Credit

What’s inside your wallet?

CreditFinanceInvesting

Let’s take a look!

That dollar bill in your wallet is an asset that you will inevitably exchange for something else of value.

When you buy an investment, each type of investment is classed as an ASSET. The price you pay reflects its value.

When you own your home, then your home becomes your asset; when you own your car, your car becomes your asset; etc. The reason you buy an asset is that you’re expecting to receive a benefit or a potential reward from owning it.

The concept of receiving a potential future reward is why you become an investor. The purpose of investing is to hold assets that you expect will provide a return over time.

What happens when you group similar assets together?

You create an asset class. For example, your home would be considered part of the ‘Real Estate’ asset class.

There are 5 main asset classes when investing

  1. Treasuries – often classified as the safe haven, money you lend to the Government in return for fixed interest.
  2. Bonds – money you lend to a company in return for fixed interest. Bonds tend to be less risky than Equities and Commodities.
  3. Equities – own a company’s stock in return for a share in the company’s performance and capital growth.
  4. Real Estate– ownership in residential or commercial property in return for capital growth and potential rental income.
  5. Commodities – a raw material, such as gold, coffee, wheat, oil, etc.

Each asset class provides a different type of benefit from the other, but each one can generate a potential financial reward.

What else is inside your wallet?

Your Save Debit Invest Card! This is your gateway to investing into even more asset classes simply by spending your money each month.

When you spend using your Save Debit Invest Card, for every $1 you spend on qualified purchases, Save will invest $1 into your chosen investment strategy.

There are three investment strategies to choose from. Each strategy will invest into multiple asset classes on your behalf. For example, the Conservative strategy currently includes the following asset classes:

Source: Save, 12 July 2021

Let’s bring this to life

Imagine you renovate your home, which costs $30,000. Not only is the value of your home likely to rise once the work is complete, but if you use your Save Debit Invest Card for all of your renovation spendings, Save will invest another $30,000 on your behalf. This means that the $30,000 you spent also gives you access to lots of other valuable asset classes in one single transaction.

Your Save Debit Invest Card is therefore yet another asset you can keep inside your wallet.

To get your Save Debit Invest Card today visit: https://signup.joinsave.com/personal-info

Emma Wright, Financial Coach, Chartered Financial Planner, founder of Emma Wright Coaching.

Vacation celebration. Turn your vacation into an investment

CreditFinance

You’ve landed that big client contract that you’ve been working tirelessly on.

It’s time to celebrate with an ice-cold beer. Let’s plan your well-deserved, and much needed, family vacation that you’ve been dreaming about for months.

Are you ready to wind down with sandy toes and a good book while the kids frolic in crystal clear waters?

Your dream family vacation spending checklist

  • Flights for a family of four: $2,000
  • Dreamy beach-side resort: $4,000
  • New beach-ready wardrobe: $1,000
  • Uber to the airport: $100
  • Last-minute airport purchases, like forgotten sunscreen, diapers, and that book you’ve been meaning to read: $100
  • Ice creams and cocktails to keep you cool: $500
  • Nightly fine dining, you do enough cooking at home: $2,100
  • Day trips making memories: $2,000
  • A massage, or two, to make sure you’re fully relaxed and rejuvenated: $500

All in, you’ll need to spend $12,300.

Making memories for the whole family that will last a lifetime isn’t cheap, but it’s priceless.

What’s holding you back?

Are you considering what else you could be doing with your hard earned money?

What if Save converted your vacation spending into an investment?

All you need to do is use your Save Debit Invest Card for all of your vacation spending. You are then ensuring that the money you worked so hard to make will work for you.

For every $1 you spend on qualifying purchases with your Save Debit Invest Card, Save will invest $1 on your behalf. This means that the $12,300 that you spend on your dream vacation will be matched by Save who will invest $12,300 into your designated portfolio.

Let’s bring your family vacation spending & investment to life

  • You open a Save Debit Invest Card today HERE.
  • There are three investment strategies to choose from. Let’s say that you choose the Moderate strategy when you open your account.
  • You spend $12,300 on your dream vacation.
  • Save invests $12,300 on your behalf into the Moderate strategy for one year.
  • In one year’s time, Save pays you the return achieved by the Moderate strategy directly into your Save debit account.
  • If the average annual return after fees, of 2.99%*, is achieved, this would mean a cash reward of $368.

And there’s more!

Your investment potential isn’t capped, so if your chosen strategy generates a higher return, you will benefit from this outperformance. The actual return you make could be higher or lower than the average annual return. What you make depends on how the investment strategy performs during the year of your investment after the deduction of Save’s management fee. If the strategy makes a loss, you won’t suffer any penalty, you simply won’t earn a return for that monthly spend.

Stop dreaming, celebrate your successes and turn your vacation into an investment so your next vacation is even better!

*Average annual returns are based on hypothetical back-tested performance. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing.

Emma Wright, Financial Coach, Chartered Financial Planner, founder of Emma Wright Coaching.

A New Way to Maintain your Purchasing Power

CreditFinance

It’s hard work being a parent in charge of your growing family. So, is your money working as hard as you behind the scenes?

One of the biggest areas families spend their money on is groceries. With growing mouths to feed, it is easy to spend $1,000 a month or more on food alone.

What is scary is the impact inflation is having on the rising cost of your grocery bill. Inflation is the general increase in prices over time. For a healthy economy, the Federal Reserve has a target for US inflation to be, on average, 2% a year. If this target is met, this year’s $1,000 a month grocery bill will cost you $1,020 in a year’s time. To offset this rising cost, you will need to find an extra $20 per month or $240 for the entire year. Every $1 you spend is losing its purchasing power over time.

If you want to buy the same basket of groceries in a year’s time, you need your $1,000 in your bank account to grow in value beyond the rate of inflation. If not, you will need to find the extra money by either working more hours or earning more money.

So, it is vital you make each $1 you need to spend work as hard as it possibly can for you.

Become an investor and maintain your purchasing power

A real return is one that is greater than inflation, and one of the best ways to generate a real return to combat the impact of inflation is to invest in the stock market.

Most checking accounts don’t offer much in the form of returns, much less returns that keep ahead of inflation. However, history has shown that the stock market can consistently outperform both cash and inflation over time, and stock market investing is a key way of maintaining your money’s purchasing power. The S&P500 Index, which is used as a benchmark for the biggest 500 companies in the US economy, has grown in value by 172% over the last 20 years as of January 1, 2021, outperforming inflation measured by the Consumer Price Index by 122%. This outperformance shows how the stock market can generate real returns even after accounting for inflation.*

You don’t need to be an expert to invest

There are tools to help you invest. One such tool is to use a portfolio that is managed on your behalf by an expert. This means that you can sit back and relax or carry on with being a busy parent knowing that:

  • An expert portfolio manager will pick the investments that they think will perform the best based on your profile.
  • You don’t have to spend your time managing your own portfolio.
  • The risk of investing is managed and well diversified.

Save has created three portfolios: Conservative, Moderate and Growth. All you have to decide is which one is right for you. Learn more about Save’s portfolios here: https://www.joinsave.com/analyzer

Maintaining your purchasing power

If you select the Save Moderate strategy with a Save Debit Invest Card, the expected return after fees is currently 2.99%** per annum. If you spend $1,000 on groceries, Save will invest $1,000 into the Moderate strategy on your behalf. In one year’s time, if the average expected return is generated, Save will pay you a reward of $29.99. This means that, if the rate of inflation remains at 2%, when you buy your groceries next year you will have the extra cash you need in your checking account to more than maintain your purchasing power.

 

* https://fred.stlouisfed.org, https://fred.stlouisfed.org/series/CPALTT01USM659N
Consumer Price Index: Total All Items for the United States, Growth Rate Same Period Previous Year, Annual, Not Seasonally Adjusted

**Average annual returns are based on hypothetical back-tested performance. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing.

Emma Wright, Financial Coach, Chartered Financial Planner, founder of Emma Wright Coaching.

Menu