Six ways to invest smarter for long-term success
Financial management skills don't come naturally to everyone, but there are some basic things you can do to make sure you handle your money wisely.
1. Do your homework
Researching investments is a good place to start. How does investment work? What investment products are available? What does it cost to invest? These are some of the questions you'll need to research so you can better understand the financial landscape.
2. Set goals
Knowing why you are investing is a great motivation. What do you hope to achieve? An independent retirement? Higher education for your children? Capital for a new home or a future start up business? Make sure that your goals are specific, realistic and measurable.
3. Have a plan
It's all well and good to set goals, but they're meaningless if you don't have a plan for carrying them out. This is where you can involve a financial adviser. They can help you choose the investment plans that suit your goals best, create a diversified portfolio and work out how long you need to invest to reach your goals.
4. Budget
A clear and realistic monthly budget will not only keep your spending in check, but your savings too. There are many free apps and tools that can help you with budgeting.
5. Understand the risks
No investment is free of risk. Instead of trying to avoid risk, it's better to get comfortable with it. You could also start thinking about how you can use risk to your advantage. This could depend on how long you want to invest for and your investment risk profile, for example.
6. Make changes as time goes on
Your goals and needs will change over time, as things like your family, work situation and income change. This means that you will need to update your investment strategy. Meet with your financial adviser regularly to make sure your money choices are still paving the way to your financial success.
This document is meant only as information and should not be taken as financial advice. For tailored financial advice, please contact your financial adviser. Discovery Life Investment Services Pty (Ltd): Registration number 2007/005969/07, branded as Discovery Invest, is an authorised financial services provider. All life assurance products are underwritten by Discovery Life Ltd. Registration number: 1966/003901/06, a licensed life Insurer, an authorised financial service provider and registered credit provider, NCR registration number NCRCP3555. All boosts are offered through the insurer, Discovery Life Limited. The insurer reserves the right to review and change the qualifying requirements for boosts at any time. Product rules, terms and conditions apply.
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