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Gen Y should I invest?

At 21, I am just starting to become interested in my finances. I have an income of nearly $1400 per fortnight and a current account balance of $3000. I am living at home, so have no real outgoing expenses. I am unsure of where to start or what investments are best suited to my situation (apart from superannuation). Where do I start?

Well done! Starting in the investment game early will reap rewards for years to come.

The best place to begin is by working out your objectives. You need to ask yourself key questions – these could include what you want to pursue in life, what brings you happiness and what are the things you really enjoy doing. Work out how long it will take to reach your goals and how much each goal will cost. Everyone is different and what you want out of life may not require a lot of money.

Given you have very few outgoing expenses, you can really maximise upon the income you do have. Work out a budget and determine how much you can afford to put aside all the while, being grateful that you don't have any debt or mortgages to pay off! 

After you have worked out your goals and budget, it’s then time to decide how to invest your money, what type of investments are suitable and for how long. You can make your own investments directly, which gives you control, or you can invest indirectly through managed funds where you pay service fees for having your money managed.

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.

Published on: Tuesday, July 27, 2010

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