August 14, 2018

Stop Talking About Property

Category: Financial Freedom
There’s no doubt if you live in a major city in Australia, you have at some point, indulged in talking about, speculating on, and trading gossip surrounding real estate. How much that house down the street went for; how much you made on your last house sale; how much you overcapitalized; or who had to sell for a song.

While much is talked about in the world of real estate, I have found it to be the case that not much else is talked about at all in the way of investments. Sure, you may have someone give you a hot stock tip (usually things to avoid), but as a general rule, you don’t find people sitting around talking about ETFs, microcaps, or global equities.

This is a shame. A lot of the time, some of the biggest barriers to more people diversifying is lack of knowledge. And if these topics were more widely explored, then more people would have access to them and an understanding of them.

I find it particularly useful to talk to people in their 20’s about these asset classes. Why? Because people in their 20’s are much less averse to risk, and much more open to new ideas. As we get older, we get more conservative, and it’s much easier to expose someone earlier than later to concepts on building wealth.

Now more than ever, it’s easy to experiment with alternative investment strategies. The advent of savings and investment app raiz (formerly Acorns), and fractional investment property app BRICKX, means you can start with a few dollars, and watch daily to see how it behaves, and how to manage it. I have recommended these apps to a number of people, as a way to start talking about, and experimenting with online investing. It’s been particularly well received by 20-somethings as they grasp the technology quicker, and have more trust in the process.

If anyone with some innate knowledge of investing were to pass it on to people in conversation over a number of years, the compounding effect of this knowledge might see more people ready to live a life without relying on the pension, and being able to afford the things they want in life.

So, perhaps if we stopped talking so much about real estate, and turned the tables on the conversation, we would become a better diversified, better financially educated nation.

In a recent conversation with leading investor Kerr Neilson, who appeared in Season Four of The Investment Series on Channel 9, his advice was that people should just start reading, because to understand the nature of investing, you need a knowledge that’s been built up over time, rather than a lack of understanding and blind trust. This is especially true as events like the GFC have eroded trust and created the opposite: mistrust in the financial services industry.

So go ahead, start talking about your investments and asking questions about what you don’t understand. A little knowledge will surely make your world a better place.

Each day I wake up excited to inspire everyday people to open up and take control of their money, regardless of their history, goals, or savings amount. About Vanessa >>


Discover a new way of seeing
life & money.

Download the first 3 chapters for free


Related Articles

There’s a Lot to Look Forward to

As it gets closer to the last quarter of the year, it feels like finally, there is a light at the end of the tunnel. With the vaccination plan rolling out, people are starting to make plans again, and look forward to all the wonderful things in l...

Bombed Out Breakthrough

When Hannah Pereira started making bath bombs at home from a kit she bought on eBay, she had no idea the hobby would turn into a multimillion-dollar ecommerce success. “I had no money at the time,” Hannah confesses. Starting with nothing, B...

Change your money. Change your life.

What do you want in your life and how are you going to pay for it? That’s the question finance educator Vanessa Stoykov asks from her evolution media group office, an internationally recognised boutique content house dedicated t...

The Socialite and the Sous Chef

Got an appetite for fine dining? An exquisite restaurant that tantalises the taste buds will usually ask us to put our money where our mouth is - read our scenario below as food for thought… “You’re the famous Sous Chef of Excelsior, ...