Hi looking best tips / advice/guides/ experiences for a beginner in shares/investing,
Probably have between $1k -10k$ extreme max too work with at start.
Only really had money in savings accounts before and looking to make any extra I earn to go further in this current climate and longer term
Currently have a fairly large mortgage,small family, early 40's .
Cheers many thanks.
First Steps for Investing
Francis82 on 21/06/2024 - 12:14
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Step 1. Invest
You'd be surprised how many people over analyse everything and never end up investing..
Even if you choose something poor, it's a lesson learned and your next investment will be better
How does one make their next investment better from the first investment which made them homeless
I would pay off my mortgage first.
In parallel, find ways to cut expenses or make more money at my job.
Investing will always have risk no matter have safe the bet seem. Cash flow is important to ride out the risk.
Yep.
Or at least keep putting money into that offset account up to the amount protected by the government guarantee. Put anything above this into the loan, though, as you said, potentially put some of it into the loan earlier if cashflow needs to be freed up.
When one has a mortgage, any other investment after tax needs to perform better than what one would save by keeping that money invested in the loan or offset account… not an easy feat.
Cheers
Im in the same scenario as OP.
I would would save up for at least 3 months of emergency fund to cover your expenses, just in case.
And in the meantime, invest in financial literacy for your kids if you have any…..because at 40 and still first timer…..
Then you would likely just for ETFs or Index Funds as you get educated as well
What I would do:
- Get an offset account ASAP. dont pay down the morgage, put it into the offset and that way u can withdraw it to invest and not have to pull it out as equity.
- Emergency savings that can cover 6 months of wages, for the unknowns.
- Get good life insurance so you wont leave your famiy with crippling debt if you pass or something unexpected happens.
- Invest in EFT, Vanguard etc. on average you will beat those who think they can "pick" shares.
Most importantly you need to learn about investing and change your mindset. Read as much as you can, listen to podcasts etc. You need to have the right mindest to invest.
Cheers many thanks,great advice
dont try and time the market, let the market time you
Invest in whatever nancy pelosi invests in, so much insider information she's gotten rich off.
The Gerry bots wants you to donate all to him.
Your choice.What about managed funds?
Are their managed funds that replicate super fund returns like balanced, high growth, etc?
@Francis82
Best advice I can give is to read this website front to back, making notes along the way. I found it invaluable and was starting from a higher knowledge point than yourself. Best of luck, as they say trust but verify!
https://passiveinvestingaustralia.com/nah, just tube and fall for clickbaits. Some Queenie will stretch her Costco pants and drain you dry.
Cheers buddy many thanks!!
Agree. Great site. Wish I'd discovered it sooner.
Apparently Warren Buffet is building up his cash position (last reported sitting on US$182b).. historically he has build up a cash position in anticipation of a large market crash.
Tread carefully in the current market environment if you decide to get into share markets.
First step is actually start investing. There are plenty of people contemplating it multiple times in their lives but never did it…
It is not rocket science. Just start from an ETF tracks S&P500 and start dollar cost averaging and you will be fine.
I don't understand how people with mortgages are thinking to “ invest “ their money and have no idea what to invest it in . If you have spare money put in on your mortgage. Thats a guaranteed no risk return right there ! Tax free also
Depends on your long term strategy though but if you have no idea that’s different. I’ve been diversifying for a few years as my mortgaged home is going to turn into an investment property one day so hence why I don’t want to pay too much off. I pay principal and interest on all of my properties, as I can now afford it (couldn’t when I first started investing properly over 10 years ago now - I’ve learnt some hard lessons along the way like most of us no doubt).
First step: have money you are willing to lose
Do you think the first step could be investing to get a higher paying job?
First Steps for Investing
Step1: Don't
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Put 10% into Bitcoin.