How do beginners invest in Australia?

At a cursory glance investing money seems so simple. You put away a percentage of your earnings and with time those little sums of money grow into a tidy fortune. Is this always the case? The recent pandemic with ensuing lockdowns and collapse of markets made many nations discover vulnerabilities in their investments and Australia was no different. This is a good time as any, to be educated in the smart ways of investing even for those who feel they lack enough funds to start an investment plan.

Why Invest?


Considering today’s context, inflation is one of the main reasons why one should invest. Prices are escalating in many spheres, at the fuel pump, the supermarket, coffee shop and many other spheres. Such inflation impacts everyone as it translates into the cash in your pocket losing value at a fast pace.
The only way to be on top of inflation is to have a strategy to earn a higher rate on your money than the rate of inflation. Those who have this great insight start young, saving even a small amount of money. With time such money can grow to a big amount later on in life if invested with know-how and wisdom.

Why invest in Australia

The signing of the Business Investment Agreement in Australia | Image via freepik

Being a nation with a resilient economy, diverse industries, and sound trade ties with the world, Australia is considered a stable and low-risk country for investment. Complementing these are the educated and enterprising workforce who are smart and the nation has a business-friendly environment that beckons not only locals to invest but also foreign investors too, to explore different investment opportunities.
As a foreign investor, it is a good idea to have an initial business meeting with the Australian partners at a conference venue in Monash. Make sure to select a centrally located venue like PARKROYAL Monash Melbourne for your meeting. You can brainstorm possibilities and discover what is the best investment option for you and your business partner in this vibrant country.

Prerequisites and initial funds required for investing


Whilst it is a sound decision to start investing early it is also important to make sure your financial position is stable or to put it simply, you don’t have consumer debts such as credit cards and personal loans. If you have those ease yourself out of those before commencing investments.
No, you don’t need to be rolling in dough to invest. That belief is a misnomer. If you have some spare money in hand, that is when you must start, waiting for it to grow can be foolish. You commence the investment and let it grow. Although the Australian Share market (ASX) places a minimum requirement of 500 Australian Dollars when buying on them (ASX), there are plenty of micro-investment platforms which can assist you to invest those small sums of money you may have. So go for it.

Where can you invest money?


With numerous ways to invest money such as in Shares, Term Deposits, Savings Accounts, Superannuation, and various others, it is prudent to use a financial advisor as they are trained to simplify the investment options and select the one best suited for you. Although they come at a cost, it is wise to use an advisor to assess and opt for the best method to invest your money.
A few investment possibilities for beginners are as follows.

  • Savings Accounts – Everybody has a savings account as this is one investment plan our parents get us signed up for. The main difference between a savings account and a regular bank account is that your deposits earn interest, therefore you tend to deposit rather than withdraw from such an account. Although this will not increase your investment overnight, however, over some time it will give you quite a tidy amount.
  • Shares – Also referred to as stocks, securities, or equities, one of the most used money investment plans where large chunks of the investment portfolio will lie. Although it can make you feel out of depth at the beginning if you are not familiar with share markets. By starting small you can gradually master how markets behave and increase or decrease your investments.
  • Term deposits – This is ideal to reach a target fund over a longer period. Though similar to a savings account you agree to leave the chunk of money to earn interest over time. The interest rate is higher if you agree to maintain the deposit for longer. So when investing in term deposits you must be prepared to await until the end of the term to earn the pre-agreed interest levels.