Automated investing is a technology-driven method of investment management that uses algorithms and mathematical models to invest money on behalf of clients. It offers a streamlined, efficient, and cost-effective way to invest, particularly for investors who are comfortable allowing artificial intelligence and robo-advisors to manage their investments for them.

It’s essential to understand your investment needs to use automated investing and how this tool’s capabilities align with your respective financial and investment goals.

How Does Automated Investing Work?

Automated investing leverages technology and algorithms to manage investments on behalf of clients. Generally, automated investing involves the following steps:

• Client onboarding: The potential client completes a questionnaire to determine their risk tolerance, investment goals, time horizon, and financial situation.
• Investment strategy recommendations: Based on the client’s profile, a robo-advisor recommends a personalized investment strategy.
• Asset allocation: The robo-advisor, via its investment platform, allocates the client’s funds across various asset classes such as stocks, bonds, and real estate investment trusts (REITs). This asset allocation is dependent on the investment strategy determined. The platform ensures that the investments are diversified, spreading them across various sectors and industries to reduce risk.
• Execution of trades: The platform automatically buys and sells assets to maintain the desired asset allocation.
• Rebalancing: If the client’s portfolio drifts from the target allocation due to market movements, the platform automatically rebalances the portfolio in line with the client’s strategic asset allocation.
• Continuous monitoring: The platform continuously monitors the portfolio’s performance and market conditions.
• Tax optimization: In some cases, there are automated investing features such as tax-loss harvesting to minimize the client’s taxes on capital gains.
• Compliance with regulations: Automated investment platform providers must adhere to regulatory requirements, ensuring that investments are made in the client’s best interest.

On the investment platform, clients can view their portfolio, its performance, and other details. Also, there are customer support channels on the platform that clients can use.

Types of Automated Investing

Automated investing has evolved to offer various types and models to cater to different investment needs and preferences. Some major types of automated investing include:

• Pure robo-advisors: These are fully automated platforms that use algorithms to manage investments without human intervention.
• Hybrid robo-advisors: This is a combination of automated algorithms with access to human financial advisors for personalized guidance.
• Robo-advisors with socially responsible investing (SRI): This type of automated investing focuses on investments that align with environmental, social, and governance (ESG) values.
• Goal-based robo-advisors: This approach tailors investment strategies based on specific financial goals like retirement or buying a home.
• Robo-advisors for active trading: This type of platform offers automated trading strategies for active traders, including day trading and swing trading.
• Micro-investing platforms: This allows investing small amounts of money, often by rounding up spare change from purchases.
• Robo-advisors for tax optimization: This type focuses on strategies like tax-loss harvesting to lower tax liability.
• Robo-advisors for institutional investors: These are automated investment solutions for institutional clients like pension funds.

The range of services offered by automated investing platforms allows investors to choose an approach that aligns with their investment style, goals, risk tolerance, and values.

Automated Investing vs. Robo-Advisors

Generally, automated investing and robo-advisors are terms that are used interchangeably, but they can also be understood in both a broader and more specific context.

Robo-advisors are platforms that provide automated investment advice and portfolio management, often with a focus on passive investing.

In contrast, automated investing may encompass a wider range of technologies and strategies, including active trading algorithms and more complex investment solutions.

Similarities of Automated Investing and Robo-Advisors

Both automated investing and robo-advisors rely on algorithms and technology to manage investments. They make investment management accessible to a broader audience, often with low minimum investment requirements. Generally, both offer lower fees compared with traditional human financial advisors.

Automated investing and robo-advisors typically follow a standardized approach based on risk tolerance, investment goals, and other factors. Finally, both are usually accessible through online platforms, allowing for easy access and monitoring.

Differences of Automated Investing and Robo-Advisors

Automated investing is a broader term encompassing any form of investment management using technology to automate processes. This can include robo-advisors, algorithmic trading, and artificial intelligence (AI)-driven portfolio management.

Robo-advisor is a more specific type of automated investing. Robo-advisors focus on providing personalized investment advice and portfolio management using algorithms. Robo-advisors can include pre-built portfolios based on specific risk profiles.

Regarding investment strategies, automated investing covers the spectrum of passive index investing to active algorithmic trading. Robo-advisors typically focus on passive investment strategies only, often using exchange-traded funds (ETFs) to create diversified portfolios.

Pros and Cons of Automated Investing

Like any investment approach or technique, there are advantages and disadvantages. Automated investing offers a convenient and cost-effective way to invest, particularly for those who prefer not to be too involved in their portfolios.

Automated investing provides efficiency, consistency, and the opportunity for diversification. However, it may not be suitable for all investors, particularly those seeking personalized advice and/or complex financial planning, or who have specific investment preferences that may not align with automated strategies.

Understanding the advantages and disadvantages of automated investing can help you determine whether it is the right approach for your respective financial goals and risk tolerance.

Benefits of Automated Investing Explained

Some of the advantages of automated investing include:

• Cost-effective: Automated investing platforms often have lower fees compared with traditional human advisors, making them more affordable for a wider range of investors.
• Accessibility: With low or no minimum investment requirements, automated investing platforms are accessible to both novice and experienced investors.
• Efficiency: Algorithms can execute trades and rebalance portfolios quickly and accurately, often in real time.
• Consistency: Automated investing follows predefined rules and strategies, reducing the potential for human bias or emotional decision making.
• Diversification: Many platforms offer diversified portfolios across different asset classes, helping to spread out risk.
• Customization: Some platforms allow investors to tailor their portfolios based on individual preferences, risk tolerance, and investment goals.
• Availability: Automated platforms are available around the clock, providing continuous monitoring and management.

Drawbacks of Automated Investing Explained

Some of the disadvantages of automated investing are:

• Lack of personal touch: Automated platforms may lack the personalized advice and relationship that some investors value with a human advisor.
• Limited complexity: While suitable for standard strategies, automated investing may not be ideal for complex financial planning or specialized needs.
• Potential oversimplification: Algorithms are based on mathematical models that may oversimplify the complexities of the market, potentially leading to suboptimal decisions.
• Technology risks: Like any technology-driven service, automated investing is susceptible to technical glitches, errors, and cybersecurity risks.
• Lack of control: For investors who prefer hands-on control and active decision making, automated investing may feel too restrictive.
• Potential conflicts of interest: Some platforms may have affiliations with specific financial products, leading to potential conflicts of interest.
• Market sensitivity: Generalized automated algorithms may react to market volatility in ways that might not always align with an investor’s long-term goals or risk tolerance.

Is Automated Investing a Good Idea?

It depends on your needs, goals, risk tolerance, and preferences. Automated investing might be a good idea if you prefer a hands-off approach, want lower advisory costs, seek diversification, want consistency, and have limited capital.

What Is an Automated Investment?

Automated investing uses programs and algorithms to make investing transactions based on your inputs. An automated investment would be purchased or sold by an automated investment platform.

What Is an Example of Automated Trading?

You could tell an automatic trading platform to initiate a trade under specific circumstances, such as setting it to trade. You could program it to buy 10 XYZ shares when its 50-day moving average goes above its 200-day moving average.

The Bottom Line

Automated investing represents a major shift in the investment landscape, offering a blend of efficiency, accessibility, and customization. Whether used by a seasoned investor or investing novice, automated investing democratizes investment management while emphasizing aligning technology with individual goals, risk tolerance, and financial needs.

The real estate industry is known to be quite conservative and slow when it comes to adapting to technological changes in the market. Integrating new technologies requires a cultural shift that embraces knowledge gaps and other transitional challenges.

So far, generative AI has established itself well in real estate marketing. It facilitates customer journeys like never before, improves content creation and changes customer relationships. However, there is a different kind of artificial intelligence that is also making powerful strides in the real estate industry: predictive AI. It utilizes historical data and algorithms to predict market trends and accurately forecast property values.

AI is already showing signs of making significant progress in real estate. The industry is still in the early stages of adoption, yet the potential for improvement is vast, particularly in areas of market prediction accuracy and personalized property recommendations. At this pace, there will be no better time to take action than now. Early adopters are already gaining a competitive edge, and the technology is only becoming more sophisticated.

How Does it Work? The Foundation of AI-Powered Predictive Analytics

At its core, AI-powered predictive analytics in real estate relies on vast amounts of data and complex algorithms to identify patterns and make forecasts. The system analyzes historical sales data, demographic information, economic indicators and unstructured data like social media trends or news articles.

We use machine learning algorithms, including supervised, unsupervised, and reinforcement learning models, in real estate predictive analytics. These algorithms learn from past data to make predictions about future outcomes. We can already see major companies like Compass and Zillow taking advantage of this and experimenting with AI tools.

For example, Compass, a tech-forward real estate brokerage, implemented these AI tools to help agents identify sellers before their homes were even listed. The company launched a machine learning-driven recommendation system called “Likely to Sell” in 2020 that helped real estate agents connect with the right contacts. While it’s still going to take some time to observe the results of this system better, there is the potential for it to help agents with their productivity.

On the Compass Q2 2024 earnings conference call, found and CEO Robert Reffkin reported that the company’s AI model, which currently accurately describes 7% of the market, is already used for real estate market forecasting and offers a foundation for further market extrapolation.

AI In Real Estate Predicting Market Trends

One of the most powerful applications of AI in real estate is its remarkable accuracy in predicting market trends. A prime example would be how AI models were able to foresee the post-pandemic suburban boom.

Zillow, a real estate marketplace, used its AI models along with data from the U.S. Census Bureau to identify a significant trend. The models predicted that the rise of remote work would enable many urban renters to purchase homes in suburban areas, an effect of no longer having to go to city centers. This insight proved itself valuable, as the real estate market indeed saw a surge in suburban home purchases following the 2019 pandemic.

Beyond identifying large-scale shifts, AI has the power to forecast price fluctuations and market cycles. By analyzing factors like interest rates, employment data and construction starts, AI models can predict how home prices might be affected in specific neighborhoods or cities. This detailed level of insight can be crucial for investors, developers and homebuyers.

AI In Real Estate Improves Property Valuation Accuracy

Artificial intelligence can also play a significant role when it comes to determining property valuation by helping human insights with accurate data analysis and predictive modeling. While automated valuation models use machine learning algorithms to estimate a property’s value based on its comparable sales, property characteristics and market trends, they also use data patterns hidden from human perception, entirely beyond human reach.

The following is a real-life example that illustrates the power of AI-driven property valuation. We recently led a project for a real estate organization seeking to automate property estimation to identify attractive offers and observe market trends. We created a deep learning model capable of predicting property prices when given real-time market data, discovering the factors that affect prices. The trend analysis dashboard allowed the organization to identify undervalued properties and make data-backed decisions.

Challenges And Limitations Of Implementing AI In Real Estate

While AI brings many benefits to real estate, it has its own challenges to bear in mind. Data quality and availability can be a significant hindrance, as AI models are only as good as the data they’re trained on. In some projects, we spend considerable time sourcing, cleaning and structuring data before we can even begin building models.

Another significant challenge we encounter is the lack of expertise in AI in real estate organizations. This is why we often recommend creating a role for a chief AI officer or bringing in dedicated AI experts. These specialists can bridge the gap between technology and business needs, ensuring that AI implementations deliver real value.

The Next Generation Of Possibilities

As AI technology continues to evolve, the impact of AI in real estate will grow, along with other technologies, such as blockchain, for secure and transparent transactions.

Technologies evolve, and complexity grows; therefore, successful implementation of AI in real estate requires more than just acquiring AI tools. It demands the experience and guidance of AI specialists. The challenges are real, but so are the rewards. AI-powered predictive analytics is not just the future of real estate—it’s increasingly the present. The real estate professionals who can effectively harness the power of AI will be best positioned to thrive in the years to come.

Economists are penciling in a 1 per cent increase in the consumer price index for March — the sharpest one-month advance since 2022 — after the Iran war pushed gas prices at the pump up by about $1 per gallon.

At the same time, the core CPI, excluding energy and food, probably rose 0.3 per cent from a month earlier, according to a Bloomberg survey ahead of the Bureau of labour Statistics report due Friday.

A day ahead of the CPI, the Federal Reserve’s preferred gauge of inflation will offer a snapshot of pre-war price pressures. Economists see the so-called core personal consumption expenditures (PCE) price index, which excludes food and energy, having risen by 0.4 per cent for a third month in February, suggesting progress toward tamer inflation was stalling even before the conflict.

Combined with signs of stabilisation in the US labour market, stubborn price pressures along with new inflation risks stemming from war in the West Asia help explain why the Fed may struggle to lower interest rates this year.

What Bloomberg Economics Says:
“March’s gangbuster payrolls print and lower unemployment rate certainly don’t boost the case for the Fed to resume cutting rates anytime soon. Data this coming week also won’t likely make the case for rate reductions.”

—Anna Wong, Stuart Paul, Eliza Winger, Chris G. Collins, Alex Tanzi & Troy Durie.

The mid-week release of minutes from the central bank’s March policy meeting may shed light on officials’ concerns about inflation or the potential economic impacts stemming from the Iran conflict and related disruptions to energy and other commodity flows.

In addition to the PCE price data, the Bureau of Economic Analysis’ report will include figures on personal spending as well as incomes. Economists expect a modest increase in inflation-adjusted spending.

Other reports in the coming week include the Institute for Supply Management’s March services activity index, due on Monday. And on Friday, the University of Michigan will issue its preliminary April consumer sentiment index.

In Canada, the March labour force survey will offer a first look at how surging energy costs may be filtering through to job growth and unemployment. Economists expect the jobless rate to tick up to 6.8 per cent.

Elsewhere, central banks from Poland to India and New Zealand may keep policy steady as they monitor events in the West Asia, while inflation gauges from China to Latin America will point to the impact on living costs.

Asia

Asia gets three rate decisions this week, with the focus falling on how authorities assess risks to prices and growth from the West Asia conflict.

The Reserve Bank of New Zealand is expected to hold its cash rate at 2.25 per cent on Wednesday for a second straight meeting after Governor Anna Breman said she won’t rush into raising the benchmark in response to the Iran war.

Pricing in the overnight swaps market shows traders see a roughly 58 per cent chance of an increase by the meeting in July, though economists see a longer hold.

On the same day, India’s Reserve Bank is forecast to keep its repurchase rate steady at 5.25 per cent, while on Friday, the Bank of Korea — in the final meeting of Governor Rhee Chang Yong’s tenure — is all but certain to keep settings unchanged as well.

Data highlights include inflation updates from the Philippines, Thailand and Taiwan. China’s key inflation gauges for March, due Friday, will likely reflect the impact of soaring energy costs.

Consumer inflation may accelerate again after picking up to the fastest pace in three years in February. Likewise, factory-gate deflation may narrow further after registering the slowest clip in more than a year in the previous month.

Japan releases wage data for February on Wednesday, with a focus on the inflation-adjusted gauge after it turned positive in January for the first time in more than a year.

Singapore releases retail sales figures for February on Monday, and New Zealand’s manufacturing PMI for March is due Friday.

Europe, West Asia, Africa

Multiple euro-region industrial reports will draw attention, although their focus on February — before war began in the West Asia — may limit their utility for investors.

German factory orders on Wednesday, followed by production and export numbers on Thursday, will offer a glimpse of manufacturing in Europe’s biggest economy at a time when the flow of defense-focused stimulus is building.

Those two days will also feature French export numbers and Spanish production data, followed by Italian factory statistics on Friday.

Appearances by euro-zone central bankers and Bank of England policymakers will be sparse during a week shortened by the Easter holiday.

Inflation numbers from several economies will draw attention, highlighting how the energy squeeze in the Gulf is impacting consumers. Last week’s euro-zone reading showed the biggest jump since 2022.

Reporting from the Nordics are Sweden on Tuesday and Norway on Friday, both of which may have experienced accelerating price growth.

Hungary’s inflation on Wednesday is also seen quickening notably above 2 per cent, in a report arriving just days before the country’s highly anticipated election.

On Thursday, Egypt’s consumer-price growth is expected to show another uptick from the 13.4 per cent level in February, after energy costs soared and the pound fell to a record low.

Latin America

Central banks and March consumer price reports from some of the region’s big economies take center stage, offering a glimpse of the Iran war’s expected inflation shock.

The early consensus sees consumer price pressure rising in all four economies reporting in the coming week — Brazil, Chile, Colombia and Mexico.

Colombia watchers will be eager to pore over the minutes of BanRep’s latest meeting, at which where policymakers delivered a second straight 100 basis-point hike.

The split decision — four board members backed the hike, two voted for a 50-basis-point cut, and one wanted no change — pushed the key rate up to 11.25 per cent and prompted Finance Minister German Avila to walk out in protest.

Analysts surveyed by Bloomberg now see a terminal rate of 12 per cent for Colombia and don’t expect any easing until the third quarter of 2027.

Monetary policy meeting minutes are also on tap in Mexico. Banxico on March 26 delivered a quarter-point cut to put the key rate at 6.75 per cent while also revising up inflation expectations — raising some eyebrows, legitimate concerns about growth notwithstanding.

In Peru, central bankers at their monthly rate meeting will be sorely tested by March’s huge jump in consumer prices — the month-on-month reading of 2.38 per cent was the highest in the series dating to 1994 — driven in no small part by the Iran war’s oil shock.

Still, the early consensus sees the board, led by bank chief Julio Velarde, choosing to see where the Iran conflict and consumer price pressures stand by this time next month, rather than tighten here.

OPINION: Looking back, when I was a kid my parents got me involved in a lot of activities after school, including tennis, piano lessons, elocution lessons (now called speech and drama), rugby, and last, but by no means least, Cubs and Scouts.

It’s fair to say some of those activities didn’t work out too well, but others taught me some great lessons that are still with me today. One of the key messages from my scouting days was “be prepared” a theme taken from the founder, Lord Bayden-Powell, and which originated more around being attacked by your enemies than thinking about retirement, but it’s as good an analogy as I could find for this topic.

Retirement is a funny thing. It seems far off but, before you know it, it’s just around the corner and you are wondering how you got here. Well, as Talking Heads state, it’s once in a lifetime (if you are lucky to get there at all) and being prepared for the big R is something we all need to think about, even before you are ready to do so.

In the past, a lot of jobs were incredibly physical and there came a time when workers’ bodies, not their minds, would tell them to stop. So, back in the day, many people didn’t have a choice. Both my grandfathers died in their late 60s because they worked in the mines and the coal dust in their lungs eventually got to them.

While there are still a number of physical jobs here in Aotearoa, the majority of Kiwis aren’t facing anything much more dangerous than the risk of paper cuts or repetitive strain injury, neither of which is too life-threatening. So, over the past 50 years or so, we are generally living longer, which is a great outcome for many.

We have all seen inspirational stories of people reaching into their 90s and even 100, doing exceptional things, and thinking ‘wow, how cool is that?’ But most of us will slow down before then – at best we might hope for 20 more summers if we retire at 65, and they might not all be sunny affairs. So, it’s a good idea to plan how to make the most of them while we can.

Retirement nest eggs

There are a heap of checklists and plans you can follow around how much money you’ll need in retirement. But have you thought about what else is important to enjoy the journey, given we are all going to the same destination no matter how rich we are?

Here are five ideas to help you start working on the other stuff:

Write down the things that are important for you to do now and what you want to continue doing when you stop paid work

For example, I want to play tennis into my late 70s. So, what do I need to do to achieve that? Well, keep playing for a start, maybe make time to get regular lessons again, and keep as healthy as I can along the way, without sacrificing the treats. Chocolate comes to mind for me here. It might mean I have to walk more (which I hate) but, as they say, if you don’t use it you will lose it.

Work out how you will maintain purpose and relevance when you leave your job or career

I have seen many incredibly successful people hit the retirement wall and struggle to get over it. Being out of sight, out of mind is challenging. When you are used to the phone ringing or people coming to you with problems or challenges at work, it can be hard to adjust when you leave. The phone stops ringing, people don’t need you and your perceived value goes away.

Before you get there, think about activities, both paid and unpaid, that you could explore or plan for when you make that decision. It could be sitting on a board or two; it might be getting involved in your local community and using your work and life skills to help others; or it could mean just working fewer days.

Write down a list of things you have always wanted to do but never had the time to complete

It could be as simple as driving along in the countryside and stopping off at that small town or village that you never had time to explore, or a big ticket item like going overseas to see the northern lights in Iceland. It might mean spending more time with family and friends or taking up a new hobby. Don’t forget to discuss the list with your partner or family as well. Letting them know helps them plan a little as well.

Have a chat with a friend, colleague or family member who has already retired

Ask them how they felt when they made that decision (or had it made for them). What were their fears and hopes? What did they wish they had done more of before getting there and their biggest regrets?

Enjoy the journey and understand the benefits of decumulation

I know I wasn’t going to talk about money but, while it’s not everything, (my mum always said to me if you don’t have your health, you have nothing) it does provide you with choices. They key is knowing how much you need to be happy. That’s like asking someone how long is a piece of string.

Sit down and do your own numbers, but take into account superannuation, KiwiSaver and other investments, even your home or other assets you might have. Another option might be to downsize your house or live in a different area and release some capital.

The worst thing that could happen to me is I work another seven years, which would mean I would have worked 48 years without a break, only to have an accident or health issue that robbed me of all the experiences I had put off when I thought I would have more time to enjoy them.

I’m not the fittest fellow it has to be said, but I have caught myself recently thinking, while standing in the mosh pit in front of a live band at Auckland’s Powerstation, how much longer will I find this enjoyable? Ages I hope, but there will come a time you might find me at the back of a concert, smiling away, knowing I did it for as long as I could and not regretting a minute of it.

You’ll likely have hundreds of questions, and managers may seem too busy to answer them all. It will take some time to find your footing, but there are a few practical ways to build confidence, stay organized, and set yourself up for long-term success.

Take 15 Minutes to Prepare Before Every Meeting

If your team is busy and meetings with management are few and far between, prepping for your meetings is a must. As a recent grad, meetings are the best places to receive support and gain guidance on your projects.

Before every meeting, review all of your work and your projects. If you have any questions or concerns, write them down in a list to bring into the meeting. A concrete list ensures that you remember all of your pressing questions during the meeting and get immediate answers rather than waiting for an email or message back.

These answers should serve as your guidance for your projects and help you proceed with more confidence.

Always Put Your Best Foot Forward

As you start to work, it is almost inevitable that you will eventually be assigned a project outside of your comfort zone.

When this happens, take a step back and identify the aspects of the project that intimidate you the most. Do some background research on those aspects, look into case studies about similar projects, and craft a plan of how you can tackle this.

Try these steps:

• Create a simple “learning sprint”, spend one focused hour researching the toughest part of your project.

• Ask a teammate if you can shadow them for a short task related to the project.

• Write down 2–3 specific questions and bring them to your manager or mentor.

If this is your first time working on a task of this nature, no one is expecting perfection. Empower yourself with some research and put in your best effort. As you work through this project, ask your team for support and help.

The best way to learn and grow is through hands-on experience. By putting in your best effort to intimidating projects, you’ll grow your skillset and gain confidence in your abilities.

Stay Organized with a System

It’s a cliche, but it bears repeating: time management is everything. Organization is at the heart of how to succeed in your first job. As you gain new tasks and responsibilities, it’s essential to be able to organize them so everything can be done in an efficient and timely manner. If you have a strong system when you start work, you won’t have to suffer through the learning curve as you pick up new assignments.

• Try a digital tool (like Notion or Asana) for larger projects and a paper notebook for quick daily tasks.

• Use the “two-minute rule”: if something will take under 2 minutes, do it immediately.

• At the start of each week, create a list of what you need to get done and when it needs to be done by.

• Assign each task a priority level (high, medium, low) and schedule it for a certain day that week.

• Schedule a 10-minute “reset” at the end of each day to clean up your to-do list and prepare for the next day.

Having a consistent system keeps you on top of deadlines and shows your team you can handle responsibility.

Break Down Tasks Into Manageable Blocks

Big projects can feel overwhelming, especially when you’re just starting out. Instead of trying to tackle everything at once, break projects into smaller, bite-sized steps. Each time you complete one, you’ll feel a sense of accomplishment that keeps you moving forward.

• Write your project steps as if you were explaining them to someone else, this forces clarity.

• Set mini-deadlines for each stage so you don’t leave everything to the last minute.

For example, if you’re asked to create a report, split it into stages: gather data, analyze results, build visuals, and draft the write-up. By focusing on one piece at a time, you’ll reduce stress and keep your work on track.

Take Lots of Notes

Another overlooked secret of how to succeed in your first job is note-taking. Early in your career, you’ll be hit with a ton of new information, processes, tools, acronyms, even names. Writing everything down (whether digitally or in a notebook) is the best way to keep it straight.

• Create a personal “work glossary” where you define acronyms and processes you encounter.

• Date your notes so you can easily trace back decisions or instructions.

• After meetings, take 5 minutes to clean up your notes into bullet points you can revisit later.

Don’t worry about looking like you don’t know something. Taking notes shows initiative and ensures you can revisit information later without asking the same question twice. Over time, your notes will become a personal playbook you can lean on.

Try to Connect With Everyone On Your Team

No guide on how to succeed in your first job would be complete without talking about your team. Success in your first job isn’t just about the work, it’s also about the relationships you build. Take the time to introduce yourself to teammates in different roles, ask about their career paths, and find out how your projects connect to theirs.

These conversations give you perspective on how the company works as a whole and show your coworkers that you’re engaged and approachable. Plus, building these connections early makes it easier to ask for help, find mentors, and feel like part of the team.

Learning how to succeed in your first job is about developing habits that will serve you throughout your career. By preparing for meetings, putting your best foot forward, staying organized, breaking down tasks, taking great notes, and building connections, you’ll create a strong foundation for success.

Remember, no one expects perfection when you’re just starting out. What matters is effort, curiosity, and a willingness to learn. Each project you complete and each relationship you build is a step toward your career goals.

The way you treat your finances today determines whether your wealth survives beyond your lifetime, gives you the chance to live a meaningful life, or just dissipates unnoticed. Adopting healthy money practices in the new financial year to make your economic management more efficient, conserve generational wealth, and prevent it from eroding.

Shraddha Nileshwar, Head – Will & Estate Planning at 1 Finance, says: “In estate planning, we don’t just witness wealth transfer but also wealth destruction. The culprits are almost always the same: no Wills, no Trust, no conversation. Families spend decades building assets and minutes planning their protection. Parents hide debt, avoid Will discussions, and leave children guessing. I’ve seen heirs lose properties, retirement funds, and businesses not to bad luck, but to ambiguous/bad documentation. Transparency within your family and precision within your legal documents are the twin pillars of lasting wealth.”

To safeguard your assets, start by breaking these 6 bad money habits:

I. Ignoring estate planning

It is not only important to invest in assets to grow your wealth. It is also important to have a well-drafted will or trust to back your assets. When you do not plan proper allocation of your estate to your near and dear ones, this can leave your hard-earned assets open for legal interference.

Make sure that you discuss your investments in different asset classes, such as equities, gold, real estate, bank lockers, fixed deposits, etc., with your family so that you can plan for the allocation of these assets to your heirs in accordance with the law of the land.

II. Living beyond your means

Taking avoidable personal loans for meeting leisurely expenses or overspending today in different forms can easily erode the wealth that you intend to pass on for tomorrow. Make sure you do not live beyond your means.

If possible, avoid depreciating assets such as expensive cars, clothes, and watches, and invest your funds in appreciating assets with a long-term perspective, such as equities, bonds, mutual funds, and gold. This will help you grow financially.

III. Relying heavily on credit

Excessive personal loans or credit cards can accumulate high interest, eating into your savings. Before applying for any new form of debt, understand the concept of compound interest. If you have a clear understanding of this concept, it will keep your finances and future planning in proper order. As a matter of rule, avoid relying on heavy debt or overextending your credit limit. This way, you will never find yourself facing a serious financial crisis.

IV. Skipping basic health and life insurance coverage

Without adequate health insurance coverage and life insurance coverage, it will be challenging for you to cope with unforeseen medical and health-related emergencies. You should consider house insurance to maintain your property ownership. Following these simple yet consistently overlooked ideas can keep your financial legacy intact.

V. Neglecting diversification of your investments

Failing to diversify or review portfolios risks stagnation, psychological stress and long-term financial loss. This makes it critical for you to have a clear understanding of how to efficiently diversify your wealth and protect it from erosion due to market volatility or geopolitical developments.

VI. Hiding debt and pending obligations from heirs

In life and wealth planning, transparency, honesty and clarity are key fundamentals. Hidden liabilities, personal loans or credit card debt can quickly multiply and cripple the financial future of your heirs, thus nullifying their deserved wealth.

This makes it essential for you to be honest with yourself and your family about your long-term economic objectives and current financial obligations, so that any future borrowing decisions are made with the rights of other family members and your responsibilities towards them in mind.

To protect generational wealth, avoid the bad money habits discussed above and replace them with responsible financial practices that can go a long way toward protecting your economic well-being and peace of mind. Before taking a personal loan, home loan or maxing out credit cards, consult a certified financial advisor to understand long-term risks and protect your family’s wealth.

“If it’s 1%, then it really makes sense for me to buy that property,” he told Business Insider. “If it’s 0.6% or 0.7%, it doesn’t make sense.”

In real estate, that rule of thumb is known as the 1% rule. It suggests a property’s monthly rent should equal at least 1% of its purchase price to have a good shot at generating positive cash flow. If it falls short, Afzal keeps looking.

He began investing in real estate in 2019 to create an additional revenue stream. As a freelance film composer and singer-songwriter, his monthly income fluctuates.

Over the past seven years, he’s built a portfolio of four investment properties in Monroe, a town in New York about 50 miles north of the city. Business Insider verified his property ownership by reviewing copies of his mortgage interest statements.

The 1% rule in practice

The first property Afzal bought cost about $200,000 and rented for $1,975 a month, giving it a rent-to-price ratio of 0.98%. His second cost $211,000 and rented for $2,100, or 0.99%. His third beat the benchmark by a more comfortable margin, at 1.125%.

So far, the rule has worked for Afzal. Each property he has purchased has cash-flowed immediately.

As of April 2026, Afzal said his properties generate roughly $5,300 a month in cash flow. His most profitable rental, which he bought outright and therefore has no mortgage, brings in nearly $1,800 a month.

The rule isn’t perfect. Interest rates, HOA fees, insurance, maintenance, and other expenses all shape whether a property will actually be profitable. Still, Afzal said it remains one of his main filters.

“As long as I’m able to be close to the 1%, I’m willing to buy that property,” he said.

The 1% rule is meant to evaluate a property at the time of purchase, but Afzal still checks the ratio against current values on properties he already owns. By that measure, some have slipped below 1% over the last few years because home values rose faster than rents. Two years ago, for example, he said his first property was worth about $350,000 and rented for $2,650 a month, putting the ratio at 0.76%.

He said he largely stopped buying over the last few years because high home prices made it harder to find deals that met the rule. He spent that time saving, tracking prices, and waiting for the market to improve. Now, he said, the numbers are starting to look better and getting closer to the 1% sweet spot.

Cash flow is one of his top priorities, not only because it creates additional monthly income, but because it can help him qualify for future loans. Showing positive cash flow on his tax returns gives underwriters confidence that his rentals aren’t losing money, he said, “so it helps me buy more properties.”

Inflation has been a thorn in the US economy’s side since 2021, and though price increases have cooled off dramatically in the past few years, the problem never really went away: Inflation still hasn’t returned to pre-pandemic levels, and Americans haven’t yet adjusted to higher prices. That’s why the cost of living has remained Issue No. 1 for voters in poll after poll.

This oil price shock almost certainly will not translate into the 9.1% four-decade high inflation that the United States painfully endured in 2022. But key differences between the situation today and four years ago could make this latest war-induced inflation spike very difficult to bear.

Layering

The US economy has been remarkably resilient despite everything thrown at it this decade — a pandemic, two wars, a historic inflation crisis, tariffs…. It’s tough to shake a $31 trillion titan. That’s why most economists agree the oil price shock from the Iran war probably won’t end in a recession.

But the economy doesn’t need to be in a recession to grow painful — just ask the millions of low- and middle-income Americans who have struggled to make ends meet over the past several years.

Unlike 2022, when savings accounts were still padded by government stimulus, an emergency pause on student loan debt repayments and other pandemic-related safety nets, in 2026, many Americans are borrowing money to get by — and they’re finding it harder and harder to keep up with those payments.

In February, Americans’ savings rate (savings as a percentage of after-tax income) was 4%, the latest Commerce Department data showed. In February 2020, that rate was 7.5%. And heading into the pandemic-era inflation burst, those piggy banks were plump (in part due to federal stimulus payments, refinances, and a sheer pullback of spending): The savings rate was 21.6% in March 2021, when inflation was starting to accelerate.

“Households do have less of a cushion now than they did two, three years ago,” Augustine Faucher, chief economist at PNC Financial Services Group, told CNN in an interview. “That means that this higher inflation is going to pinch more than it would have.”

Layer on top of rising prices: a frozen housing market, immigration restrictions that have exacerbated childcare and health care shortages, the elimination of key social services and historic tariffs … that’s a lot for folks to bear.

Now, add surging gas prices. That’s tipping some folks over the edge.

Paycheck gains

Despite how much Americans hate this economy, it’s had one saving grace: The average annual paycheck growth has exceeded the average rate of inflation for about three straight years.

Some economists — including Federal Reserve Chair Jerome Powell — argued that sentiment would eventually catch up to reality once Americans adjusted to higher prices, and paycheck gains padded their bank accounts.

That theory took a big blow to the noggin in March.

Annual wage growth shrank to just 3.5% on average last month, and annual inflation surged 3.3%. In one fell swoop, years of progress on inflation was set back, and Americans’ pay gains were practically eaten away.

“We’ve had a couple of years to try to heal and repair” from the pandemic-era inflationary burst, said Heather Long, chief economist with Navy Federal Credit Union. “To reverse that is painful.”

Surging gas prices have wiped out other economic benefits, too. For example, the average tax refund increased $351 this year, compared to last year. But the average US household is paying an additional $190 a month because of higher energy costs, according to Andy Lipow, president of Lipow Oil Associates. That will wipe out the tax refund benefit for the average American in just two months.

Duration

It’s alarming to see such a sharp increase in inflation in the first four weeks of the war. But what we saw in the March report is really just the beginning of an inflation rebound that could last for months.

Even in the most optimistic of scenarios, where the ceasefire agreement between the United States and Iran holds and the Strait of Hormuz reopens, consumer prices will remain high and inflation will almost certainly continue to gain for months.

That’s because oil shocks have both an immediate and a delayed effect on overall prices: Gas prices shoot higher right away, but other prices rise later as higher energy prices work their way through the economy.

For example, grocery prices fell in March, even as the cost of diesel surged. Eventually, higher diesel prices will send food prices higher because shipping companies will charge supermarkets more to deliver groceries. Food prices typically take three to six months — or even more than a year — after the initial shock to rise.

The sheer impact, however, is heavily dependent upon a highly unknown variable: The duration of the war and, particularly, the disruption to the Strait of Hormuz.

And those price hikes, no matter how small, can hit worse for some Americans than others, said Ken Foster, professor of agricultural economics at Purdue University.

“We have households in our country where the percentage of income spent on food is closer to 50%,” he said in an interview with CNN. “And when you add on fuel for heating your home or for transportation for you getting to work, you’re now talking about a sizable percentage of people’s income that’s really not adjustable.”

He added: “They haven’t been able to keep up in terms of their income, and this comes back to really put them in a financial bind.”

For retirees on fixed incomes, setting and sticking to a budget has never been more critical. Even though income is limited, many expenses are not. Health costs, for example, can be wildly unpredictable for people over 65. Rising prices of consumer goods is also putting pressure on older adults’ wallets.

If the past is any predictor of the future, there’s lots of budgeting work to be done. When asked what financial challenges they faced in 2024, 28 percent of Gen Xers (ages 44 to 59) and 14 percent of boomers (ages 60 to 78) said they took on debt, and 19 percent of Gen Xers and 13 percent of boomers said they depleted their savings, according to a survey by Credit Karma, a consumer financial platform.

What to do? First and foremost, craft a budget for 2026. “It may sound obvious, but everything else is based on that,” says Courtney Alev, a consumer financial advocate at Credit Karma. “Setting a budget can help you avoid a lot of financial mistakes and bad habits.”

Here are 13 retirement budget-setting tips for 2026.

1. Estimate your income

It’s impossible to set a budget without knowing precisely how much money you have coming in, says Trent Graham, program performance and quality assurance specialist at Greenpath Financial Wellness, a nonprofit organization that provides free budget consultations to those in need of assistance. To do this, you trace and project all sources of where your cash will come from over the next year. This includes Social Security payments, pension payments, any work income and income from investments.

2. Calculate your expenses

The best way to do this is to go through your bank and credit card statements and categorize your expenses like housing, utilities, groceries, health care and discretionary spending such as eating out and travel, Graham says.

3. Use a budget checkup tool

The National Council on Aging offers an online budget checkup tool that’s specifically designed for adults 65 and older, says Genevieve Waterman, an aging services program specialist at the Administration for Community Living, part of the U.S. Department of Health and Human Services.

4. Use a benefits checkup tool

Regardless of your financial situation, it’s smart for older folks to educate themselves about any benefits for which they might qualify, Waterman says. You can research your benefits by using the council’s free online tool, BenefitsCheckUp. Americans leave more than $16 billion in government benefits for which they qualify on the table every year, she says. For example, she says, the tool can help users find local programs that provide financial assistance to older adults who are struggling to pay their property taxes.

5. Set and stick to a spending limit

Alev advises that after you have figured out all of your essential costs, you add up to 20 percent for things that include unexpected costs, savings and paying down existing debt. She generally recommends a budget that designates 50 percent toward essentials, 30 percent for “wants” and 20 percent for unexpected costs.

6. Limit credit card debt

More than half of Gen Xers (ages 45 to 60) and over 2 in 5 boomers (ages 61 to 79) carry a credit card balance from month to month, according to a Bankrate study. Interest can add up quickly, with the average credit card rate clocking in at 23.96 percent in December 2025, according to a LendingTree study of over 200 credit cards.

The biggest financial trap that older Americans typically get into is using their credit cards as supplemental income, Graham says. “If you use your credit card, make certain you have the funds available to pay it off at the end of the month,” he says.

7. Put bills on autopay

To avoid missing any bill payments and harming your credit score, consider putting your recurring bills on autopay, Alev recommends. This includes utility and Internet bills, as well as bills for auto, home and life insurance. Virtually every bank has a customer service line that can walk you through how to set up autopay, she says. Set up the autopay for at least five days prior to the bill’s due date, she suggests.

8. Freeze your credit

With so many financial scams targeting older Americans, many financial experts recommend placing a hold, or “freeze”, on your credit with each of the three major credit bureaus: Equifax, Experian and TransUnion. A freeze will stop fraudsters from opening credit cards or other credit accounts in your name, Alev says, safeguarding your credit score.

A security freeze doesn’t completely block access to your credit history. Your existing lenders can still access it, and so can employers, landlords and insurance companies if you’re seeking a job, trying to rent an apartment or applying for a new insurance policy.

9. Plan for unexpected health care costs

Unexpected health care costs are where most older Americans fail in setting up annual budgets, Graham says. So it’s critical to have ample emergency funds put away specifically for health care costs, he says.

10. Trim your subscription services

Review what subscription services you are paying for monthly and then determine which ones you are actually using and which ones you can drop, Alev says. This includes everything from streaming services to gym memberships to newspapers and magazines. According to a 2024 YouGov survey, more than half of U.S. adults are paying for subscriptions they don’t use.

11. Review your insurance policies

The National Council on Aging encourages older consumers to review their insurance plans annually. Many insurance providers offer “senior” discounts, as well as “paperless” discounts for enrolling in online billing, Waterman says. It’s also worth shopping around to compare quotes, she adds.

12. Order takeout less often

Americans order delivery 3.7 times a month on average, spending roughly $1,566 annually. Depending on your habits, reducing how frequently you order in could help lower your expenses significantly. “A couple of extra food deliveries per month can almost double your food budget,” Alev says.

13. Leverage “senior” discount programs

Older folks pass up potentially hundreds of dollars in savings every year by failing to take advantage of discounts for older consumers. Many grocery chains offer them, Waterman says. For example, on Thursdays, through its Club 60 program, Harris Teeter offers VIC card members age 60 and older discounts of 5 percent. A number of major retailers, such as Kohl’s, Michaels and PetSmart, also offer discounts to older customers.

“The more you learn, the more you earn.”: Buffett emphasizes that knowledge compounds like money. Investing in your education, skills, and experiences increases opportunities, future earnings, and personal growth. Lifelong learning creates a strong foundation for both career and life success.

“Price is what you pay; value is what you get.”: Students should distinguish between cost and true worth. Focus on quality learning, relationships, and decisions rather than short-term gains or appearances. Recognizing value helps prioritize wisely.

“Risk comes from not knowing what you’re doing.”: Preparation reduces mistakes. When students understand a subject or task thoroughly, risks diminish. Planning, research, and informed action build confidence and minimize unnecessary failures.

“It’s better to hang out with people better than you.”: Surround yourself with mentors and peers who challenge and inspire. High-quality company elevates your thinking, habits, and motivation, pushing you toward growth rather than comfort.

“Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.”: Recognize and seize rare chances with boldness. Students should act decisively on meaningful opportunities instead of hesitating, maximizing potential for growth and achievement.

“Someone’s sitting in the shade today because someone planted a tree a long time ago.”: Patience and long-term thinking matter. Efforts you invest now—studying, saving, or building skills—pay off in the future. Success often comes from consistent work over years, not instant results.

“The difference between successful people and really successful people is that really successful people say no to almost everything.”: Focus is essential. Students should prioritize tasks and avoid distractions, dedicating energy to meaningful goals rather than spreading themselves too thin. Saying “no” is a tool for effectiveness.

“Don’t save what’s left after spending; spend what’s left after saving.”: Financial discipline starts early. Prioritize saving, budgeting, and investing before indulgence. This habit fosters independence, security, and the ability to pursue larger ambitions responsibly.

“Someone’s opinion doesn’t determine your value.”: Confidence in yourself is crucial. Students must avoid letting external judgments dictate self-worth. Focus on personal growth, learning, and achievements rather than seeking validation from others.

“Chains of habit are too light to be felt until they are too heavy to be broken.”: Early habits define your future. Positive routines in studying, health, and discipline compound over time, shaping success. Conversely, bad habits, if ignored, become difficult to overcome later.