It’s the ‘race that stops the nation’
The Melbourne Cup is also the day of the year where people who don’t usually gamble, find themselves having a punt on their lucky number over a few glasses of wine. With over $52 million spent on fashion and 25 million swimming pools of alcohol being consumed each Cup Day, there are some important personal finance lessons we can draw from the day.
1. Plan your ‘punter’s budget’
Set a figure in your mind that you’re happy to punt on the Melbourne Cup, and that you’re comfortably prepared to lose. After a few drinks, it can become far too easy to want to place a significant bet, which will often be far more than you’re truly prepared to lose.
2. Don’t throw good money after bad
Far too often, our instinct when we lose a bet is to ‘double down’ on the next one in order to recoup our losses. This strategy can quickly escalate to the point where you’ve lost far more than you were prepared to. A simple way to ensure that you don’t fall into this trap is to bring cash and leave the credit cards at home.
3. Budget for your Melbourne Cup spend
The Melbourne Cup can become a very expensive day. When we factor in the fashion, drinks, placing a few bets, the function and transport, the costs quickly add up. Choose an event or a venue that’s appropriate for how much you and your friends would like to spend.
4. Plan your working week
For those states that don’t benefit from the public holiday on race day, it’s important to plan your week appropriately. For many based in Perth, the day is often a ‘write-off’ from noon with many offices closing for a function. Plan your week in advance and ensure that you don’t have to miss out on the festivities.
Always remember that most people have an opinion when it comes to the Melbourne Cup. Everyone loves to talk about their successes, but rarely will you ever hear them mention their losses. Recognise that a bet on the Melbourne Cup is a gamble, not an investment, so be sure to plan accordingly.
Finally, have fun and enjoy the day!
To Your Financial Success!
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Planner with Australian Expatriate Group, division of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore. Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd – No: 200305462G | MAS License No: FA100035-3
Australian Expatriate Group is licensed by Global Financial Consultants in Singapore, with a team of Australian-trained, experienced and qualified, allowing us to provide specialist advice to Australians living abroad.
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General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.