Here are five valuable benefits of knowing and consistently tracking your credit score:
Helps Secure Better Interest Rates A higher credit score can qualify you for lower interest rates on loans, credit cards, and mortgages. Knowing your score allows you to estimate what rates you may qualify for and gives you a chance to improve your score before applying, which can lead to significant savings over time.
Improves Chances of Approval for Credit and Loans Knowing your score gives you insight into your chances of approval for credit or loans. By understanding your score and working to improve it if necessary, you increase the likelihood of being approved, avoiding unnecessary hard inquiries from declined applications.
Boosts Financial Planning and Goal-Setting Monitoring your credit score helps keep you focused on responsible credit habits, which can be crucial in achieving financial goals. For example, knowing what affects your score can motivate you to pay down debt, make timely payments, and improve your overall financial health.
Reduces Risk of Identity Theft Regularly checking your credit report can alert you to unusual activities, like unauthorized accounts or hard inquiries, that might indicate identity theft. Catching these early can help you take action quickly, preventing further damage and potentially sparing you from financial losses.
Empowers Negotiation and Leverage With a high credit score, you’re in a better position to negotiate terms, from credit card limits to loan terms. Lenders are more likely to offer favorable conditions to those with strong credit, so tracking your score and knowing where you stand can give you leverage when negotiating rates and fees.
Investors aged 25 to 49 have a roughly half-half split between domestic and international markets, but the change has been most marked among over-50s.
Some investing trends can take decades to evolve, while others seem to happen almost overnight.
In the context of Australian investors, it’s evident that the latter scenario is continuing to play out as a growing amount of money is being deployed into offshore sharemarkets.
Our research shows that across a range of Australian investor age groups there has been a marked tilt by investors towards international share markets since 2021.
Broadly speaking, it’s clear that the home shares bias once prevalent among Australian investors has taken a back seat in the plane.
That largely accords with the Australian Securities Exchange’s data that tracks flows into exchange traded funds (ETFs) every month.
Over the first three quarters of 2024, ASX-listed international equities funds attracted about 56 per cent of the $23.3 billion in total inflows into ETFs. By comparison, Australian equities ETFs attracted only 22 per cent of the total inflows.
But things become even more interesting when viewed across the different age cohorts investing in ETFs and unlisted managed funds that provide broad exposure to the Australian and international sharemarkets.
Diversification is critical
We looked at the investing patterns of thousands of Australian investors using Vanguard’s personal investing platform over the past four financial years, breaking them down into four age bands – under 25, 25 to 39, 40 to 49, and 50 and over.
Our data shows that in 2020-21, Australian investors aged 50 and over were investing about $4 out of every $5 into the Australian sharemarket. By June 30 this year, that number had dropped to about $1.70, with the balance going to international shares.
Investors aged between 25 and 49 were investing about $2.20 into the Australian market in 2020-21 for every dollar invested in international markets. Now that number is essentially dollar for dollar.
It’s a similar story for the youngest age cohort, the under 25s, although in 2020-21 they were investing about $3 into the Australian share market for every $1 invested offshore. At the end of 2023-24 that number was also about one for one.
So, the message seems to be getting through. Diversification across asset classes and geographies is really critical in investing.
Fundamentally, this shift to offshore sharemarkets is a recognition by many investors that the Australian sharemarket makes up only a small percentage – about 2 per cent – of the global sharemarket. Indeed, most of the largest companies in the world by market capitalisation are listed outside Australia, in North America, Europe and Asia.
The recent strong performance of international markets, especially United States’ markets, also has encouraged many investors to move outside the Australian market. It is evident many investors have been chasing performance, even though past performance is never an indicator of future returns.
International shares have outperformed Australian shares in eight of the past 10 financial years.
In 2023-24, the US sharemarket delivered a total return of 24.1 per cent, and the broader category of international shares 19.9 per cent. This compared with the Australian sharemarket’s 12.5 per cent total return.
International shares have outperformed Australian shares in eight of the past 10 financial years. To quantify that, a $10,000 investment into international shares in July 2014 would have achieved an average annual return of 13.1 per cent by June 30 this year and grown to $34,329 before costs and taxes, and assuming all distributions had been reinvested.
The same investment into Australian shares would have lagged, delivering an average annual return of 8.3 per cent, and growing in value to $22,239.
The trend across all age groups points to investors wanting greater investment diversification by accessing international markets. There are many ETFs listed on the ASX that provide quick exposure to international shares.
Although returns from international sharemarkets have been relatively strong over time, having good diversification can help to smooth out returns during times when different sectors underperform others.
Hopefully, investors who have made the shift to offshore shares see the value of diversification and stick with it through all market cycles.
It is important for investors in international assets to be aware of potential tax consequences and the risks associated with foreign currency movements, which can have a significant impact on returns.
Women-only networks have been lauded as crucial spaces for empowerment, support, and career development. These networks provide a safe environment where women can share experiences, build relationships, and mentor one another. They are especially important in industries where women are underrepresented, offering a much-needed source of solidarity. However, while these networks offer support, they don’t necessarily address the deeper issue of power imbalance in the workplace—the very imbalance that keeps women from securing decision-making roles or truly integrating into spaces where power resides.
The issue lies in the fact that women-only networks, by design, are separate from the mainstream power structures. They offer a retreat, but not a solution to the problem at hand. Women are encouraged to grow, succeed, and build connections, yet this success often remains isolated from the broader power dynamics at play. In industries and organizations dominated by men, a women-only network doesn’t alter the fundamental fact that most of the decision-making seats—those that hold the true influence—are still occupied by men.
Getting a “seat at the table” isn’t just about having the right qualifications or knowing the right people; it’s about being part of the conversation in the spaces where power is wielded. Without integration into these power structures, women remain sidelined, even if they’re thriving within their own supportive networks.
To truly create lasting change, we need to shift from segregation to integration. It’s not enough to create spaces where women can succeed apart from the mainstream; we must focus on bringing women into the rooms where the big decisions are made. Gender equality isn’t just about more women in leadership roles—it’s about equal influence in the spaces that shape outcomes. Women-only networks should not be the end goal, but a stepping stone toward breaking down the barriers that prevent women from claiming their rightful place at the table.
Ultimately, while these networks support growth, they must also push for true inclusion within the circles of power. Only then can we achieve meaningful equality.
Women-only networks have long served as invaluable safe spaces, offering camaraderie, mentorship, and support in industries where women are often underrepresented. These networks enable women to learn from one another, share experiences, and build confidence.
However, while they provide a strong foundation, women-only networks are only one part of the equation. For true progress, these safe spaces need to evolve into “power places”—platforms that offer women not only support but also real influence and a path to participating fully in decision-making spaces.
A major limitation of women-only networks is their separation from the actual power structures where key decisions are made. These networks support women within a distinct space, but they don’t inherently bridge the gap to the broader ecosystem of leadership. As a result, women can feel empowered within their networks but still find themselves excluded from boardrooms and C-suites, where real authority lies.
The problem is one of segregation versus integration. Women-only networks can inadvertently reinforce a divide, providing women with a community but not necessarily a clear path to positions of influence. This divide means that while women may have the confidence and skills to lead, they may lack the opportunities to join or influence decision-making bodies. The reality is that true power lies not just in skills or confidence but in shaping the policies, strategies, and directions within a company or industry.
So, how do we shift women’s networks from being supportive safe spaces to platforms for genuine influence? The key is to create networks that don’t operate in isolation but instead bridge connections to broader leadership.
These networks should focus on integrating their members into existing power structures and advocating for policies that create inclusive leadership. This could mean forming alliances with men in leadership positions, fostering cross-gender mentorship programs, or providing women with influential sponsorships that go beyond mentorship to open doors to tangible opportunities.
This shift also calls for specific leadership coaching. Having guided many executives toward influence and impact, I’ve seen firsthand how strategic support can make a difference. Women seeking to move beyond their network’s sphere can benefit from tailored coaching to bridge the gap between their goals and the realities of integrating into broader decision-making spaces.
An experienced executive coach can help women cultivate the skills and strategies needed to lead confidently, establish alliances, and leverage their unique strengths in ways that resonate at all levels of leadership.
The goal should be to make women’s networks essential to the organizational landscape—forces that uplift women and actively reshape workplace power dynamics.
By supporting women in accessing decision-making roles and advocating for policy changes that ensure equitable representation, these networks can evolve from safe spaces to power places, moving beyond support to true influence. For women looking to make this transition, the right executive coaching can provide both the clarity and strategy to take that next, significant step forward.
In a world where traditional power structures can seem unyielding, true transformation begins within. Rather than dismantling systems outright, a new perspective suggests that meaningful change emerges when we cultivate a higher consciousness from within these existing frameworks.
This approach—rooted in spiritual awareness and a deep sense of interconnectedness—envisions change as most powerful when it starts internally and radiates outward.
The crises we face today often arise from a disconnection from the sacred aspects of life and the world around us. Reconnecting with a sense of unity and wholeness can help to guide transformation.
When we bring awareness of interconnectedness into established systems, we infuse them with a new light, subtly reshaping them from within rather than confronting them directly. This shift in perspective allows for a gradual evolution, one that honors both the individual and the collective in creating sustainable change.
The concept of “leaders of the new light” embodies this approach. These are individuals who awaken to a higher consciousness and carry this light into their daily interactions, often within structures that seem resistant to change. Their power lies in their ability to remain grounded in compassion and inner wisdom while engaging with systems built on older, often rigid, values. By embodying this new consciousness, they act as gentle catalysts, inviting change through their example rather than force, inspiring transformation without direct opposition.
Rather than tearing down walls, this kind of leader radiates a new way of being that gradually makes the old ways obsolete. When transformation comes from this place of inner alignment, it flows naturally.
Change is sustainable because it respects both the current framework and the higher vision of a compassionate, interconnected future. This approach avoids direct confrontation, which can sometimes lead to defensiveness and entrenchment within old structures.
Instead, it fosters an atmosphere where change feels organic, creating space for a shift that is less about rebellion and more about evolution.
True transformation involves a return to the sacred—a sense of purpose and reverence in how we interact with the world and each other. When we hold this awareness, we create conditions for real change to take root in even the most entrenched systems.
Leaders who embody this approach become living examples, inspiring those around them to recognize that higher vision. They reveal that change doesn’t always come through battle, but rather through embodying a way of being that feels more aligned with compassion, unity, and awareness.
The path of awakening within offers a hopeful roadmap for meaningful, lasting change. By cultivating transformation in ourselves first, we create a ripple effect, carrying this new light into the structures and systems that govern society.
This approach brings the power of true inner transformation into the world, inviting others to join in a shift toward a more harmonious and connected way of life. In times when external change often feels forced or fleeting, awakening within offers a powerful and enduring path forward.
Here are three practical steps to take on the path of awakening within for transformational change:
Cultivate Inner Awareness Begin by dedicating time each day to self-reflection and mindfulness practices, such as meditation or journaling. These practices foster self-awareness and help you understand your values, intentions, and emotional responses. This increased awareness allows you to bring conscious, positive energy into all your interactions, even within challenging or rigid systems. By grounding yourself in these practices, you align more fully with a sense of inner peace and purpose, which becomes the foundation for inspiring change.
Embody Compassionate Action Approach every interaction with an attitude of kindness and empathy, especially within environments resistant to change. Small acts of compassion, patience, and active listening can create ripples of positive energy that influence others. Rather than focusing on resistance or opposition, this step emphasizes how you engage—with respect, understanding, and an openness to dialogue. By embodying these qualities, you help transform the atmosphere within existing structures, subtly inspiring others to adopt a similar mindset.
Integrate Higher Purpose into Daily Decisions Consider how your daily choices and actions align with a larger purpose or vision of interconnectedness. Whether at work, in community settings, or at home, find small, meaningful ways to reflect your commitment to unity and compassion. For example, you might propose more collaborative practices in group projects or seek ways to support others’ well-being. This step encourages you to view every decision as an opportunity to bring a bit of “new light” into existing structures, fostering gradual, positive shifts toward a more harmonious way of working and living.
These steps are about creating change from the inside out, using awareness, compassion, and purpose to gently influence the world around you.
Your Debt-to-Income (DTI) ratio is a key financial metric that measures how much of your monthly income goes toward paying debts. Unlike credit utilization, which focuses on credit card limits and balances, DTI considers all monthly debts, including loans, mortgages, and credit cards, relative to your gross income. Here’s how to calculate it: divide your total monthly debt payments by your gross monthly income, then multiply by 100 to get a percentage.
For instance, if you earn $5,000 monthly and pay $1,500 toward debts, your DTI is 30%. A low DTI indicates that you have more income available after debt payments, which lenders generally view as a sign of financial stability.
How Credit Bureaus and Lenders Use DTI
Credit bureaus do not directly factor your DTI ratio into your credit score; however, it’s essential to lenders and creditors. When evaluating loan applications, lenders often use your DTI as a measure of how much additional debt you can manage responsibly. A high DTI may suggest that a borrower is overextended and may struggle with future payments, making it less likely they’ll be approved for new credit or favorable loan terms.
DTI Scales and What They Mean
Excellent (0-20%): A DTI of 20% or less is considered excellent, as it shows you’re using a small portion of your income for debt payments, indicating strong financial health and high creditworthiness.
Good (21-35%): In this range, you’re still in a good position. A DTI under 35% is usually considered manageable, showing lenders you have room in your budget for potential new debt.
Fair (36-49%): This range is a bit high, as more than a third of your income goes to debt payments. Lenders might see you as a moderate risk, and approval for new loans could become challenging.
Poor (50% and above): A DTI over 50% suggests you’re using over half your income on debt, signaling a high dependency on credit. This level of debt can make loan approval difficult and may prompt lenders to deny applications.
Monitoring your DTI and keeping it as low as possible can improve your chances for credit approval, better loan terms, and a stronger overall financial outlook.
In a society that thrives on noise, constant activity, and multitasking, the concept of silence often seems counterintuitive to success. However, in Radical Intuition, Kim Chestney argues that silence is a powerful tool for unlocking our deepest intuitive wisdom. In a world overwhelmed with distractions, learning to quiet the mind could be the key to accessing your true potential.
Chestney suggests that we live in a culture that values constant doing—whether it’s answering emails, making decisions, or running from one task to another. But in our relentless pursuit of productivity, we often miss the subtle, powerful messages that come from within. Our intuition, she claims, requires space to emerge. Just like a radio signal, it needs a quiet frequency to be heard clearly.
When we create moments of silence—whether through meditation, nature walks, or simply pausing throughout the day—we allow our inner wisdom to surface. This silence doesn’t just offer peace; it opens a channel to deeper knowing, creativity, and clarity. In those quiet moments, we may discover solutions to problems, gain insights into our personal lives, or receive guidance that we hadn’t considered before.
What if the key to your next big breakthrough isn’t more effort, but more stillness? Chestney encourages us to rethink how we approach growth and success. Instead of constantly pushing forward, we should create space for our intuitive voices to rise from the depths of our being. Embracing silence, she argues, could be the most powerful way to unlock the untapped potential within us all.
In a significant shift towards consumer empowerment, Australia embraced positive credit reporting, or comprehensive credit reporting, in March 2014. This transformative approach allowed credit bureaus to gather and share a wealth of detailed information about individuals’ credit histories, moving beyond the traditional focus on negative data like defaults and bankruptcies. But how does this change benefit consumers?
Key Changes with Positive Credit Reporting
Inclusion of Positive Data: The most notable enhancement is the addition of positive information to credit reports. Now, factors such as on-time payments, account balances, credit limits, and the variety of credit accounts are included, creating a holistic view of a borrower’s creditworthiness.
Enhanced Credit Scores: This inclusive approach means that consumers who manage their credit responsibly can see an improvement in their credit scores. A strong repayment history translates into easier access to credit and potentially better interest rates.
More Accurate Risk Assessment: Lenders can now make more informed decisions based on a comprehensive picture of an individual’s credit behavior. This shift reduces reliance on solely negative reporting, allowing for a nuanced assessment of risk.
Improved Access to Credit: For those with limited credit histories or who have faced challenges in obtaining credit, the new system increases their chances of approval. By demonstrating responsible credit management, individuals can significantly enhance their profiles.
Greater Accountability: The transparent nature of this reporting system encourages consumers to take their credit behavior seriously. Knowing that positive actions will be reflected in their reports can motivate individuals to maintain healthy credit habits.
Interestingly, the concept of positive credit reporting isn’t new; it was first introduced in the United States with the Fair and Accurate Credit Transactions Act (FACTA) in 2003, laying the groundwork for a more balanced view of consumer credit.
In summary, Australia’s adoption of positive credit reporting marks a pivotal change in how creditworthiness is assessed, fostering a more consumer-friendly landscape in lending and credit management.
In Australia, private banking is designed to offer high-net-worth individuals (typically with a substantial asset base or significant income) personalized financial services and tailored advice. The approach is relationship-focused, with a dedicated private banker or relationship manager coordinating access to a range of services, such as:
1. Wealth Management and Investment Advisory
Private banks help clients with asset management, investment strategies, and portfolio management, often with access to exclusive investment opportunities. They offer advice on everything from equities and fixed income to more sophisticated products like alternative investments and structured products.
2. Tax and Estate Planning
Many private banks collaborate with tax and legal specialists to provide integrated tax planning and estate structuring. The goal is to optimize tax efficiency and ensure wealth preservation across generations, which may include setting up family trusts or foundations.
3. Lending and Credit Facilities
Private banking clients often receive preferential lending terms, including higher credit limits, lower interest rates, and access to tailored loan products. This can include home loans, investment loans, and margin loans with flexible repayment options, often linked to their broader financial strategy.
4. Exclusive Financial Products and Accounts
Private banks provide specialized account types that offer higher interest rates, reduced fees, or rewards tailored for high-net-worth individuals. Some banks also give access to products not typically available to retail customers, such as exclusive insurance policies or bespoke investment products.
5. Lifestyle Services
Many private banks extend lifestyle services, such as access to luxury travel planning, concierge services, exclusive events, and more. This could include VIP access to cultural, sporting, or networking events and preferential treatment with luxury service providers.
6. Global Banking Services
For clients with international assets or interests, private banks offer cross-border services such as international investments, foreign currency accounts, and tax planning assistance tailored to expatriates or those with global wealth management needs.
Eligibility and Cost Structure
Private banking in Australia usually requires a minimum asset threshold, which can range from AUD $1 million to $10 million, depending on the institution. Fees vary widely, and services may be fee-based, commission-based, or a combination. Some banks charge an annual fee, while others might take a percentage of assets under management.
Overall, private banking in Australia is about delivering a highly customized experience that helps affluent clients grow, manage, and pass on their wealth efficiently.
Winning the lottery is a dream come true for many, yet surprisingly, a common thread among lottery winners is that they often go back and buy more tickets. But why would someone who’s already struck it big go back for more? The answer lies in the psychology of reward, a concept heavily explored in behavioural finance, where dopamine plays a starring role.
The Role of Dopamine in the Lottery Experience
Dopamine, often called the “feel-good” neurotransmitter, has a powerful role in how we experience pleasure and anticipation. However, it’s not just about feeling good when something positive happens—dopamine is deeply involved in the anticipation of rewards. When someone buys a lottery ticket, it’s not just the potential to win that thrills them; it’s the excitement leading up to the draw. This anticipation creates a dopamine spike that feels rewarding even before knowing the outcome.
In the case of lottery winners, this same dopamine-driven anticipation that initially drew them to buy a ticket doesn’t simply disappear after a win. Winning itself is an intensely pleasurable experience that further reinforces the brain’s dopamine pathways, making the allure of “another win” all the more enticing. The anticipation itself becomes a reward, drawing winners back for more tickets to recreate that thrill.
Behavioural Finance and the Lottery Cycle
In behavioural finance, we study how psychological factors influence financial decisions. In the case of lottery winners, a few key biases can explain why they might continue to buy tickets:
Recency Bias – This bias refers to placing too much weight on recent experiences. After a big win, the memory of that experience is vivid and emotionally charged, making it easy to believe another win could be just around the corner.
The Gambler’s Fallacy – Though the odds of winning the lottery are incredibly low, people tend to believe that past outcomes influence future ones. A winner may feel they’re on a “winning streak” or that they have a lucky touch, even though each ticket has an independent probability of winning.
Overconfidence Bias – After experiencing the rare event of a win, winners might feel they have an edge in winning again. Behavioural finance studies show that confidence, especially in something as unlikely as winning the lottery, can be surprisingly sticky.
Reinforcing the Habit: Why Lotto Winners Buy Again
So, what do most lottery winners have in common? The answer is that many are drawn back by the powerful cocktail of dopamine and cognitive biases. This pull isn’t just about rational decision-making; it’s about the irresistible combination of thrill, anticipation, and the memory of winning. When dopamine kicks in, fuelling the desire to “experience that again,” winners are motivated to seek out another chance to win, reinforcing the habit.
While the decision to buy another ticket might not make sense financially, understanding it through the lens of behavioural finance helps clarify why lottery winners often return for more. The experience is not purely logical; it’s driven by a deeper, more instinctive reward cycle that connects anticipation and pleasure.
