So you have $200 a week to invest but where should you put it? The best place can vary depending on your end goal. We get the experts to put together portfolios aimed at helping you achieve a different financial aim.
Saving for a home is likely to be the biggest financial outlay you will make for one single item. According to CoreLogic, the average house in Sydney, for example, has increased in value from $650,000 in 2012 to over $1,066,000 in 2017 – a 64% rise in five years.
Putting aside the affordability and housing bubble debate, to get on the property ladder you have to save up a deposit of between 10% and 20% of the property value.
Investing in a balanced low-fee portfolio of exchange traded funds (ETFs) is one smart way to maximise your savings and get you closer to your property goal.
There’s a lot to consider before you buy a home. First, is it right for you or are you suffering FOMO (fear of missing out) just because everyone else is doing it?
If buying is definitely right for you, consider the practicalities. Where do you want to live and where can you afford to live? Can you cover the repair and insurance costs? When interest rates go up (and they will) can you service your mortgage?
INVEST EARLY AND REGULARLY
Start investing early and regularly. Investing just $200 a week might not sound like a big amount but it will make a real difference in the long-term.
Investing early means you can take advantage of compound returns, which is simply earning additional returns on profits that are re-invested. Setting aside a small amount on a regular basis can help you reach your goal faster.
Assuming growth of 7% a year, the initial $200 investment with weekly top-ups of $200 would end up being around $60,000 after five years with compounding. If after two years of investing you increase your weekly investment to $300, you could get closer to $80,000.
DIVERSIFICATION IS KEY
Bu hikaye Money Magazine Australia dergisinin May 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Money Magazine Australia dergisinin May 2017 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
An outrageous, beautiful monopoly
Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.
Drop the anchor to judge value
Buying and selling decisions should be based on where a stock price is going, not where it has been.
Powering the AI boom
Beyond the software and chipmakers, where will the energy come from?
Get into life
Tucked inside super are products that can protect you from life's inevitable uncertainties.
Paths to home ownership
Taking the road less travelled can sometimes deliver unexpected benefits.
Sold! Quick ways to add value
Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.
Money lessons the kids need to know
Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.
Property-investing rules: are they likely to change?
The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.
What's love got to do with it?
A rollercoaster of emotions could be driving poor crypto behaviour.
Are we ready to be cash-free?
Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.
