There’s a saying that goes something like ‘the best time to plant a tree was 20 years ago, the second-best time to plant a tree is today.’  That leads me to another favorite of mine, ‘someone is sitting in the shade today, because someone planted a tree a long time ago.’    

But what if you find yourself never having considered planting a tree in the first place – or in the world of investing and saving, where do you begin if you find yourself getting a little older and you’ve never made the first steps to saving and investing for your future?

No matter how old you are, or what stage of life you find yourself in, the key is to act now.  The more time you have on your side, the better.  Don’t delay – you can and should start today.

The common story I often hear from potential investors is that they don’t feel they have enough money to get started or even enough money to make it worthwhile, so they haven’t bothered starting.  The beauty of investing in shares is that you don’t have to have a lot of money to get started, but it’s very important to start.

You can purchase your first parcel of shares for $500* (brokerage costs on top of this).  Once you’ve got your initial parcel of shares, you can add to this over time.  A good style of share to start with would be one that offers a combination of both capital growth, where you’re aiming for the share price to increase in value, and an attractive dividend yield, which is your share of the company profits.

The next most common hurdle I hear from potential investors, is that they don’t have the initial $500 to get started.  My suggestion here is to still start by setting up a regular savings plan, which will kickstart the savings process to buy your first parcel of shares.  You can set-up a savings plan tailored to your needs, whether that be saving $10 or $20 per week, fortnight or month. Once your savings have built up, we purchase you a parcel of shares, and then repeat the process. 

I have helped many clients, at various stages of life with their first investment in shares by saving a small amount each week, and they have all been surprised by the easy process and how quickly their savings have built up.  It’s about taking a little bit of time now, to set up a plan that will make it easy for you to invest consistently over time, and the shares will take care of the rest.  A small amount of regular savings now will make a huge difference to your future. 

A great example of this was a study conducted by The Association of Superannuation Funds in Australia that showed having one less beer or glass of wine per week and instead investing those funds, you could have an extra $48,000* in retirement.  If you cut back by two glasses per week, that could be almost an additional $100,000* for your retirement.

It’s never too early or too late to start investing in shares, it’s just important to get started.  Please give us a call on (07) 5520 8788 to talk to one of our advisors about purchasing your first parcel of shares or any questions you may have.

Georgia Harrison, Operations Manager, Equities & Derivatives Adviser, ADA2 (ASX)

iInvest Securities, Stockbroking & Wealth Management

iInvest Securities Pty Ltd (ABN 44 246 838 283) (“iInvest”) does not guarantee or take responsibility for the accuracy, completeness, estimates or appropriateness of any information or statement of opinion (any of which may change without notice) set out in this communication.

This communication has been provided to you for your general information and does not take into account your objectives, financial situation and needs and must not be relied upon by you as personal financial product advice that has been provided to you by iInvest. If you require advice regarding any aspect of the information and statements of opinion set out in this communication, particularly as to whether you should base an investment decision upon the information or statements of opinion set out in this communication, please contact your financial adviser.

*Past performance is no guarantee of future performance.