Rise to the savings challenge

Challenge yourself! That’s how we want readers to start the new year. If you’ve set yourself a savings goal and just need a little nudge to help you stay on track, then I urge you to register for Money’s 8 Week Savings Challenge. Signing up is free, and the practical tips and guidance are all there for the taking. The dedication and hard work, of course, rests with you. Full details can be found on page 56.

For those who have already saved, your mission would be where to invest your hardearned cash. Last year turned out to be a good one for investors. The S&P/ASX 200 climbed about 5.7% to 6077.1 in the year to January 15, 2018 and, assuming you didn’t buy real estate in Perth or Darwin, every other capital city showed an increase, according to the ABS.

This year will once again be a case of dialling up the risk. Cash in the bank won’t cut it and experts are predicting the official cash rate to remain on hold for most, if not all, of 2018. But be careful if you do take on more risk. As Greg Hoffman points out, it’s been pretty hard to avoid a conversation over summer about bitcoin, lithium and cannabis. His story sums up how most of us may be feeling: “Sitting on the sidelines watching others make ‘easy money’ in such conditions isn’t much fun.”

But one of the golden rules is to understand exactly what you are investing in. Are these hot plays changing the investment world or are they destined to bust? See page 82.

Our cover story this month, now seven years strong, follows a more traditional path