Help us make Equity Mates better in 2025:

Every year we survey the Equity Mates community as we plan the year ahead. The insights really do matter, last year it prompted us to move this email to daily, focus more on YouTube and develop a new show (more on that in the coming months).

So if you enjoy what we do, and want to help make it better, we have a request: help us by completing this year’s Equity Mates Community Survey (Survey Link).

Here’s what you need to know today

• Private credit has been the hottest asset class for the past couple of years with more funds popping up and more money flowing into the sector. Globally the sector is managing $1.5 trillion, in Australia it is more than $200 billion. This hasn’t escaped ASIC’s notice, with the regulator now “questioning firms about their data, the fees they pocket and the analysis they perform.” (Capital Brief)
  
  

• Meta has reported it will spend more than US$65 billion on AI efforts in 2025, with Zuckerberg saying on Facebook the company would build a data centre “so large that it would cover a significant part of Manhattan”. (AFR)
  
  

• Between Meta’s $65 billion, Microsoft’s $80 billion and Project Stargate’s $100 billion, there is hundreds of billions of dollars committed to building data centres and AI infrastructure in the US this year alone. The data centre ‘picks-and-shovels’ plays will be a hot topic in 2025.
  
  

• What will all this compute capacity be used for? The AI buzzword for 2025 with be Agents, and OpenAI just launched the research preview of its AI Agent, called Operator, that will perform tasks on our behalf - think: completing online forms, making an online order or chatting to a company’s online help chat. (Quartz)
  
  

• Online retailer Kogan saw its share price fall 15% on Friday after it warned that profit would come in lower-than-expected. (Capital Brief)
  
  

• The Australian Government’s “once-in-a-generation reform” to limit big money in Australian politics looks like it has stalled. While the Prime Minister and Finance Minister have insisted they would be pushing the bill again in 2025, with an election around the corner there has been little progress made. (Capital Brief)
  
  

• At least 5 senior leaders and commissioners at the Australian corporate regulator ACCC have resigned their membership from Qantas’ exclusive, invite-only Chairman’s Lounge. The commission cited changing community attitudes around the Lounge, but the ACCC have also been engaged in multiple regulatory actions against Australia’s largest airline. (AFR)

What the…?

The US Department of Government Efficiency has a new target - the US Penny. Long been considered an absurdity of government, the Penny is worth 1 cent but costs the US Government 3 cents to mint and in total cost the US Government $179 million in 2023.

This isn’t the first push to stop minting new Penny’s. So the question become will Elon and DOGE succeed where previous efforts failed? (CBS News)

Investing is a lifelong journey

Here’s what you can learn today.

Community Question: What are some key areas I can focus on to reduce cost of living pressures? How are you advising your clients about this?

We put this question to Jane Mitchell, financial adviser at AdviseWise.

With cost of living on the rise many people can agree it’s a painful time for the family.  

It's natural to feel concerned about how to cover your monthly costs. Groceries, rent, mortgages are all going up, clients worry their wages aren't covering the increase and they don't have enough savings in the bank.

In times where your cashflow position becomes tight or you want to rein in spending, it is always a good idea to look at your cost of living. 

Here are some ways, to help give you back control and reduce your money worries:

• Review your current expenses.    

  • We all think we know where our money is going and what we spend, but the reality can be very different.   

  • How much are you spending on entertainment, dining out, food deliveries like Uber Eats?  

  • Are there costs, discretionary spending you can cut back on that will ease your cashflow? These add up and could be better put towards savings.

  • How often are you shopping online?

  • Review your subscriptions, energy, car insurance, internet and phone plans, check are there savings with better deals elsewhere.

• Make a budget and stick to it.  You can do this!

Establish a budget for your current lifestyle, track your spending, reduce your  overspending. Look at your bank account and credit card statements, put the expenses into the budget tool and you will easily see where the savings can be made.

• What are the direct debits you have coming out of your accounts?

• Set aside a fixed amount from each pay into a separate account to cover your bills, rent and essentials. Reduce the opportunity for overspending.

• By keeping a budget, you are holding yourself accountable and forcing yourself to improve your spending and savings habits, each week. 

• Moneysmart.gov.au have a great budget tool, very easy to use.

• Saving for the unexpected and build a buffer:

Once you have identified things you can cut from your spending, you can build a budget to gradually improve your financial position and build emergency funds for unexpected expenses. 

The last thing you can do if you are still struggling is looking at changing your habits. If you routinely buy takeout, go to the movies, drive rather than take public transport, and partake in recreational activities that your budget simply can’t afford consider making changes that better align with where you want to go financially.

After all, your money is designed to get you to where you want to go. Wealth provides you with financial freedom.

Take action and you can get your cost of living back under control and go back to enjoying your life.

Interested in speaking to a financial adviser? Fill out the form on our website and we’ll connect you with one of our hand-picked advisers for a no-cost, no-obligation initial meeting.

Today’s sponsor is Australian Property Scout

Join Sam Gordon, Equity Mates’ regular property expert, as he is joined in the studio by co-host Jimmy as they dive into actionable strategies to help you take charge of your property investing in 2025 and beyond.

From assessing your current portfolio and setting realistic goals, to making sacrifices and focusing on true wealth creation, this episode is packed with practical advice to ensure you’re executing on your 2025 goals. Whether you’re gearing up for your first deal or scaling your portfolio, this episode will get you motivated, thinking strategically, and ready to take action NOW.

Tune in to Scouting Australia on all your favourite listening platforms. 

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