Dec 06, 2019  | Tags: Investment

Our Insights

Investing isn't just something for the ultra-wealthy did to get even more wealthy. In reality, just about anyone can and should break into the world of investing.

If you’d like to start investing but aren’t sure where to begin, check out these investment ideas, options and tips for people new to the investment game.

1. Determine your investment goals

The first and best investment you should make is to set some goals. Do you just want to save up enough to fund a holiday next year? Want to get ahead on paying off the home loan? Trying to create a nest egg for your child's university fund? Saving for retirement? Your short-term and long-term financial goals will determine what your investment strategy should look like, so it’s wise to get those figured out ASAP.

2. Start a side hustle

If you’re at square one and have no funds to invest with, tapping into the gig economy is a great way to start. It’s not exactly a passive investment, but starting up a small job on the side is a good way to use your spare time to generate some extra cash. Put your skills to use and find clients all over the world through online freelancer marketplaces (like Freelancer and UpWork), and if your skills aren't conducive to this type of work, you earn income from Uber driving, dog sitting, cleaning or just about anything. These funds can later be put into a more traditional investment, such as shares or property, that will generate some larger returns.

3. Create a passive income stream

Creating a passive income stream takes a little bit of work at the outset, but that investment of effort can pay off. For Australians, the most 'tried and true' passive income can be generated through property investment, but this is a another topic in itself. As a starting point, good examples of passive income that are accessible for just about anyone include setting up and maintaining a monetised blog (e.g. utilising ads or affiliate marketing), creating an online course or publishing an ebook for people to buy and download.

This stream can be used for extra funds to tip into future investments, or it can become an investment in itself - many passive income projects take on a life of their own, replacing the income of the owner or even becoming so lucrative they get acquired by a bigger business - creating an amazing cash windfall.  

4. Open a high-interest savings account

Everyone should have a high-interest savings account. It isn't the sexiest form of investment and you won't see massive growth (especially early on), but over time you'll accrue a good amount of cash in interest as reward for your healthy saving habit! What's more, this form of investment is very low risk and even accessible for kids - savvy parents open up savings accounts, contributing small, regular amounts over the years, and when that child hits adulthood they can access the funds and enter the 'real world' with a great nest egg behind them.

5. Get proactive with your superannuation

You've got a super fund. But how much do you really know about it? Are you just contributing funds out of your pay packet without a second thought? 

Taking a mild interest is more than what most people will do, and getting proactive now could see you make decisions that lead to hundreds of thousands of dollars added to your nest egg. 

Get advice from your financial advisor about what you can do to optimise your super and get the most of it. Compare funds. Compare fees. Consider topping up your super with extra, depending on where you're at financially. You have options, and it really matters!

6. Talk with an experienced, credible financial advisor

The best investment you will make is partnering with an expert. You're not an expert in this world, and you don't have to be. Partner with an independent advisor with a track record of success. It doesn't matter where you're at, a great advisor will help you set the right strategy and make the most of what you've got. 

Calder Wealth Management will put you on the pathway to achieve your wealth goals.

Talk to the team at Calder Wealth Management. Call us on (08) 8373 3333 to schedule your free initial appointment. 

Written by Ben Calder at Calder Wealth Management.