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Last Updated on March 24, 2021

10 Investment Tips For Beginners

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10 Investment Tips For Beginners

If you are thinking about getting into investment, you are likely unsure of how to start and what you should be investing in. The world of investment can be very intimidating for the first-timer. In fact, it can often be confusing for those who are experienced. The following are 10 tips that will help you get started in the world of investment.

1. Set Investment Goals

Now it is time to decide what you want to get out of investing. Obviously, your ultimate goal is to make money, but everyone’s needs are different. Things to consider include income, capital appreciation, and safety of capital. Also, consider your age, your personal circumstances, and your financial position.

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2. Invest Early

The earlier you start investing, the better. For one thing, the sooner you start, the less money you will need every year to achieve your investing goals. Your earnings will compound over time, so don’t be afraid to start investing, even if you are a college student- or better yet, in your last year of high school.

3. Make Investments Automatic

Set aside a certain amount of money to be automatically invested each month. You can set up automatic investment plans through various brokerage service firms and automated investment services like Wealthfront. By doing this, you will avoid stalling and consistently invest.

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4. Look at Your Finances

Before you can begin investing, you need to look at how much money you have to invest. Be realistic about it. Make sure that you leave yourself with enough money to pay for your regular monthly bills, loan payments, etc. You don’t need a lot of money to get started with investing- but there are risks. You don’t want to leave yourself short of paying other important bills.

5. Learn About Investing

Once you have your finances in order, it is time to start learning about investing. Study basic terminology, so you know how to make coherent decisions. Learn about stocks, bonds, mutual funds and certificates of deposits (CD’s). Don’t forget about other details that include diversification, portfolio optimization and market efficiency.

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6. Set Up Retirement Accounts

There are many tax advantages to having retirement accounts. In some cases, initial investments are tax-deductible, such as IRA’s and 401 K’s.[1] Others require you to pay taxes up front, but not when you withdraw funds during retirement; these include Roth IRA’s (Individual Retirement Arrangement). Also, make sure to find out if your employer matches personal retirement contributions.

7. Be Wary of Commissions

Professionals will try to talk you into buying investments that give them high commissions. Don’t do this without some serious research. Some so-called professionals are well known for selling products that pay them big commissions, but don’t pay much to their buyers.

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8. Diversify Your Investments

The market fluctuates constantly, and things always go up and down. To avoid losing too much money when stocks go down, make sure you have a diversified portfolio. That way, you will have some stocks that are rising, even when others are falling. Another option is to invest in overseas markets since they are notably different from the ones in the United States.

9. Study Your Portfolio

It is important that you always study your portfolio.[2] What is right for your portfolio today, may not be the best for it tomorrow. It is important to know what you have, and where you might need to make changes in the future. When the economic climate shifts, be prepared to make investment changes as well.

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10. Keep Informed

It is a good idea to always study the markets. Read up on the things you have invested in, and look for resources that keep up with market trends, as well as the global economy.

Featured photo credit: Anthony DELANOIX via unsplash.com

Reference

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Jane Hurst

Writer, editor

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Last Updated on January 27, 2022

5 Most Affordable Australian Cities For Students

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5 Most Affordable Australian Cities For Students

With high standards of education, a multicultural community, and laid-back lifestyle, it’s not hard to see why so many students love Australia. However, one thing Australia is also known for is being the world’s most expensive country to study in as a foreign student.

For those willing to look beyond popular cities like Sydney or Melbourne, however, study abroad doesn’t have to be unaffordable. Check out these five more economical cities that still make for great student living.

1. Gold Coast

If you’re looking for a more affordable place to buckle down and study while still enjoying glorious beaches and a vibrant nightlife, the Gold Coast is an excellent choice. While it has no shortage of restaurants, cafes, bars, and natural attractions, the city is also well-known for its quality of education.

Gold Coast is home to Bond University, which has Australia’s highest rating for overall graduate satisfaction, but also some of the country’s highest tuition fees. Fortunately, it hosts campuses for Griffith University and South Cross University as well, both of which have affordable options for international students.

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When it comes to off-campus accommodation, there are plenty of choices, from shared housing to homestays. Real estate sites like Flatmates can be useful for finding options within your budget.

2. Wollongong

Wollongong’s close proximity to Sydney (80 km) makes it a popular choice for students who can’t afford the high cost of living in Australia’s largest city, but still want to experience all that it has to offer. Wollongong itself is a lively city as well, and is rated as the country’s most livable small city thanks to its gorgeous beaches and lively city centre.

The University of Wollongong is one of Australia’s top universities, with a comprehensive academic program, international research reputation, and high graduate employment rates.

Due to a lack of on-campus parking, most students prefer to walk, cycle, or use the free bus service that operates between the university and city centre. Living costs are quite reasonable in Wollongong, and sites like Gumtree can come in handy if you’re looking to split housing costs or even score some second-hand furniture on arrival.

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3. Hobart

Hobart is the capital of Tasmania, the second oldest city in Australia, and also the cheapest city for university students to live in. While it might not be as happening as cities like Gold Coast or Brisbane, its striking natural beauty and slower pace of life make it a great place to block out distractions and focus on studying.

The Hobart Universities sector is based on a single institution, the University of Tasmania, which is consistently rated among the top ten universities in Australia and has a large population of students from abroad, with more than one in five students being international.

Although public transport in Hobart isn’t as convenient as could be, there is plenty of student accommodation available to make up for it. Students often live in shared houses near the university so they can simply walk to class. If you’re looking to rent a shared house or room in the area, Easy Roommate can be a good place to start your search.

4. Adelaide

Of Australia’s major cities, Adelaide is the cheapest to live in. That, along with its spacious layout, clean and green atmosphere, and beachside attractions make it a great place to live and study. It’s also regarded as the food and wine capital of Australia.

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Adelaide has three universities, including the University of Adelaide, which is ranked in the top 1% of universities worldwide; the University of South Australia; and Flinders University. Its integrated bus, train, and tram transportation system connect all parts of the city and make it easy for students to get around.

Naturally, the cost of accommodation is lower outside the city centre, and depending on which university you’re studying with, the outer suburbs could be more convenient as well. Check Study Adelaide for information on a range of student accommodation options, from independent living to homestays.

5.  Brisbane

Brisbane is the capital of Queensland and Australia’s third largest city. Unlike Sydney and Melbourne, it’s known for being one of the most affordable cities in Australia, which makes it a good choice for students. It’s also known for its pleasant subtropical climate and wide range of entertainment options.

Brisbane has three major universities: the Queensland University of Technology, the University of Queensland, and Griffith University (which accepts the most study abroad undergraduates). The inner city is well-connected by public transportation, although cycling is popular as well, and there are plenty of cycle paths that make it easy for students to get around this way.

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Students typically live in and around the inner suburbs, where the bulk of Brisbane’s teaching facilities are located. If you’re looking for convenient accommodation off-campus, you can check sites like Urbanest or The Pad.

Featured photo credit: Bhavesh Patel via unsplash.com

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