You do not need a fortune to begin. A lesson I wish I had taken to heart sooner.
One of the biggest myths I believed for too long was that investing was for people with money to spare. The truth, I have since learned, is that you can begin with whatever you have. Even small, regular contributions add up over time, thanks to the quiet magic of compound interest.
Start Small, Start Now
Many platforms now let you invest with as little as five or ten dollars. The amount matters far less than the habit. Setting up an automatic weekly or fortnightly investment took the decision out of my hands and kept me consistent, and that is where the real progress came from.
Understand the Basics
- Shares. Owning a piece of a company.
- Bonds. Lending money to a company or government in return for interest.
- Index funds. A basket of shares that tracks a market index, giving you diversification at low cost.
- KiwiSaver (NZ). A retirement savings scheme with employer and government contributions.
The Golden Rules
- Invest for the long term. Do not try to time the market.
- Diversify. Do not put all your eggs in one basket.
- Keep costs low. Fees eat into returns over time.
- Stay calm during downturns. Markets recover.
The best time to plant a tree was twenty years ago. The second best time is now.