Buyers Are Clueless
The best financial advice I ever received was, “earn more”.
Buyers Are Clueless
In a survey of 1,000 Australians, ME Bank found that “first home buyers are clueless“.
“New research shows that first home buyers are clueless when it comes to knowing the ins and outs of property buying, with a concerning 61% of first home buyers failing a basic property buying literacy quiz, compared to only 27% of owner occupiers and a quarter of investors.” – ME Bank
Nearly 9/10 respondents didn’t know that LMI covers the bank and not them or there is no cooling off period at auction. Nearly 8/10 didn’t know a deposit was needed on auction day and 6/10 didn’t know what an offset account is.
And it wasn’t just would-be buyers.
More than 6/10 owner occupiers and investors were unsure of the key things that contribute to higher interest. Meaning, they could be saving on interest.
Outside of property, the 2017 ASX Australian Investor Study showed less than 30% of us understood what the risk-reward trade-off means and even fewer know what diversification means.
Earn More, Keep Less?
Most of us spend 40 hours per week, plus travel, trying to earn a dollar — and we split 30% of our keep with the ATO.
But investing just a few hours in your financial literacy can literally pay dividends many times over for many years.
Yes, I’m a share market investor with years of experience. So that’s all well and good for me to say, right?
You needn’t go to university to study finance to save yourself or your family some serious money over many years.
All you need is a basic understanding of finance and motivation to learn. It seems like a daunting task, but it’s worth it.
It can be as simple as listening to a finance podcast, reading a book, subscribing to (and reading) a newsletter or getting advice on how to do it.
Rask Finance: 1 Year On
Around a year ago the team and I at Rask launched our first website, www.raskfinance.com. It is a website with free educational videos and courses.
Here’s what we’ve achieved so far:
- 2,100+ hours of financial education videos viewed
- 40,000+ unique visitors to the site
If you’re game, why not try our share market basics quiz?
I’ll be back with some regular programming later in the week.
Cheers to our financial futures!
Founder, Lead of Adviser of Rask Invest
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