Is your money quietly leaking away?

A new client came in last week feeling pretty good about their money.

They’d saved consistently for 10 years, every spare dollar tucked neatly into savings, term deposits and superannuation (investment option: cash).

Safe.

Steady.

Sensible.

But when we ran the numbers… something didn’t add up.

Over the last 10 years, cash returned about 2.1% per year on average.

Inflation the rising cost of living averaged around 2.4% per year.

So their real growth?

-0.3% per year!

It’s like pouring water into a bucket with tiny holes, it looks like it’s filling but bit by bit it’s leaking away.

Compare that to:

• Australian shares: 9.2% p.a.

• International shares: 12.1% p.a.

• US shares: 15.1% p.a.

• Australian property: around 6.8% p.a. (national average)

They hadn’t just missed out on growth, they’d actually gone backwards.

We talked about how sometimes “playing it safe” can actually be the riskiest move of all.

Here are three common money leaks we see:

1. Withdrawing everything from super into cash at retirement.

   Feels safe, but can mean losing tax benefits and long-term growth potential.

2. Leaving too much in a transaction account.

   Handy for access but terrible for returns.

3. Ignoring inflation.

   If your money isn’t growing faster than prices, you’re quietly going backwards.

Here’s the simple fix we used with this client:

• Understand your real return (after inflation and fees)

• Match investments to your time horizon and risk appetite

• Diversify — because no single asset wins every year

There’s a quote I love:

“Money is a terrible master, but an excellent servant.”

The lesson?

Don’t let your money quietly leak away.

Put it to work so it supports the life you actually want, now and later.

If you’re unsure whether your current setup is helping you grow or slowly leaking value, contact us with “Leak Check” and we’ll run through your numbers.

Because when it comes to building wealth, knowing where the holes are is half the battle.

7Wealth Pty Ltd ABN 44609210246 is a Corporate Authorised Representatives and is authorised throughCobalt AdvisersPty Ltd ABN 64 628 654 099 who is an Australian Financial Services Licensee 512550. 7Wealth Pty Ltd is a Credit Representative ofAustralian Finance GroupLtd ABN 11 066 385 822 (AFG) Australian Credit Licence 389087.
This blog contains information that is general in nature. It does not constitute financial or taxation advice. The information does not take into account your objectives, needs and circumstances. We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document. Subject to law, Cobalt Advisers Pty Ltd nor their directors, employees or authorised representatives, do not give any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document.