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A spare $1000 to invest

If I have a spare $1000 – how should I invest it and is it the same advice if I had $10,000?

If you had $1000 spare and you carry credit card debt, I would get rid of it. If you didn’t have credit card debt, I would use the $1000 to buy books, tapes and to go to, say, ASX lectures on how to invest successfully.

If I had $10,000, I would follow the above advice and start an online broker account and start buying great dividend-paying stocks and I would buy stocks every month or when the savings balance gets to a good level for a purchase. I would buy those great companies if the market is falling or if they are rising and I would aim to collect 10 good ones and be prepared to cut them if they lose the plot and start to show you they’re no longer a great company.

I would read about these companies all the time, go to shareholder meetings and act like the owner of the company, because that’s what you are.

Finally, if you want to create your own business, rather than passively investing in companies, then use the $10,000 to start a business. Brainstorm it, get advice from mentors and experts, do a business plan and turn that $10,000 into a great business of your own.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Published on: Monday, June 06, 2011

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