The goal is not to have ‘long
term savings’ as the word ‘savings’ is super boring and un-engaging, but
instead to have ‘investments’. And the goal is not to avoid travelling, but to
have a ‘lifestyle bucket’ to support your need and want to live the life you’ve
worked hard for.

“Automation.
Automation is key”

But
here is the hard part. How do you hold two opposing thought patterns – both
Spender and Saver – at the same time? If you were lucky enough to read my last article for Raiz you will know the
answer. Automation. Automation is key. Remove your fallible self and the
inefficient use of your own time and decision capacity and outsource to
automation.

Stop
wasting your time managing your own money and let technology do this for you.

Clayton Daniel, Financial commentator and
author of upcoming book Fund Your Ideal Lifestyle

Important Information

The information on this website is general advice only. This means it does not consider any person’s 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 Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will 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.

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

Read Post

By Superfitdad

You might not be into investments for any number of reasons. Maybe you don’t understand the vagaries of the markets and prefer to stay away from things you don’t understand. That’s perfectly understandable. Maybe you’re more into property, since “there’s no better investment than bricks and mortar.” Again, perfectly understandable.

But, I’m telling you right here and right now, if you’re in Australia (or most anywhere in the world), there’s an element of the investment markets that you simply CANNOT AFFORD TO IGNORE because you have a (in)vested interest in it.

This is something so simple and so basic that it’s almost invariably overlooked. And yet it takes just 5 minute to review it and see if you’re making a simple mistake that could end up costing you hundreds of thousands of dollars.

That’s right: fixing this one thing up – the one thing that I’m betting you haven’t looked at recently (because it’s tucked away in fine print on the statement that you barely look at, let alone understand (I’m just starting to get my head around it) – could literally save you hundreds of thousands of dollars.

Or put those dollars in your pocket.

Do I have your attention?

Good.

Now, what is it?

Your. Superannuation. Fees.

Really?

Yup, those measly 2% or 3% fees tucked away in a corner of your annual super statement, which, as we’ve established, you probably don’t read because those things are about as user-friendly it’s as if they were written in Arabic. Or Latin.

These fees can eat away at your retirement fund like a cancer, compounding and growing as your pot grows. And you’re (probably) letting it happen around you. So if you do one thing and one thing only in regard to anything I’ve ever written, it’s this:

See how much you are paying in fees and assess whether the fund manager deserves your money based on their performance.

Why This Matters?

The illustration above makes it clear just how the fees can mount up if left unattended.

Assuming you (and your employer) have saved wisely for 40 years, your fund could end up being “worth” circa $1m. Except you’ve been paying an itty-bitty 2% annual management fee to your superannuation fund manager – regardless of their performance – so all you’re left with is $630,000.

The scoundrels have taken $370,000 in fees. Compare this $630K with the guy who has been paying 0.5% as an annual management fee. He’s left with a pot of $890,000. That’s 41% more at retirement (or $261,000). That’s a lot of cruises. A lot of pina coladas.

Worth checking out what you’re paying, huh?

You might be thinking that if your fund is performing well, returning maybe 8% per annum or more, then it’s worth paying a little extra in fees. You’re damn right, it might be. But, often it’s not.

High fees don’t always come with high returns. And if you end up accepting high fees for poor or average returns, well, you’re getting mugged off paying for schmick offices and coffee waiters.

Remember this: you can’t control how the market performs. But you can control the fees you pay and your approach to risk.

Your Task Now (yep, right now, don’t put it off)

Promise me this one thing. You’ll go and check the annual management fees you’re paying and take whatever action is necessary.

 Superfitdad

Important Information

The information on this website is general advice only. This means it does not consider any person’s 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 Raiz product.

The information in this website is confidential. It must not be reproduced, distributed or disclosed to any other person. The information is based on assumptions or market conditions which change without notice. This will 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.

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

Read Post

“He that is good for making
excuses is seldom good for anything else” – Benjamin Franklin

What does everyone who finds it
hard to save money have in common? We all have an excuse for why we can’t do
it. Let’s talk through a few of the most commonly made excuses.

1.       You
can’t afford it

You want to save, maybe you even
“try” to save sometimes, but your money just doesn’t stretch far enough. It’s
not unusual to feel that you’re not making enough money to start saving, and
even those who have generous wages report this as an excuse not to save.

So why do you feel like you don’t
have enough money? The simple answer is that you may just be spending more than
you actually need to. Take a good hard look at
your “necessary” spending, and think about which items you may be able to cut
down on, and try not to spend more just because you’re earning more.

2.       You
will start saving “tomorrow”

You want to save, but it can wait
until tomorrow, or next month, or next year, what difference does it make? Well
actually it could make a lot of difference. Too many of us tell ourselves that
it’s fine for us to just leave it until later to start saving.

Take a moment to think of your
future self, who wants to buy a house, go on holiday, or maybe even retire
early. Now ask yourself if there’s any good reason why you shouldn’t start
saving now; with compound returns it can make a big difference if you start
saving early. So don’t put off until tomorrow what you can do today.

3.       It’s
too complicated

With all the different saving and
investing options, it’s not surprising that many of us are confused about where
to start. Super funds, savings accounts, share market? You’ve got a few
options, but they don’t make it that easy for you. Choosing the right super
fund, or constructing the right portfolio of shares can be a daunting task at
times, and may require a significant level of knowledge and expertise.

ETFs provide you with a great
option to begin investing in the share market; ETFs can track a certain index
such as the ASX 200, and allow you to gain exposure to a variety of different
shares for a very small fee.

Using Raiz to help stop the
excuses

Whether you think you can’t
afford it, you’re putting it off until tomorrow, or it all seems too complicated,
we think that by using Raiz you can help eliminate those
excuses from your life.

By rounding-up your purchases, Raiz
helps you link spending to saving, so instead of thinking about what you can
and can’t afford, you can just go about your business while Raiz does your
saving in the background.

It’s never too complicated with Raiz;
we’ve constructed 5 different portfolios for you to choose from, from 7
different ETFs. With Raiz you get the sophistication of a fund manager, with a
fraction of the fees. For more information on Raiz fees, click here.

You don’t need to keep putting it
off until tomorrow. We have made our sign-up process as easy as possible, so
you can start today and thank yourself later.

Say hello to Raiz, and goodbye to
excuses.

Don’t have the Raiz App?

Download it for free in the App store or the Webapp below:

 

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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