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One of the most variable and vague topics in the (already quite variable and vague) personal finance world has to be investing. The concept itself is simple: you put your money into assets with the hope they’ll grow in value over time. But when it comes to what assets, well, the options feel infinite.
You could invest in individual shares, or bundle them together into an ETF. But maybe you should try to invest in property instead, and potentially your superannuation too. Does that all feel too risky? Just settle for gold or a nice high-interest bank account then. And what’s all this buzz about cryptocurrency?
There are so many investment options, so where should you begin? Your age can guide you.Credit: Michael Howard
This isn’t even really scratching the surface of all the decisions and sub-decisions someone has to make when they start investing, so if anyone ever tells you it’s easy, they’re a big liar.
What’s the problem?
The ASX’s most recent Australian Investor Study in 2023 found that just 50 per cent of Australian adults hold investments outside their super, with 40 per cent having never invested and 6 per cent saying they intended to start investing.
Given just how good our superannuation system is, this isn’t unexpected, but I suspect it could be higher if the whole space didn’t confound the everyday person.
What you can do about it
So if you’ve been thinking of putting your money to work for you, here are some suggestions on where to invest at any stage of life:
