Tips for saving from financial advisory company

Loss aversion and risk tolerance are two things that Australians need to consider when investing their money, according to a financial expert.

Australians need to be thinking about loss aversion and risk tolerance when investing their money, according to a financial expert's tips for saving.

Alan Dixon, managing director of Dixon Advisory, told The Age that "investors now have to be much more aware of what they are investing in and why" in case the "goldilocks era" of economic growth does not continue.

He added: "Now that the dust has settled (somewhat), investors should be looking at their strategy and holdings to ensure they are still comfortable with both."

Mr Dixon warned that worrying about investments could have a bad effect on a person's life.

But Annette Sampson, writing for The Age, said most commentators are not necessarily expecting a negative impact.

She said they believe the recovery is down to low interest rates and the government "throwing money around like confetti".

For Australians who wish to create more money to invest, Money-AU suggests drawing up a list of outgoings will help people choose what they could do without.

By Nate Sawyer