Building financial security is less about having a steady income and more about
making your money work for you. Savings are important, but investing helps grow
your wealth over time, giving you more financial freedom and opportunities in the
future.
Why investing matters
Investing allows you to build wealth by generating returns beyond what a regular
savings account can offer. Whether through property, shares, or other investment
options, growing your money strategically can help you achieve long-term financial
stability.
Jaime Pratt, Head of PM at VPM, says some common ways Australians are
investing include generating passive income. “This is where you earn ongoing
returns from property rentals, dividends, or other investments,” she explains. Another
way is to build capital growth by overseeing assets like real estate, shares, or managed funds that increase in value over time. “You could also take advantage of compounding,” Jaime suggests. “This involves reinvesting your earnings to help accelerate financial growth.”
When is the right time to invest?
The best time to invest is now. Whether you’re starting small or have significant
capital, the sooner you invest, the longer your money has to grow. “Thanks to
compounding returns, even modest investments can build into substantial wealth
over time.”
Match your goals with the right investment
There are a plethora of investment opportunities available these days for Australians,
each offering different benefits and risks. Choosing the right option depends on your
financial goals, risk tolerance, and long-term plans.
Discover the power of real estate investing
“Property remains one of Australia’s most popular choices for investment due to its
high potential for capital growth and rental income,” Jaime explains.
Some common property investment strategies include:
● Buying an investment property where you’ll benefit from the rental
income as well as long-term appreciation.
● House flipping where you purchase properties, renovate them, and sell
for a profit in a short period.
● Commercial property investment which involves investing in office, retail
or warehouse spaces for the long term to benefit from the rental returns.
● Real Estate Investment Trusts (REITs) which allow you to invest in
property through managed funds without directly owning real estate.
Diversify and grow with shares and ETFs
Investing in the Australian share market can also offer long-term growth and dividend
income. Some ways to invest in shares include:
● Direct shares where you buy stock in Australian or international
companies.
● Exchange-Traded Funds (ETFs) where you can diversify your portfolio
by investing in a mix of shares through a single fund.
● Managed funds where professional investors manage your money across
different assets on your behalf.
Boost your retirement savings
“Superannuation is one of the most tax-effective ways to invest for the long term,”
Jaime says. “Making additional contributions to your super can help grow your
retirement savings faster while reducing your tax through available incentives.”
Lower-risk ways to grow your savings If you’re after financial stability, options like term deposits, government bonds, or
high-interest savings accounts provide lower-risk investment opportunities but still allow your money to grow.
How to make smart investment decisions
No matter what type of investment you’re considering, investing requires careful
planning and informed decision-making.
Jaime shares her top 5 tips:
● Set clear financial goals – Determine what you want to achieve with your
investments.
● Diversify your portfolio – Spreading investments across different assets
helps manage risk.
● Understand your risk tolerance – Consider how much risk you’re
comfortable with.
● Stay informed – Keep updated with market trends, industry insights and
financial news.
● Seek expert advice – Consult a financial adviser who can help tailor an
investment strategy to your needs.
Start investing today
Whether you choose property, shares, superannuation, or another option, the
important thing is just to start. “If you’re unsure where to begin, consider speaking with a professional to explore the best investment strategies for your goals,” Jaime suggests.
Take the first step towards growing your wealth today by speaking with one of our
team members who can guide you to the right financial professional to help with your
specific needs.
* Please note: This content is for informational purposes only and does not
constitute financial advice.
