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By Raiz Invest 

23 April, 2024

Making every dollar count is an entry level mentality every investor should have, so uncovering strategies to optimise your spending habits can profoundly shape your financial future. One often overlooked approach is using cash back programs to harness your everyday expenses, particularly non-discretionary spending like groceries, utilities, insurance, and healthcare. Not only can these programs put money back in your pocket, but they can also fuel your investment portfolio to potentially grow your wealth in the long-term.

The power of cash back programs

Cash back programs have gained popularity in recent years, offering consumers a simple way to earn rewards through a broad range of retailers. By linking your debit or credit cards to these programs, you can earn a percentage of your purchase back in the form of cash or points.

The beauty of cash back programs lie in their ability to reward you for expenses you’re already making. Whether it’s buying tonight’s dinner or paying a gas bill, these are unavoidable expenditures for most of us. By utilising these programs, you essentially earn a rebate on money you would have spent anyway.

Turning spending into investing

While earning cash back on your purchases is a great way to save money, what if you could take it a step further and turn those savings into investments? This is where platforms like Raiz Rewards come into play.

Raiz Rewards is a unique platform in Australia that allows you to seamlessly invest the money you earn back on purchases into your investment portfolio. There are over 1,300 retailers in the program ranging from fashion, travel and appliances to mobile, broadband, utility and insurance providers, all offering cash back. Instead of simply receiving the saving into your bank account, Raiz investors have the choice to allocate their rewards to either a Raiz Invest portfolio or to their Raiz Invest Super account.

What sets Raiz Rewards apart is its integration with the Raiz investment app, allowing the savings to be seamlessly invested into a diversified portfolio (comprised of ETFs, ASX listed stocks, residential property and bitcoin), tailored to an individual’s risk tolerance and investment objectives. Users can choose from one of eight prebuilt portfolios or elect to construct their own bespoke Plus portfolio, determining their own investment weightings.

By reinvesting your rewards through Raiz, you’re not only maximising the value of your spending but also taking proactive steps towards building wealth. Every dollar saved and invested has the potential to grow over time, thanks to the power of compounding returns.

Making every dollar count

To young Australians, the idea of saving and investing may seem daunting. When it comes to investing, consistency is key.

Leveraging cash back programs like Raiz Rewards can make the process more accessible and rewarding.

Experienced investors can also benefit from a habit overhaul, auditing whether their spending, saving or investing patterns have shifted since initially setting their goals. By harnessing your spending, particularly on expenses you can’t avoid, you can fuel your investment portfolio and work towards your financial aspirations.

Cash back programs present a valuable opportunity for investors to optimise their spending and accelerate wealth accumulation. By earning rewards on everyday expenses and reinvesting those earnings through platforms like Raiz Rewards, you can transform your spending habits into a powerful investment strategy. Whether it’s wardrobe updates, travel, movie tickets, everyday essentials, electricity providers, or the chemist, every purchase has the potential to strengthen your financial future.

Raiz Invest Australia Limited – Authorised Representative of AFSL 434776. The Raiz Invest Australia Fund and Raiz Property Fund are issued in Australia by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) a subsidiary of Raiz Invest Limited and promoted by Raiz Invest Australia Limited (ACN 604 402 815). Raiz Invest Super is a Division of AMG Super and is issued by Equity Trustees Superannuation Limited (AFSL 229757, RSE Licence No L0001458) as Trustee of AMG Super.

This information is general information only and does not take into account your personal financial situation, goals or needs.

A Product Disclosure Statement (PDS) and Target Market Determination (TMD) for Raiz Invest Australia Fund, Raiz Invest Super and Raiz Property Fund (together, the Products) are available on the Raiz Invest website and App. Please read and consider the PDS and TMD to understand the risks or speak with a licenced financial adviser and determine if the Products are suitable for you. The risks and fees are fully set out in the PDS and include the risks that would ordinarily apply to investing. 

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