Investing has traditionally been the realm of the secure and the experienced, an ongoing strategy match between strangers, professionals and the market, adjusting here and tweaking there, until a shares portfolio either booms or stagnates. And then it starts all over again. On the other side of town, property investment has become a molten topic across the board, transforming investment into something everybody does, whether they’re into supervising their numbers or not. But you’re not sure if the world of investing is for you – you don’t know much about it, what you have heard is a bit dubious and well, you have so many other things to worry about.
It doesn’t feel accessible. We get it, so we’re here to explain why investing can be a large, cost-effective part of your overall personal financial plan.
So why start investing?
You Can Afford It
No really, you can. Contrary to popular belief, allocating $100, $50 or even $25 dollars a week into an investment plan will give you the kick-start you need to develop a healthy portfolio – say you invest $100 a month in shares at an average return rate of 8% annually… by your 45th birthday, you could be sitting on a sweet $104,241! That’s only $25 a week!
Shares aren’t for you? Keen on making a break into the property market? Great! Don’t forget you’re not buying a house or apartment for yourself – it doesn’t need to fit your needs. While a 4 bedroom family home in a great suburb is out of your reach (for now), that 1 bedroom or studio piece in the outer suburbs is definitely within reach with the right savings plan.
Long Term Vision
Investment – any investment – isn’t intended as a get-rich-now scheme. It’s not a band-aid to fix failing finances in the moment. Look at it as a complement to your superannuation. You’ve grown accustomed to a certain way of life, perhaps you want to ensure your retirement or later career maintain the quality you know you deserve. Perhaps you’d like to plan for ten years (at least) down the road when kids are a thing and financial responsibilities are more pressing… investment can help you meet those long term goals and touchpoints in ways that term deposits and savings accounts cannot.
Make the World Your Oyster
If you’re going to invest, it stands to reason you’ll learn a lot over time…and you know what they say, knowledge is power. There’s a whole different world beyond those numbers and columns, and it is definitely a world you want at your fingertips – if you’re determined, you’ll not only have a nice fat purse at various stages in your investment journey, but you’ll understand a whole new dimension of wider society and how to make it work for you. It’s the kind of insight they can’t teach you at school, limit to finance classes during University and rather you not know out in the world. Make it yours and watch your investments grow.
The information contained in this article is general in nature and does not account for individual financial circumstances and outcomes.