How to invest on a shoestring
Investing was once thought to be solely a pursuit of the wealthy, but new money tools have made it possible to invest with as little as a few dollars at a time.
Despite this, many Australians are still under the misconception that to invest you need to have plenty of money, according to Christian Obrist, who is head of the Australian exchange-traded fund (ETF) business of global fund manager BlackRock.
Obrist told Trading Day this means more people are stashing their money in long-term, low-performance saving accounts.
“A lot of cash sits idle in bank accounts. And in the last 10 years in Australia specifically, interest rates have come down [and] you earn less on your term deposits,” he said.
Carla Harris, founder of savings app Longevity agrees that it’s a good time to look out for other alternatives.
“Now that we have seen this innovation of products and opportunities, there’s kind of been this democratisation of investing that then opened it up to the everyday Australian,” Harris explains.
“There has never been a better time for Australians to do more with your money, other than stick it under a mattress or have it in a low-interest bank account.”
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