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There are many ways to invest for your future. The earlier you begin, the more time your investments have to grow and the more money you’ll have when you want it!

check_mark_celebrateThere are four things you should do before you think about investing:

1. Factor in your investing into your budget plan – it must work for you, not cause more stress. Remember, you must still be able to save money for cash emergencies – you don’t want all your money tied up in investments and not be able to survive a financial emergency if one arises. 3-6 months expenses saved up is a good guide.

2. Pay off your ‘bad’ debts first. Credit cards, car loans, personal loans etc should be paid off in full before you invest. (Otherwise the interest on these will wipe out your investment profits, leaving you no better off financially in the long run) Paying off the mortgage would be great too before you invested heavily.

3. Understand what you are going to invest in. Research the areas and feel confident in your choices. Get some advice if you are not totally ready to go it alone. Whether its the share market, art, wine or gold -get to know the market you want to enter.

4. Don’t buy life insurance if no-one relies on your wage to survive. Your super fund might include life insurance anyway. Income protection insurance is probably the only insurance you should consider while you are working to invest and grow your wealth. We have a wonderful free health system in Australia so unless you feel absolutely sure you need private health insurance, don’t be too concerned about not having it. The tax benefit is negligible.


 

The largest investment you’ll probably undertake will be your own home. After that the money might be a little tight and finding spare funds to invest in large amounts virtually impossible. If you’re lucky and are thinking about buying an investment property then get the right advice to make sure you are doing what’s best for your future.

However there are other things to look at when investing – you could squirrel money away and after a year of saving, take the plunge and begin to invest in the share market. Doing this yearly will quickly grow your portfolio. You can use the calculator below to see what your initial investment would be worth over the years – the Australian sharemarket averages a 9% return.
Collections of beautiful artworks, in all forms can value greatly over the years while gracing your home. Antique furniture, fine arts, gold, silver, coins and many other things can be collected as investments. Investing is not out of your reach.