Uncategorized Archives - Page 39 of 53 - Raiz Invest

Answer surveys = cash invested in you

You can now choose to earn extra money with the data you want to share. We’ve partnered with Pureprofile so you can earn cash rewards by completing surveys within the Raiz app in your spare time!

Go to the Raiz Rewards section in the app and tap on the ‘Pureprofile’ tile (It’s right at the top of the list so it’s easy to find). This is currently only available on the mobile app so please make sure you have the latest version of the Raiz App installed.

Once you have clicked through the Pureprofile tile, tap ‘Start Earning Now’.

You’ll need to answer a few initial questions about yourself, then you’ll be taken to available surveys to answer. Once a survey is completed successfully, the reward will be invested into your Raiz account within 30 days. Reward amounts are stated before you complete the survey. Please note some surveys may be unpaid.

Please refer to full Terms & Conditions here.

We are always striving to bring you innovative ways to invest small amounts regularly! For more information on Raiz fees, click here.

Don’t have the Raiz App?

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

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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Kids can be impulsive, cry when they don’t get what they want, or be ecstatic seeing Santa’s presents under the tree. Parents have to convince a toddler why they aren’t allowed to get into the washing machine with their clothes, all the while thinking what’s to come next.

After investing so much time into your kid’s development, a sought-after milestone is to see them start their adult lives with sound financial literacy, coupled with some of their own money set aside – valuable tools that can help them lead happy and successful lives.

Research published in 2018 by the Australian government found that the minimum cost of raising one child, for a low-income family, ranges from $140-170 per week, or $7280-8840 per year – and that’s the bare minimum. Moreover, a survey conducted by the ABC in 2018 found that over half of Aussies aged 18-29 have less than $5k in savings, whilst over a quarter have more than $5k in debt (excluding HELP/HECS debt).

Whilst money won’t be the sole factor that affects your kid’s future, equipping them with financial life skills and a little bit of extra cash can go a long way in adding a boost later in life.

The earlier you start, the more time money has to grow and take advantage of compound returns. For example, with the power of compounding, if you were to invest $1,000 every year for 18 years, assuming average returns of 7% p.a.*, that investment could grow to be worth $34,000, off your $18,000 investment. That’s a total return of $16,000.**

How’s that for an 18^th Birthday present?

Where can I invest in my kid’s future?

If you’re putting money aside for your kids, and want to see those savings grow over time, there are multiple places to consider investing your money.

Savings Account

Savings accounts won’t earn you a lot of interest, with their primary benefit coming in the form of virtually no risk (the Australian Government guarantees deposits up to $250k in Authorised Deposit-taking Institutions). Our research found that 85% of Australians don’t know the interest rate on their average savings account, so be sure to be vigilant when comparing rates, as some accounts offer higher introductory rates before being reduced significantly.

George Lucas, our CEO says: “Many Australians are completely unaware of the best options to protect and grow their income and think they’re getting 2-3 per cent on their savings accounts when, depending on the bank, it’s often less than 1 per cent.”

“This is due to the way saving accounts are advertised with introductory offers. At this interest rate, if Australians are using their savings accounts to save money, with inflation, the opposite is happening and they’re actually going backwards.”

This is an important consideration when saving for kids, as your kids will be likely living at a time with higher cost in living in the future e.g. housing & petrol, so the money you save for them might not be worth as much as it is today if you keep it only in a savings account.

Other features to consider are minimum and maximum account balances, account-keeping fees if any, the conditions needed for any bonus interest, and whether a linked account is required.

Investment bond

Investment bonds are like managed funds, combined with an insurance policy. Your money is pooled with money from other investors, with an investment manager making the day to day investment decisions. The main advantage of an investment bond is that they can be a tax effective way to invest for the long-term, provided certain conditions are met.

The potential tax benefits and long-term nature of investment bonds means they can make for a nice way to invest for your kid’s future as they can benefit from potentially a lower tax rate on earnings received after 10 years.

Raiz Kids

Raiz Kids is a simple way to save and invest for your children and/or dependents who are under the age of 18. It essentially works the same as your normal Raiz account, which lets you invest small amounts regularly into one of six diversified portfolios that are invested across cash, bonds, domestic and international shares.

By adding a partition to your Raiz account, it allows you to nominate a portion of your Raiz balance (or even all of it) to be transferred to your kid’s when they turn 18. Nothing is set in stone, and you can adjust the Raiz Kids portion at any time. Once your children reach the age of 18, they are then able to open their own Raiz Account, with the option of having these funds transferred into their account.

Since inception, the avg. Raiz investor has made 12.4% p.a.* as of Dec 2018 (return includes all fees but before the $3.50 monthly maintenance fee). For more information on Raiz fees, click here.

Teach along the way

It’s also important that setting aside money for your kid’s future is tied together with teachings in financial literacy. It would be a wasted opportunity to be setting them up with additional cash if they don’t know how to responsibly manage it. Basic financial literacy is an important skill set that your kids will take with them throughout their entire lives.

Pocket money is one of the most popular ways to teach kids the value of money at a young age. Paying them in cash for completing helpful chores and jobs gives them a tangible experience with money, allowing them to see their piggy bank grow before their eyes.

As they get older, help them open a savings account, and encourage them to set savings goals. Involve them in writing out shopping lists before visits to the supermarket by explaining what you need, the price of those things, and how much money you have to spend. Consider setting up a Raiz kids account, which can give them basic exposure to the market and compound interest.

As they make their way through their teenage years, be sure to keep on building on what you have taught them.

*Past performance is not an indication and should not be relied on for future performance.

**Return estimated for the sake of simplicity as past performance is no indication of future performance – see ASICS managed funds fee calculator to get an estimate on how fees and costs can affect your investment. Return estimate is net of MER. The value is a future value, not a present value.

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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Raiz Invest  has taken a major step forward in its push into Southeast Asia with the
signing of a joint venture agreement (JVA) with a subsidiary of a leading Malaysian investment
institution.

The JVA is with Jewel Digital Ventures Sdn Bhd (Jewel), a wholly-owned subsidiary of PNB Equity
Resource Corporation Sdn Bhd (PERC), which, in turn, is wholly owned by Permodalan Nasional
Berhad (PNB) (www.pnb.com.my). Jewel is the investment vehicle set up by PNB to spearhead its
digital business strategy which aims to unlock digital value propositions for current and future
customers of Amanah Saham Nasional Berhad (ASNB), PNB’s wholly owned unit trust management
company. PNB is one of the largest fund management companies in Malaysia with assets under
management of RM298.5 billion (A$103.9 billion) across 13.8 million accounts.

Raiz Chairman Tony Fay, says: “Reaching agreement with PNB is an exciting development as we
continue our push into Southeast Asia.”

“By joining forces with a trusted and reputable group such as PNB, we are laying the foundations for
sustainable growth in some of the fastest growing markets in the world where there is a genuine
appetite for fintech products and services,” he said.

The joint venture is a 70%/30% split between Raiz and Jewel respectively with Raiz primarily providing
the technology while Jewel will provide the required capital once the condition precedents are met,
including a granting of a licence in Malaysia. Raiz Malaysia will be a fully consolidated entity into Raiz
Invest Limited.

The JVA also outlines how Raiz and PNB will partner in other Southeast Asian countries.
Tony Fay continued: “PNB and its strategic holdings have significant presence in Southeast Asia,
which will only benefit Raiz’s efforts to enter these markets. With a population of 33 million people,
Malaysia represents an excellent opportunity for our business.”

“With the JVA executed, the next step is to submit a formal application to the regulator for the license.
Discussions with the regulator are progressing, and at this stage, subject to regulatory approval, it is
anticipated the platform will go live towards the end of CY19 or early in the New Year. The work done
on the platform to support the Indonesian launch (anticipated 3Q CY 19) will facilitate an efficient roll
out in Malaysia,” he said.

Raiz’s growth strategy and vision includes expansion into Southeast Asia. In December 2018, Raiz
secured approval for a licence to distribute mutual funds in Indonesia. The Indonesian business was
launched in March 2019, with the App expected to be released in the September 2019 quarter.

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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George Lucas, Raiz CEO

A defining aspect of the Raiz story

Enhancing financially literacy has always been integral to the Raiz Invest story. From the time we first hung out our shingle in March 2016 under the Acorns banner, we appreciated that the millennials signing up in their droves were often as thirsty for financial information as they were for the technology that allowed them to save and invest their small change.

It seemed to me we had really hit a sweet spot. Financial advice was largely out of their financial reach (even more so post the Financial Services Royal Commission), as were fund managers. Bank interest rates were (and are) derisory, just like the customer service they offer.

So, a micro-investing platform – mobile phone or web app – that not only allows millennials to save their loose change on a regular basis but to invest in a portfolio of funds was just what they wanted. But it wasn’t just the practical application of our technology, or the ease in which millennials could access it.

No, it was they way we engaged with them, using social media to explain the roll-out of new services and products that meet their changing needs. And underpinning it has been an educational-centric focus from day 1 – and that will never change.

Enhancing financial literacy in Indonesia

But if it’s been an exciting – and rewarding – journey in Australia, then Indonesia, where we have received a licence to distribute mutual funds, will be much more so, especially when it comes to spreading the financial literacy message.

Like so many businesses looking to expand in the fourth most populous country in the world, we had no concept of the enormity of the opportunity – or the magnitude of the task. Now we appreciate both.

The numbers tell it all. Currently there are about 100 million bank accounts in Indonesia, but the number of mutual fund investors is less than a million. The simplistic – and wrong – explanation for the disparity between these two numbers is that Indonesia is a poor country.

It’s wrong because as the respected Boston Consulting Group points out, the emerging middle, middle and upper middle-class consumers in Indonesia are estimated to be 168 million by 2030 – and that’s out of a total population of 270 million.

For Raiz, this is only half the story. Although this country missed the PC revolution, it is certainly embracing the smart phone. Research shows there are about 180 million users, and of this number at least 120 million are active on social media. It’s tailor made for us.

We will use social media to enhance financial literacy. Instead of people having to learn about it (and that approach has struggled globally), with Raiz they get hands-on experience via a medium they understand. As in Australia, many young people who never thought they could save can now do so by automating the process.

Once they start saving, they want to know how it’s invested. It’s a natural progression. Instead of seeing investment as the preserve of the rich, it becomes something they can relate to in their lives. In this way we are actively helping remove a barrier to wealth creation and will potentially improve the lives of many.

Don’t get me wrong. We think Indonesia is an exciting business opportunity. But commercial goals and having a positive impact on young people’s savings and investing habits don’t have to be mutually exclusive. For once, that old cliché, a win-win situation, is valid.

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

What is socially responsible investing?

Socially responsible investing can be thought of as a philosophy to investing, where the investor makes a conscious effort to invest in companies that align with their ethical ideology. A common example is not investing in companies that promote or produce products related to addictive substances (tobacco, gambling etc.).

Positive and negative screening are two methods that can be used to determine which companies are suitably socially responsible to warrant your investment.

Positive screening seeks to include companies with attributes that align with your social and ethical expectations, such as having a low carbon footprint or a gender diverse board.

Negative screening seeks to exclude companies with attributes that contradict your moral expectations. These could be companies that have significant environmental impacts or poor working conditions.

Essentially, positive screening gives preference to causes you are passionate about, whilst negative screening filters out companies with characteristics you morally oppose.

Of course, both these methods can be used in combination when searching for companies that align with an investor’s ethics and values.

Socially Responsible Investing can have a positive impact

An analysis from MSCI found that the performance of two portfolios screened to overweight stocks with higher ratings in environmental, social and governance (ESG) characteristics outperformed the global benchmark over the last eight years.

This is because many ESG stocks are technology companies such as Amazon, Google and Apple, and excludes many energy companies (such as oil companies which due to the price of oil have under-performed the market).

In Australia, investors have been at the forefront of sustainable or responsible. It is estimated in Australia that responsible investment accounted for $866 billion in assets under management in 2018, up 37 per cent from $633 billion in 2016. With global socially responsible investments totalling US$30.7 trillion.

Raiz democratises access to socially responsible investing

Traditionally, investing has often been perceived as a luxury reserved for those with enough knowledge and wealth, due to complicated and often jargonistic finance rhetoric, combined with minimum investment amounts ranging in the hundreds or even thousands of dollars.

If you’re looking for exposure to socially responsible investing, the Raiz Emerald portfolio may be a great place to start.

The Emerald portfolio is our ESG themed option that assists in matching investments with personal values. It provides investors exposure to large ESG Australian and Global companies, with top holdings primarily including technology and health companies. For more information on Raiz fees, click here.

The ‘Russell Investments Australian Responsible Investment’ (RARI) ETF makes up the Australia Socially Responsible allocation of the portfolio. It uses a mixture of both positive and negative screening, weighted to track companies that demonstrate positive ESG characteristics, after first screening out companies that have significant involvement in a range of characteristics deemed inconsistent with widely recognised responsible investment considerations.

The ‘Betashares Global Sustainability Leaders’ (ETHI) ETF, makes up the global socially responsible allocation of the portfolio. It includes a portfolio of large global stocks identified as “Climate Leaders” that have also passed screens to exclude companies with direct or significant exposure to fossil fuels or engaged in activities deemed inconsistent with responsible investment considerations.

As more people consider ESG companies to invest in, the view is that by investing in companies based on environmental and social considerations, it can be possible to hold investments that may not compromise on market risk or long-term performance.

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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1. An active Raiz Invest Account must be held (account balance greater than $5). Raiz account holders hold valid accounts as set out in the product disclosure statement found on the website: raizinvest.com.au
2. Entries open Sunday, 9^th June 2019 at 2pm and entries close Sunday, 16^th June 2019 at 11.59pm. This may be changed at Raiz’s discretion.
3. To enter one must complete in full the survey within the timeframe stated above and provide the email address on your Active Raiz Investment account at the end of the survey.
4. To thank you for completing the Survey, Raiz Invest will be giving away five $50.00 credit investments into their active Raiz Investment Account. These five investments will be selected at random. We note that no individual prize exceeds $250.00 and total value of prizes do not exceed $50,000.00.
5. These five random Raiz Account holders will be notified by email when the credit investments will be deposited into their Raiz account by Friday, 28th June 2019.
6. The permit number in the format NSW Permit No. LTPM/18/03853.
7. This promotion is in no way sponsored, endorsed or administered by, or associated with any other third party.
8. By entering this promotion, you agree that we may use entries for future marketing purposes in any media or branding.
9. The competition is promoted by Raiz Invest Australia Limited, Level 11/2 Bulletin Place Sydney 2000 NSW, 1300 754 748. ABN 26 604 402 815, who is the Authorised Representative of AFSL 434776. The Raiz product is issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) and promoted by Raiz Invest Australia Limited (ACN 604 402 815). A Product Disclosure Statement dated 19th March 2019 for this product is available on the Raiz website and App. A person should 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.

NSW Permit No. LTPM/18/03853

03/06/2019

From Raiz CEO, George Lucas

Lacklustre performance in gold despite global jitters

First off, on the gold market. We’ve seen the performance of gold since the start of 2019 has been poor, despite expectations for looser US monetary policy and mounting US-China trade tensions.

That’s somewhat unusual given gold is considered a safe-haven asset as it can be negatively correlated with traditional risky assets, such as equities. However, since the US-China trade war took a turn for the worse in early May, the price of gold has fallen. The drop is arguably more surprising given it’s happened against the backdrop of falling expectations for interest rates in the US.

US stocks strong but bonds signal a warning

Another consideration is that the US government bond and stock markets are saying different things about the health of the economy, given that the S&P 500 is only 5 per cent or so off its peak.

The US 10-year Treasury yield, meanwhile, has fallen below 2.25 per cent. Its 0.50 per cent drop since the start of March has been driven by a reassessment of the prospects for US Federal Reserve policy amid signs of economic weakness in the US and its trade spat with China.

However, it is common for equity prices to remain high while Treasuries rally in anticipation of looser Fed policy, with investors  now anticipating the two rate cuts in the US. The stock market’s resilience doesn’t tend to last, though, when the expected reduction in interest rates is vindicated by a subsequent slowdown in economic growth.

US faces multi-front tariff war

Turning to global trade tensions, US President Donald Trump now plans to slap new tariffs on Mexican imports, which would leave him fighting a multi-front campaign that threatens more instability for US manufacturers, US consumers and the global economy.

On the Chinese side, China’s state planner authority said this week that it would “prioritise domestic demand” for rare earth elements (REEs), increasing speculation that China may retaliate against the US tariffs by limiting exports of REEs.

If China follows through on this threat, offshore REE prices would probably jump as China accounts for over 90 per cent of global production. This would push up import costs for the US, which relies on REEs for both military and industrial uses.

A large wedge between onshore and offshore REE prices would also help to discourage electronics manufacturers from shifting production out of China to other countries in response to US tariffs.

Back to Mexico, President Trump’s surprise announcement was that he would impose 5 per cent tariffs on Mexican imports, with the possibility of raising them to 25 per cent if Mexico does not stop migrants from crossing into the US.

Tariffs on US imports from Mexico will have significant implications for share prices of auto makers with large operations in Mexico. German, Italian and Japanese car makers are most exposed.

Capex spend disappoints in Q1

Meanwhile back here, Australia’s private capex survey confirmed that firms are becoming less willing to invest, with private capital investment declining by 1.7 per cent quarter-on-quarter in Q1.

Turning to interest rates, we expect that the Reserve Bank of Australia to cut rates by 0.25 per cent to 1.25 per cent on Tuesday.

Important Note: The information on this website is provided for the use of licensed financial advisers only. The information is general advice and 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 website.

Investors only: The information in this Document is confidential it must not be reproduced, distributed or disclosed to any other person unless it is part of their statement of advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Document to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products.

General advice warning: The information contained in this Document is general information only. It has been prepared without taking account any potential investors’ financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. No responsibility or liability is accepted by Instreet or any third party who has contributed to this Document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.

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Even though your finances might be the last thing on your mind in your 20s, having a few financial goals will help lay the foundation for financial security in your 30s.

Of course, your goals will be different depending on your situation, however, these five can act as a place to start.

1.  Know where your money is going

You’ve undoubtedly heard people harping on about making a budget. However, sticking to a budget doesn’t work for everyone. Even so, knowing where your money is going is incredibly important. This will help you understand where you could be spending less money and even where you could be making more money.

This could mean tracking your income and expenses in a spreadsheet or with an app, like Raiz. If you typically use a card to pay for things, these apps can sort your income and expenses into categories automatically. Ignoring your finances can land you in hot water, especially if you start accumulating credit card debt or “buy now pay later” debt such as with Afterpay.

2.  Pay off high-interest debt

Many people have already dipped into high-interest debt, such as having a credit card or personal loan. However, these loans don’t have to be the end of the world. Paying off your debt goes hand in hand with knowing where your money is going. It’s important that you can meet minimum repayments every month, ideally going beyond this amount. Of course, you’ll also want to avoid getting into more debt.

3.  Start investing your money

The thought of investing can be quite daunting, especially when you don’t know where to start. However, using a micro-investing platform such as Raiz makes it easy to invest in a diversified portfolio starting with $5. With Raiz, you don’t have to handpick stocks on your own. Plus, you can decide what level of risk you’re comfortable with. Over many years, you’ll see your money multiply with the power of compound interest and reinvested dividends. For more information on Raiz fees, click here.

If home ownership or property investment is a priority for you, now may be the time to buy, especially with the Australian market cooling. To comfortably afford repayments on a house in Australia, you’ll need to be making a significant amount. For example, in NSW, your household income would need to be $124,000 a year in order to avoid mortgage stress. You might consider setting an income goal or aim to save for a deposit in your 20s.

4.  Have an emergency fund

Even if you’re not financially independent as of yet, having an emergency fund is always an important safety net to have. Usually, a 3-month emergency fund is enough in the case that you lose your job or decide you need time off work. Once you know what your monthly expenses are, multiply that number by three and aim to have this amount saved.

5.  Take control of your retirement fund

Retirement should be many decades away. However, where your superannuation ends up is important now. Different super funds come with different fees and different historical returns. With compound interest, even a small difference can make you thousands more in the long-term.

After you choose a super fund that’s suitable for you, it’s important to make sure your superannuation is consolidated. Most people will have multiple jobs over their working life and sometimes this leads to having multiple super fund accounts that you’re paying fees for. Having all your money in one place will mean you’ll be making more with compound interest and only be paying one lot of fees.

Final words

For many people in their 20s, this is where you’ll enter your journey into financial independence. This means you’ll be developing habits that you’ll likely take into the rest of your life. Therefore, it’s more important than ever to make sure you’re building strong habits and goals so that you don’t end up having to reverse bad money decisions in your 30s.

Guest author: James Pointon is a Commercial Manager at OpenAgent.com.au, an online agent comparison website helping Australians to sell, buy and own property.

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

Regardless of your financial income it is important to address two key factors as a woman living in a world adorned in dollar signs. Resilience and Wellbeing, the balance between the two provide a foundation for a strong financial relationship that is not only flexible in times of hardship but also allows us to enjoy the fruits of that which we have worked so hard to cultivate.

Current statistics recognize that women’s savings are inadequately supporting the needs of older generations. An astonishing 34% of single 60+ year old women are currently living below the poverty line.

The financial story of women is in desperate need of a rewrite and in a way, that challenges us in an exciting and engaging way. How do we turn this story of gloom into one of stability and positive growth? The words Resilience and Wellbeing echo again.

Spending time in the trenches assessing the details when needed, taking authority over one’s own savings and spending with clear and honest understanding. Gone are the days of Prince charming and Fairy God mothers, we are moving into an era of #girlbosses where we are just as interested in the latest fashion trends as we are the intricacies of our own financial security.

Resolve to find your own definition of financial stability. Not your best friends’ idea of stable and secure or the likes of business guru Jo Horgan- Mecca Brands. What are a list of your basic needs to be for filled to allow you to feel grounded and safe? Simple questions like this can and will encourage a new story to grow.

With strength comes stability and with continued awareness we can move with confidence in a financial world. The goal is balance, present when times are tough and presence when we are glowing in the face of financial freedom.

Author: Jessie-Anne is a yin yoga/meditation teacher and writer based in Sydney, Australia. 

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