7 Tips to Start investing in Australia

<p class="para">We know that starting to invest can feel overwhelming at first.</p>

<p class="para">But just like any new skill, investing takes some time to learn the basics and become comfortable with it.</p>

<p class="para">To help speed up that process a little for you, here are our 7 tips to help you begin:</p>

<strong class="para-header">know your timeframe</strong>

<p class="para">When it comes to investing, time frames matter. This is because different asset classes have different recommended time frames for investment.</p>

<p class="para">As a very general rule of thumb, the shorter your time frame, the more conservative you may wish to invest. Knowing your time frame will help you choose the most appropriate investment strategy.</p>

<p class="para">It can also help you identify your target date for your savings goals and the amount you’ll need to contribute in order to reach your goals.</p>

<strong class="para-header">know your risk appetite</strong>

<p class="para">This is about getting comfortable with how much risk you’re willing to take in order to get a return on your investment. If you're losing sleep worrying about your investments, it's worth considering whether you're exposing yourself to more risk than you'd like!</p>

<p class="para">When investing you can choose from conservative (cash and fixed interest investments like Blossom) to balanced investments (a blend) and growth and high growth (such as shares, property and crypto).  Each investment is considered to have its own risk-return profile. But as a general rule of thumb, the more growth and return you chase, the more risk you expose yourself to.</p>

<p class="para">If you’re not sure about your appetite for risk, you might wish to check out some of the free tools out there that will help you determine your risk profile.</p>

<strong class="para-header">Start Small</strong>

<p class="para">We say this often. You don’t need a lot of money to begin investing. In fact, with Blossom you can begin with as little as $1, so you can start right away!</p>

<p class="para">You may be surprised just how quickly your small amounts added frequently can grow over time.</p>

<strong class="para-header">Make it Regular</strong>

<p class="para">Investing is a habit. And like any other habit, it builds stronger with regular practice, and commitment. Setting up a regular direct deposit or investment plan can be a great way to automate your investing and create a regular savings habit.</p>

<p class="para">Just like going to the gym, we benefit more if we go consistently, rather than sporadically.  Your investments will grow stronger with a more regular effort.</p>

<strong class="para-header">Diversification</strong>

<p class="para">Diversification is the practice of “not sticking all your eggs in one basket” and is considered a valid risk management strategy.</p>

<p class="para">The definition of diversification is reducing risk by investing in a variety of assets within a portfolio.</p>

<p class="para">The strategy behind diversification is that a portfolio of different investments will, on average, provide smoother returns and lower volatility than an individual investment. This is one of the strategies that Blossom uses to help generate the return for your savings.</p>

<strong class="para-header">Upskill!</strong>

<p class="para">There are many simple investing courses, books and materials that will support your learning on all things investing.</p>

<p class="para">If you are interested in increasing your knowledge and skill base, be sure to choose educational materials that come from a reputable and trusted source.</p>

<strong class="para-header">Know what you're investing in</strong>

<p class="para">This is one of our golden rules. If you don’t fully understand what you are investing in, or where your money is going, then you shouldn't make the investment.</p>

<p class="para">You can find research on most investments. You can check the <a href="https://www.blossomapp.com/product-disclosure-statement.html?_ga=2.86635992.151733914.1671259926-741987971.1668859470" class="ghost-link">investment product disclosure statement</a>, investment strategy information, online research ratings and other materials.</p>

<p class="para">If you aren’t sure what something means, then ask someone who can explain it to you. Often the more complex an investment strategy is, or appears, the more risk it may be exposing you to.</p>

<p class="para">--</p>

<p class="para">Remember that investing is a journey. One that we at Blossom love to support others taking! In fact, we want to see more Australians comfortably and confidently investing their money.</p>

<p class="para">We are sure that as you become more familiar and comfortable with investing, you’ll also find it fun and empowering to invest in ways that align with your values and objectives and to watch your money Blossom.</p>