“Just save more” and other bad money advice everyone hears growing up

Most of us grew up hearing the same handful of financial tips. Work hard, spend less and put your money in the bank. And a lot of that advice is... fine, it just doesn't go nearly far enough for the financial reality young Australians are facing today. So, let's go through the greatest hits, and what's actually wrong with them
 

"Just save more"

Saving is great, but it isn’t a strategy for building wealth. Money sitting in a savings account earning 4% interest while inflation runs hot is barely holding its value, let alone growing it. Saving is perfect for keeping your money safe for emergencies and short-term goals, but investing could have more potential to build long-term wealth. They're different tools for different goals, which is one of the most common misunderstandings young people make.
 

"Focus on earning more first"

Sure, a higher salary makes things easier, but income alone doesn't build wealth, what you do with it does. There are people earning six figures who have nothing to show for it, and people on average wages who've quietly built something substantial by investing consistently over time. Waiting until you earn "enough" to start thinking about investing is a great way to never start at all.
 

"Investing is risky"

Not investing is also risky. It's just a slower, quieter kind of risk, the risk of inflation eroding your savings, of missing decades of compound growth, of reaching your 50s with nothing working for you in the background. Risk in investing is real and worth taking seriously. But the alternative isn't safety. It's a different kind of exposure that most people never stop to examine.
 

"Wait until you understand investing properly"

You’ll never feel like you understand investing properly. There’s always something new to learn, and the deeper you dive, the more you realise just how big the ocean is. That's not a reason to wait; if anything, it’s a reason to start right now. Investing is something you can learn by doing. Start simple by using a platform like Raiz Invest that has ready-made diversified portfolios and allows you to make small, regular contributions. You’ll become more and more confident as you go, and before you know it, you could be choosing your own stock, buying low and selling high.


The best time to start investing was yesterday, and the second-best time is today. If you're ready to get started, platforms like Raiz Invest let you begin with a few dollars and are there to give you a hand along the way.

*This information is general in nature and does not take into account your objectives, financial situation or needs. Tax outcomes depend on individual circumstances. Consider seeking independent tax advice if needed.