I think that $1,000 can be enough to change your money mindset forever.
There are things holding a lot of people back. Maybe they don’t have the money confidence to start on the right path.
I believe it’s wrong to believe that you need some large amount of money to make a huge difference. Sometimes it’s more about a mental shift than requiring a $100,000 share portfolio to feel good.
$1,000 to help your money confidence
Before the coronavirus hit, many Aussies didn’t have $1,000 to be able to cover an emergency expense with its savings.
Having money in the bank may not strike plenty of people as a necessary thing. Why have cash sitting there for emergencies if you’ve never had to experience living through an emergency? The problem is that emergencies don’t tell you in advance when they’re going to happen.
Having $1,000 always sitting there in a (high interest) bank account can give you a lot of confidence with your money. You’re able to ride through a problem if it occurs. Obviously having more savings would be even better, but one step at a time. You are freer to make the best decisions for your life.
There are plenty of banks offering savings accounts like Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group (ASX: ANZ), National Australia Bank Ltd (ASX: NAB) and Bendigo and Adelaide Bank Ltd (ASX: BEN).
$1,000 to get your financial ball rolling
You don’t need $10,000 or $50,000 of money to start investing in shares. You can start building your share portfolio with just $1,000, or even $500. Share brokerage fees are so cheap these days.
Compound interest from shares can make you 10% a year whether you portfolio balance is $1,000 or $1 million.
You don’t need a huge deposit to start investing. You can build your money by investing a small amount now and invest more when things are safer and conditions are closer to normal.
What shares could be a good place to start? I think shares like Future Generation Global Invstmnt Co Ltd (ASX: FGG) and iShares S&P 500 ETF (ASX: IVV) could be very good long-term investments.
But some of the best individual ASX growth shares out there could be even better ideas.
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More reading
- Where to invest $1,000 in ASX ETFs today
- 3 ASX shares that I’d invest $1,000 into EVERY month
- Is Afterpay an ASX blue chip of tomorrow?
- 2 ASX 200 dividend shares to buy for income in 2021
- ASX 200 down 0.2%: Afterpay hits a record high, Aristocrat Leisure update disappoints
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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