1 00:00:00,720 --> 00:00:04,359 Speaker 1: Good morning, everyone, and welcome back to Sugar Mama's Fireplay. 2 00:00:04,559 --> 00:00:08,440 Speaker 1: I am your host's financial planner, Cannah Campbell, and as always, 3 00:00:08,920 --> 00:00:13,160 Speaker 1: I'm here every Monday morning at five am, rain, Hail 4 00:00:13,400 --> 00:00:16,040 Speaker 1: or Shine to help make sure that you start your 5 00:00:16,079 --> 00:00:20,000 Speaker 1: week off on a fired up, ignited note so that 6 00:00:20,120 --> 00:00:23,479 Speaker 1: you can achieve your financial goals and dreams efficiently and 7 00:00:23,560 --> 00:00:26,759 Speaker 1: as effectively as possible. Today we are going to be 8 00:00:26,800 --> 00:00:31,280 Speaker 1: talking about how to start investing, focusing on shares. It's 9 00:00:31,320 --> 00:00:35,639 Speaker 1: a one oh one for beginners, and I'm really excited 10 00:00:35,680 --> 00:00:38,199 Speaker 1: to share this with you. So let's waste no time 11 00:00:38,240 --> 00:01:02,840 Speaker 1: at all and get started. Okay, everyone, all right, we 12 00:01:02,880 --> 00:01:05,600 Speaker 1: need to talk about this how to start investing, And 13 00:01:05,680 --> 00:01:08,039 Speaker 1: my apology is if I've never made this clear enough 14 00:01:08,080 --> 00:01:11,200 Speaker 1: as to how to get and start building a share portfolio. 15 00:01:11,200 --> 00:01:13,280 Speaker 1: But this is the perfect episode to be listened to 16 00:01:13,440 --> 00:01:17,520 Speaker 1: if you are ready to start investing in shares now. 17 00:01:17,560 --> 00:01:20,679 Speaker 1: I will say this, making the decision to start investing 18 00:01:20,840 --> 00:01:25,800 Speaker 1: is incredibly exciting and so empowering and you'll never be 19 00:01:25,840 --> 00:01:29,360 Speaker 1: the same person you were before, so a massive congratulations. 20 00:01:29,440 --> 00:01:33,000 Speaker 1: I am cheering you on all the way through. And 21 00:01:33,040 --> 00:01:35,440 Speaker 1: as I like to say, starting is the birthplace of 22 00:01:35,640 --> 00:01:40,920 Speaker 1: all success. So you have officially begun your financial journey 23 00:01:41,040 --> 00:01:45,600 Speaker 1: towards financial freedom and independence. I am incredibly excited. Now 24 00:01:45,640 --> 00:01:48,000 Speaker 1: there is a lot to consider when it comes to investing, 25 00:01:48,800 --> 00:01:50,720 Speaker 1: and I want to make sure that I can break 26 00:01:50,720 --> 00:01:54,200 Speaker 1: this down for you so it's as easy as possible 27 00:01:54,280 --> 00:01:58,520 Speaker 1: to absorb and digest so that you know exactly what 28 00:01:58,640 --> 00:02:01,880 Speaker 1: to do. So before I begin, I must do my 29 00:02:02,080 --> 00:02:06,400 Speaker 1: very quick ascic disclaimer, and that is, of course, all 30 00:02:06,440 --> 00:02:08,560 Speaker 1: of my advice is general in nature and have a 31 00:02:08,600 --> 00:02:12,000 Speaker 1: personal product or investment advice, so please bear that in mind, 32 00:02:12,200 --> 00:02:14,480 Speaker 1: and at any stage, if you don't know what you're doing, 33 00:02:14,680 --> 00:02:16,639 Speaker 1: make an appointment and go and see a financial planet 34 00:02:16,680 --> 00:02:20,040 Speaker 1: because they can most definitely help you. But this is 35 00:02:20,280 --> 00:02:23,840 Speaker 1: the one oh one on how to start investing with 36 00:02:23,919 --> 00:02:28,359 Speaker 1: a focus on shares. All right, To get started, Number one, 37 00:02:28,880 --> 00:02:31,840 Speaker 1: you've got to be ready. Just like painting a wall, 38 00:02:32,360 --> 00:02:33,960 Speaker 1: you need to do a bit of pre prep if 39 00:02:34,000 --> 00:02:35,399 Speaker 1: you want to make sure you do a great job 40 00:02:35,400 --> 00:02:38,600 Speaker 1: of painting that wall. You may need to sugar soap 41 00:02:38,639 --> 00:02:40,679 Speaker 1: the walls. You may need to put down some drop 42 00:02:40,720 --> 00:02:43,840 Speaker 1: sheets you don't damage the carpet or the floor. You 43 00:02:43,880 --> 00:02:46,120 Speaker 1: may need to go and clean those brushes, and you 44 00:02:46,160 --> 00:02:48,639 Speaker 1: may need to even do a few test patches on 45 00:02:48,680 --> 00:02:50,680 Speaker 1: the walls to make sure it's the right shade of 46 00:02:50,720 --> 00:02:55,160 Speaker 1: color for that wall. Investing is exactly the same. You 47 00:02:55,320 --> 00:02:57,760 Speaker 1: do need to do a lot of prep beforehand. So 48 00:02:57,760 --> 00:02:59,359 Speaker 1: I want to explain this to you so that when 49 00:02:59,400 --> 00:03:02,080 Speaker 1: you do start, you are one hundred percent ready and 50 00:03:02,160 --> 00:03:04,040 Speaker 1: you know and understand exactly what you're doing, and you 51 00:03:04,120 --> 00:03:07,200 Speaker 1: understand the fees, the risks, the costs, and you understand 52 00:03:07,240 --> 00:03:09,880 Speaker 1: all the benefits because when you do that, there are 53 00:03:09,880 --> 00:03:12,160 Speaker 1: no sacrifices because it's all worth it and part of 54 00:03:12,200 --> 00:03:15,160 Speaker 1: the journey, and you may actually feel really good about yourself. 55 00:03:15,760 --> 00:03:18,120 Speaker 1: So how to be ready? Okay, Well, the first thing 56 00:03:18,160 --> 00:03:20,600 Speaker 1: is is you need to understand to not waste any 57 00:03:20,639 --> 00:03:22,799 Speaker 1: time at all. The sooner you can get started, the better. 58 00:03:23,280 --> 00:03:26,160 Speaker 1: Whilst I started investing it, I think around about age nineteen, 59 00:03:26,600 --> 00:03:29,680 Speaker 1: I really actually wish I'd started even sooner, and I 60 00:03:29,840 --> 00:03:34,480 Speaker 1: actually wish I had been more aggressive with my investment journey. 61 00:03:34,600 --> 00:03:36,480 Speaker 1: You know, I think back to my early twenties, before 62 00:03:36,520 --> 00:03:39,800 Speaker 1: I had children and large fincial responsibilities, I had so 63 00:03:39,840 --> 00:03:42,680 Speaker 1: much more disposable cash, and I bought a lot of 64 00:03:42,800 --> 00:03:44,840 Speaker 1: stuff that I have nothing to show for today. I 65 00:03:44,880 --> 00:03:47,520 Speaker 1: wish I'd had a bit of a better balance and 66 00:03:47,560 --> 00:03:49,760 Speaker 1: maybe being a bit stricter with myself and put more 67 00:03:49,800 --> 00:03:53,760 Speaker 1: money into my investments now. The reason why the sooner 68 00:03:53,800 --> 00:03:56,920 Speaker 1: you get started, the better is because it's the story 69 00:03:56,960 --> 00:04:00,720 Speaker 1: of compounding interest. The longer you allow your returns the 70 00:04:00,760 --> 00:04:08,240 Speaker 1: opportunity to compound, means the greater wealth creation opportunities for you. However, 71 00:04:08,600 --> 00:04:12,200 Speaker 1: before you do get started with investing, it's important that 72 00:04:12,240 --> 00:04:16,040 Speaker 1: you do that pre prep, like that painting prep. So 73 00:04:16,279 --> 00:04:19,560 Speaker 1: what does this mean when it comes to investing and finance, Well, 74 00:04:19,640 --> 00:04:22,400 Speaker 1: it means clearing any toxic debt out of your life 75 00:04:22,400 --> 00:04:26,040 Speaker 1: before you start investing. Car Loans, credit cards, buy now, 76 00:04:26,120 --> 00:04:32,760 Speaker 1: pay later payments, anything that's toxic debt, clear payoff before 77 00:04:32,800 --> 00:04:37,440 Speaker 1: you start investing. The reason why is it doesn't make 78 00:04:37,480 --> 00:04:40,279 Speaker 1: sense financially normally, when it comes to toxic debt. The 79 00:04:40,360 --> 00:04:44,039 Speaker 1: interest rate attached to those types of debt products is 80 00:04:44,120 --> 00:04:47,160 Speaker 1: much higher than what you would earn. So why would 81 00:04:47,200 --> 00:04:49,479 Speaker 1: you be paying, for example, eleven percent interest on a 82 00:04:49,480 --> 00:04:52,200 Speaker 1: credit card when you're earning a difend of say four 83 00:04:52,240 --> 00:04:55,920 Speaker 1: percent from shares. It doesn't make sense, it's an inefficient 84 00:04:56,000 --> 00:04:59,560 Speaker 1: use of your money. You'd be better off waiting to invest, 85 00:04:59,600 --> 00:05:01,520 Speaker 1: and that doesn't may not investing at all. It just 86 00:05:01,560 --> 00:05:04,359 Speaker 1: means start educating yourself and use that time efficiently. But 87 00:05:04,400 --> 00:05:07,520 Speaker 1: in the meantime, surpus cash flow goes towards paying off 88 00:05:07,560 --> 00:05:10,480 Speaker 1: that debt so that you can start investing with a 89 00:05:10,640 --> 00:05:14,520 Speaker 1: fresh slate. Also, I need to point out investing is 90 00:05:14,520 --> 00:05:17,920 Speaker 1: a long term strategy. It's not something that you do 91 00:05:18,400 --> 00:05:21,159 Speaker 1: for saving up for a short term expense, like a 92 00:05:21,200 --> 00:05:24,840 Speaker 1: deposit for a home. Investing, particularly around shares, is a 93 00:05:24,880 --> 00:05:27,880 Speaker 1: long term investment strategy, at least ten to fifteen twenty years, 94 00:05:27,920 --> 00:05:30,919 Speaker 1: if not longer. So it's important that you understand this, 95 00:05:31,440 --> 00:05:33,680 Speaker 1: and for that reason, it is so important that you 96 00:05:33,760 --> 00:05:36,599 Speaker 1: have emergency money and that emergency money is kept in 97 00:05:36,640 --> 00:05:41,600 Speaker 1: cash at all times. Investments, particularly shares that's what we're 98 00:05:41,600 --> 00:05:46,080 Speaker 1: really focusing on today, are highly volatile. They fluctuate up 99 00:05:46,120 --> 00:05:48,240 Speaker 1: and down like a yo yo, and they are subject 100 00:05:48,320 --> 00:05:52,359 Speaker 1: to dramatic changes with market pullbacks and corrections. If you 101 00:05:52,400 --> 00:05:54,960 Speaker 1: get yourself in a situation where you don't have emergency 102 00:05:55,000 --> 00:05:58,240 Speaker 1: money or have enough emergency money, you may be backed 103 00:05:58,360 --> 00:06:00,520 Speaker 1: just to the corner where you're forced to sell some 104 00:06:00,600 --> 00:06:03,480 Speaker 1: of your investments at a bad time, which may mean 105 00:06:04,000 --> 00:06:08,800 Speaker 1: crystallizing a capital loss and having to pay unnecessary brokerage 106 00:06:08,839 --> 00:06:11,320 Speaker 1: along the way, and it may mean it's a big 107 00:06:11,480 --> 00:06:15,839 Speaker 1: debt or step backwards financially. So understand that all of 108 00:06:15,880 --> 00:06:18,359 Speaker 1: your short to medium term expenses must be kept in 109 00:06:18,400 --> 00:06:22,480 Speaker 1: a conservative, safe environment such as a term deposit or 110 00:06:22,480 --> 00:06:25,880 Speaker 1: an online savings account. And this includes a deposit for 111 00:06:25,920 --> 00:06:28,440 Speaker 1: a homeland. If you're looking to buy something you know 112 00:06:28,480 --> 00:06:32,320 Speaker 1: within the next five years long term investments, you've got 113 00:06:32,360 --> 00:06:35,400 Speaker 1: that benefit time, so you can look at something that 114 00:06:35,600 --> 00:06:37,760 Speaker 1: is you know, something like a share portfolio or an 115 00:06:37,800 --> 00:06:41,160 Speaker 1: investment property portfolio where there is that natural market volatility. 116 00:06:41,480 --> 00:06:45,920 Speaker 1: But promise me this your pre prep prep is to 117 00:06:46,000 --> 00:06:50,560 Speaker 1: clear any toxic debt and have emergency money set aside 118 00:06:50,680 --> 00:06:53,080 Speaker 1: and you nickname that money by emergency money so you 119 00:06:53,120 --> 00:06:55,080 Speaker 1: never get tempted to use it for something else or 120 00:06:55,120 --> 00:06:57,440 Speaker 1: to go and invest it thinking that can be your 121 00:06:57,440 --> 00:07:00,599 Speaker 1: emergency money. It must stay in cash. It's safe and 122 00:07:00,640 --> 00:07:04,880 Speaker 1: secure for your needs. Number two is goals. It is 123 00:07:04,920 --> 00:07:08,120 Speaker 1: important as you set goals and you then get excited 124 00:07:08,120 --> 00:07:10,280 Speaker 1: about goals because you've set the right type of goals. 125 00:07:11,000 --> 00:07:14,520 Speaker 1: So when it comes to goals, what sort of goals 126 00:07:14,680 --> 00:07:16,680 Speaker 1: should you be setting and what should you be thinking 127 00:07:16,760 --> 00:07:20,000 Speaker 1: about to help work out those goals? Well, the first 128 00:07:20,040 --> 00:07:22,240 Speaker 1: thing I would think about is your why. Why do 129 00:07:22,280 --> 00:07:24,080 Speaker 1: you want to start investing? What is it about you 130 00:07:24,160 --> 00:07:27,640 Speaker 1: that intrigues you or makes you excited or curious or 131 00:07:27,720 --> 00:07:32,200 Speaker 1: motivated or inspired? Is it security? Is it the sense 132 00:07:32,240 --> 00:07:35,840 Speaker 1: of independence? Is it something more tangible like being able 133 00:07:35,880 --> 00:07:38,120 Speaker 1: to retire at age fifty five instead of sixty five? 134 00:07:39,280 --> 00:07:42,400 Speaker 1: Is it the idea of working part time? Instead of 135 00:07:42,440 --> 00:07:44,240 Speaker 1: having to do five days a week at the office 136 00:07:44,280 --> 00:07:46,760 Speaker 1: you do two or three days a week. Work out 137 00:07:46,800 --> 00:07:49,640 Speaker 1: what your why is, and when you know your why, 138 00:07:49,800 --> 00:07:53,800 Speaker 1: it becomes a non negotiable and it accesses this very 139 00:07:54,320 --> 00:07:59,440 Speaker 1: sort of invaluable tool to help stop you making silly decisions. 140 00:08:00,000 --> 00:08:05,000 Speaker 1: I know, for myself personally, my why is security, independence, 141 00:08:05,120 --> 00:08:08,160 Speaker 1: and peace of mind. To me. My why has it 142 00:08:08,240 --> 00:08:11,400 Speaker 1: evolved over time, particularly in having children. So when I 143 00:08:11,440 --> 00:08:14,400 Speaker 1: am going to buy myself something and I might come 144 00:08:14,440 --> 00:08:16,040 Speaker 1: to a pint where I go do I really want that? 145 00:08:16,720 --> 00:08:21,520 Speaker 1: I'll ask myself what's my why? With investing? Now? There 146 00:08:21,520 --> 00:08:23,800 Speaker 1: are times where I'll be looking, for example, that a 147 00:08:23,840 --> 00:08:27,160 Speaker 1: new dress or a pair of shoes, and I'll think, no, 148 00:08:27,440 --> 00:08:29,440 Speaker 1: I really want that dress. Where I really want those 149 00:08:29,480 --> 00:08:31,400 Speaker 1: pair of shoes, and I'll buy them. And that's okay 150 00:08:31,600 --> 00:08:35,240 Speaker 1: because I prioritize my finances first. But there are times 151 00:08:35,240 --> 00:08:39,199 Speaker 1: where I go, actually, though, that two hundred dollars dress 152 00:08:39,240 --> 00:08:41,640 Speaker 1: or two hundred dollar a pair of shoes, I prefer 153 00:08:41,720 --> 00:08:44,560 Speaker 1: that actually in my share portfolio, buying me more passive 154 00:08:44,559 --> 00:08:49,120 Speaker 1: income streams. It's a great point of comparison and to 155 00:08:49,200 --> 00:08:52,640 Speaker 1: help bring things back into perspective and make you accountable 156 00:08:52,880 --> 00:08:56,360 Speaker 1: and being I guess responsible with your money. So in 157 00:08:56,400 --> 00:09:00,720 Speaker 1: this time exploring your why, also with your why, you 158 00:09:00,800 --> 00:09:05,160 Speaker 1: need to get clear. Money loves definition and clarity. So 159 00:09:05,480 --> 00:09:09,080 Speaker 1: understand why you want to invest and how much you 160 00:09:09,120 --> 00:09:12,720 Speaker 1: want to invest and by when and when I say 161 00:09:12,760 --> 00:09:15,160 Speaker 1: by when. Obviously I'm talking about a deadline, but not 162 00:09:15,200 --> 00:09:20,200 Speaker 1: a flaky deadline, a deadline that is defined date. For example, 163 00:09:20,280 --> 00:09:23,199 Speaker 1: the first December twenty twenty four, I want to have 164 00:09:23,280 --> 00:09:27,280 Speaker 1: invested ten thousand dollars into the share market. It gives 165 00:09:27,320 --> 00:09:30,400 Speaker 1: your goal so much more weight and makes you so 166 00:09:30,480 --> 00:09:34,680 Speaker 1: much more accountable and also plants those seeds that create 167 00:09:35,200 --> 00:09:37,720 Speaker 1: a greater call to action partic if you can read 168 00:09:37,760 --> 00:09:40,960 Speaker 1: those goals on a daily basis. If you write a 169 00:09:41,000 --> 00:09:44,080 Speaker 1: goal to start investing within the three months, you are 170 00:09:44,080 --> 00:09:48,440 Speaker 1: constantly pushing that deadline always away into three months, I 171 00:09:48,720 --> 00:09:51,360 Speaker 1: pretty much will guarantee nothing really will happen or of 172 00:09:51,480 --> 00:09:53,679 Speaker 1: any action you do take will be very sort of 173 00:09:53,800 --> 00:09:57,000 Speaker 1: average and flaky. We don't do flaky on fireplay here. 174 00:09:57,360 --> 00:09:59,520 Speaker 1: We want results and we want to be able to 175 00:09:59,559 --> 00:10:02,880 Speaker 1: show something for all of our hard work. So think 176 00:10:02,920 --> 00:10:05,760 Speaker 1: about your goals, exciting goals and your why behind the goal. 177 00:10:05,880 --> 00:10:09,680 Speaker 1: Give your goal meaning, give it some detail and definition amounts, 178 00:10:10,080 --> 00:10:12,520 Speaker 1: and give it a deadline. You also need to be 179 00:10:12,559 --> 00:10:15,720 Speaker 1: thinking about what you want to help make sure that 180 00:10:15,760 --> 00:10:18,880 Speaker 1: your goals really do supercharge you and make you stay 181 00:10:18,920 --> 00:10:22,559 Speaker 1: focused and committed and dedicated. Try and write them down 182 00:10:23,160 --> 00:10:25,120 Speaker 1: and put them somewhere where you can see them every 183 00:10:25,160 --> 00:10:28,080 Speaker 1: single day, inside your diary or a note on your phone, 184 00:10:28,200 --> 00:10:30,320 Speaker 1: or even sometimes what I've done in the past has 185 00:10:30,360 --> 00:10:33,320 Speaker 1: got grabbed a Posca pen and written it on the 186 00:10:33,360 --> 00:10:36,720 Speaker 1: outside of my shower glass, so when I'm in the shower, 187 00:10:36,840 --> 00:10:38,760 Speaker 1: I can actually see my goals in front of me. 188 00:10:38,960 --> 00:10:41,840 Speaker 1: Every evening, when I have a shower before going to bed, 189 00:10:42,480 --> 00:10:45,280 Speaker 1: or maybe it's just a note written where your toothbrush 190 00:10:45,400 --> 00:10:47,720 Speaker 1: and toothpaste are kempt. It's completely up to you. But 191 00:10:48,200 --> 00:10:50,400 Speaker 1: reminding yourself every day as to what you're working on 192 00:10:50,559 --> 00:10:55,079 Speaker 1: and why, really we'll see some changes in your behaviors 193 00:10:55,080 --> 00:10:57,840 Speaker 1: without you even thinking about it. It makes the journey 194 00:10:57,880 --> 00:11:01,480 Speaker 1: actually a lot easier and more empowering, and you'll see 195 00:11:01,760 --> 00:11:04,640 Speaker 1: bigger results, faster results, and a bigger impact in the 196 00:11:04,640 --> 00:11:07,160 Speaker 1: way that you use money and spend money. And I 197 00:11:07,240 --> 00:11:10,080 Speaker 1: know this because I do this myself every day. Number 198 00:11:10,160 --> 00:11:13,160 Speaker 1: three when it comes to investing for beginners is what 199 00:11:13,280 --> 00:11:15,520 Speaker 1: is your plan? What is your game plan? If we 200 00:11:15,520 --> 00:11:18,360 Speaker 1: can have a game plan clearly mapped out before we begin, 201 00:11:18,960 --> 00:11:20,680 Speaker 1: it means we're actually going to get on and do 202 00:11:20,760 --> 00:11:22,880 Speaker 1: things and we can follow the formula and the steps, 203 00:11:23,360 --> 00:11:26,120 Speaker 1: just like we'd be following a recipe and the instructions 204 00:11:26,120 --> 00:11:28,320 Speaker 1: to create the meal. We're going to be cooking money. 205 00:11:28,320 --> 00:11:30,400 Speaker 1: We're gonna be cooking wealth here, We're going to be 206 00:11:30,400 --> 00:11:32,839 Speaker 1: cooking with gas, and we're going to be bubbling away 207 00:11:32,960 --> 00:11:35,679 Speaker 1: nicely when we have a game plan. But to create 208 00:11:35,720 --> 00:11:38,040 Speaker 1: a game plan, we need to invest time in creating 209 00:11:38,040 --> 00:11:40,680 Speaker 1: that game plan. So what goes into the game plan? Well, 210 00:11:41,000 --> 00:11:43,560 Speaker 1: lots of things. Grab a piece of paper and a 211 00:11:43,559 --> 00:11:45,199 Speaker 1: pending because I've got lots to share with you here. 212 00:11:45,600 --> 00:11:48,920 Speaker 1: You really need to think about your investment plan, your style. 213 00:11:49,640 --> 00:11:51,800 Speaker 1: Are you going to be an investor that's purely focused 214 00:11:51,800 --> 00:11:54,120 Speaker 1: around capital growth that is, like just building wealth. You 215 00:11:54,160 --> 00:11:57,680 Speaker 1: don't really care about the income or the passive income 216 00:11:57,720 --> 00:11:59,240 Speaker 1: of the investments. You just want to see what it's 217 00:11:59,280 --> 00:12:01,560 Speaker 1: worth us about buying something for a dollar and seeing 218 00:12:01,600 --> 00:12:03,800 Speaker 1: it grow to at a dollar fifty? Is that your strategy? 219 00:12:03,840 --> 00:12:06,160 Speaker 1: Is that what you want? Or perhaps you're more focused 220 00:12:06,200 --> 00:12:09,120 Speaker 1: on building the passive income. You don't really mind as 221 00:12:09,160 --> 00:12:12,000 Speaker 1: to what you're buying, whether growth, you're really interested in 222 00:12:12,080 --> 00:12:14,440 Speaker 1: how much money that's investment's going to be putting back 223 00:12:14,480 --> 00:12:18,200 Speaker 1: in your pocket, that is, you know, a passive income investor. Also, 224 00:12:18,360 --> 00:12:21,240 Speaker 1: how much time have you got for this this wealth 225 00:12:21,240 --> 00:12:25,480 Speaker 1: accumulation plan. Some investors, what we call active investors, they're 226 00:12:25,520 --> 00:12:28,240 Speaker 1: constantly looking at their portfolio. They're jumping in and out 227 00:12:28,240 --> 00:12:30,880 Speaker 1: of stocks all the time, and they're very much about, 228 00:12:30,960 --> 00:12:33,040 Speaker 1: you know, jumping on something that's going to grow in 229 00:12:33,120 --> 00:12:34,960 Speaker 1: value and then it grows in value and they quickly 230 00:12:35,040 --> 00:12:36,880 Speaker 1: jump out it and sell it and crystallize that gain 231 00:12:36,920 --> 00:12:38,880 Speaker 1: and then move on to the next one. Yes, that 232 00:12:38,960 --> 00:12:41,079 Speaker 1: molds a lot of time. Yes, that involves a lot 233 00:12:41,120 --> 00:12:44,080 Speaker 1: more risk, and yes you're incurring greater fees along the way, 234 00:12:44,080 --> 00:12:47,560 Speaker 1: particularly tax and brokerage. But some people like that, and 235 00:12:47,600 --> 00:12:49,520 Speaker 1: there's no wrong or right. It's just what's right for you. 236 00:12:50,200 --> 00:12:52,880 Speaker 1: Or perhaps you're more like me, you're a long term 237 00:12:52,960 --> 00:12:57,960 Speaker 1: buy and hold investor like Warren Buffett. You like seeing value, 238 00:12:58,000 --> 00:13:00,319 Speaker 1: and if you see value, you think, okay, hey, well 239 00:13:00,320 --> 00:13:02,960 Speaker 1: that trust stock normally trains trades that say thirty dollars, 240 00:13:02,960 --> 00:13:05,640 Speaker 1: but now it's down to twenty eight dollars. I've had 241 00:13:05,640 --> 00:13:07,360 Speaker 1: my eye on that stock for a really long time. 242 00:13:07,360 --> 00:13:10,440 Speaker 1: It's a great company, and I'm a long term investor. 243 00:13:10,840 --> 00:13:12,760 Speaker 1: I want to buy that stock. You need to be 244 00:13:12,800 --> 00:13:15,240 Speaker 1: thinking about those things so that when you begin, you 245 00:13:15,360 --> 00:13:18,480 Speaker 1: hit the ground running. The other thing you need to 246 00:13:18,520 --> 00:13:21,360 Speaker 1: be thinking about is what do you want to invest in? 247 00:13:22,360 --> 00:13:24,520 Speaker 1: Do you want to be investing in ETFs? Do you 248 00:13:24,600 --> 00:13:28,040 Speaker 1: want to be investing in listed investment companies? Do you 249 00:13:28,080 --> 00:13:31,199 Speaker 1: want to make sure that you have a ethical consideration 250 00:13:31,400 --> 00:13:35,719 Speaker 1: to your investments, esg investing. These are things you need 251 00:13:35,760 --> 00:13:40,480 Speaker 1: to explore before you begin. And as you start going 252 00:13:40,480 --> 00:13:44,520 Speaker 1: through this progress you really do learn a lot about yourself. 253 00:13:44,679 --> 00:13:47,400 Speaker 1: Then when you understand about what you want to invest in, 254 00:13:47,440 --> 00:13:49,880 Speaker 1: and I do recommend doing a risk profile, which is 255 00:13:49,960 --> 00:13:53,559 Speaker 1: you can access through the Vanguard website. It's about thirteen questions, 256 00:13:53,559 --> 00:13:55,600 Speaker 1: it's free, gives you a great guide as to how 257 00:13:55,600 --> 00:13:59,240 Speaker 1: you invest. You can then look at the actual strategy 258 00:13:59,280 --> 00:14:02,280 Speaker 1: behind your gain plan. All right, so, are you going 259 00:14:02,320 --> 00:14:04,360 Speaker 1: to be investing just a lump signed amount of money 260 00:14:04,440 --> 00:14:08,480 Speaker 1: upfront and that's it, or perhaps you're going to be 261 00:14:08,480 --> 00:14:11,880 Speaker 1: investing on a regular basis such as two hundred dollars 262 00:14:11,880 --> 00:14:14,319 Speaker 1: per month or one thousand dollars per month, or maybe 263 00:14:14,320 --> 00:14:16,200 Speaker 1: you're going to be doing a combination of the both. 264 00:14:16,200 --> 00:14:18,160 Speaker 1: You've got five thousand dollars to invest initially and you're 265 00:14:18,160 --> 00:14:20,480 Speaker 1: going to be putting one thousand dollars per month. Again, 266 00:14:20,520 --> 00:14:22,360 Speaker 1: there's no wrong or right answer here, but you need 267 00:14:22,360 --> 00:14:25,800 Speaker 1: to understand what your strategy is behind your game plan. 268 00:14:26,680 --> 00:14:30,680 Speaker 1: And I will say this, I don't care how much 269 00:14:30,720 --> 00:14:32,600 Speaker 1: money or how little money you have to invest. All 270 00:14:32,600 --> 00:14:36,640 Speaker 1: I care about is getting you started as soon as possible. 271 00:14:37,280 --> 00:14:39,160 Speaker 1: So if you say, well, I've only got a thousand 272 00:14:39,160 --> 00:14:42,800 Speaker 1: to invest, why would I bother just start a thousand dollars. 273 00:14:42,840 --> 00:14:45,040 Speaker 1: Is where I began with a thousand dollars project portfolio, 274 00:14:45,080 --> 00:14:47,680 Speaker 1: which is now worth two hundred and eighty five thousand dollars. 275 00:14:48,040 --> 00:14:50,480 Speaker 1: All I have done is invested one thousand dollars at 276 00:14:50,480 --> 00:14:52,320 Speaker 1: a time. I'd save one thousand dollars, or a hustle 277 00:14:52,320 --> 00:14:54,840 Speaker 1: one thousand dollars, or manifest a thousand dollars. The moment 278 00:14:54,880 --> 00:14:56,560 Speaker 1: I had one thousand dollars, I just went invested it. 279 00:14:56,600 --> 00:14:58,160 Speaker 1: Sometimes it took me months to come up with that 280 00:14:58,200 --> 00:15:00,600 Speaker 1: thousand dollars. Sometimes it would happen very very quick, but 281 00:15:00,680 --> 00:15:03,040 Speaker 1: I just did it. That was That was my strategy 282 00:15:03,320 --> 00:15:06,360 Speaker 1: behind my game plan. Or if you're someone who's like, 283 00:15:06,600 --> 00:15:08,720 Speaker 1: I've only got one hundred dollars a month to invest, 284 00:15:09,200 --> 00:15:11,440 Speaker 1: that doesn't matter, that's still great. One hundred dollars is 285 00:15:11,480 --> 00:15:13,480 Speaker 1: better than nothing, and one hundred dollars is better than 286 00:15:13,520 --> 00:15:16,320 Speaker 1: one dollar. Start with one hundred dollars, and when you 287 00:15:16,360 --> 00:15:19,600 Speaker 1: commit to that regular strategy, it's really powerful because you're 288 00:15:19,640 --> 00:15:23,000 Speaker 1: dollar cost averaging through a moving market, which helps reduce risk. 289 00:15:23,360 --> 00:15:27,680 Speaker 1: But also as opportunities present themselves, which they will, you 290 00:15:27,760 --> 00:15:29,800 Speaker 1: can increase that from one hundred dollars to one hundred 291 00:15:29,840 --> 00:15:32,000 Speaker 1: and twenty, and then five months later it might be 292 00:15:32,040 --> 00:15:34,080 Speaker 1: able to go to two hundred dollars a month. And 293 00:15:34,080 --> 00:15:37,800 Speaker 1: then you'll get pay rises and promotions, you'll change jobs, 294 00:15:37,840 --> 00:15:40,800 Speaker 1: you'll get tax cuts hopefully which most of Australians are 295 00:15:40,800 --> 00:15:44,120 Speaker 1: getting in July this year. There'll be all sorts of things. 296 00:15:44,160 --> 00:15:47,200 Speaker 1: There may be also ad hoc money that comes your way, bonuses, 297 00:15:47,400 --> 00:15:51,680 Speaker 1: tax refunds, win falls, you might inherit some money. And 298 00:15:51,760 --> 00:15:54,840 Speaker 1: the whole thing about these things is because you've already 299 00:15:54,880 --> 00:15:59,280 Speaker 1: got the movement happening, the game plan in place. When 300 00:15:59,320 --> 00:16:02,080 Speaker 1: that money comes, you know exactly where to put it, 301 00:16:02,240 --> 00:16:05,120 Speaker 1: and you do it because you've already been doing it previously. 302 00:16:05,160 --> 00:16:07,400 Speaker 1: It's like a no brainer. You're like, oh, I just 303 00:16:07,440 --> 00:16:09,880 Speaker 1: got a bonus of five thousand dollars that's going straight 304 00:16:09,920 --> 00:16:11,680 Speaker 1: to my share portfolio, and I'm going to add to 305 00:16:11,720 --> 00:16:13,880 Speaker 1: that and it's going to take me one step closer. 306 00:16:14,280 --> 00:16:16,920 Speaker 1: You know exactly what you're doing. You've got purpose, and 307 00:16:17,000 --> 00:16:19,560 Speaker 1: you've got direction and clarity in your life from this 308 00:16:19,680 --> 00:16:22,480 Speaker 1: game plan. The other thing you want to be thinking 309 00:16:22,520 --> 00:16:24,880 Speaker 1: about for your game plan is those dividends. What do 310 00:16:24,880 --> 00:16:26,880 Speaker 1: you want to do with those dividends? Do you want 311 00:16:26,880 --> 00:16:29,400 Speaker 1: to go and spend those dividends, and of course you've 312 00:16:29,400 --> 00:16:32,600 Speaker 1: got to recount for tax along the way, or perhaps 313 00:16:32,640 --> 00:16:37,320 Speaker 1: you want to be reinvesting those dividends. Now that's great 314 00:16:37,400 --> 00:16:41,520 Speaker 1: because again you're this compounding interest working. It's magic for you. 315 00:16:42,280 --> 00:16:44,400 Speaker 1: And that would then mean that you were going to 316 00:16:45,000 --> 00:16:47,600 Speaker 1: hopefully see your wealth start to accumulate on a faster, 317 00:16:47,720 --> 00:16:51,400 Speaker 1: more efficient manner. But the thing with the dividends, you've 318 00:16:51,400 --> 00:16:53,760 Speaker 1: got to make sure that you keep your portfolio diversified. 319 00:16:53,760 --> 00:16:55,640 Speaker 1: So how are you going to keep it diversified? And 320 00:16:55,680 --> 00:16:57,600 Speaker 1: what I mean by diversification is you never want to 321 00:16:57,600 --> 00:16:59,560 Speaker 1: put all of your eggs in one basket because you 322 00:16:59,560 --> 00:17:05,480 Speaker 1: may be proposing yourself to unnecessary investment risk and unnecessary 323 00:17:05,880 --> 00:17:09,280 Speaker 1: levels of high market volatility. So again this is about 324 00:17:09,280 --> 00:17:12,640 Speaker 1: coming back to your goals and what you want to achieve. 325 00:17:13,240 --> 00:17:14,720 Speaker 1: Do you want to build a passive income or do 326 00:17:14,720 --> 00:17:17,000 Speaker 1: you want to build capital growth? And these are the 327 00:17:17,000 --> 00:17:20,280 Speaker 1: things you consider as part of that game plan. There 328 00:17:20,280 --> 00:17:22,960 Speaker 1: are also things you may want to consider but not 329 00:17:23,000 --> 00:17:25,480 Speaker 1: necessarily put in your game plan straight away, and that 330 00:17:25,600 --> 00:17:27,880 Speaker 1: is further down the track, do you want to maybe 331 00:17:27,880 --> 00:17:30,840 Speaker 1: look at a gearing strategy such as incorporating a margin loan, 332 00:17:31,040 --> 00:17:32,800 Speaker 1: and that is, you know, when you borrow money against 333 00:17:32,840 --> 00:17:36,080 Speaker 1: your existing share portfolio to be able to require more shares. 334 00:17:36,720 --> 00:17:38,960 Speaker 1: It is a high risk strategy, but for some people 335 00:17:39,000 --> 00:17:41,720 Speaker 1: at the right time, it can be very very powerful. 336 00:17:41,720 --> 00:17:44,160 Speaker 1: And not that this is advice that I'm just sharing 337 00:17:44,160 --> 00:17:47,040 Speaker 1: this with you, but about five years into the thousand 338 00:17:47,080 --> 00:17:49,480 Speaker 1: dollars project to out a margin loan for it, there 339 00:17:49,520 --> 00:17:52,719 Speaker 1: is a forty two thousand dollars margin loan attached to 340 00:17:52,720 --> 00:17:55,680 Speaker 1: that two hundred and eighty five thousand dollars investment portfolio, 341 00:17:55,680 --> 00:17:58,159 Speaker 1: and that margin loan help build the portfolio as to 342 00:17:58,200 --> 00:18:00,320 Speaker 1: what it is today, and there are ways of managing 343 00:18:00,359 --> 00:18:03,000 Speaker 1: those risks in a smart, intelligent way. The other thing 344 00:18:03,040 --> 00:18:05,320 Speaker 1: you need to think about, from a I guess a 345 00:18:05,400 --> 00:18:08,639 Speaker 1: game plan is how are you going to stay on 346 00:18:08,720 --> 00:18:10,960 Speaker 1: top of your portfolio? How are you going to monitor it? 347 00:18:11,000 --> 00:18:12,360 Speaker 1: Are you going to be checking it once a week 348 00:18:12,440 --> 00:18:14,000 Speaker 1: or are you going to check it once a month 349 00:18:14,080 --> 00:18:16,840 Speaker 1: or once every three months. Myself personally, the time I 350 00:18:16,920 --> 00:18:19,320 Speaker 1: check it is when I'm buying more shares, and if 351 00:18:19,359 --> 00:18:20,960 Speaker 1: I haven't brought shares for a while, probably once a 352 00:18:21,040 --> 00:18:23,520 Speaker 1: quarter if that. But again, I'm just checking it to 353 00:18:23,560 --> 00:18:26,440 Speaker 1: make sure I'm diversified and that that passive income is growing, 354 00:18:26,480 --> 00:18:29,639 Speaker 1: because I'm a passive income investor and I'm a growing 355 00:18:29,680 --> 00:18:32,560 Speaker 1: passive income investor. The other thing you need to also 356 00:18:32,640 --> 00:18:35,800 Speaker 1: set yourself up for is tax. Any income paid too 357 00:18:35,880 --> 00:18:38,680 Speaker 1: needs to be declared in your tax returns, so you'll 358 00:18:38,680 --> 00:18:40,720 Speaker 1: need to account for that. And this is where you 359 00:18:40,800 --> 00:18:43,000 Speaker 1: think about, Okay, well, what trading platform which I'll come 360 00:18:43,000 --> 00:18:45,679 Speaker 1: to in a second, might be the right one for me, 361 00:18:46,160 --> 00:18:48,160 Speaker 1: and making sure of course that all of those tools 362 00:18:48,240 --> 00:18:50,879 Speaker 1: are available for you. So that is all part of 363 00:18:50,880 --> 00:18:53,159 Speaker 1: your game plan, and that's probably the hardest part of all. 364 00:18:53,200 --> 00:18:55,560 Speaker 1: Once you've got that, and again it doesn't need to 365 00:18:55,560 --> 00:18:57,880 Speaker 1: be set in stone. You can make your game plan flexible, 366 00:18:57,920 --> 00:19:00,320 Speaker 1: so you may start with just the simple basics, and 367 00:19:00,359 --> 00:19:03,720 Speaker 1: as you become more educated and sophisticated investor, you tweak 368 00:19:03,760 --> 00:19:05,720 Speaker 1: and change that game plan. I'm always doing that with 369 00:19:05,800 --> 00:19:09,480 Speaker 1: myself personally, right next number four, And that is your 370 00:19:09,560 --> 00:19:13,159 Speaker 1: educational journey. Even as a financial planner, I am constantly 371 00:19:13,280 --> 00:19:17,679 Speaker 1: learning new things all the time. Legislation changes, loopholes change, 372 00:19:17,720 --> 00:19:20,879 Speaker 1: there's new rules, there's new caps, there's new limits, there 373 00:19:20,880 --> 00:19:24,040 Speaker 1: are new ideas, there are new products, you are new 374 00:19:24,080 --> 00:19:28,240 Speaker 1: investment opportunities. It is such a fast paced, dynamic world. 375 00:19:28,280 --> 00:19:31,280 Speaker 1: And that doesn't mean it's too hard. It's actually very easy. 376 00:19:31,600 --> 00:19:34,160 Speaker 1: But you need to understand that once you've made an investment, 377 00:19:34,520 --> 00:19:36,359 Speaker 1: it's not like you make an investment and that's it, 378 00:19:36,520 --> 00:19:40,280 Speaker 1: you go away. It's a journey. It's a long term journey. 379 00:19:40,920 --> 00:19:44,320 Speaker 1: And the more you can understand about what is going 380 00:19:44,400 --> 00:19:47,960 Speaker 1: on around you, the greater your opportunity of building wealth 381 00:19:48,000 --> 00:19:49,879 Speaker 1: will be. And you find that you're probably building it 382 00:19:50,520 --> 00:19:54,720 Speaker 1: seeing greater results and more efficiency in your journey. It's 383 00:19:54,840 --> 00:19:57,840 Speaker 1: really empowering when you understand what's going on. That doesn't 384 00:19:57,840 --> 00:20:00,479 Speaker 1: mean you take up every single opportunity around you. It 385 00:20:00,520 --> 00:20:02,560 Speaker 1: means you'll know which ones are right for you, and 386 00:20:02,600 --> 00:20:04,520 Speaker 1: which ones are right for you maybe in the future 387 00:20:04,720 --> 00:20:07,639 Speaker 1: or not at all. So understand that it's a journey. 388 00:20:07,640 --> 00:20:09,720 Speaker 1: And I have to say there are some brilliant courses 389 00:20:10,240 --> 00:20:13,399 Speaker 1: on the ASX which are free for beginner investors to 390 00:20:13,440 --> 00:20:17,480 Speaker 1: know and understand how to start investing. So understand you 391 00:20:17,520 --> 00:20:20,679 Speaker 1: are going to be growing your wealth while also growing 392 00:20:20,880 --> 00:20:25,840 Speaker 1: your financial literacy. Number five. Okay, this is the online 393 00:20:26,280 --> 00:20:29,080 Speaker 1: brokerage account. Now there are two ways of doing this. 394 00:20:29,160 --> 00:20:31,280 Speaker 1: You can go through a stockbroker if you want a 395 00:20:31,320 --> 00:20:33,479 Speaker 1: full service, that was someone who actually says to you, 396 00:20:33,800 --> 00:20:36,840 Speaker 1: this is what I recommend you invest in, and this 397 00:20:36,920 --> 00:20:38,639 Speaker 1: is the reason why, and these are the costs. It's 398 00:20:38,680 --> 00:20:42,320 Speaker 1: a more expensive service, but it's more personal and more intimate, 399 00:20:42,320 --> 00:20:44,879 Speaker 1: and that's more of a relationship with that stockbroker. The 400 00:20:45,000 --> 00:20:47,920 Speaker 1: other option is to have an online broker account such 401 00:20:47,960 --> 00:20:52,320 Speaker 1: as comm Sec, self Wealth, CMC, Moomoo, Pearla. There are 402 00:20:52,359 --> 00:20:54,360 Speaker 1: lots of different ones out there, and actually there are 403 00:20:54,359 --> 00:20:56,600 Speaker 1: thousands of them, and look a lot of them are 404 00:20:56,720 --> 00:20:59,160 Speaker 1: very similar. But what I would look for in an 405 00:20:59,160 --> 00:21:03,320 Speaker 1: online share trading account is obviously being able to access 406 00:21:03,320 --> 00:21:04,800 Speaker 1: the investments you want. You want to be able to 407 00:21:04,800 --> 00:21:08,720 Speaker 1: access direct equities, not just a four different managed funds. 408 00:21:08,760 --> 00:21:11,000 Speaker 1: You want to be able to access ETFs, this investment 409 00:21:11,000 --> 00:21:15,199 Speaker 1: companies and of course sometimes international markets. You also want 410 00:21:15,240 --> 00:21:18,359 Speaker 1: to make sure that you've got access to quality tools 411 00:21:18,400 --> 00:21:23,440 Speaker 1: such as margin loans and tax reporting tools and quality research. 412 00:21:24,400 --> 00:21:26,040 Speaker 1: You also want to make sure that there is a 413 00:21:26,040 --> 00:21:29,320 Speaker 1: good customer service available, because if something goes wrong, or 414 00:21:29,600 --> 00:21:32,719 Speaker 1: you need to question something, or you are having trouble 415 00:21:32,760 --> 00:21:35,280 Speaker 1: with something, there's a one eight hundred number that you 416 00:21:35,320 --> 00:21:37,159 Speaker 1: can ring and get an answer. You're not going to 417 00:21:37,200 --> 00:21:40,000 Speaker 1: be sitting on a chatbot. And then of course making 418 00:21:40,000 --> 00:21:43,720 Speaker 1: sure that brokerage is competitive. Don't just go with the 419 00:21:43,760 --> 00:21:46,840 Speaker 1: brokerage that doesn't charge brokerage, because you may be indirectly 420 00:21:46,880 --> 00:21:49,879 Speaker 1: costing you more money elsewhere in the way that they 421 00:21:49,920 --> 00:21:54,040 Speaker 1: facilitate the trade. So look at what's important to you. 422 00:21:54,400 --> 00:21:56,800 Speaker 1: And a great place just to start your research is 423 00:21:56,840 --> 00:22:00,280 Speaker 1: your bank, because most banks actually have an online share 424 00:22:00,320 --> 00:22:03,000 Speaker 1: trading account. It's a great place to understand and they 425 00:22:03,000 --> 00:22:05,800 Speaker 1: have some great resources tutorials online to show you and 426 00:22:05,800 --> 00:22:08,959 Speaker 1: you're familiar with that banking system, but not advice, not 427 00:22:09,000 --> 00:22:11,160 Speaker 1: product device, but a great place to start your research. 428 00:22:12,040 --> 00:22:13,960 Speaker 1: So the next thing you want to think about then 429 00:22:14,359 --> 00:22:17,600 Speaker 1: is all right, how do I start shopping. I've got 430 00:22:18,000 --> 00:22:20,160 Speaker 1: my why, I'm ready, I've paid off for my dad. 431 00:22:20,160 --> 00:22:22,840 Speaker 1: I've got plenty of emergency money now set aside. I 432 00:22:22,880 --> 00:22:24,920 Speaker 1: know that that emergency money is not to be invested, 433 00:22:25,480 --> 00:22:28,720 Speaker 1: and I've got my goals. I understand my why, I 434 00:22:28,880 --> 00:22:31,080 Speaker 1: understand what I want out of this. I've got some 435 00:22:31,320 --> 00:22:34,080 Speaker 1: deadlines for my goals. I understand what my risk profile is. 436 00:22:34,520 --> 00:22:36,600 Speaker 1: I know that I'm a passive income investor. I'm a 437 00:22:36,640 --> 00:22:40,119 Speaker 1: long term buy and hold. Diversification is really important to me. 438 00:22:40,520 --> 00:22:43,680 Speaker 1: I want to be earning dividends and growing dividends. And 439 00:22:43,720 --> 00:22:46,000 Speaker 1: I've got X amount of dollars to invest upfront, and 440 00:22:46,040 --> 00:22:48,280 Speaker 1: I can commit this much money from doing my budget 441 00:22:48,520 --> 00:22:50,240 Speaker 1: to my regular investment plans so i can grow my 442 00:22:50,280 --> 00:22:54,280 Speaker 1: passive income for example. So this then obviously leads us 443 00:22:54,320 --> 00:22:59,240 Speaker 1: to what do we invest in? Okay, So this is 444 00:22:59,280 --> 00:23:02,800 Speaker 1: where you think of Okay, maybe I start as a 445 00:23:02,840 --> 00:23:05,600 Speaker 1: new investor with a listed investment company you're an ETF, 446 00:23:05,680 --> 00:23:08,000 Speaker 1: because it means I'm getting my foot in the door. 447 00:23:08,200 --> 00:23:11,760 Speaker 1: I'm starting to invest. My money's immediately diversified. I've outsourced 448 00:23:12,440 --> 00:23:17,720 Speaker 1: delegated those challenging, overwhelming, confusing decisions about which company to 449 00:23:17,760 --> 00:23:22,360 Speaker 1: invest in which sector? When how much you know all 450 00:23:22,400 --> 00:23:24,080 Speaker 1: the things that are going on in the market as well, 451 00:23:24,080 --> 00:23:26,399 Speaker 1: that makes stop us from actually getting something done and 452 00:23:26,400 --> 00:23:30,120 Speaker 1: give us that kind of brain freeze, and then nothing 453 00:23:30,119 --> 00:23:32,320 Speaker 1: ever happens because we then get overwhelmed and put it off, 454 00:23:32,320 --> 00:23:34,879 Speaker 1: and that money just sits sitting in that account and 455 00:23:34,960 --> 00:23:39,760 Speaker 1: never actually properly gets invested. So start investing. So to 456 00:23:39,800 --> 00:23:43,080 Speaker 1: anyone that's new to investing, I recommend learning about listed 457 00:23:43,080 --> 00:23:46,879 Speaker 1: investment companies, which are companies that go and invest in 458 00:23:46,920 --> 00:23:51,200 Speaker 1: a diversified Australian share portfolio. If you want a diversified fund, 459 00:23:51,359 --> 00:23:53,840 Speaker 1: you can use these as a great vehicle and it 460 00:23:53,880 --> 00:23:56,680 Speaker 1: means your money's diversified and all those decisions are done 461 00:23:56,680 --> 00:23:59,080 Speaker 1: for you, including the tax reports as well, which is 462 00:23:59,119 --> 00:24:01,639 Speaker 1: a great saver. If you haven't listened to my interview 463 00:24:01,640 --> 00:24:04,560 Speaker 1: with Peter Thornhill Motivated Money, go and listen to it. 464 00:24:04,600 --> 00:24:08,000 Speaker 1: Here's my mentor, my financial mentor, and he's absolutely brilliant, 465 00:24:08,040 --> 00:24:10,399 Speaker 1: and go and read his book as well. Another option 466 00:24:10,480 --> 00:24:15,160 Speaker 1: to listed investment companies is exchange traded funds. Again, same principle. 467 00:24:15,760 --> 00:24:19,840 Speaker 1: A farm manager with years, sometimes even hundreds of years 468 00:24:19,840 --> 00:24:22,800 Speaker 1: of experience in investing do all the investing for you. 469 00:24:22,840 --> 00:24:26,240 Speaker 1: It's like walking to a supermarket grabbing a pre packed 470 00:24:26,280 --> 00:24:31,119 Speaker 1: shopping trolley with all your meat, dairy fruit, vegetables, coffee, lollies. 471 00:24:31,880 --> 00:24:34,160 Speaker 1: You know, everything you need is already in that shopping 472 00:24:34,160 --> 00:24:36,600 Speaker 1: trolley to get you through the week with your groceries. 473 00:24:36,680 --> 00:24:38,919 Speaker 1: That's like an listed investment company in ETF, it's pre 474 00:24:39,000 --> 00:24:42,199 Speaker 1: packaged investment products for you. And I know plenty of 475 00:24:42,200 --> 00:24:44,800 Speaker 1: people who have just invested purely in ETFs and listed 476 00:24:44,840 --> 00:24:48,200 Speaker 1: investment companies because they don't want the stress and pressure 477 00:24:48,240 --> 00:24:50,960 Speaker 1: of picking the individual companies. And it's definitely something I 478 00:24:51,040 --> 00:24:55,160 Speaker 1: will prescribe to very much so myself as time goes by, 479 00:24:55,200 --> 00:24:59,119 Speaker 1: and you know we're increasingly time poor. So that is 480 00:24:59,160 --> 00:25:00,840 Speaker 1: something that you need to s sort of think about 481 00:25:01,119 --> 00:25:04,080 Speaker 1: now when you go and buy your first parcel of 482 00:25:04,119 --> 00:25:05,680 Speaker 1: shares that it'll be an eat here for a listed 483 00:25:05,680 --> 00:25:08,480 Speaker 1: investment company. You need to understand that you're going to 484 00:25:08,480 --> 00:25:12,280 Speaker 1: get some forms in the mail once you've purchased. Now 485 00:25:12,480 --> 00:25:16,000 Speaker 1: that will be a form that asks for your tax 486 00:25:16,000 --> 00:25:18,240 Speaker 1: file number, and yes, you can safely hand it over, 487 00:25:18,520 --> 00:25:20,399 Speaker 1: and you should do because you'll be taxed at the 488 00:25:20,440 --> 00:25:22,879 Speaker 1: top marginal tax right if you don't. You'll also need 489 00:25:22,920 --> 00:25:27,880 Speaker 1: to provide your bank details and for most stocks you'll 490 00:25:27,880 --> 00:25:31,280 Speaker 1: need to give them reinvestment instructions. And this is where 491 00:25:31,320 --> 00:25:35,440 Speaker 1: you have an option to reinvest all of the dividends automatically, 492 00:25:35,840 --> 00:25:37,560 Speaker 1: and the benefit of doing that is also you don't 493 00:25:37,560 --> 00:25:40,520 Speaker 1: have to pay brokerage and sometimes you get to reinvest 494 00:25:40,560 --> 00:25:42,960 Speaker 1: back into the stock at a discount. But again you 495 00:25:43,000 --> 00:25:46,240 Speaker 1: have to be careful diversification or the next option is 496 00:25:46,280 --> 00:25:48,400 Speaker 1: to have those dividends paid to you, is cash into 497 00:25:48,440 --> 00:25:51,560 Speaker 1: that listed bank account, or you can actually split a 498 00:25:51,560 --> 00:25:54,000 Speaker 1: certain percentage that you want reinvested and paid to you. 499 00:25:54,080 --> 00:25:58,320 Speaker 1: The choice is yours Personally, myself, I live off my 500 00:25:58,440 --> 00:26:02,159 Speaker 1: salary from my job. I don't need this income and 501 00:26:02,160 --> 00:26:04,800 Speaker 1: I'd rather reinvest that income because it means that my 502 00:26:04,880 --> 00:26:08,000 Speaker 1: passive income is going to organically grow at a faster 503 00:26:08,240 --> 00:26:09,960 Speaker 1: rate than if I was to go and spend it. 504 00:26:10,359 --> 00:26:13,200 Speaker 1: So for me, where I can I tick that automatic 505 00:26:13,200 --> 00:26:16,920 Speaker 1: dividend reinvestment plan, but keeping a mindful eye on diversification 506 00:26:16,960 --> 00:26:19,120 Speaker 1: in my portfolio. And if you have a listed investment 507 00:26:19,160 --> 00:26:24,040 Speaker 1: company or an ETF, that risk of diversification is law 508 00:26:24,160 --> 00:26:27,159 Speaker 1: when you have an automatic dividend reinvestment plan in place. 509 00:26:27,960 --> 00:26:29,680 Speaker 1: The other thing you should be thinking about is once 510 00:26:29,720 --> 00:26:31,359 Speaker 1: you've done this and you've ticked that box and you 511 00:26:31,480 --> 00:26:34,000 Speaker 1: sign it, and you sent back that form and you've 512 00:26:34,080 --> 00:26:35,880 Speaker 1: given them your email address, you don't need to get 513 00:26:35,920 --> 00:26:38,280 Speaker 1: paper in the mail as an email next time is 514 00:26:38,480 --> 00:26:41,480 Speaker 1: what are you going to buy next? And how much 515 00:26:41,480 --> 00:26:44,119 Speaker 1: are you going to save up to invest? And what 516 00:26:44,160 --> 00:26:46,560 Speaker 1: are you thinking of buying? You might want to buy 517 00:26:46,600 --> 00:26:50,600 Speaker 1: another ETF for another relisted investment company or another company 518 00:26:50,640 --> 00:26:55,359 Speaker 1: in a different sector. Keeping thinking about diversification, Start setting 519 00:26:55,440 --> 00:26:57,840 Speaker 1: new goals for yourself, so that once you bought your 520 00:26:57,880 --> 00:26:59,919 Speaker 1: first parcel of shares, you're already be thinking about the 521 00:27:00,080 --> 00:27:02,240 Speaker 1: next parcel, and you get excited and you build that momentum. 522 00:27:02,320 --> 00:27:05,600 Speaker 1: It becomes a habit system where you actually organically find 523 00:27:05,600 --> 00:27:08,120 Speaker 1: yourself buying shares every single month, or every single couple 524 00:27:08,160 --> 00:27:10,920 Speaker 1: of weeks, or every three months, whatever you can afford. 525 00:27:11,119 --> 00:27:13,280 Speaker 1: Keep it going, like brushing your teeth. You don't think 526 00:27:13,280 --> 00:27:16,479 Speaker 1: about it, you just do it. So it is really 527 00:27:16,720 --> 00:27:20,760 Speaker 1: easy to actually keep going once you've done it. The 528 00:27:20,760 --> 00:27:23,159 Speaker 1: first time, I remember sharing this with a girlfriend. She 529 00:27:23,200 --> 00:27:25,639 Speaker 1: came over with her laptop. She wanted to buy some shares. 530 00:27:25,680 --> 00:27:27,760 Speaker 1: She's like, can you just sit there and watch me? 531 00:27:27,960 --> 00:27:30,480 Speaker 1: I did, and she's like, which she did it. I'm like, 532 00:27:30,480 --> 00:27:31,560 Speaker 1: there you go, You've done it. She's like, what do 533 00:27:31,600 --> 00:27:33,159 Speaker 1: you mean you've done it? I'm like, there you go, 534 00:27:33,240 --> 00:27:36,119 Speaker 1: You've bought the shares. It's done. And she's like, but 535 00:27:36,200 --> 00:27:38,600 Speaker 1: it's so easy. It couldn't be that easy. I've been 536 00:27:39,000 --> 00:27:41,160 Speaker 1: delaying this for years. Don't tell me I've been delaying 537 00:27:41,200 --> 00:27:43,880 Speaker 1: it and it's this easy. I'm like, yeah, people say 538 00:27:43,920 --> 00:27:47,359 Speaker 1: this to me all the time. So you've got to 539 00:27:47,359 --> 00:27:49,680 Speaker 1: remember investing is a long term game. But the more 540 00:27:49,720 --> 00:27:52,280 Speaker 1: you can put in, the more you can get out. 541 00:27:52,520 --> 00:27:57,280 Speaker 1: And compounding interest works miracles. So if you can keep moving, 542 00:27:57,480 --> 00:28:01,520 Speaker 1: keep the momentum going, invest on a reg basis, and 543 00:28:01,640 --> 00:28:04,680 Speaker 1: start getting excited about the next parcel of shares you're 544 00:28:04,680 --> 00:28:07,119 Speaker 1: going to buy, so you can watch your portfolio grow. 545 00:28:07,520 --> 00:28:10,360 Speaker 1: And I guarantee as you see your portfolio grow, you'll 546 00:28:10,359 --> 00:28:14,120 Speaker 1: be investing more time and interest in seeing it work 547 00:28:14,200 --> 00:28:17,560 Speaker 1: for you. You'll get excited when you see your dividend statement 548 00:28:17,560 --> 00:28:19,199 Speaker 1: come through that a dividend has been paid into your 549 00:28:19,200 --> 00:28:21,840 Speaker 1: bank account, or a dividend has been reinvested, and you 550 00:28:21,880 --> 00:28:24,960 Speaker 1: now have not just one hundred units in this company, 551 00:28:24,960 --> 00:28:27,200 Speaker 1: you now have one hundred and five units in this company. 552 00:28:27,280 --> 00:28:30,480 Speaker 1: Those moments, those defining moments where you go, oh, my goodness, 553 00:28:30,520 --> 00:28:33,520 Speaker 1: this is actually happening. Use that as your driving force 554 00:28:33,600 --> 00:28:36,960 Speaker 1: to motivate you and keep going and build that wealth yourself. 555 00:28:37,200 --> 00:28:41,080 Speaker 1: And then number seven investing four beginners. I've mentioned about 556 00:28:41,080 --> 00:28:44,320 Speaker 1: the importance of goals, and the importance of passive income, 557 00:28:44,560 --> 00:28:47,320 Speaker 1: and the importance of diversification, and how easy it is 558 00:28:47,680 --> 00:28:50,440 Speaker 1: to start investing and start investing in shares through an 559 00:28:50,480 --> 00:28:53,840 Speaker 1: online share trading account. But don't forget about the other 560 00:28:54,400 --> 00:28:59,720 Speaker 1: side of financial freedom and independence. Your superannuation. Your superannuation 561 00:28:59,800 --> 00:29:02,440 Speaker 1: is fact and investment portfolio is just locked away. Pay 562 00:29:02,480 --> 00:29:05,320 Speaker 1: attention to it. Once you've done your share portfolio, you've 563 00:29:05,320 --> 00:29:07,720 Speaker 1: got that set up, go and check your superanuation and 564 00:29:07,800 --> 00:29:09,720 Speaker 1: count and see where that's invested and make sure it 565 00:29:09,760 --> 00:29:12,400 Speaker 1: matches your risk profile. If it's not, get some advice 566 00:29:12,400 --> 00:29:14,960 Speaker 1: as to what changes you need to make, and then 567 00:29:14,960 --> 00:29:17,840 Speaker 1: of course look at insurance protect your wealth. You never 568 00:29:17,840 --> 00:29:19,560 Speaker 1: want to be in a position where you build up 569 00:29:19,560 --> 00:29:22,760 Speaker 1: this amazing covessment portfolio to then find you know you're 570 00:29:22,760 --> 00:29:25,520 Speaker 1: out of work, or you're sick and you have to 571 00:29:25,640 --> 00:29:29,080 Speaker 1: sell things in your portfolio to help survive financially, or 572 00:29:29,120 --> 00:29:32,240 Speaker 1: you had something happen out of the blue. You need 573 00:29:32,280 --> 00:29:34,560 Speaker 1: to make sure that you protect yourself, and that are 574 00:29:34,560 --> 00:29:37,520 Speaker 1: things like income protection, trauma cover life, and depity cover 575 00:29:37,960 --> 00:29:42,880 Speaker 1: protect yourself. Review that emergency money. Your situation will change 576 00:29:42,920 --> 00:29:45,160 Speaker 1: all the time. There may come a point in your 577 00:29:45,160 --> 00:29:47,280 Speaker 1: life where you have different responsibilities. You might take out 578 00:29:47,280 --> 00:29:49,560 Speaker 1: a marginalone. For example, you might have a family, or 579 00:29:49,920 --> 00:29:52,480 Speaker 1: you might do something different in your world, or you 580 00:29:52,520 --> 00:29:55,400 Speaker 1: may have something happening to you and you realize, actually, 581 00:29:56,160 --> 00:29:58,800 Speaker 1: I need more emergency money. And that may mean just 582 00:29:58,840 --> 00:30:03,640 Speaker 1: temporarily pausing any new investment plans and switching them into 583 00:30:03,640 --> 00:30:06,360 Speaker 1: savings plans. Whether that money now goes into the emergency 584 00:30:06,400 --> 00:30:08,560 Speaker 1: money to help pop that up, or to have them 585 00:30:08,600 --> 00:30:11,480 Speaker 1: emergency money balance sitting at a higher level because that's 586 00:30:11,520 --> 00:30:14,240 Speaker 1: what you now need. Don't just think, Okay, I've got 587 00:30:14,240 --> 00:30:16,680 Speaker 1: my emergency money. That's it. I'm done. That's the amount 588 00:30:16,680 --> 00:30:19,120 Speaker 1: of money I need for right now. That need will 589 00:30:19,160 --> 00:30:22,120 Speaker 1: change over time. So as you review your share portfolio, 590 00:30:22,120 --> 00:30:24,120 Speaker 1: review that emergency money number and make sure it's the 591 00:30:24,200 --> 00:30:29,240 Speaker 1: right amount. And of course make sure you understand that investing, 592 00:30:29,400 --> 00:30:32,760 Speaker 1: particularly when it comes to shares, whether they be domestic 593 00:30:32,840 --> 00:30:36,360 Speaker 1: or international, they are a long term investment ten fifteen, 594 00:30:36,440 --> 00:30:40,560 Speaker 1: twenty thirty forty years indefinitely. This is not a vehicle 595 00:30:40,600 --> 00:30:43,880 Speaker 1: to be holding money for short or even medium term expenses. 596 00:30:44,640 --> 00:30:47,800 Speaker 1: If you are wanting to start investing and build up 597 00:30:47,920 --> 00:30:51,200 Speaker 1: a diversified share portfolio, but you also have the goal 598 00:30:51,240 --> 00:30:54,640 Speaker 1: one day of buying a home having a deposit ready, 599 00:30:55,120 --> 00:30:57,480 Speaker 1: you can do both. We don't live in a world 600 00:30:57,520 --> 00:31:00,840 Speaker 1: where it's one size fits all, or pick one lane 601 00:31:00,880 --> 00:31:04,360 Speaker 1: and stay in that lane. You can be building up 602 00:31:04,640 --> 00:31:08,840 Speaker 1: a diversified share portfolio and saving up for a property 603 00:31:09,120 --> 00:31:11,720 Speaker 1: for the next five, seven years, whatever it may be. 604 00:31:11,920 --> 00:31:14,960 Speaker 1: You can do both, but make sure you understand that 605 00:31:15,080 --> 00:31:19,960 Speaker 1: the risk you're taking with long term investing. If you 606 00:31:20,120 --> 00:31:22,280 Speaker 1: need money for the short to medium term, it should 607 00:31:22,280 --> 00:31:25,320 Speaker 1: always be maintained in a conservative, safe environment like an 608 00:31:25,320 --> 00:31:29,680 Speaker 1: online savings account. So never stop looking at your goals, 609 00:31:30,080 --> 00:31:32,880 Speaker 1: never stop looking at your situation and what you need, 610 00:31:33,640 --> 00:31:37,760 Speaker 1: and always look to strengthen your financial muscles, with the 611 00:31:37,800 --> 00:31:42,160 Speaker 1: biggest and most important muscle being your brain. Investing is 612 00:31:42,320 --> 00:31:46,840 Speaker 1: long term, and just like compounding interest works miracles, so 613 00:31:47,000 --> 00:31:52,120 Speaker 1: does the compounding of financial knowledge and literacy. So hopefully 614 00:31:52,360 --> 00:31:55,880 Speaker 1: now you understand how to start investing, where to get started, 615 00:31:56,360 --> 00:31:58,520 Speaker 1: the pre prep that you need to do before you 616 00:31:58,600 --> 00:32:00,760 Speaker 1: begin the goals that you need to set for yourself 617 00:32:00,800 --> 00:32:02,840 Speaker 1: so you understand your why and what you're doing. The 618 00:32:02,920 --> 00:32:05,920 Speaker 1: game plan is to how you're going to buy in 619 00:32:05,960 --> 00:32:08,600 Speaker 1: what amounts and by what deadlines, and what you're going 620 00:32:08,640 --> 00:32:11,280 Speaker 1: to do with those dividends to build your off. You're 621 00:32:11,280 --> 00:32:14,640 Speaker 1: going to understand and know where to keep building your knowledge. Well, 622 00:32:14,640 --> 00:32:17,160 Speaker 1: books to read, what courses to potentially do, you know 623 00:32:17,200 --> 00:32:19,520 Speaker 1: what to look forward to. Online share trading accounts, you 624 00:32:19,560 --> 00:32:21,760 Speaker 1: can go and open one now and you understand the 625 00:32:21,800 --> 00:32:24,840 Speaker 1: paperwork involved. Once you've purchased your first parcel of shares. 626 00:32:25,160 --> 00:32:26,640 Speaker 1: As I say, if you can buy a pair of 627 00:32:26,640 --> 00:32:29,960 Speaker 1: shoes online, you can buy shares online. In fact, it's 628 00:32:30,000 --> 00:32:33,760 Speaker 1: easier and faster. You understand now that buying shares is 629 00:32:33,800 --> 00:32:36,280 Speaker 1: not something you do once off and that's it, but 630 00:32:36,320 --> 00:32:42,560 Speaker 1: it's actually an ongoing strategy that requires commitment, dedication, clarity, direction, 631 00:32:43,600 --> 00:32:47,240 Speaker 1: and getting seriously excited about your why because your why 632 00:32:47,520 --> 00:32:51,840 Speaker 1: is now becoming your reality, your long term sustainable reality. 633 00:32:51,960 --> 00:32:54,040 Speaker 1: All right, everyone, thank you so much for listening to 634 00:32:54,040 --> 00:32:56,680 Speaker 1: today's episode on how to Start investing A one oh 635 00:32:56,720 --> 00:33:01,960 Speaker 1: one breakdown until next Monday morning, Stay motivated, empowered, and 636 00:33:02,160 --> 00:33:05,840 Speaker 1: never stop seeking new ways to achieve your financial goals 637 00:33:05,880 --> 00:33:09,960 Speaker 1: and dreams. This is Sugar Mummer's Fight Chap