Investing 101

Most people earn money by working – trading our hours for dollars. How about making our money work for us, even when we sleep? This is what investing is about – putting our money into assets like shares, bonds, and bank deposits where it will grow and and make even more money for us over time.

What can we achieve when our money works for us? Perhaps we can live a better lifestyle, work less and spend more time with loved ones, or fund a comfortable (and potentially early) retirement. Or it could result in having the means to support your child’s future education needs, or the purchase of their first home.

You don’t need a lot of money, to sign up for any expensive courses, or understand how to read financial statements to get started. Anyone can do it, and thanks to the internet you can invest from anywhere in the world. Investing works better the longer you give your money to grow. So the best time to start is now, and hopefully this page helps by compiling articles and tips for new investors to get started.

1. Before you invest

If you have any high-interest debt like hire purchases, personal loans, or credit card balances, pay it off first! Next, establish an emergency fund – a bank account holding enough money to cover a few months worth of expenses. This will save you from having to take on more debt if a large, unexpected expense comes up.

Investing tip – Always have a positive attitude. Absolutely anyone can take action to improve their wealth or financial position.

2. Sort your KiwiSaver

KiwiSaver is one of the best investment schemes in New Zealand, with contributions from yourself, your employer, and the government, all helping you save up for retirement or your first home. It’s the first investment all Kiwis should get sorted!

Investing tip – Take action. The best time to start investing is now. There is no such thing as not having enough money, or being too late to start.

3. Learn the basics

While KiwiSaver provides a great start to investing, you may want to build your wealth with investments outside of the scheme. So learn some basics about investing – what are the different ways you can invest, how do they work, and what should you look out for?

Investing tip – Don’t be greedy or treat investing as a get rich quick scheme. It’s a marathon, not a sprint.

4. Plan your portfolio

Once you’ve learnt some basic concepts, it’s time to put together a plan for your investment portfolio. Different people will require different investments depending on their goals, investment timeframe, and preferences – so how should you construct your portfolio?

Investing tip – Consider what your investing goals are, and pick investments that align to those goals.

5. Start investing!

Once you’ve got a plan for what your portfolio might look like, learn about the different platforms and funds you can use to invest in New Zealand.


Investing in funds

Investing in shares

Investing tip – You don’t need heaps of shares and funds to build a diversified portfolio. Quality beats quantity.

6. Let your money grow

Once you’ve established an investment strategy, keep contributing to your investments regularly and let your money grow. Enjoy the dividends and capital gains, but don’t forget about tax. Lastly, don’t panic when the markets fall – remember it’s natural for financial markets to go up and down every day.

Investing tip – Stay the course when the markets fall. Don’t panic or sell your investments. Instead consider investing more while they’re “on sale”.

7. Keep learning

Getting started with investing isn’t hard. But there are always other investing concepts you can explore to improve your knowledge.



Other topics

Investing tip – Never invest in something you don’t understand. If in doubt, stick with simple investments for your portfolio.

8. Check out our other resources

There’s lots more information on investing throughout this site, and on other online resources. Check them out and remember to follow Money King NZ so you can keep up with our latest articles.

Investing tip – You will make mistakes while investing. Learn from them and adjust your investment portfolio or strategy if necessary.

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