frustrated

Hey everyone,
Im a 26 year old personal trainer from Sydney . I really want to get better with my money and learn how to save effectively and invest . does anyone no where is a good point to start ? someone I can talk too ? or anything ?

Thanks M

 

Hi Bazman22,

A lot of things are going on in the world at the moment. Greece is affecting the world stock market. Australia is at a peak in the housing market. It may be the safest route is not taking on debt, save cash and when everything drops- start buying.

Johny.

 

hey johny, thanks for ur advice . im trying to pay all my debt back at the moment .

 

G'Day M,
My 2c:
- do your own research, even if you use a professional. This will allow you to understand and question/verify the advice you're getting. Unfortunately the adage "you get what you pay for" does not always hold when it comes to investing advice. As to where to do the research, well "the Internet" is a good place to start

- think medium to long term, diversify and be bold not bashful: here's part of the reason why managing risk is hard: https://www.youtube.com/watch?v=vBX-KulgJ1o

- start today: Einstein's alleged to have declared compound interest to be "the most powerful force in the universe." and "Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it."; so yes, getting rid of high-interest debt is probably task #1

To that end, I wouldn't try and wait "until everything drops". If you start slowly and understand why you're investing in the things you're investing in, and just keep at it, you'll ride out any blips along the way and do fine. One last pithy saying: "The best time to plant a tree was 20 years ago. The second best time is today."

Good luck!
Ben

 

Educate yourself

Hi Bazman22

At a time like this it is a good time to reduce debt, I have a post on my blog on good vs bad debt and identify which debt works for you and what does not.

It is a most uncertain time all around the world but there is never a better time to educate yourself as if you are unaware what the market is doing irrespective of what asset class you are looking at you will not know what is good / bad / high / low etc so use this time to start working out how much money you have to invest, or how much you can put aside ready to invest. Work out which asset classes you are comfortable with (ie. Property, Shares, Precious Metals, Cash) making sure you are not putting all your eggs in one basket. Then research research research so yu are making an educated decision when it is time to buy.

 

You've mentioned you have debt - pay this off before looking to invest, as this has a guaranteed return on the interest you're saving.

Once you're debt free and have begun building your savings once again, it's worth considering what you want your long term financial picture to look like. Do you want to work to 65 (or later)? Do you want to have another income stream which doesn't rely on your working? Do you want to be able to reduce your workload prior to retirement?

Do your research, how investing can assist you with getting you closer to those goals. Property, shares, everything in between - it all has a place in helping you through delayed gratification. Build a strong team of professionals, build a plan and get it underway!