When done responsibly, investing can help your savings keep pace with inflation and provide you with additional income. However, there are some key steps you should take before jumping in:

Check in with your finances

Before you invest your money, The Investors Centre important to assess your financial situation and make sure that you have a solid emergency fund (we recommend having three to six months worth of expenses saved) and have paid off any high-interest debt such as credit card or personal loans. It’s also a good idea to consider the level of risk you’re comfortable with and how that might change over time, as your investment pot grows.

Investing in Commodities: Gold, Silver, and Oil for Beginners

When you start investing, it’s generally recommended to have a diversified portfolio that includes stocks and bonds. Typically, stocks are more volatile than bonds, and investors who are willing to accept a higher level of risk can be potentially rewarded with a greater return. Bonds, whether corporate or government bonds, are a lower-risk, fixed-income option and can offer a recurring interest payment, often called yield, based on their current trading price.

Investing within these particular asset classes can be made through various vehicles including managed funds (where your money is pooled with that of others), superannuation and exchange-traded products like ETFs. You should also consider how taxes will impact your returns. For example, selling investments quickly can incur short-term capital gains tax. Be sure to speak with a qualified financial planner to get started or if you have any questions.