Smart Money Weekly; the REAL cost of saving in cash, US inflation drop, unemployment steady & last chance to win advice on us

Ben Nash

Hey team,

Happy Monday.

Before we get into it for this week – the last chance to get involved in our Smart Money Accelerator giveaway competition which closes at midnight tonight, and next week we’ll be randomly selecting someone to win a full year of free advice + access to our Smart Money Accelerator. To get involved, just tell us in 25 words or less what real money success means to you – you can submit your entry here. In addition to the major prize we’ve got a bunch of other swag to giveaway, so the odds are looking good – jump on it here.

In money news this week, US inflation has reduced for the month of March down from 6% to 5%. This is the lowest it has been since June 2021 when it hit a peak of 9.1%. However, the Federal Reserve has stated that there could still be rate rises ahead.

Domestically, the unemployment rate has stayed steady, which could result in the RBA increasing rates again in the near future. The unemployment rate is currently sitting at 3.5% which is still in the record low territory. This news resulted in the share market reacting negatively as traders factored in more potential RBA rate rises.

Smart Money Upside #113
Here we unpack the numbers from a recent client we helped, what they were doing with their money when they came to see us, what they chose to do as a result of going through the financial planning process, and the financial impact and upside we helped them achieve. To chat about how to get these sorts of results, you can book an intro chat with us here.

Couple, early 40’s; household income ~ $700k; total assets ~ $2.5m; saving ~$40k annually.

Lack of time and experience to best manage their money and invest for the future.

What they wanted from us / the advice process
Would like to buy a few investment properties. Want to start doing things smarter and want clarification about what to do with pre-approval for a property.

What success looks like for them
More investments, tax is being managed, an emergency fund in the bank, kids are being looked after and there are investments set up for them, super is ticking away nicely and more confidence with trajectory knowing that they can budget for travel.

What money strategy they were following before we went through the planning process
Retaining shares that have vested through work, saving money in cash and obtaining pre-approval for a property.

What money strategy they chose to pursue from our planning work
A new banking structure, an investment property plan, new debt management strategies, a new investment strategy, investing in insurance bonds, a new RSU strategy, and a superannuation review resulting in more superannuation contributions.

Key benefits of going through the process
Clarity on what their next steps are as well as a solid plan on what retirement may look like for them.

Value of advice after all advice fees year one: $75k
Year 20 upside after advice fees: $3m

If this story resonates you can book an intro call with us here.

Video of the week
The RBA governor, Phillip Lowe gets a half-price mortgage while Aussies struggle to keep up with his interest rate rises. How does that work? Check out the full video here.

Client story of the week
Because people don’t often talk about the full details of their money, it’s hard to know what might be possible when it comes to investing & wealth building – so I wanted to share. I’ve identified a client story & unpacked all that was and what wasn’t working for them, and what they chose to do with the support of a financial plan and financial adviser to guide them through their money and investment decision making. Check out the full video here.

Podcast drop
Learn the tips, hacks, and strategies to help you level up your money game. Pods released last week:

Upcoming events:
Free online money education to help you invest smarter and create a life not limited by money:

Blog of the week: How saving money could be costing you $492k
Trying to figure out how best to get the best results with your money is hard.

There are so many options, you end up overwhelmed with information overload, and then there are the mixed messages and hidden agendas, it’s hard to know who to listen to or who to trust. And then there’s the fear of making a mistake that will cost you a bunch of money that you later regret.

It’s no wonder investing often ends up in the too-hard basket.

When this happens, it’s common for people to stick to the default setting of keeping money sitting in cash instead of investing in assets that will grow into the future. Saving money in cash is always risky, but as you can see from these numbers over the long term it could be costing you serious dollars.

Consider this example. The long term return on a savings account vs shares in Australia is 4.4% vs 9.8%. If you’re earning the average income in Australia of $92k, and saving at the average household savings rate of 4.5%, it means you’re saving $80 per week.

Saving this amount of money each week in cash would grow to $52,138, $133,028 or $258,525 over 10, 20, or 30 years. This compares with the same amount of money invested into the sharemarket which would grow to $70,205, $256,521, or $750,979 over the same period.

The difference between the two comes in at a whopping $492,454, showing the power of putting yourself in a position to take confident action.

How to confidently get started investing
There are lots of good options when it comes to getting ahead with your money. Save in cash, pay down debt, buy shares or ETFs, buy a property, crank your super.

All these options are good things to do. Things that will drive financial progress. But the fact there are a number of things you could do can actually make it harder to choose what you should do and take action.

Understand your options
There are six strategies to build wealth that are available to everyone – save in cash, pay down debt, buy shares/funds or ETFs, buy crypto, buy property, or invest through superannuation.

It’s not hard to figure out what these options are, the tricky part comes when you’re trying to choose which option(s) are best for you.

A solid starting point here is taking the time to understand the advantages and downsides of each of the options. You should understand the potential financial upside of each option, as well as the risks – then choose the options you feel give you a good balance between both.

Understand how different investments fit
Different investments or wealth-building strategies will fit in with your money in different ways, some better and others worse.

For example, buying a good investment property will deliver strong growth over the long term, but in the short term will often create a cashflow cost for mortgage repayments and property costs that will need to be funded. Whether this will or won’t work for you depends on you and what’s going on with your money.

If you look at a potential investment in absolute terms you may not get the entire picture. When considering any investment, you need to think through how it will fit in with the other things going on with your money and lifestyle.

If things are complex, consider getting some quality professional advice to map this out – the more you have going on with your money, the easier it will be for a good professional to add value here.

Make your choice and take action
As the saying goes, ‘you miss 100% of the shots you don’t take’. When it comes to money, it’s common to get excited about great ideas but struggle to take the action needed to turn them into results.

Once you’ve taken the time to understand your options, and how they fit with your money, it’s time to make your choice. Once you decide what you’re going to do, map out the key action steps needed to make it happen – then follow them through.

Keep in mind that your money strategy and investments can and likely will evolve over time, and often you just need a starting point – don’t let trying to get it perfect stop you from getting it done.

Refocus and refine
As mentioned above, your money and investing strategy will evolve over time. The first step is always the hardest one to take, but from there you immediately start building momentum that will make your next steps easier. You can (and should) then leverage that momentum and keep it building over time.

The key here is keeping the focus on your goals and targets, and the next steps that will have the biggest positive impact on your progress towards your goals. At least once every three months, take the time to refine your targets and consider your smartest next steps.

You should also make a point of checking in on the progress you’ve made and celebrating it. It’s common for us to focus on all the things we don’t yet have – but this can be demotivating and unhelpful, and make it harder to maintain your financial focus.

On the flip side, when you take the time to look back at the progress you’ve made, you’re often pleasantly surprised, and this can give you a motivational boost to keep things moving forward.

The Wrap
The number of options out there when it comes to your money can be overwhelming, but only if you let it. While the options can be confusing, the process of deciding the smartest thing for you to do is relatively simple.

Understand your options, consider how they fit with your money plans, make a choice, and then refine and level up your approach over time. Follow this process and you’ll put yourself in a position to take confident action and start driving results, building momentum you can leverage to make your goals happen faster and easier.

Your future self will thank you for it.

To your success,


PS: Pivot Wealth exists to help people invest smarter to create a life not limited by money. If you want help to make your next steps easier, you can book a 10 minute, no BS chat with us here.


Ben Nash
Founder and Adviser
Pivot Wealth

The information in this note is not personal advice, a guaranteed pathway to that elusive beach bod, or the lost script of Edna St. Vincent Millay’s Pulitzer Prize-winning Conversation at Midnight. This is just a bulk communication pushed out into the internet, and it doesn’t even have your name on it. Your personal situation, needs & objectives, and financial situation have not been considered in putting this together – nor have we considered your dietary preferences, the way you like your hair cut, or your favourite travel destination – but we have spent a lot of time thinking about the future of urban society, whether there is other intelligent life in the solar system, and the pervasion of soy and linseed bread in Australian metropolitan hubs. You should consider the appropriateness of any general advice in relation to your own objectives, financial situation and needs and seek advice before taking any action. You should also consider using a variety of eau de toilette fragrances to keep your partner interested and colleagues on side, not using plastic straws, and minimising your screen time. Where information relates to a financial product, you should read and understand the relevant product disclosure statement. Where information relates to your own potential for awesomeness, you should consider backing yourself totally and completely. Past performance is definitely not an indicator of future performance when it comes to investments and financial products, as well as the likelihood of your children sitting still and quiet for an hour being satisfied playing with a used piece of wrapping paper. Financial services guide.