Search

Having the ‘right’ friends may hold the secret to building wealth, according to new study on socioeconomic ties

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/brad-cannon-2216202">Brad Cannon</a>, <a href="https://theconversation.com/institutions/binghamton-university-state-university-of-new-york-2252">Binghamton University, State University of New York</a> Having wealthy people in your social network significantly boosts the likelihood that you’ll participate in stock markets and savings plans, according to a new working paper I co-authored. My colleagues and I <a href="https://www.nber.org/system/files/working_papers/w32186/w32186.pdf">recently conducted research</a> on social finance to understand the ways in which social networks affect stock market participation and savings behavior. This is important because a substantial fraction of households in the U.S., particularly <a href="https://www.axios.com/2023/10/18/percentage-americans-own-stock-market-investing">lower-income families, do not own stocks</a>. Given that the total return to the U.S. stock market from 1980 through September 2024 has been over 12,000% – for example, US$1,000 <a href="https://ofdollarsanddata.com/sp500-calculator/">invested in the S&P 500</a> in 1980 would be worth $121,350 today – this creates a disparity in wealth for those who participate relative to those who do not. Understanding why some people invest and others don’t is important for addressing social concerns such as rising inequality. In our study, we looked at <a href="https://academic.oup.com/ej/advance-article/doi/10.1093/ej/ueae074/7720537">social capital</a>, which is a measure of the value that comes from being in a group or having dense social networks. Researchers have found that social capital can have positive impacts on individuals and communities, spurring innovation, <a href="https://www.nature.com/articles/s41586-022-04996-4">economic prosperity</a> and better health outcomes. We used friendship data from Facebook to measure different aspects of social networks by county in the U.S. We combined this data with tax information from the Internal Revenue Service about investments and savings. We found that in counties where friendships with prosperous individuals are more common, investment and savings tend to be higher. Moreover, we found that having these friendships with wealthy individuals plays a more important role in shaping financial behaviors than two other aspects of social capital we looked at in our study: having a tight group of friends and living in a community with strong civic engagement. Of course, making wealthy friends alone does not guarantee you’ll invest or save more. But perhaps knowing people who invest makes it less daunting and fraught, particularly if those friends can serve as a resource and sounding board. “Friends with Benefits: Social Capital and Household Financial Behavior” was co-authored by <a href="https://www.marshall.usc.edu/personnel/david-hirshleifer">David Hirshleifer</a> and <a href="https://hankamer.baylor.edu/person/joshua-thornton">Joshua Thornton</a>.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/239370/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/brad-cannon-2216202">Brad Cannon</a>, Assistant Professor of Finance, <a href="https://theconversation.com/institutions/binghamton-university-state-university-of-new-york-2252">Binghamton University, State University of New York</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/having-the-right-friends-may-hold-the-secret-to-building-wealth-according-to-new-study-on-socioeconomic-ties-239370">original article</a>. </div>

Money & Banking

Borrowing money isn’t always a bad thing – debt can be a sensible way to build wealth

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Debt, in some form or another, is part of our financial profiles whether we like it or not. And it can be a useful way to build wealth if it is managed carefully and wisely. For example, you may borrow money from the bank to buy an asset – a resource of economic value that generates income from its productive use. Investment property is an example. So investing in an income-producing property can be a good idea. If you are already in the property market, the home equity you’ve accumulated – the share of the property value that’s yours – can help you buy a second property. This time, you may not need a deposit as big as the initial investment. In the event that the rental market is booming and your tenants pay you more than what you repay on the loan, municipal rates and property manager fees, then the wealth-building machine will start to run itself. But debt makes many people uncomfortable. In South Africa, a person earning R20,000 a month commits on average <a href="https://businesstech.co.za/news/finance/585372/south-africas-middle-class-is-in-serious-trouble-right-now/">63% of their salary to repaying unsecured debt</a> – such as credit cards, personal loans, overdrafts or “buy now, pay later” facilities. As a general guideline, it’s suggested that <a href="https://www.investopedia.com/terms/d/dti.asp">no more than 40%</a> of your income should be used to service debt. Financial anxiety has its roots in some misconceptions. The main one is that all debt is bad. This isn’t true. Prudent borrowing to buy an asset can help build wealth in the medium to long term. So fears about debt need to be weighed against a broader understanding of wealth accumulation. Well-managed debt can play a role in that process. Here are the four biggest misconceptions about debt. Recognising them will help you develop a more nuanced approach to debt. <h2>The misconceptions</h2> All debt is bad debt. Indeed, debt is a problem when you can no longer manage it and it starts to manage you. One of the simplest ways to tell whether debt is working for you or against you is through “leveraging”. This refers to the use of debt to acquire an asset that is worth more than the value of the debt. It’s also known as positive or favourable leveraging. People who take out unsecured loans are leveraging unfavourably when the debt is driven by consumption. Often there’s nothing to show for what you’ve spent. Unsecured loans also tend to charge higher interest rates to compensate for the lack of collateral. Only financially reckless people are in debt. This is the next misconception. Second to unsecured loans, most South African consumer debt portfolios are taken up by <a href="https://businesstech.co.za/news/wealth/617685/these-income-levels-in-south-africa-owe-the-most-debt/">home loans</a>. The most realistic way to gain entry into the housing market is through a mortgage. You’re doing the right thing if your mortgage is paid off within a reasonable time. This will mean that, in the long term, the value of the property will surpass the home loan amount that was taken out to buy the property in the first place. But there are two misconceptions related specifically to mortgages. After you’ve paid the mortgage deposit, you won’t have other fees to pay. This isn’t correct. Banks charge a fee to open and close a home loan account. There can also be a penalty when a home loan is repaid prematurely. So be sure to read the fine print about discharge fees or closing costs. If you stick to the repayment amount for your mortgage, you’ll be able to repay the loan quickly. This isn’t true – even if interest rates fall and your mortgage repayments decline, your home loan is most likely tied to a loan term of 20 to 30 years. Many banks will quote a monthly mortgage repayment amount that seems affordable at face value but is in fact based on a 20-year term period. Banks are businesses and it works in their favour if you take longer to repay your mortgage because that translates into more interest repayments. The longer the duration of the home loan, the more interest you pay, the more profit they make. If it takes over 20 years to repay a bond, it’s often the case that the value of the interest repayments exceeds the initial loan amount. Home loan calculators are a useful tool that can help you assess how much you could afford to repay on a home loan depending on the deposit saved, if interest rates change and how long it will take you to repay the mortgage with topped-up contributions. It is essential to have a goal for when you’d like to finish paying off your mortgage and a plan in place to achieve this goal. If you don’t do this you could become a mortgage prisoner. <h2>Keeping your eye on the prize</h2> As we’re about to conclude the year and enter the festive season, it’s a good time to remember your financial goals and not let your guard down by unconsciously swiping or tapping that credit card. “Janu-worry” is around the corner, and so is the financial anxiety that comes with it. But it need not be the case. Debt can either be the cure or the cause of your financial position. Reconsider spending patterns that prompt you to use your credit card. Too much debt over short periods is an irregular spending pattern that is a warning sign. There’s no harm in buying what you can afford or staying in your financial lane if the alternative forces you to sacrifice your hard-earned income on servicing consumption-driven debt. For better or worse, debt is a part of our financial portfolios. But the road to financial empowerment is not always easy – financial planning can help you keep your eye on the prize.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/192630/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/bomikazi-zeka-680577">Bomikazi Zeka</a>, Assistant Professor in Finance and Financial Planning, <a href="https://theconversation.com/institutions/university-of-canberra-865">University of Canberra</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/borrowing-money-isnt-always-a-bad-thing-debt-can-be-a-sensible-way-to-build-wealth-192630">original article</a>. </div>

Money & Banking

Readers response: What’s your best advice for managing medications while travelling?

When taking a trip, many people often have to factor in how their changing schedule will affect their regular medication routines. We asked our readers for their best advice on managing medications while travelling, and the response was overwhelming. Here's what they said. Kristeen Bon - I put each days tablet into small ziplock bags and staple them at one corner. All that goes into one larger ziplock bag and into my toilet bag. I store all the outer packs flat into another ziplock bag and that stays in the zip pack with my first aid kit in the main suitcase. I travel long haul up to six times a year and this is the most manageable way I have found. Diane Green - Firstly, take sufficient supply of all meds to last the time I'm away. I separate morning medications and evening medications. Then it depends on how long I'm away. I have one that needs to be refrigerated. Depending on where I travel, this can entail arranging overnight in the establishment fridge while taking a freezer pack for daytime travel. Irene Varis - Always get a letter from my doctor, with all my prescriptions for when I get overseas. Saves you a lot of trouble! Helen Lunn - Just get the chemist to pack into Medipacks. I usually take an extra week. I alway put some of the packs in my partners baggage incase my bag goes missing and a pack and a doctor’s letter in my hand luggage. Jancye Winter - Always pack in your carry on with prescriptions. Jenny Gordon - Carry a letter from doc with all medications, leave in original packaging. Double check that it isn’t illegal to carry your medication as some countries have strict regulations for things like Codeine. Always carry in carry on as you don’t want them to get lost. Nina Thomas Rogers - Be organised with all your medicines before you leave. Image credits: Shutterstock

Travel Tips

Your parents’ income doesn’t determine yours – unless you’re ultra rich or extremely poor

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/catherine-de-fontenay-5631">Catherine de Fontenay</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> Australia is among the strongest global performers in terms of income mobility between the generations, according to a new <a href="https://www.pc.gov.au/research/completed/fairly-equal-mobility">Productivity Commission report</a>. The country’s long-term economic growth has led to each generation earning more than the last, on average. Our report finds 67% of the so-called <a href="https://www.businessinsider.com/xennials-born-between-millennials-and-gen-x-2017-11">“Xennial”</a> generation – those born in 1976–1982, on the cusp of the Millennial/Gen X divide – earn more than their parents did at a similar age. This is particularly true of those born into poorer families. <hr /> <iframe id="NsmB3" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/NsmB3/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> When we look at where people rank in an income distribution, the picture is a little less rosy. While children with parents at the bottom or top of the income scale are more likely to remain there, almost 15% of people with parents in the lowest income decile, remain there while just 6% move to the top. And those living in poverty - who often include renters, people from migrant backgrounds who don’t speak English at home and single parents - face some of the biggest barriers to improving their economic lot. <a href="https://www.pc.gov.au/research/completed/fairly-equal-mobility">Fairly Equal? Economic mobility in Australia</a>, released on Thursday, measures intergenerational income mobility by examining the relationship between a person’s income and the eventual income of their children. <h2>Measuring inequality</h2> Most countries anxiously monitor income distribution and economic mobility amid concerns inequality may be increasing. And countries with high inequality tend to have low mobility: the rungs of the social ladder are far apart making it difficult to move up to the next level. If mobility is low, the consequences are serious. Low mobility is discouraging, unproductive and unstable. If young people have little chance of achieving their aspirations, their wellbeing is affected. <a href="https://ideas.repec.org/p/cor/louvco/2023026.html">Social unrest is more likely</a>. And the abilities of young people from less affluent backgrounds are under-used. The next tech entrepreneur Steve Jobs may never be discovered, and many other opportunities are lost. In Australia we are used to thinking of ourselves as having inequality and mobility somewhere between Scandinavia and the US; but that comparison is not as comforting as it used to be, if inequality and mobility are worsening in the US. Our report considers people’s income mobility over the course of their lives, and across generations. If income mobility is low, people will struggle to recover from initial disadvantage, and those born into privilege will be financially secure. First we look at whether people move in the income distribution; there is a surprising amount of movement. And we look for evidence people can access opportunities throughout life, after setbacks. <h2>Recovering from setbacks</h2> There is not much evidence of recovery after a person experiences a severe illness or a job loss, perhaps because the causal factors are still at work. More encouragingly, the income of women who experience separation <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0020/4815110/HILDA-User-Manual-Release-22.0.pdf">does increase</a>, eventually restoring the buying power of their household. This is in part due to well-targeted government support. For intergenerational mobility, we extended the dataset developed by <a href="https://www.aeaweb.org/articles?id=10.1257/jel.20211413">an analytical dataset</a> to measure the influence parents’ income had on the income their offspring were likely to earn. We found Australia’s intergenerational mobility is actually higher than the <a href="https://onlinelibrary.wiley.com/doi/10.1111/sjoe.12197">Scandinavian</a> countries, and second only to <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3662560">Switzerland</a> among comparable studies. <hr /> <iframe id="5DFB9" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/5DFB9/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> In all countries studied there was some link between parents’ income mobility and that of children, because parents pass on tastes, ambitions and abilities. And there was greater correlation between the incomes of mothers and daughters, and fathers and sons than with parents of the opposite gender, perhaps because of role model effects. <hr /> <iframe id="BJ4hD" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/BJ4hD/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> While Australia’s strong income mobility between generations is remarkable, it’s concerning there is less mobility among those at the very bottom and top of the income distribution scale. The fact children born into the poorest families were more likely to remain in the lowest deciles, while those born into the top earning families tended to remain in the top deciles, suggests privilege is often passed on. People who grew up in frequently poor households were <a href="https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0009/3537441/HILDA-Statistical-report-2020.pdf">three time more likely</a> to be poor at age 26 to 32 than those who never experienced poverty. <hr /> <iframe id="SxHBo" class="tc-infographic-datawrapper" style="border: 0;" src="https://datawrapper.dwcdn.net/SxHBo/" width="100%" height="400px" frameborder="0" scrolling="no"></iframe> <hr /> And consistent with <a href="https://www.aihw.gov.au/getmedia/37c2c8b7-328c-41e1-bace-87ed7a551777/australias-welfare-chapter-2-summary-18sept2019.pdf.aspx">other studies</a> we found children whose family received government payments were twice as likely to receive support as adults, compared with those whose families received no help. <h2>Movement in the middle</h2> Taken together, these results suggest some segmentation of opportunities. In the middle of the income distribution, there are opportunities to get ahead, and individuals’ careers are not restricted by their families’ circumstances. At the bottom, things are a lot more “sticky”, and finding opportunities to permanently escape poverty is more difficult. Some of this boils down where people live, peers, school quality and local job options. Researchers <a href="https://www.aeaweb.org/articles?id=10.1257/jel.20211413">Deutscher and Mazumder</a> (2023) have shown regional economic conditions have a big impact on mobility, and we show remoteness limits movement out of poverty. Overall, the mobility picture is extremely good news for most Australians. But this should not blind us how difficult it is to move out of poverty, especially for those in remote areas. Identifying where mobility fails to deliver allows us to focus our policy response.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/234158/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/catherine-de-fontenay-5631">Catherine de Fontenay</a>, Honorary Fellow, Department of Economics, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/your-parents-income-doesnt-determine-yours-unless-youre-ultra-rich-or-extremely-poor-234158">original article</a>. </div>

Money & Banking

Five tips for developing and managing your budget – even in tough economic times

<a href="https://theconversation.com/profiles/oluwabunmi-adejumo-1370664">Oluwabunmi Adejumo</a>, <a href="https://theconversation.com/institutions/obafemi-awolowo-university-2843">Obafemi Awolowo University</a> There’s nothing quite like a new year to prompt us to take stock of our lives, our health, our goals – and our finances. Many people will start a new year by contemplating how best to budget, plan and save. This is always a good set of aims, but it’s especially important in the inflation-prone and unpredictable economies we’re seeing <a href="https://www.statista.com/statistics/268225/countries-with-the-highest-inflation-rate/">all over Africa and the world</a>. Budgeting is especially key. It is the most effective method to <a href="https://www.thebalancemoney.com/how-to-make-a-budget-1289587">monitor income and expenditure</a>. <a href="https://www.uslendingcompany.com/blog/key-differences-in-writing-a-household-budget-vs-a-personal-budget/">Personal budgets</a> can help you to monitor your resources in pursuit of larger financial goals. Budgeting also offers <a href="https://www.acrwebsite.org/volumes/v46/acr_vol46_2411998.pdf">more opportunities</a> to save money, reduce your debts and live a comfortable life. It can even <a href="https://prucomm.ac.uk/assets/uploads/blog/2013/04/Personal-Budgets-review-of-evidence_FINAL-REPORT.pdf">improve your mental health</a>. But where should you start? What questions do you need to answer in creating a budget? Here are some tips that I’ve learned – not just as an economist, but as a research cost analyst and someone who keeps a budget too. <h2>1. Understand the broader economic conditions</h2> It is imperative that individuals keep themselves aware and up-to-date on the realities of their country’s economic landscape. You don’t have to be a professional economist, but keep an eye on new developments like free business registration, small business development funds and printing of new money notes. What is the current exchange rate? What’s the political landscape and what international factors, like the price of crude oil, are at play? You should also watch the inflation rate and have a sense of unemployment trends. This economic awareness will prepare you to draft your own budget and you’ll have a sense of when external factors mean it’s time to revisit your plans. <h2>2. Review your income sources</h2> The ability to earn income is critical to sustaining livelihoods. Having a definite source of income is the bedrock of budgeting. Some important questions you should ask about your income – and how you might budget with it – include: <ul> <li>What is my current income?</li> <li>What do I use my income for?</li> <li>Am I able to save, given my current income?</li> <li>What proportion of my income do I save and what proportion do I spend?</li> <li>Do I have the capacity to earn more than this?</li> <li>How can I improve my income?</li> </ul> Your answers can help you to identify gaps or untapped potential. Those with irregular or unpredictable income should factor in the element of time-gap in their income, for effective budgeting. Time gap is when they are not earning income. And everyone should make allowance in their budgets for uncertainties like health issues, social engagements, inflation, unemployment, recession and price shocks. <h2>3. Appraise your expenses</h2> Expenses can be broadly categorised into “variable” and “fixed”. Fixed expenses recur within a short period: housing, food, transport, medical costs, electricity, utilities, toiletries and clothing. Variable expenses are more long-term and irregular, such as investment in property or interest-yielding assets, and the purchase of machinery. The main essence of revising our expenses is to analyse and possibly improve our spending habits. In reviewing our expenses, we can consider issues such as: <ul> <li>What is the proportion of consumption-savings ratio from my income? This is how much do I spend compared to how much I save.</li> <li>What are my regular expenses?</li> <li>What are my fixed, capital or investment expenses?</li> <li>What are my extraordinary expenses that need modification?</li> <li>Have there been emergency or extraordinary expenses?</li> </ul> A careful response to the issues raised above offers an occasion to re-evaluate the pattern and direction of our expenses. For instance, overspending, unplanned or extraordinary expenses can be identified. This can lead to an optimal, efficient reallocation of available resources. <h2>4. Stabilise your finances through savings</h2> Savings have been <a href="https://klinglercpa.com/bedrock-principles-for-saving-money/">described</a> as a financial stabiliser, given their potential to cater for urgent needs and create opportunities for investments. Of course, savings have more value when they grow faster than the rate of inflation. Inflation erodes the value of savings. For instance, an amount of 300,000 naira (US$676) saved to purchase an autorickshaw today may be impossible in two months’ time with an inflation rate of 10% when the tricycle price rises to 330,000 naira (US$744). The reverse is the case when there is deflation. Therefore, it is advisable to improve the value of savings through investments in interest-yielding assets such as stocks, shares, bonds, microfinance and production. That’s not to say it’s always easy to save. Many income earners spend as they go, not seeing savings as part of their budgets. Harsh economic realities can also make it difficult – sometimes seemingly impossible – to save. But it’s not impossible: savings can be made in small amounts, through a daily, weekly or monthly contribution to collections, cooperative schemes or microfinance affiliations. For instance, a point of sale business in Nigeria can permit a daily contribution of 500 naira (US$1.13) over 25 work days, giving an average saving of 12,500 naira (US$28.18) per month. The Point-of-Sale business started in Nigeria in 2013 when the Central Bank of Nigeria introduced the agent banking system. A POS agent operates and processes transactions through a POS service provider. Providers of such services include banks, microfinance banks and fintech companies. <h2>5. Run a flexible budget</h2> Once your budget is created, remember that it’s not set in stone. It should be flexible if anything changes in your life. For instance, an amount saved to buy a car can be invested in a promising venture buying shares through public offerings or private placements in multinational organisations like Nestle or Unilever. Also, health emergencies or career advancement programmes can require taking some money out of our savings. In all, budgeting should be flexible enough to incorporate exigencies, especially when catering for the current situation will culminate into a greater good.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/195590/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/oluwabunmi-adejumo-1370664">Oluwabunmi Adejumo</a>, Lecturer/Researcher, <a href="https://theconversation.com/institutions/obafemi-awolowo-university-2843">Obafemi Awolowo University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/five-tips-for-developing-and-managing-your-budget-even-in-tough-economic-times-195590">original article</a>.

Money & Banking

"Proud to pay more": The billionaires who want to pay more tax

Over 250 millionaires and billionaires have issued an <a href="https://proudtopaymore.org/" target="_blank" rel="noopener">open letter</a> to global leaders encouraging them to implement wealth taxes to combat the cost-of-living crisis. This comes just as a report by the <a href="https://www.oversixty.com.au/finance/money-banking/shocking-amount-australia-s-richest-people-earn-per-hour" target="_blank" rel="noopener">Oxfam Charity</a> revealed that the global wealth of billionaires have only grown in the last three years despite inflation. The open letter, signed by super-rich individuals from 17 countries, includes signatories like Abigail Disney, the grand-niece of Walt Disney, Succession actor Brian Cox, and American philanthropist and Rockefeller family heir Valerie Rockefeller. They said that they would be "proud to pay more taxes" in order to address the inequality. "Elected leaders must tax us, the super rich," the letter read. "This will not fundamentally alter our standard of living, nor deprive our children, nor harm our nations' economic growth. "But it will turn extreme and unproductive private wealth into an investment for our common democratic future." Austrian heir Marlene Engelhorn is also among the voices demanding that they pay more in taxes. "I've inherited a fortune and therefore power, without having done anything for it. And the state doesn't even want taxes on it," Engelhorn, who inherited millions from her family who founded chemical giant BASF, said. The letter was released just as global leaders gather in Davos, Switzerland for the World Economic Forum. Abigail Disney, whose net-worth is measured at more than $100 million, said that lawmakers need to come together to make a meaningful economic and social change. "There's too much at stake for us all to wait for the ultra rich to grow a conscience and voluntarily change their ways," she said. "For that reason, lawmakers must step in and tax extreme wealth, along with the variety of environmentally destructive habits of the world's richest." A recent <a href="https://static1.squarespace.com/static/63fe48c7e864f3729e4f9287/t/6596bfb943707b56d11f1296/1704378297933/G20+Survey+of+those+with+More+than+%241+million+on+Attitudes+to+Extreme+Wealth+and+Taxing+the+Super+Rich.pdf" target="_blank" rel="noopener">survey</a> of almost 2400 millionaires found that 74 per cent of them supported the introduction of a wealth tax to fund improved public services and deal with the cost-of-living crisis. The open letter also said that one-off donations and philanthropy "cannot redress the current colossal imbalance" of societal wealth. "We need our governments and our leaders to lead," the letter said. "The true measure of a society can be found, not just in how it treats its most vulnerable, but in what it asks of its wealthiest members." Images: Getty

Money & Banking

Shocking amount Australia's richest people earn per hour

Three of Australia's richest people — Gina Rinehart, Andrew Forrest and Harry Triguboff — have more than doubled their wealth since 2020, according to the charity Oxfam. A report from the charity published on Monday, found that the fortune of Australia's richest people doubled at a staggering rate of $1.5 million per hour. The report also found that the total wealth of the country’s billionaires increased by $120 billion in that same period, which is over 70 per cent. Tech tycoons Elon Musk, Mark Zuckerberg and Jeff Bezos, are among the top five richest men worldwide, with the report finding that it would take them 476 years to spend all of their wealth if they spent $1.5 million daily. The global wealth of billionaires grew three times faster than the inflation rate, and they are $4.9 trillion richer today than they were in 2020, despite nearly five billion people worldwide growing poorer. According to the Australian Council of Social Services, one in eight adults are living in poverty, earning half of the median household income which ranges from $489 a week for a single adult to $1,027 for a couple with two kids. The report was released to raise concern over the growing global inequality, as they urge the federal government to reduce the wealth gap by scrapping the stage three tax cuts coming into effect on July 1. The tax cuts will lower marginal tax rates for high-earning Australians. Oxfam Australia chief executive Lyn Morgain has urged governments to step up. “We cannot accept a society that promotes the gross accumulation of wealth alongside widespread global poverty,” she said. “One of the best mechanisms we have to address this is progressive taxation. “The shame of our woeful global response to catastrophic disasters, displacement, famine and the climate crisis cannot be attributed to a scarcity of resources, it is distribution — and that’s a problem all governments, including the Australian government, need to tackle urgently.” Oxfam have also called for a wealth tax on the world's millionaires and billionaires that it claims could bring in $2.7 trillion each year. The report also called to cap CEO pay and break up private monopolies, which have gained significant power thanks to surging stock prices. Images: Getty

Money & Banking

12 expert ways to manage stress at airports

Betsy Goldberg writes for <a href="http://blog.virtuoso.com/" target="_blank" rel="noopener">Virtuoso Luxury Traveller</a>, the blog of a <a href="http://www.virtuoso.com/" target="_blank" rel="noopener">global luxury travel network</a>, and she enjoys nothing more than taking a holiday. Airports should be happy places. They’re the beginning of a journey, either to a new place, a vacation, business meetings, time with family and friends, or back home. If you’ve spent even a brief amount of time inside an airport, though, you know that’s not the case. They can be stressful places with people running to and fro trying to make flights. All while dealing with their day-to-day life via their phone. No surprise that a psychologist has even developed an air travel stress scale. Air travel stress gets to virtually all of us. But it doesn’t have to. How can you reduce the drama? 1. Put things in context A lot of reducing air travel stress comes simply from having a good mindset. The most important thing is to start with the right attitude, says Rishi Piparaiya, author of Aisle Be Damned: “We’re talking about an extremely complicated industry, where millions of people fly in the skies in metal tubes at the speed of sound. Sure, something may go wrong, but our ancestors would spend a lifetime to make the journey we make in half a day.” Here’s another take from Brent Bowen, dean of the College of Aviation at Embry-Riddle Aeronautical University. He noted that in 2013 the overall performance of U.S. airlines hit its highest point in 24 years. “The number of customer complaints has gone down,” he says. “Mishandled baggage has gone down and on-time performance has improved. So technically, based solely on the data, (the flight experience) has improved over the last 25 years substantially.” 2. When to fly Leisure travellers tend to fly on weekends. Business travellers are crowding airports Mondays, Thursdays and Fridays. Therefore, book your flights for the quieter days of Tuesday and Wednesday when you can. Book an early-morning flight if possible to avoid more air travel stress. Airlines are less likely to have delays first thing in the day. 3. Use a packing list This prevents “Oh no!” moments at the airport. If you’re not even at security yet and you already think you’re missing something and don’t have the time to go get it, the rest of the airport experience probably won’t be great. Avoid that kind of air travel stress before you get to the airport by starting with a packing list. Also, learn how to effectively pack a bag. 4. Check in promptly Airlines let you check in online 24 hours before your flight. Do that to avoid lineups at the airport. Another bonus: it may help prevent you from being bumped off an oversold flight. 5. Carry on what you can The advantages: less to potentially lose in your checked luggage. No baggage fees. And a faster exit from the airport when you arrive. Always carry on essentials like keys, medications, valuables and anything critical for business meetings. You don’t want to arrive in the Caribbean and be waiting days for everything you need to actually enjoy the Caribbean. So remember that air travel is actually much more effective than almost any human mode of transport in history. And in the past few decades, the experience has technically only improved. Take a deep breath when that air travel stress hits you. 6. The early bird approach People fall into very distinct camps on this. Earlier tends to be better (especially around peak travel times like holidays). If you know security lines might be longer, why gamble and add more air travel stress? 7. The full charge Phone batteries are getting better as technology continues to develop. And more airports are offering outlets and charging stations. But always get to the airport on a full charge. If you encounter a hiccup, you’ll need your device as a resource. 8. What to wear Layers will help you navigate varying temperatures inside the airport and on the plane. Wear comfortable clothes you can move in, in case of a last-minute dash to a connecting flight. Wrinkle-free clothing is great, both for the journey to your destination as well as your trip itself. As far as footwear goes, wear something easy to slide on/off to get through security faster. In larger airports, you’re likely in for a big walk to and from your gate, so comfort is a must as well. 9. Entertainment Unless you’ve booked an entire row on the plane, your seatmates are a random act of chance. They could be great – and not bother you. Or they could be challenging in many ways. So load up on distractions. Those include magazines, books, e-books, movies, TV shows and work you need to complete. They’ll also help in case of delays while you’re still in the terminal. 10. Your fellow passengers Airports are amazing places for people-watching. If you stop at an airport bar or restaurant, you can usually strike up a conversation easily. You might be sitting next to someone from halfway around the world. You don’t get that chance every day, so take advantage of it. Want a conversation starter? Talk about the fastest way to board passengers. You’ll make some new friends and relieve your mutual air travel stress. 11. Airport lounges Another place to meet new people: an airport lounge. You’ll await your flight in a relaxed, comfortable atmosphere. And you’ll enjoy peace and quiet, comfortable seating, food, drinks and reading materials. First-class and business-class travellers and elite frequent flyers have access to their airline’s lounge. Also, certain credit card holders enjoy complimentary access. For everyone else, there’s a day pass. A pass at an independent lounge will run you about $30 to $50. 12. Advisors as air travel stress relief There are dozens of reasons why working with a professional travel advisor is a good idea. See here for real-life stories from actual travellers. One of those: an advisor can reduce air travel stress. Your advisor will work with you on itineraries, the best flight times, and any adjustments. If something crops up at the airport, you have a trusted resource one call away. Image credits: Getty Images

Travel Tips

Unlocking the wealth in your home for a better retirement

In an era where the cost of living continues to rise, Australian retirees are facing unique financial challenges. Many find themselves in a situation where the bulk of their wealth is tied up in their family homes, leaving them with limited options to fund their retirement comfortably. That’s where <a href="https://householdcapital.com.au/" target="_blank" rel="noopener">Household Capital</a> steps in. As a specialist retirement funding provider, Household Capital offers a solution that empowers retirees to make the most of their home’s value. Through a helpful and enlightening Q&A session with Household Capital, we explore how their innovative approach allows retirees aged 60 and above to access their home wealth responsibly, providing flexible options such as regular income streams, lump sum payments, and even assistance for those still paying off mortgages! Whether you're looking to beat the cost-of-living crisis, help your children enter the property market, or simply secure a more comfortable retirement, Household Capital offers a pathway to a brighter financial future. Here’s how: <h3>Q: What does Household Capital do?</h3> A: Household Capital is a specialist retirement funding provider that provides responsible long-term access to your home wealth. Our approach aims to provide you with the best of both worlds – to continue living in your family home with the confidence to enjoy the retirement lifestyle you deserve. <h3>Q: How does Household Capital help retired Australians?</h3> A: If you’re like most Australian retirees, the majority of your wealth is probably tied up in your family home. This wealth is a valuable resource that could be used to improve your retirement funding and enhance your retirement lifestyle. Our Household Loan helps Australian homeowners aged 60 plus to unlock that wealth and put you in control of your retirement. Your home wealth can be drawn as a regular income, a lump sum payment to renovate your home, buy a new car or cover medical expenses, or both! Importantly, it provides flexibility and choice, so you can look to the future with confidence. <h3>Q: How can Household Capital help me beat the cost-of-living crisis?</h3> A: Many Australians are grappling with the rising cost of living. Food, medical costs, insurance premiums, petrol prices – it seems never ending. How do retired Australians manage this on a fixed income? In many cases, they don’t. Some give up doing things they love – other forgo necessities. Unlocking the wealth in your home can provide a regular income to supplement that received from your superannuation or government pension. You don’t have to go without. You can enjoy the lifestyle you deserve. <h3>Q: I’m over 60 and still paying a mortgage – can you help me?</h3> A: You may be one of the millions of Australians aged over 60 still paying off their home loan. Those principal and interest repayments can really stress budgets, especially as the interest rate for ‘old loans’ may be much higher than current rates for younger borrowers. For some over 60s, it means they can’t retire when they want to. For others, it’s having to find that monthly repayment from a fixed income that’s already been stretched by increasing rates and inflation. There is a better way. Many of our customers use a Household Loan to refinance their bank loan. Because a Household Loan does not require regular repayments, your retirement income is freed up. Notably, there is no risk of foreclosure if you miss repayments – because regular repayments are not required. You can stay in your home as long as you want with guaranteed lifetime occupancy and retain 100 percent ownership, meaning you benefit fully from any growth in your home’s value. <h3>Q: How can I help my kids get onto the property ladder?</h3> A: Did you know the ‘bank of mum and dad’ is consistently ranked among Australia’s top ten lenders? Typically, funds are drawn from retirement savings, which can have a detrimental impact on the ‘bank’ over the longer term. If your retirement funding needs are in hand, you can use your home wealth to contribute to a first home buyers deposit or help children with mortgage expenses. This enables you to help children and grandchildren when they need it most and use your home wealth to help the next generation build theirs. <h3>Q: How much home wealth could I unlock?</h3> A: The amount of home wealth you could unlock is dependent on the Loan to Value ratio (LVR). The calculation takes multiple factors into account including the age of the youngest borrower and the value of your property. The LVR for a Household Loan starts at 20 percent of the agreed property value for those aged 60 and increases one percent per year thereafter. To see how much home wealth you could unlock, check out Household Capital’s <a href="https://householdcapital.com.au/home-equity-calculators/" target="_blank" rel="noopener">online calculator</a> or call and speak to one of their Australian-based retirement specialists on 1300 734 720. Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable, and terms and conditions apply (available upon request). Household Capital Pty Limited ACN 618 068 214, Australian Credit Licence 545906, is the Servicer for the credit provider Household Capital Services Pty Limited ACN 625 860 764 Image: Supplied. This is a sponsored article produced in partnership with Household Capital.

Retirement Income

Kyle Sandilands' toddler's jaw-dropping wealth

Kyle Sandilands has revealed the shocking bank balance his one-year-old son Otto has, an amount that most dream of having. The radio shock jock revealed his son's staggering wealth on the The Kyle & Jackie O Show on Thursday morning, confessing that Otto's wealth will one day eclipse his. “Otto's already been loaded up by his great-grandfather,” he said, revealing that his wife Tegan’s “wealthy” grandfather had set up a bank account for Otto on his first birthday. "My child's already a millionaire. He's already got $1,000,000 in his bank." The radio host told co-star Jackie O that he was jealous of his son. “He’s not even one, what an a**hole. I'm jealous of my own kid.” Although Sandilands himself has a reported net worth of $40 million, making a rumoured $40,000 every morning on The Kyle & Jackie O Show, he has hinted that his wife is wealthier. This comes just one month after the radio host revealed that the couple splurged $25,000 on their son's<a href="https://www.oversixty.com.au/lifestyle/family-pets/inside-kyle-sandilands-son-otto-s-first-birthday-party" target="_blank" rel="noopener"> first birthday</a>. The pair are known for their lavish way of living, after they tied the knot in a $1 million <a href="https://www.oversixty.com.au/lifestyle/relationships/kyle-sandilands-lets-slip-insane-cost-of-wedding-so-far" target="_blank" rel="noopener">wedding</a> earlier this year, followed by a $500,000 <a href="https://www.oversixty.com.au/finance/money-banking/the-astronomical-price-of-kyle-sandilands-honeymoon-revealed" target="_blank" rel="noopener">honeymoon</a>. Image: Instagram

Family & Pets

7 simple wealth creation ideas for over 60s

In today's world of rising costs and economic uncertainties, building wealth after the age of 60 might seem like a daunting task. However, it's essential to remember that it's never too late to take control of your financial future and explore innovative ways to boost your income and savings. The latest Retirement Standard from the super industry body ASFA reveals that singles aged 65-84 need an annual income of approximately $50,207 for a 'comfortable lifestyle' in retirement, while couples require a combined income of $70,806 per year. With the full age pension often falling short of these numbers, many seniors are seeking alternative ways to supplement their income during retirement. Let’s delve into some practical and achievable wealth creation ideas tailored to older Australians who are looking to secure their financial well-being in their golden years. <ol> <li>Intentional Spending</li> </ol> Cutting down on non-essential spending is a powerful way to save money. Review your discretionary expenses and identify areas where you can make reductions. For instance, consider cooking at home instead of dining out, exploring free or low-cost local activities for entertainment, and delaying the purchase of luxury items. Prioritise experiences that provide value without straining your budget. <ol start="2"> <li>Pressure Test Your Retirement Strategy</li> </ol> It's essential to regularly review your retirement plan, taking into account the evolving financial landscape, legislative changes, and opportunities to minimise costs. By doing so, you can maximise the funds under your control and make informed decisions that align with your retirement goals. Keep in mind that the financial world is dynamic, and staying proactive in managing your retirement assets can lead to a more secure and comfortable retirement. <ol start="3"> <li>Get rid of things you don't need by selling online</li> </ol> Embrace the digital age and leverage online marketplaces to turn your unneeded possessions into cash. If you're not tech-savvy, don't hesitate to enlist the help of your grandchildren or any trusted youngster who can guide you through the process. Selling items online not only declutters your living space but also opens up opportunities to supplement your retirement income. Embracing technology can be empowering and profitable at any age! <ol start="4"> <li>Part-Time Job Opportunities in the Gig Economy</li> </ol> Embrace the gig economy by exploring part-time job opportunities. Various platforms offer flexible work arrangements suitable for seniors, such as rideshare driving or food delivery services. These roles allow you to set your own hours and supplement your retirement income. <ol start="5"> <li>Freelancing or Consulting</li> </ol> Your years of experience and expertise are valuable assets. Consider venturing into part-time freelancing or consulting opportunities within your field. Many businesses are eager to hire experienced professionals for specific projects or advisory roles, providing an opportunity to boost your income without a full-time commitment. <ol start="6"> <li>Renting Out a Spare Room</li> </ol> If you have extra space in your home, consider renting out a spare room to short-term guests. Websites like Airbnb make it easy to find renters, providing a consistent source of income and helping to cover housing costs. <ol start="7"> <li>Compare and Save</li> </ol> Once you've reviewed your spending habits, identify areas where you can potentially save money by shopping around and obtaining comparison quotes. Renegotiating bills and subscriptions can also yield significant savings. Don't forget to review your insurance policies, adjusting the coverage and excess to potentially reduce premiums. Creating wealth in your golden years may seem challenging, but with the right approach and determination, it's entirely achievable. By exploring these simple and practical ideas, older Australians can take steps toward securing their financial future and enjoying a comfortable retirement. Remember that every financial decision should align with your individual circumstances and objectives. However, it's crucial to note that earning extra income during retirement can impact age pension payments. It can be worth seeking financial advice about the best way to increase income during retirement without compromising any other entitlements, so consider seeking professional guidance to make informed choices on your path to financial security, ensuring a comfortable and worry-free retirement. Amanda Thompson, author of Financially Fit Women, is a sought-after speaker and qualified financial adviser. As the founder of Endurance Financial, Amanda is driven to renew personal and confidence by providing the financial knowledge and guidance to have a great relationship with money allowing you to become your own CFO (Confident, Focussed & On top of your Finances). For more information visit <a href="http://www.endurancefinancial.com.au">www.endurancefinancial.com.au</a> Image credits: Getty Images

Retirement Income

Jackie O's candid admission about her wealth

Jackie O Henderson, who is one of the most well-paid women in Australia's entertainment industry, has opened up about how "embarrassed" she feels by the reports of her wealth, and how daunting it is to earn so much. The radio star made the candid admission on Stellar’s Something To Talk About podcast, where she shared the “scary” reality of being a self-made female millionaire. “I do sometimes get embarrassed to talk about money. I hate showing off wealth. I’ve always been like that … I want a nice bag, car and house, but I don’t want to flaunt it,” she said. The breakfast host and her co-star Kyle Sandilands were rumoured to earn around $7-8 million each per year, when they renewed their contract for The Kyle and Jackie O show with ARN in 2019. “But [at the same time] I shouldn’t be embarrassed about it, so I am trying to take more ownership of that," she added. Henderson shared her own struggles of navigating conversations around wealth. “And as a man, they’d absolutely be owning that, and as a female, when you’re single, it’s quite scary to earn a lot of money, because a lot of men can be intimidated by that. “And so your instinct is to downplay it for that reason.” She added that although she is grateful for such a successful career, she preferred the "chase" over the destination. “I am grateful for it, I am, but sometimes I think … I wish I was just back in my 20s and trying to buy my first apartment,” she added. “Isn’t that weird? It’s only a thought I had a couple of weeks ago … I don’t know. I keep asking myself why I’m thinking that way. “All I’ll say is, as women, we just need to be proud a little more.” Images: Instagram / Stellar Magazine

Money & Banking

Bees have appeared on coins for millennia, hinting at an age-old link between sweetness and value

<a href="https://theconversation.com/profiles/adrian-dyer-387798">Adrian Dyer</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> In 2022, the Royal Australian Mint issued a $2 coin decorated with honeybees. Around 2,400 years earlier, a mint in the kingdom of Macedon had the same idea, creating a silver obol coin with a bee stamped on one side. Over the centuries between these two events, currency demonstrating a symbolic link between honey and money is surprisingly common. In a recent study in <a href="https://s3.ap-southeast-2.amazonaws.com/assets.mmxgroup.com.au/ACR/Bee+Article.pdf">Australian Coin Review</a>, I trace the bee through numismatic history – and suggest a scientific reason why our brains might naturally draw a connection between the melliferous insects and the abstract idea of value. <figure class="align-center "><img src="https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536400/original/file-20230709-15-2u5ywn.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" alt="" /><figcaption>A Royal Australian Mint 2022 two-dollar coin representing 200 years since the introduction of the honeybee to Australia.</figcaption></figure> <h2>What is currency and why is it important?</h2> Money is a store of value, and can act as a medium of exchange for goods or services. Currency is a physical manifestation of money, so coins are a durable representation of value. Coins have had central role in many communities to enable efficient trade since ancient times. Their durability makes them important time capsules. Ancient Malta was famous for its honey. The modern 3 Mils coin (<a href="https://en.numista.com/catalogue/pieces1775.html">1972-81</a>) celebrates this history with images of a bee and honeycomb. According to the information card issued with the coin set, <blockquote> A bee and honeycomb are shown on the 3 Mils coin, symbolising the fact that honey was used as currency in Ancient Malta. </blockquote> <figure class="align-center "><img src="https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=582&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=582&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=582&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=732&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=732&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536403/original/file-20230709-23-drk2lj.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=732&fit=crop&dpr=3 2262w" alt="" /><figcaption>A circulating 3 Mils coin from Malta showing a honeybee on honeycomb.</figcaption></figure> In ancient Greece, bees were used on some of the earliest coins made in Europe. A silver Greek obol coin minted in Macedon between 412 BCE and 350 BCE, now housed in the British Museum, shows a bee on one side of the coin. <figure class="align-center "><img src="https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=293&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=293&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=293&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=368&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=368&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536411/original/file-20230709-182252-v4evxr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=368&fit=crop&dpr=3 2262w" alt="" /><figcaption>An ancient obol from Macedon, dated between 412 BCE and 350 BCE, shows a bee one side.</figcaption></figure> Bees also feature on coins minted elsewhere in the ancient Greek world, such as a bronze coin minted in Ephesus dated between 202 BCE and 133 BCE. <figure class="align-center "><img src="https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=546&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=546&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=546&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=686&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=686&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536407/original/file-20230709-27-a2jvo3.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=686&fit=crop&dpr=3 2262w" alt="" /><figcaption>A bronze coin minted in Ephesus, dated between 202BCE and 133BCE, featuring a honeybee.</figcaption></figure> The use of bees on ancient coins extended for many centuries including widely circulated bronze coins, and new varieties <a href="https://coinweek.com/bee-all-that-you-can-bee-honeybees-on-ancient-coins/">continue to be discovered</a>. <h2>Why we might like bees on coins</h2> Why have bees appeared so often on coins? One approach to this question comes from the field of neuro-aesthetics, which seeks to understand our tastes by understanding the basic brain processes that underpin aesthetic appreciation. From this perspective, it seems likely the sweet taste of honey – which indicates the large amount of sugar it delivers – promotes positive neural activity <a href="https://brill.com/view/journals/artp/10/1/article-p1_2.xml">associated with bees and honey</a>. Indeed, primatologist Jane Goodall once proposed that obtaining high-calorie nutrition from bee honey may have been <a href="https://www.sciencedirect.com/science/article/abs/pii/S0066185668800032">an important step</a> in the cognitive development of primates. Our brain may thus be pre-adapted to liking bees due to their association with the sweet taste of honey. Early usage of bees on coins may have been a functional illustration of the link between a known value (honey) and a new form of currency: coins as money. <h2>The bee on modern coins</h2> <figure class="align-center "><img src="https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=588&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=588&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=588&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=738&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=738&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536393/original/file-20230709-17-jywq3f.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=738&fit=crop&dpr=3 2262w" alt="" /><figcaption>A 1920 Italian bronze ten-centesimi coin featuring featuring an Italian honeybee on a flower.</figcaption></figure> The use of bees as a design feature has persisted from ancient to modern times. A honeybee visiting a flower is shown on a series of ten-centesimi bronze coins issued in Italy from <a href="https://en.numista.com/catalogue/pieces1960.html">1919 to 1937</a>. (As an aside, the world’s last stock of pure Italian honeybees is found in Australia, on Kangaroo Island, which was declared a sanctuary for Ligurian bees by an <a href="https://www.legislation.sa.gov.au/home/historical-numbered-as-made-acts/1885/0342-Lingurian-Bees-Act-No-342-of-48-and-49-Vic,-1885.pdf">act of parliament</a> in 1885.) <figure class="align-center "><img src="https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=586&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=586&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=586&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=737&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=737&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536416/original/file-20230709-15-60yst8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=737&fit=crop&dpr=3 2262w" alt="" /><figcaption>A coin from Tonga showing 20 honeybees emerging from a hive.</figcaption></figure> More recently, a 20-seniti coin from the Pacific nation of Tonga shows 20 honeybees flying out of a hive. This coin was part of a series initiated by the Food and Agriculture Organization of the United Nations to promote sustainable agricultural and cultural development around the world. Bees are relevant here because their pollinating efforts contribute to about one-third of the food required to feed the world, with a value in excess of <a href="https://zenodo.org/record/2616458">US$200 billion per year</a>, and they are threatened by climate change and other environmental factors. <h2>Bees on coins, today and tomorrow</h2> Public awareness of bees and environmental sustainability may well be factors in the current interest in bee coins. The diversity of countries using bees as a design feature over the entire history of coins suggests people have valued the relationship with bees as essential to our own prosperity for a long time. In Australia, the 2022 honeybee $2 coin is part of a series developed by the <a href="https://www.ramint.gov.au/about-mint">Royal Australian Mint</a>. In 2019, the Perth Mint in Western Australia also released coins and stamps celebrating native bees. <figure class="align-center "><img src="https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px" srcset="https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=373&fit=crop&dpr=1 600w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=373&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=373&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=469&fit=crop&dpr=1 754w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=469&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/536405/original/file-20230709-15-iditcb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=469&fit=crop&dpr=3 2262w" alt="" /><figcaption>Australian native bee coin and stamps released in 2019 by the Perth Mint.</figcaption></figure> Despite the decline of cash, bee coins still appear to be going strong. The buzzing companions of human society are likely to be an important subject for coin design for as long as coins continue to be used.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/208912/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/adrian-dyer-387798">Adrian Dyer</a>, Associate Professor, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> Image credits: Australian Royal Mint / NZ Post Collectables This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/bees-have-appeared-on-coins-for-millennia-hinting-at-an-age-old-link-between-sweetness-and-value-208912">original article</a>.

Money & Banking

Why am I online? Research shows it’s often about managing emotions

<a href="https://theconversation.com/profiles/wally-smith-1450210">Wally Smith</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> and <a href="https://theconversation.com/profiles/greg-wadley-203663">Greg Wadley</a>, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> Most of us <a href="https://wearesocial.com/au/blog/2022/02/digital-2022-australia-online-like-never-before/">go online</a> multiple times a day. About half of 18–29 year olds surveyed in a 2021 <a href="https://www.pewresearch.org/short-reads/2021/03/26/about-three-in-ten-u-s-adults-say-they-are-almost-constantly-online/">Pew Research Study</a> said they are “almost constantly” connected. How are we to make sense of this significant digital dimension of modern life? Many questions have rightly been asked about its broader consequences for society and the economy. But there remains a simpler question about what motivates people across a range of ages, occupations and cultures to be so absorbed in digital connection. And we can turn this question on ourselves: why am I online? <h2>What are we doing when we go online?</h2> As the American sociologist Erving Goffman <a href="https://www.nytimes.com/1975/02/16/archives/frame-analysis.html">pointed out</a>, asking “What is it that’s going on here?” about human behaviour can yield answers framed at different levels. These range from our superficial motives to a deeper understanding of what we are “really” doing. Sometimes we might be content to explain our online behaviour in purely practical terms, like checking traffic routes or paying a bill. Other times we might struggle to articulate our reasons for going or remaining online. Why are we continually looking at our phones or computers, when we could be getting on with physical tasks, or exercising, or meditating, or engaging more fully with the people who are physically around us? <h2>The ever-present need to manage our emotions</h2> As researchers of human-computer interaction, we are exploring answers in terms of the ever-present need to manage our emotions. Psychologists refer to this activity as <a href="https://www.guilford.com/books/Handbook-of-Emotion-Regulation/James-Gross/9781462520732">emotion regulation</a>. Theories of the nature and function of emotions are complex and contested. However, it is safe to say they are expressions of felt needs and motivations that arise in us through some fusion of physiology and culture. During a typical day, we often feel a need to <a href="https://journals.sagepub.com/doi/abs/10.1037/1089-2680.2.3.271">alter our emotional state</a>. We may wish to feel more serious about a competitive task or more sad at a funeral. Perhaps we would like to be less sad about events of the past, less angry when meeting an errant family member, or more angry about something we know in our heart is wrong. <figure><iframe src="https://www.youtube.com/embed/PQkNb4CLjJ8?wmode=transparent&start=0" width="440" height="260" frameborder="0" allowfullscreen="allowfullscreen"></iframe><figcaption>Digital emotion regulation is becoming increasingly common in our everyday lives.</figcaption></figure> One way to understand our frequent immersions into online experience is to see them as acts within a broader scheme of managing such daily emotional demands. Indeed, in <a href="https://www.sciencedirect.com/science/article/abs/pii/S1071581922001732">earlier research</a> we found up to half of all smartphone use may be for the purpose of emotional regulation. <h2>Digital technologies are becoming key tools of emotion regulation</h2> Over the pandemic lockdowns of 2020–21 in Melbourne, Australia, we investigated how digital technologies are becoming <a href="https://dl.acm.org/doi/10.1145/3491102.3517573">key tools of emotion regulation</a>. We were surprised to find that people readily talked of their technology use in these emotion-managing terms. Occasionally, this involved specially designed apps, for mindfulness and so on. But more often people relied on mundane tools, such as using social media alongside Zoom to combat feelings of boredom or isolation, browsing for “retail therapy”, playing phone games to de-stress, and searching online to alleviate anxiety about world events. To some extent, these uses of digital technology can be seen as re-packaging <a href="https://www.tandfonline.com/doi/abs/10.1080/026999399379285">traditional methods</a> of emotion management, such as listening to music, strengthening social connections, or enjoying the company of adorable animals. Indeed, people in our study used digital technologies to enact familiar strategies, such as immersion in selected situations, seeking distractions, and reappraising what a situation means. However, we also found indications that digital tools are changing the intensity and nature of how we regulate emotions. They provide emotional resources that are <a href="https://en.wikipedia.org/wiki/Ubiquitous_computing">nearly always available</a>, and virtual situations can be accessed, juxtaposed and navigated more deftly than their physical counterparts. Some participants in our study described how they built what we called “emotional toolkits”. These are collections of digital resources ready to be deployed when needed, each for a particular emotional effect. <h2>A new kind of digital emotional intelligence</h2> None of this is to say emotion regulation is automatically and always a good thing. It can be a means of avoiding important and meaningful endeavours and it can itself become dysfunctional. In our study of a small sample of Melburnians, we found that although digital applications appeared to be generally effective in this role, they are volatile and can lead to <a href="https://www.theguardian.com/commentisfree/2020/sep/27/social-dilemma-media-facebook-twitter-society">unpredictable emotional outcomes</a>. A search for energising music or reassuring social contact, for example, can produce random or unwanted results. A new kind of <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10187756/">digital emotional intelligence</a> might be needed to effectively navigate digital emotional landscapes. <h2>An historic shift in everyday life</h2> Returning to the question: what am I doing online? Emotion regulation may well be the part of the answer. You may be online for valid instrumental reasons. But equally, you are likely to be enacting your own strategies of <a href="https://cis.unimelb.edu.au/hci/projects/digitalemotionregulation">emotion regulation through digital means</a>. It is part of an historic shift playing out in how people negotiate the demands of everyday life. <img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/208483/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/wally-smith-1450210">Wally Smith</a>, Professor, School of Computing and Information Systems, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> and <a href="https://theconversation.com/profiles/greg-wadley-203663">Greg Wadley</a>, Senior Lecturer, Computing and Information Systems, <a href="https://theconversation.com/institutions/the-university-of-melbourne-722">The University of Melbourne</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/why-am-i-online-research-shows-its-often-about-managing-emotions-208483">original article</a>.

Technology

Five ways to manage your doomscrolling habit

<a href="https://theconversation.com/profiles/christian-van-nieuwerburgh-1157439">Christian van Nieuwerburgh</a>, <a href="https://theconversation.com/institutions/rcsi-university-of-medicine-and-health-sciences-788">RCSI University of Medicine and Health Sciences</a> Doomscrolling, according to <a href="https://www.merriam-webster.com/words-at-play/doomsurfing-doomscrolling-words-were-watching">Merriam-Webster</a>, is “the tendency to continue to surf or scroll through bad news, even though that news is saddening, disheartening, or depressing”. For many it’s a habit born of the pandemic – and one that is likely to stay. Some health experts recommend limiting access to social media to <a href="https://www.health.com/mind-body/what-is-doomscrolling">reduce the negative effects of doomscrolling</a>, and popular magazines <a href="https://www.wired.com/story/how-to-stop-doomscrolling-psychology-social-media-fomo/">highlight the risks</a> of social media addiction. According to the BBC, the barrage of negative coverage of doomscrolling has led to some people <a href="https://www.bbc.com/news/business-60067032">ditching their smartphones</a> altogether. Although research showing the negative effects of doomscrolling is convincing and the <a href="https://www.tandfonline.com/doi/full/10.1080/1461670X.2021.2021105">recommendations are clear</a>, few of us seem to be following this well-intentioned advice. There are a few reasons for this. First, blocking out news during times of crisis may not be such a good idea. Second, many of us <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4675534/">don’t respond well</a> to being told what we can and cannot do. Finally, being asked not to do something can make matters worse. It can push us into a negative frame of mind and make us <a href="https://www.psychologytoday.com/us/blog/words-can-change-your-brain/201208/why-word-is-so-dangerous-say-or-hear">less likely to change our behaviour</a>. Rather than quitting doomscrolling, what if we simply got better at managing it? It is helpful to start by acknowledging that seeking news and information during times of crisis is perfectly normal. In fact, this response is hard-wired in us humans. Staying alert to danger is part of our survival mechanism. Gathering information and being prepared to face threats have been key to our survival for millennia. Right now, there are many threats facing us: a war in Europe that could escalate to nuclear conflict, a pandemic that has already killed millions of people and predictions of a climate catastrophe, alongside many other natural disasters and human conflicts across the world. In this context, it is not surprising that we want to be alert to danger. Wanting to learn more about what is happening and equipping ourselves with the latest information is perfectly reasonable. Rather than avoiding the news altogether, let’s make sure that we are getting what we need from our interactions with the news. Here are five suggestions to achieve this. <h2>1. Choose how much time you’re going to invest in consuming the news</h2> Why not include all the ways you access the news? What amount of time each day seems reasonable to you? Once you have a time window, try sticking to it. <h2>2. Be aware of confirmation bias when choosing what to consume</h2> Remember, you are the consumer and you can choose what to learn about. However, we need to be aware of a tendency that psychologists call “<a href="https://www.simplypsychology.org/confirmation-bias.html">confirmation bias</a>”. This is when we favour information that supports our existing beliefs or viewpoints. In other words, we sometimes seek news that confirms what we already believe. This may have been one reason you clicked on this article. So just be aware of this tendency and be aware of what you’re not choosing to read. <h2>3. Check the source</h2> Any time you consume anything, it is helpful to know its source. Who has posted this information? Why are they sharing it with you? Are they trying to convince you of something? Are they trying to manipulate you to think or behave in a particular way? Knowing the answers to these questions will support you to stay in control of how you use the information that you have gathered. <h2>4. Remember that things are not always black or white</h2> We live in an increasingly polarised world. According to psychologists, “polarised thinking” is a <a href="https://exploringyourmind.com/polarized-thinking-cognitive-distortion/">cognitive distortion</a> (thinking error) that can occur when we’re under pressure. It is the tendency to see things as black or white, rather than recognising that we live in a world with many colours and shades of grey. Find ways to hold strong views while remaining curious about other opinions. Selecting and consuming articles that represent differing opinions may support this. <h2>5. Be biased towards the positive</h2> One reason that doomscrolling can be so detrimental is that many of us are drawn to negative information. Psychologists call this the “<a href="https://positivepsychology.com/3-steps-negativity-bias/">negativity bias</a>”. From an evolutionary perspective, it has been important for us to prioritise negative stimuli (threats such as predators) over positive stimuli (enjoying the warmth of a summer’s day). To counterbalance this tendency, we can adopt a bias towards the positive as we consume news. In practical terms, this means seeking positive news stories to balance out our experience of staying updated. Managed properly, keeping on top of the latest news can support you to feel better informed and able to respond in case it becomes necessary. If we’re going to doomscroll, let’s do it right.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/183265/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/christian-van-nieuwerburgh-1157439">Christian van Nieuwerburgh</a>, Professor of Coaching and Positive Psychology, <a href="https://theconversation.com/institutions/rcsi-university-of-medicine-and-health-sciences-788">RCSI University of Medicine and Health Sciences</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/five-ways-to-manage-your-doomscrolling-habit-183265">original article</a>.

Technology

Australia's top earners revealed – and it might be you

A new report has found Australians are the third most wealthy citizens in the world, with a surprising way to make the cut as one of the richest. A six figure salary will qualify an Aussie to be among the top 10 per cent richest in the world, while homeowners in Sydney are included among the global elite. The top 10 per cent of earners in Australia make $122,664 or more, with some of the highest paid incomes in the country including miners who earn $124,550 on average, school principals who rake in $130,142 and dentists that receive $131,773. Prestige property company Frank Knight’s report revealed anyone with $1.5 million in assets was classified as a “high-net-worth individual”, which would qualify plenty of Sydney homeowners. Meanwhile, the net worth required to be in the top one per cent of Australia’s rich was the third highest figure globally, behind Monaco and Switzerland. However, to be considered in Australia’s highest percentage of wealth, you must have a total net worth of an eye-watering US%5.5 million ($A8.26 million). Its annual Wealth Populations report as part of its Wealth Report Series found that wealth levels across every country analysed had seen an increase since 2021, despite experiencing a “dip” the following year. Australia has almost doubled its 2021 wealth figure, revealing that the rich got richer during the pandemic. In 2021, Australia was number seven, with $US2.8 million as the baseline. Monaco reportedly has the world’s “densest population of super-rich individuals” which saw it at the top of the list out of 25 countries analysed. To be considered one of the top earners in Monaco, people must have income and assets that equate to US$12.4 million in overall net worth. Switzerland calls for just half of Monacos, coming in at $US6.6 million. New Zealand earned a spot right behind their neighbour at number four, with a $US5.2 million net worth qualifying an individual to be in the country’s top percentile. The US rounded out the top five, at US$5.1 million. Ireland, Singapore, France, Hong Kong and the UK made it into the top 10 on the “One per cent club” respectively. China was number 15 on the list, with US$960,000 marking out the number its top one per cent exceeds. In a staggering comparison, having a net worth of more than US$20,000 in Kenya would make you one of the richest in the African nation, which saw itself last on the list. Despite the remarkable wealth of the people detailed in the report, the authors pointed out that every country still fell “well short” of an “ultra high net individual”. The elite must have a net worth that exceeds US$30 million to earn the title. After a tumultuous financial year, the filthy rich remained unaffected with their number increasing by 2 per cent to almost 70 million nationwide. The report’s authors said the Middle East was “the standout region” regarding adding mega rich individuals to their list, with a 16.9 per cent growth. However, during that time, the number of billionaires dropped by five per cent to 2,629. It is expected over the next five years that another 750,000 people will join the exclusive club of remarkably high net worth individuals. Image credit: Shutterstock

Money & Banking

Hotel guest wakes to find his toes in the manager’s mouth

A Hilton guest in Nashville has experienced the stuff of nightmares during his overnight stay, having woken in the middle of the night to find the hotel’s manager sucking on his toes. The now-former employee allegedly crept into Peter Brennan’s room using a ‘ghost key card’, according to Brennan’s lawyer, and a warrant has been placed for the arrest of the 52-year-old culprit, David Neal. Brennan is also looking to sue the Hilton Hotel where the incident occurred, WSMV have reported. “I woke up at about 5am,” Brennan explained, “and I was being sexually assaulted by a man who had broken into my room.” Metro police reported that Neal was the night manager at the establishment, and attorney Michael Fisher has claimed that Neal had access to hotel keys despite a criminal past. As court documents note, Neal was previously indicted by the Wilson County Grand Jury in 1996 for second-degree murder in relation to his roommate’s death. In 1997, a jury had found him guilty of manslaughter, while Neal claimed self-defence. And as WKRN have reported, for his 2023 toe sucking offence, Neal allegedly told investigators that he had gone into Brennan’s room without permission using a duplicate key because he could smell smoke and had wanted to check in on its occupant. Brennan, upon waking to find Neal there, confronted his assaulter immediately. He also recognised him as someone who had entered his room the previous day, alongside another hotel employee, to check out a TV issue with the room. "[I] instantly jumped up and was screaming,” he told News Channel 5. “Went into sort of fact-finding mode. ‘Who are you? Why are you in my room? What are you doing here?’ "I could see he was wearing a uniform, he had his name tag on. He was talking to me but not giving me any substantive answers." A spokesperson for the hotel directed the station to the hotel’s local manager for comment, though they refused to comment, telling them that “the safety and security of our guests and team members is our highest priority. We are working closely with the Metropolitan Nashville Police Department, and, as part of company policy, we do not comment on ongoing investigations." Which can’t have come as much comfort to Brennan, who was trying to come to terms with what he’d been through, and noted that he was “having problems sleeping frankly, I’m going through some PTSD, talking to a therapist. "I still don’t really feel safe in my own home." Images: Getty

Travel Trouble

Readers Respond: What is the most egregious display of wealth you've ever seen?

We asked our readers what they thought were the most extravagant and outrageous displays of wealth that they’ve seen and honestly, we couldn’t believe some of the answers. Melanie Gibbons- My ex showing up in a BMW sports car when he owed 46k in child support and I hadn't received a cent for 2 years... his parents also showing up in their porsche 4wd and demanding I pay them petrol money to see their granddaughter because I moved 90mins away from them. Anita Thornton- Nearly fifty years ago, in my role as a teacher, I went to a School Council dinner. One mother had a copious amount of jewellery on, over the top! Richard Norman Ewing- A man and his wife arriving at a WA country airstrip in an American registered Grumman Gulfstream G650 business jet. Two pilots and two cabin attendants, all the way from the USA. (They stopped in Sydney for customs). What a way to travel. Jim Davies- A person with a huge collection of Vincent motorcycles. Moyra Rocchio- We were staying at "The Minna House. In Cairo , The day we arrived a Sheik was having a wedding reception (we were told ) what appeared to be several other wives who were dripping in gold and jewels, arrived by Limo. Bev Traveller Chad- The Crown Jewels, London Tower. Sam Siney- The Vatican… never seen anything like it. Cathy Pitman- European castles Image: Getty

Money & Banking

How to make your money count

How you use your money will be how you’re remembered. For some, the amount of money or wealth they accumulate is the score by which their success is measured. More wealth equals more success. Yet shrouds don’t have pockets, and dead is dead. In order to make your money count, it has to be used, not hoarded. Others use their wealth to purchase a more comfortable ride through life. That’s certainly possible, yet materialism is like fame: addictive and at the same time self-deprecating; there will always someone else who is richer than you and has more toys than you. The quest for more is insatiable. Instead of being defined by the wealth you’ve accumulated and have stored, why not be defined by the wealth you’ve accumulated and have deployed? The 3C’s of Significance The secret to making your money count is a process I call ‘the three Cs of significance’: care, cause and context. Identifying a care and resourcing a cause that supports it will add a context to your money that transcends dollars and cents. The 3C’s are a way of adding significance to your wealth and giving meaning to your life. Let’s look at each of the 3Cs. Care Everyone has at least one care etched on their hearts at birth or engraved on their hearts from life experience. If you were to shut out the ‘busy-ness’ of life and listen to the quiet voice of your soul or engage your self-awareness by looking for issues that trigger an above-average or disproportionate emotional response, you’ll likely identify what you care most about. Possibilities include social justice issues, animal welfare, the environment, politics, gender and social equality, faith, health, nutrition, sport … the list is just about endless. Furthermore, there are niches within niches. For instance, animal welfare might be your thing, and within that, you might be particularly concerned with the wellbeing of koalas, and more specifically, orphaned koalas in south-east Queensland. The ‘thing’ you care about may be a burning passion or just a glowing ember. It may also change over time. For the moment, all that’s important is that you identify something you care about. Does something come to mind? If it helps as an illustration, cancer became an unexpected care that was recently etched on my heart. Prior to being diagnosed with skin cancer, I was aware but not particularly concerned about cancer, but that all changed when a spot on my face turned sinister. Now I had something to care about! Cause Once you have a care in mind, the next step is to find a cause – a person, program, charity or organisation that is doing work that relates to the matter(s) you care about, and offer to become a partner in, or sponsor of, that work by making a financial contribution. The secret to knowing the cause is to stop thinking ‘me’ and start thinking ‘we’. Sometimes the things we care about seem too big, complex or challenging to do anything meaningful about. Or we assume our resources are insignificant compared to the scale of the problem. When we are overwhelmed, the temptation is to feel defeated, to conclude ‘why bother’, and use our time and energy to solve survival problems closer to home. Don’t be put off by what you can’t do—be empowered by what you can. It’s very unlikely you’ll be the only person in the world who cares about the issue on your heart, and you may find an already established ‘cause’ you could partner with to be the change you hope to see. If you’re interested, the Peter McCallum Cancer Centre was a ‘cause’ I found that related to my ‘care’. Context The cares you advance based on the causes you support will provide a context for your money that transcends dollars and cents. Your wealth gains meaning based on the means it provides for the causes you care about. Your life will count because your money counts, and the significance you generate will make you feel more significant. But how will you create the context for your dollars? Will you give time or money or both? And how frequently will you give? Time or money? Many people giving small amounts is just as effective as a few people giving large amounts. You can only give from what you have. If you have money, give money. If you have time (including expertise), give time. If you have both, give both. There’s usually a lack of ‘resource-ers’ over ‘resources’; that is, a shortage of people who can pay for the labour and materials needed to resource the care. Frequent or infrequent giving? Experience has taught me that it is better to give less, more often, than more, less often. Most charitable organisations would rather have guaranteed financial supply over several years, than unreliable and infrequent one-off donations. Why? Because with guaranteed funding they can create, administer and execute programs they know they’ll be able to resource and fund through to completion. Here’s a final suggestion: rather than giving from capital, give repeatedly from the recurrent income your invested capital generates. Giving capital is something you do once. Investing the capital and giving the income is something you can do forever. For example, say you had $50000 to donate. One option would be to donate it in one lump sum. Another option is to invest it and donate the annual income. Assuming you achieved an after-tax return of 8 per cent per annum, then after 12.5 years of giving you will have given the same amount (i.e. $50,000), except the second option would allow you to keep giving and supporting causes you care about for years and years to come—a magic pudding that gives and gives and never runs out! Some people like to count their money. Others like to make their money count. How will you be remembered – for the way you counted your money, or the way you made your money count? If you don’t like the answer, be sure to do something about it while you still can. The secret to making your money count is to put it to use by supporting causes that do good work in fields you care about. Edited extract from Steve McKnight’s Money Magnet: How to Attract and Keep a Fortune that Counts (Wiley $32.95), now available at all leading retailers or online at www.moneymagnet.au Image: Getty Images

Money & Banking

Who wants to be a billionaire? Thankfully for the planet, most people don’t

Reality check: most people don’t actually want to be billionaires. A <a href="https://dx.doi.org/10.1038/s41893-022-00902-y" target="_blank" rel="noreferrer noopener">new study</a> is challenging the long-held economic belief that it’s in human nature to have unlimited wants, finding this widely held assumption only applies to a minority of people. In a survey of nearly 8,000 people from 33 countries across six continents, social psychologists asked people how much money they wanted to accrue in their “absolutely ideal life”. They found that in 86% of countries most people thought they could achieve the ideal life with US$10 million (AUD$14.3 million) or less, and in some countries the ideal was as little as US$1 million (AUD$1.4 million), across their entire lives. To put that into context, the current richest person in the world, Elon Musk, has a net worth of more than US$200 billion – that’s enough for 200,000 people to achieve their perceived ideal lives. The push to continually increase individual wealth and pursue unending economic growth has had dire environmental consequences for the planet, with resource use and <a href="https://cosmosmagazine.com/earth/earth-sciences/global-pollution-mapped-for-good-and-bad/" target="_blank" rel="noreferrer noopener">pollution</a> increasing alongside wealth. But these findings, published in Nature Sustainability, challenge the idea that approaches relying on limiting wealth and growth to achieve sustainability are against human ideals and aspirations. “The findings are a stark reminder that the majority view is not necessarily reflected in policies that allow the accumulation of excessive amounts of wealth by a small number of individuals,” explains co-author Dr Renata Bongiorno, a social psychologist at the University of Exeter and Bath Spa University in the UK. “If most people are striving for wealth that is limited, policies that support people’s more limited wants, such as a wealth tax to fund sustainability initiatives, might be more popular than is often portrayed.” <h2>Would you want to win a billion in the lottery?</h2> The researchers specifically asked people to imagine their absolutely ideal life, and then consider how much money would want in that life. Participants made a choice of their preferred prize in a hypothetical lottery, choosing from US$10,000, US$100,000, US$1 million, US$10 million, US$100 million, US$1 billion, US$10 billion or US$100 billion. It was emphasised that the odds of winning each lottery were identical. The researchers hypothesised that people with insatiable wants – those who cannot conceive of a point where their wants would be fully satiated, so they will always aspire to accumulate more/better goods – would choose the maximum of US$100 billion over all the lesser (limited) amounts. But while people with unlimited wants were identified in every country surveyed, they were always in the minority. They tended to be younger people and city-dwellers, who placed more value on success, power and independence. They were also more common in countries with greater acceptance of inequality, and in countries that are more collectivistic – that focus more on group than individual responsibilities and outcomes. “The ideology of unlimited wants, when portrayed as human nature, can create social pressure for people to buy more than they actually want,” says lead researcher Dr Paul Bain, from the Department of Psychology at the University of Bath, UK. “Discovering that most people’s ideal lives are actually quite moderate could make it socially easier for people to behave in ways that are more aligned with what makes them genuinely happy and to support stronger policies to help safeguard the planet.” Image credits: Getty Images  <img id="cosmos-post-tracker" style="opacity: 0; height: 1px!important; width: 1px!important; border: 0!important; position: absolute!important; z-index: -1!important;" src="https://syndication.cosmosmagazine.com/?id=195370&title=Who+wants+to+be+a+billionaire%3F+Thankfully+for+the+planet%2C+most+people+don%E2%80%99t" width="1" height="1" />  <div id="contributors"> This article was originally published on <a href="https://cosmosmagazine.com/news/who-wants-to-be-a-billionaire/" target="_blank" rel="noopener">cosmosmagazine.com</a> and was written by Imma Perfetto. </div>

Retirement Income

Our Partners

Over 60

News

Shop

Catalogues

Contests

Entertainment

Travel

Health

Lifestyle

Finance

Property

Games

Information

Keep up to date

Search

Having the ‘right’ friends may hold the secret to building wealth, according to new study on socioeconomic ties

Borrowing money isn’t always a bad thing – debt can be a sensible way to build wealth

Readers response: What’s your best advice for managing medications while travelling?

Your parents’ income doesn’t determine yours – unless you’re ultra rich or extremely poor

Five tips for developing and managing your budget – even in tough economic times

"Proud to pay more": The billionaires who want to pay more tax

Shocking amount Australia's richest people earn per hour

12 expert ways to manage stress at airports

Unlocking the wealth in your home for a better retirement

Kyle Sandilands' toddler's jaw-dropping wealth

7 simple wealth creation ideas for over 60s

Jackie O's candid admission about her wealth

Bees have appeared on coins for millennia, hinting at an age-old link between sweetness and value

Why am I online? Research shows it’s often about managing emotions

Five ways to manage your doomscrolling habit

Australia's top earners revealed – and it might be you

Hotel guest wakes to find his toes in the manager’s mouth

Readers Respond: What is the most egregious display of wealth you've ever seen?

How to make your money count

Who wants to be a billionaire? Thankfully for the planet, most people don’t

Our Partners