We all know we need to invest for the future, but getting started is one of the hardest things to do. Where should you put your money…in property, shares or cash? And do you even have enough money to get started?
There are countless books and websites all telling us what to do. No doubt, some will have some good advice. But what the authors of those books don’t know is what makes you tick.
You need to understand your own personality, and invest accordingly. Maybe you’re conservative and don’t like to take on risk. If that’s the case, trading a highly leveraged product like futures probably isn’t the way to go.
Once you start looking around, you’ll quickly find there’s more than one way to grow your wealth. However, a common theme among those that invest successfully is they both understand, and are comfortable, with what they’re investing in.
How to invest in property?
If property is your thing, then that could be a place to start. And it doesn’t mean you have to rush out and buy an investment property. You can invest in Real Estate Investment Trusts (REITs) on the ASX with as little as $500.
There are wide ranges of REITs, which invest in everything from office blocks, supermarkets and shopping malls, through to childcare and medical centres. What’s more, they can pay you some nice dividends along the way.
How to invest in shares?
And if you want to invest in shares, but don’t know where to start, there are over 100 listed funds (and investment companies) that make the investing decisions for you. Some are as basic as copying the index, while others use more complex strategies, or invest overseas.
Again, you can invest with as little as $500 and see how you go. If you feel comfortable, you can always add to your holdings. Some managed funds allow you to make regular contributions so you can build up your investment over time.
If you’re uncomfortable in an investment, it can often mean that you have too much money invested, or don’t fully understand how it works. The trick is to find something you like and understand, and only invest an amount you’re comfortable with.
Ideas on the best places to invest your money
Our ideas and insight could introduce you to some of the most profitable investment opportunities in Australia.