wealth 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.

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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 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 making a decision to invest in Raiz and is not a good predictor of future performance.

By
Phil Usher

The difference between rich and wealthy, is that getting rich is just
about the accumulation of money. It can come and go, and if someone who’s rich
loses their money, they may have trouble regaining that or rebuilding again.

When we talk about building wealth, we generally think of
numbers or how we can increase our income, how we can invest, or how we can
make better decisions based on numbers. But wealthy people are also doing things that aren’t numbers
focused.

History is full of lotto winners that end up broke in a
matter of a few years after winning big, or sports people who are great at what
they do but not so much with their money.

But for wealthy people, it’s very much a mindset. This blog will go through
five things that wealthy people do on a regular basis that make them
financially successful. Of course this isn’t a “every millionaire does this” or
“do these things for guaranteed wealth”, it’s more a look into consistent
behaviours of the most successful and wealthy people.

1.
Exercise

First up is that they exercise. Generally they’re exercising
for at least 30 minutes a day, and they’re doing that around four days per
week. It’s not a lot, it’s not a huge commitment, but research shows that
people who exercise have much better outcomes in terms of the way that they
think, getting clarity in their life, and making decisions.

There is tons of research out there on exercise. I’ll let
you see what you can find, but exercise is something that wealthy people do
constantly.

Richard Branson is notorious for kite surfing and jogging.
And billionaire owner of the Dallas Mavericks, Mark Cuban says he does 1 hour
of cardio 6 or 7 days per week!

2.
Read

Wealthy people read. A lot of research has come out saying
that CEOs, top-level CEOs, are reading on average 60 books per year. 60 books
compared to about one or two that everyone else reads.

The information that you get from books is unbelievable. It’s
something that you can’t access anywhere. The dense information that you can
get in your ear through audio books is also an efficient use of time! You can
read for half an hour per day while your exercising. That’s health and wealth
in one hit! And I’m not necessarily just talking about fiction books either,
it’s non-fiction and ways that you can learn to improve your thinking. Do a
healthy mix between the two.

Bill Gates says that he reads 50 books per year and Warren
Buffet says he reads 5 to 6 hours per day!

3.
Network.

A lot of people say that your network is your net worth.
That means that you’re getting exposed to other people and it opens the doors
for many other opportunities. You’re not going to be able to build your wealth
just by sitting in your back room and keeping to yourself. You’ve got to get
out there, you’ve got to get to events, you’ve got to talk people.

Some of my biggest sales have come from just going to a
networking event, exchanging my card, having some food, and having a beer with
a decision maker. Prior to that, I’ve tried cold calling or I’ve tried dropping
in and they’re always too busy, but when you get face to face with someone, and
they can see what you’re like as a person, that’s when the opportunities can
really start to open up. So, get out there and start networking.

4.
Mentors

Arnold Schwarzenegger says in his book, “There’s no one
that is self-made.” Everyone has mentors, everyone has guides, everyone
has coaches, advisors. Find your mentors, find people who’ve been there and
done that with that experience.

It doesn’t necessarily have to be face to face, that’s
ideal, but I understand that it can be limiting. For me growing up, I had my
father as a mentor, but looking beyond that, in terms of building wealth, I
turned to books.

Having those books, having those people that have built billion
dollar fortunes, and seeing what decisions they make and how they operate, is
what I’ve used as mentoring as well.

Ask business owners or investors you look up to. But don’t
come out and ask ‘hey can you be my mentor?’ Play it cool. Go for coffee and
follow up with a few emails.

5.
Gratitude

Wealthy people practice gratitude every day. There’s nothing
worse than thinking and comparing yourself to others and saying how far you are
behind. Instead of saying I don’t have this, be grateful for what you do have.
There are plenty of people out there who believe that you are living a version
of their best life.

So if you’re getting sick and tired of going to work, rather
than waking up and saying, “I have to go to work today,” wake up and
say, “ I get to go to work today,” because there are plenty of people
who are out there struggling that don’t have employment who would like to be in
your opportunity and take advantage of what you have.

So, practice some gratitude. It changes that way you think,
you become a lot more satisfied with life, so you’re not out there chasing the
material things. Instead, you’re starting to chase what feeling gratitude allows
you to become.

By building your mindset, this is the muscle that you need
to raise your wealth. Once you’re able to start to doing that, and hone that,
then the money part will become easier. It’s probably 80% mindset and 20%
process, so by working on your mindset, this will go a long way towards raising
your wealth.

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 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 making a decision to invest in Raiz and is not a good predictor of future performance.

[ New Product Announcement ]

Following
your feedback, we are planning to launch a superannuation product. The
superannuation feature will be fully integrated into the existing app, using
the current six portfolios when it becomes available in late March 2018. 

For those who are interested or want to be updated on its release, you
can pre-register here: https://super.Raizinvest.com.au

image

By Alison Banney (Finder.com.au)Superannuation
isn’t everyone’s cup of tea. Let’s be honest, it’s boring and complicated and
it’s something that young Australians won’t need for another 20, 30 or even 40
years. However, your superannuation is likely your largest asset, and while
there’s no need to know every word of your fund’s PDS, there are definitely a
few things you should know.

 

1.
Where your money is invested

Australians
are becoming more and more aware of the footprint they’re leaving on our earth.
We’re seeing more people use reusable coffee cups, hearing more of our friends
and colleagues commit to eating less meat and seeing more people bring their
own shopping bags to the grocery store. But what about your super?

Your
superannuation is likely to be the largest investment portfolio you’ll ever
have and you could be supporting tobacco companies, ammunition manufacturing
or coal-seam gas extraction without even knowing it. You should be able to find
the details of where your money is going on your super fund’s website, although
you may need to do some digging. If you don’t like what you find, don’t
hesitate to switch to a fund that aligns with your values.

2.
Your insurance cover

If
you’re young, healthy and fit you might not consider life insurance as
something you need. But believe it or not, you’re almost certainly paying for
it through your superannuation. Most super funds will provide you with
automatic Death and Total and Permanent Disablement (TPD) cover when you open a
policy, and some will also include automatic Income Protection insurance.

These
insurance policies are almost always opt-out rather than opt-in, meaning that
unless you specifically opt-out of your policy you’ll be paying fees for this
cover, whether you want it or not. Have a look at your latest super statement
or read your fund’s PDS online to see what insurance you’re paying for, and
decide whether it’s right for you.

3.
What fees you’re paying

While
you’re poking around your latest statement, you should also take a look at how
much you’re forking out in fees. You might already know what admin fees you’re
paying, but what about the rest? There are also investment fees and a fee for
indirect costs (known as the Indirect Cost Ratio) charged to most accounts, and
these can vary greatly between funds.

The
difference in fees between funds might not seem like a big deal when you’re
young, but it can have a huge impact on your superannuation balance by the time
you’re ready to retire.

4.
How your fund has been performing

Because
of the compulsory nature of superannuation, many people think that all super
funds perform equally, but this is simply not the case. It’s important to think
of your superannuation as one large investment portfolio. It doesn’t guarantee positive
returns, it relies on the skills and knowledge of the fund manager to invest in
assets that will provide positive returns. And some are better at this than
others.

When
applied to a balance of $100,000, the performance becomes quite serious. You
should be able to find your fund’s portfolio performance figures on its
website.

Superannuation
is incredibly complex, and it can be overwhelming to try and understand every
tiny detail of your fund. Instead, use these four areas as a starting point
from where you can learn more about your super.

Please
also check out our blog on new rules for super contribution as voluntary
contributions may now be tax deductible.

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 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 making a
decision to invest in Raiz 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!

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 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 making a decision to invest in Raiz and is not a good predictor of future performance.

Raiz Invest Limited

ABN: 74 615 510 177

AFSL: 434776

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Sydney NSW 2000

1300 754 748