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It’s never too early to start investing

5 Basic tips to start investing

It’s never too early to start investing. Here are a few basic tips for the investment beginner to get you on the path to investing in your future.

Do you consider investing as something to only do later on in life?

The reality is you’re never too young to start investing your money, and as soon as you start earning you can start making your money work for you. But as an investing first-timer, where do you begin?

Ultimately, an investment is something you put money into to make your money grow - this involves varying degrees of risk. Safer investments provide a greater assurance that you’ll keep your money, but your rate of return may be lower. Higher risk investments offer a higher rate of return, but there’s a greater risk that you may lose money.

Start investing

Here are five basic tips for the investment beginner:

1. Budget

The key to being able to save and invest is spending less than you earn.

2. Reduce your debt

The interest charged on credit cards and loans will most likely exceed what you would make from an investment. Think about using any extra cash to settle debts first.

3. Have a goal

Investing towards an end objective, like a holiday in Thailand or new car, can help keep you motivated.

4. Branch out

Don’t put all your eggs in one basket. If all your money is in an investment that doesn’t do well then, you’ll be hit harder than if you have money in different places.

5. Fine tune

Keep track of your investments, and make adjustments that are in line with your goals.

Based on your budget and goals, you can decide what type of investor you are and what risk you're willing to take. But as an investing newbie, it’s always best to chat to a professional financial planner, before investing your money, to figure out what would work best for you.

Next step

For more see our savings and investments page, or use the comments field to chat to customers and consultants in the investments section in the Community.