Australians Save $60 Billion A Year On Overseas Travel

We've all been told to develop good financial habits, to save and to track spending and blah blah... 

But once we've established those emergency savings, a positive monthly budget - and we're in a state of financial stability.

Is saving and putting money into the bank the best financial habit? 

Cash = The most consistent depreciating asset

With inflation, the value of cash diminishes over time. If we treat it as an asset class, it's an asset constantly losing you money!

Australians are saving $60B on travel and putting it on property

Aussies have saved~$60 billiona year in cancelled overseas travel due to the pandemic, suggested byTourism Research Australia, with part of that cash flowing into the property market causing a major boom. 

“If you look at the cash rate offered by banks, why would you put the money in the bank?” said David Edwards - an agent at LJ Hooker. 

Money is very very cheap...I’m getting 0.1, 0.2 per cent in the bank, [while] with property, I’ve got a yield of 2, 2.5 per net and I’ll continue to have some sort of capital growth,” he added.

Real Estate = The most consistent appreciating asset 

According to Corelogic, nationally the median house value has delivered anannual growth rate of 6.8% over the 25 years, and even more so during the current uptrend.