You don't need a whole lot of money to start investing - in some cases you could start with as little as $1000 depending on the product. What's more important is that you only invest the amount of money you can actually spare.
Working out a realistic investment budget
To make sure you only invest what you can reasonably afford, consider creating an investment budget. One approach is to take all of your income and expenses into account and work out an amount you can spare each month for your investment budget.
You might be able to increase your investment budget by reducing some of your non-essential expenditure, like holidays and entertainment. But you need a budget you can be confident of sticking to, so don't deprive yourself of the things you most enjoy. Be realistic about what you can do without.
Investment Budget - Tip 1
Keep Some Money In Reserve
Investment Budget - Tip 2
Set Up Automatic Deductions
This information is current as at 15/01/2014.
This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs.
Diana Saad is a representative of Westpac Banking Corporation ABN 33 007 457 141 AFSL & ACL 233714.
For illustrative purposes only. Based on a real life examples.