Investing in the Australian market is a very stable and low-risk investment option, mainly due to its buoyant economy, substantial trade ties, and dynamic industries. Despite the pandemic outbreak, their GDP exceeded their pre-pandemic growth rate by 2021, along with their unemployment level going below the pre-pandemic levels.
Do your research well before you plan to make any investment in Australia. You have to consider the risk you are willing to take and your future financial goals into consideration.
If you have made up your mind to invest, here are some ideas that will get you going.
1. Get Rid of Debts:
Even before you start saving money, you must pay off all your debts. This could include rent payment, car loan payment, clearing credit cards bills, etc. Holding off debt payment to do savings makes no sense as it only will cause an increase in the interest amount. Also, owning money or failing short in repayment can be very stressful that you should prioritize eliminating before making investment plans in Australia.
2. Build an Emergency Fund:
The last two pandemic years have taught us how important it is to have an emergency fund just in case you need it urgently to cover unexpected costs such as an urgent medical bill or repairs. It would be best if you built a financial safety net that can get stronger only when you have a substantial amount of money saved aside, which is accessible whenever you need it.
3. Plan Your Budget:
The next calculation you will be doing is planning your spending every month. You can create an excel sheet to keep a tab of all your monthly expenditures for a few months to understand your spending, and that will help you keep that money aside every month for your monthly expenditure. Once you know how much money you can spare for investment. You can start the next step.
4. Develop an Investment Plan:
Planning is essential for investment. Your investment plan should be based on your risk, tolerance, and time. You can wait for the funds to grow. You have to set your financial goals right first and create a plan to achieve them sooner.
It is a good habit to write down your financial goals and calculate individually how much capital you will need and the timeline you are giving yourself to achieve the goal. Taking risks is mandatory to grow your money, but the level of risk entirely depends on you. Remember, the investments that have higher chances to grow are also riskier.
5. Do Not Forget to Contribute to Super:
If you are employed, your employer must pay 10% of your fixed salary as super, which you will get when you reach your retirement age. But super money is not enough to lead a comfortable retirement, and it may get exhausted; hence, start contributing more to this fund to increase the amount of your retirement savings. It can also reduce your tax, which is another benefit of contributing extra capital to the super as allowed by the government.