“Big financial decisions should be based on research and reflection—not a hunch or hype.”—Adnan Glinac, Executive General Manager of Life at Australian Unity
Key points
- Being "money smart" means understanding your goals, your risk tolerance and how to protect yourself, especially online.
- Avoid common investment traps by doing your research and not acting on impulse. Be cautious of investments that promise guaranteed returns or quick profits.
- Diversify your investments and understand your risk tolerance. Focus on long-term goals, not short-term trends—and get trusted advice when needed.
We work hard for our money, so it’s only natural to want to make smart decisions about where to invest it. But in today’s fast-moving digital world, it’s not always easy to know who—or what—you can trust.
“Being money smart doesn’t mean you have to be a financial expert,” says Adnan Glinac, Executive General Manager of Life at Australian Unity. “It means making informed choices that align with your goals, your values and your risk tolerance.”
From digital threats and scams to emotional decision-making and “timing the market”, modern investing is riddled with challenges. But with the right mindset and knowledge, you can avoid the common pitfalls and stay on track towards long-term financial security.
The importance of financial literacy for investors
One of the most significant risks for modern investors is the rise of professional-looking scams.
“We’re now bombarded with investment content, advice and opportunities from all over the world—some legitimate, many not,” says Adnan. “That’s why making sure you’re informed is so important. You don’t want to make major financial decisions based on gut feel, or something you saw on social media or heard at a barbecue.”
For investors, being financially literate means more than knowing how to budget. It’s about understanding risk, asking smart questions and protecting your assets.
“Most people aren’t looking to be multimillionaires,” says Adnan. “They just want to feel financially safe—whether that’s owning their home, enjoying a comfortable retirement, or knowing they can weather a crisis. That sense of security is what money enables.”
If you’re unsure where to start, reputable resources like Moneysmart are a good go-to. The government-run website offers best-practice guidance on investment scams, how to check before you invest and what to do if you’ve been scammed.
These tools are especially useful if you’re trying to understand your financial risks, or recover from a mistake.
Spotting red flags: “If it sounds too good to be true, it usually is”
In an age of online investment platforms and persuasive influencers, it can be tempting to chase high returns or “get rich quick” schemes. But Adnan warns against investing based on hype or emotion.
“If it sounds too good to be true, it usually is,” he says. “We live in an era of constant digital noise, so it’s crucial to stop and ask: ‘Do I really understand what I’m investing in?’”
Here are a few red flags Adnan advises watching out for:
- Promises or guarantees of high returns with little to no risk.
- Pressure to act quickly or keep the investment or transaction secret.
- A lack of transparency, or you have difficulty verifying credentials.
- Requests for personal or financial information upfront.
Want more tips? Here’s how you can stay safe from cyber attacks or protect yourself from scams.
Understand your risk tolerance—and match it to your goals
Risk is a natural part of investing, but understanding your own comfort levels is key. According to Adnan, risk isn’t just about what you could lose, but also what you could miss out on if you play it too safe.
“If you’re in your 40s, you’ve still got 20 to 30 years of earning and investing ahead of you,” he says. “Putting everything in cash might feel safe, but over time it could leave you short of your goals.”
Understanding your personal risk tolerance can also help you spot offers that don’t align with your comfort zone—whether it’s a too-good-to-be-true return or a high-pressure sales pitch.
Avoiding common investor mistakes
Adnan sees the same missteps time and time again, especially among investors aged 40 and up. These include:
- Trying to time the market perfectly.
- Putting all their money into one asset or sector.
- Letting fear (or FOMO) drive decision-making.
- Ignoring or not understanding their own risk tolerance.
Instead of falling into these traps, he recommends building good habits and taking a long-term view.
“It’s not about being the smartest person in the room,” says Adnan. “It’s about being consistent—making small, disciplined investments and avoiding emotional decisions.”
Chasing short-term wins rarely pays off. Instead, make it part of your routine. This could mean:
- Setting up regular transfers to save and/or invest according to your risk profile.
- Thinking long-term and considering alternative, tax efficient structures like Australian Unity’s low-cost investment bond 10Invest.
- Automating your super contributions or salary deductions.
“Regular investing—for example with index funds, ETFs or managed funds—lets you take advantage of compound interest without trying to predict market highs and lows,” explains Adnan.
“Big financial decisions should be based on research and reflection—not a hunch or hype. Discipline is more powerful than timing, so set your goal, automate your contributions and let it grow.”
And if you’re ever in any doubt, seek professional advice.
“There are great low-cost ways to get help,” adds Adnan. “Whether that’s a financial adviser or your super fund, it’s worth checking in before you make a big decision.”
Investing for your future—and your real wellbeing
Investing isn’t just a financial activity—it can also impact your personal wellbeing, particularly during uncertain times. In fact research by the Australian Unity Wellbeing Index, a 25-year study conducted in collaboration with Deakin University, found people who feel in control of their finances tend to report higher levels of overall wellbeing.
“Financial stress can erode your confidence, cause anxiety and affect your relationships,” says Adnan. “But the more informed and intentional you are with your money, the more control and peace of mind you’ll have.”
Here are his top tips for safeguarding your real wellbeing when investing:
- Only invest what you’re comfortable losing.
- Align your investments with long-term goals.
- Know your limits—and ask for help when you need it.
- Build a strategy you can stick to, even when markets dip.
And most importantly: “Avoid emotional decisions,” says Adnan. “If you hear something that sounds amazing, pause. Sleep on it. Check the source. Then make an informed move. Don’t let FOMO drive your choices.”
Money affects every part of our lives—from our health and housing to our relationships and peace of mind. That’s why it’s worth investing the time to understand how to make your money work for you. But remember: there is no rush.
“Being money smart doesn’t mean knowing everything,” says Adnan. “It means protecting the investments you have and taking a proactive, informed approach to your future.”
