saving Archives - Raiz Invest

money-issues

New research on money issues by Raiz Invest Limited, the mobile-first micro investing platform, improving financial confidence for over 160,000 Australians, has found that financial stress is having a negative impact on the sex lives and wellbeing of millennial Australians. The research found that men are more likely to believe that financial stress has a negative effect on their sex life than women, whereas women feel the impacts on their wellbeing. Almost one in 10 (nine per cent) admitted they would sacrifice their relationship for financial confidence. Previous research conducted by Raiz found that money issues are a significant cause of stress in young people.

The survey identified the differences in financial stress on men vs. women. It also looked at confidence levels of 1,000 respondents when it came to money issues, debunking many of the myths around financial security along the way.

Women more financially stressed than men

 The findings revealed that 42 per cent of women often / always felt financially stressed, compared to just 28 per cent of men. Women felt this stress impacting their wellbeing, stating the regular side effects of financial pressures included sleepless nights (65 per cent), depression (64 per cent), and illness (45 per cent).

Raiz Invest managing director, George Lucas, said: “We hope taking active steps to managing personal finances, like using the Raiz app should be empowering. As financial confidence increases, we hope to see the negative wellbeing impacts diminish. This year, we’ve already seen women account for 41 per cent of new Raiz investors. We hope to see this number increase year on year to contribute to lower levels of financial stress currently evident amongst young women.”

Male sex life impacted by financial stress 

Despite women being more financially stressed, men are more likely to believe that financial stress has a negative effect on their sex life, with a third of male respondents telling us this has an impact.

There were also clear differences in attitudes toward financial stresses and sexual sacrifices – with women (three out of ten) much more likely to give up regular sex than men (28 per cent vs. 16 per cent) to achieve financial security.

“Not surprisingly, financial stress has a differing burden on men and women in their everyday lives. There is still education that needs to be done when it comes to managing expenses, savings and investments, with platforms like Raiz empowering customers to increase financial confidence and hopefully reduce financial stresses. Raiz understands that personal finances can be difficult to manage and plan, which is why our platform aims to automate the process to work in the background of life to improve savings/investing and manage expenses and hopefully improving other parts of their life that don’t really need to be sacrificed” Lucas said.

Millennials more confident about their financial future

Despite the finding on stresses related to money issues the research found that 42 per cent of respondents are confident with their current financial status.

Lucas added: “The preconception that millennials think they will never own a house needs to start changing. We are seeing a significant trend of millennials making smart finance decisions by investing and building wealth for their futures, particularly with the research revealing that young people are feeling more confident about achieving their financial goals in future.”

See more on our blog: ‘Is the Great Australian Dream still a reality?’

To learn more about Raiz Invest and Raiz Invest Super visit www.raizinvest.com.au.

Media Coverage:


Don’t have the Raiz App?

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

download-raiz-app
Click to download the Raiz app

 

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.

image

With
the new year upon us, it’s easy to say “I will save more this year” but
what you might not have brainstormed is “How can I save more this year?
What are the practical ways to go about it?”
 The good news is even
small efforts can add up to big savings over time. No matter what you’re saving
money for —whether it’s to reach a savings goal, pay off debt faster or plan
ahead for a holiday or first home—these simple suggestions will help you get
there faster.

With
25 simple suggestions, there is one to suit everyone and to help you stick to
your goal or resolutions this year!

1. Create
sub-accounts for different savings goals or use your Raiz Account.
 It’s
an easy way to measure your progress and make quick adjustments.

2. Nickname
those goals.
 Research proves this creates an emotional connection that
motivates you to save more.

3. Set
up automatic recurring investments 
after payday. You won’t have time
to miss the money. For more information on Raiz fees, click here.

4. Treat
yourself to a birthday freebie.
 Most restaurants, if you tell them
it’s your birthday, will give you a little something just for dining with them.
The key is signing up early.

5.
Raid your drawers for unused gift cards. If you probably won’t
put them to good use, re-gift or sell them.

6. Cancel
unused subscriptions
 for magazines, gym memberships, for example.

7. Turn
off the tap when you brush your teeth.
 This can save 5,000L per year,
cutting down your water bill.

8.
Take shorter showers.

9. Unplug
your laptop and other appliances
 when you aren’t using them. Leaving
your computer on all day could add up to hundreds in a year.

10. Convert
to low-flush toilets
 and high efficiently appliances when your current
ones need replacing.

11. DIY
when it makes sense.
 (Doing major repairs on your own won’t save you
money if you end up having to a pay a pro to fix your shoddy work.)

12. Make
a list before hitting the store, and stick to it
—and avoid grocery shopping
when you’re hungry and more likely to make impulse buys.

13. Buy
the floor model for a discount 
when you’re shopping for big-ticket items
like furniture or appliances.

14. Buy
last year’s model
—especially when you’re shopping for electronics

15.
Buy holiday candy, decorations and wrapping paper the day after a major
holiday.

16. Borrow.
A friend may own a black-tie outfit you can wear to an upcoming wedding.

17. Get
books at the library
 instead of purchasing your own copies.

18. Use
generic or store-brand product
s for everything from cereal to face lotion.

19. Buy
everyday items
 like batteries and bottled water in bulk.

20.
Try the lunch menu at your favorite dinner spot.

21. Make
your own coffee,
 saving you anywhere from $1 to $5 per drink.

22. Commit
to bringing your lunch
 just one more day a week.

23. Stock
up on wine and liquor the day after a major holiday
 to score
discounts. Those are among the quietest days for liquor stores.

24. Look
for other freebies in your city
, like yoga classes or one-day workouts in
public parks.

25. Volunteer. It’s
free and will make you feel good too.

Bonus
tip:
 Use all the features available on Raiz to save and invest
(Round-ups & Recurring Investments), manage your finance better (My
Finance), save for your kids (Little Raiz), and shop with an investment bonus
(Found Money). Happy investing!


Don’t have the Raiz App?

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

download-raiz-app
Click to download the Raiz app

 

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.

Suburban house

For
the past half century the Great Australian Dream has centred on home ownership;
a detached house with a Hills Hoist out the back or, more recently, an
inner-city terrace. But, with average house prices in some metro areas circling
the $1 million mark, the Great Australian Dream has become more of a fantasy
for many millennials and first home buyers.

For
this reason, many of the newspapers have dubbed millennials as “Generation
Rent”: a moniker that has transformed into something of a mantra, as many
millennials effectively give up on saving for a deposit. The problem is this
apathy is coming at a critical time, where they need to be doing the exact
opposite – that is, saving more not less. Whereas once, saving for a
home took a little dedication and hard work, price-to-income ratios are
today around 5.8x nationally, and up to 7.0x in Sydney. The trend also isn’t
occurring in isolation; it’s combined with high levels of household debt and
stagnant wage growth.

However despite this, 42 per cent of respondents are confident with their current financial status.

In practice, it means that first step – from renter to home owner – is a large and
difficult one. The Reserve Bank of Australia (RBA) found the ability to save
for a deposit is the primary constraint for one third of potential home buyers
– bigger than the ability to continue to service a mortgage on an ongoing basis.

Does
this mean the Great Australian Dream is dead? Far from it.

But it does mean millennials need to work even harder to reach their goals and take hold of their own financial futures. To do this, they need to adopt a saving mindset.

The
challenge is that learning to budget is not necessarily part of everyone’s
daily priorities. We’re not taught to manage our money at school or given any
sort of formal education on it. Instead, people are expected to learn how to
manage their finances from their parents or through a costly process of trial
and error. But the trick to it – like anything – is starting small and being
persistent.

The
first step is always the most difficult one.

Moving from spending all of your
income to saving $20 a week can be a big leap but once it’s conquered, it gets
easier to save more and more because the habit has already been introduced.
Further, small savings goals can help reinforce positive behaviour, and make it
easier to take bigger steps. Saving enough money to buy a new car could be an
initial goal that makes the idea of budgeting for a bigger item – a wedding, a
holiday – seem easier. Eventually, with the right type of financial confidence,
it’s easier to look at buying a house in a new light.

There
also needs to be a discussion about the need for home ownership. Knowing
Australia’s culture and the mythology around The Great Australian Dream, it’s
hard to imagine our young people adopting the European mindset of renting for
life, rather than aspiring to own. But in reality, there is no reason to think
everyone should own their own home.

There
are many other investment types that can often lead to better financial
outcomes. What millennials need is the right financial education, to understand
different asset classes and then be able to choose the ones which will work
hardest for them. It also means if they decide to buy a house down the track,
they’ll be a better position to do so.

Let’s
be clear – none of this advice will magically help anyone afford a house
overnight. But it will help build a critical change in attitude and provide
first step into having a healthier financial balance sheet. It all goes a long
way in making the ambition of buying a house seem less like a pipedream!


Don’t have the Raiz App?

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

download-raiz-app
Click to download the Raiz app

 

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.

Bitnami