We have all heard from our parents “Save a third of your pay for a rainy day”, but realistically, saving can be a little more complex when you hit 23 and the bills are waiting to be paid. Saving for your first share portfolio can be a little daunting at first, however, you can start one from as little as $500! Here’s five tips to get you started and on your way to share market success.
- Budgeting apps are your friend – Budgeting is simple, but putting it into practice can get a little overwhelming. If you are an on-the-go kind of person, apps such as Daily Budget Original are a great way to plan your finances and the user interface is simple and easy to navigate. If you’re looking for something a little more in-depth, try Pocketbook Personal Finance, this app syncs with your bank accounts, categorizes transactions and even sends alerts for upcoming bills. Did we mention these apps are both free?
- Walk, don’t UBER – We all do it, we all love it, but the amount of times we could have just gotten up 10 minutes earlier to walk or catch public transport is becoming a bad habit to break. As cheap as the luxury of an Uber can be, just catching two rides a week at $9, is going to set you back just over $900 a year. Walk to the next bar, friends!
- Get a part-time job – You don’t want to burn yourself out with two jobs, but as a short-term solution implemented to get yourself ahead of the game, the hard work will be worth it. Picking up a simple bar job on weekends is great for many reasons: penalty rates (cha-ching!), it’s social, and generally you’ll get a free meal (and maybe even a few drinks), so really you’re saving money whilst making money, right?
- Move back home – Sure, moving back in with the ‘rents’ means losing some of your hard earned independence but let’s be realistic. Rent prices start anywhere from $180 (at bare minimum), and when you consider bills and food (and all of those smashed avocados), it gets hard to put away as much as we would like, if anything at all. Treat this as another temporary saving technique. If you can cope with the constant ‘what time will you be getting home’, you’ll save on rent, eat better and probably more regularly, and sometimes your clothes magically get washed when you place them in the laundry.
- Preparation, preparation, preparation – This one is a given for anyone serious about starting their career in trading stocks. There are so many recipes and how to videos on the internet, “I can’t cook” isn’t an excuse anymore. It is so easy to prepare all your meals in bulk, portion, and keep them in the freezer, take them for lunch, eat them for dinner, you’re saving time too! Bonus! Aim for a daily spend, (e.g $10 a day on food) to keep yourself honest – in just a couple of months you’ll be trading on the ASX!
Check out more about you can save for your first portfolio, head over to www.wealthwithin.com.au