Get investing ready in 5 simple steps
Investing is one of the best ways to grow your money over time. But the hardest part is often just getting started. The good news is you don’t need to know everything, and you don’t need thousands of dollars. You just need a simple plan. Here are five easy steps to help you get investing ready.
1. Get clear on your goals.
Before you start investing, think about what you are aiming for. Your goals give your money direction and help you decide which investments might suit you best. Ask yourself:
- Is it a short-term goal like saving for a holiday in two years?
- A medium-term goal like a deposit for your first home in five years?
- Or a long-term goal like building wealth for retirement?
The timeframe matters because if you are investing for something far away you have more time to ride out the ups and downs of the market. If you need the money sooner, you will probably want a steadier approach. Here at Raiz, we help you match your goals to an investment strategy that fits so you are not just investing blindly.
2. Know your risk profile.
Your risk profile is simply how you feel about risk and how much risk makes sense for your goals. It helps you understand your comfort level and guides you towards an investment strategy that feels right for you. It has a lot to do with two things:
- When you will need the money. The sooner you need it the less risk you might want to take.
- How you will feel while invested. Some people are okay seeing their balance go up and down, while others prefer a smoother ride.
If you are investing for the long term, you might be fine with bigger ups and downs if it means more growth over time. But if you will need the money soon, something steadier and less volatile might be better. Raiz makes this easy. We have investment options to suit everyone’s comfort, style and goals.
3. Build a safety net first.
Before you dive into investing, it is smart to set aside a little emergency buffer. Think of it as your safety net. This means having at least a few months of living costs in a savings account that you can get to quickly if something unexpected happens, like car repairs, medical bills or a sudden change in work. Why does this matter?
- If you do not have a buffer and you are forced to sell your investments at the wrong time, you could lock in losses.
- Having that safety net means your investments can stay on track even when life throws you a curveball.
Having strong foundations in place means you can invest with confidence, which is why we encourage you to build your safety net before you start.
4. Start small and keep going.
Many people think they need thousands of dollars to invest, but that is not true. You can start with just a few dollars. In fact, here at Raiz, you can begin with as little as $5. The real magic happens when you keep going. Adding small amounts regularly, even just a few dollars a week, can grow into something significant over time. This works because of something called compounding, which is when your returns start to earn their own returns. Think of it like planting a tree:
- At first it is tiny.
- As it grows it produces more branches.
- Eventually it gives you shade and fruit.
With tools like Round-Ups, which invest your spare change automatically, and regular top-ups, it is easy to stay consistent without needing to think about it all the time.
5. Choose your portfolio and start.
Once you know your goals, understand your risk profile and have your safety net in place, you are ready to invest. We have built ready-made portfolios for different comfort levels. Each portfolio is a mix of investments designed to match different risk profiles so you do not need to pick and choose individual shares yourself. All you need to do is:
- Select the portfolio that suits you best
- Set up your contributions, or let Round-Ups do it automatically
- Keep learning, and growing your investment confidence.
Getting investing ready is not about being an expert. It is about taking small, smart steps so you can begin with confidence. Here at Raiz, you can start investing in minutes from as little as $5 in a portfolio designed to suit you. Remember: The earlier you begin, the more time your money has to grow.
Don’t have the Raiz App?
Download it for free in the App store or the Webapp below:
Important Information
This blog has been issued by Instreet Investment Limited (ACN 128 813 016 AFSL 434776) as Responsible Entity of the Raiz Invest Australia Fund (ARSN 607 533 022) and has been prepared without taking into account your objectives, financial situation or needs. Before acting on such information, you should conduct your own review or consult a financial advisor before making a decision to invest. Please read the relevant Product Disclosure Statement and any associated reference documents before making an investment decision. In accordance with the Design and Distributions Obligations, we maintain Target Market Determinations for our Funds. All documents can be found on the Raiz website www.raizinvest.com.au, or calling the Customer Support team on 1300 754 748. Please note that past performance is not a reliable indicator or guarantee of future performance. Historical returns, forecasts, and market commentary are provided for general informational purposes only. All investment carries risk and may result in loss of capital.
