In this Investing for beginners Australia video, let's talk about how to invest 10000 in Australia, especially if you've just started investing. More videos? Check out this one on 3 High Growth Index Funds Australia ? https://youtu.be/6fubY_OgJfM

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Resource Mentioned In Video:
Australian Low-Cost Index Funds Video - https://youtu.be/nBnnYHzB_Go
High-Interest Saving Accounts Comparison - https://www.finder.com.au/savi....ngs-accounts/high-in

Investing in ASX for beginners doesn't have to be so incredibly complicated. So I've condensed everything for you in 3 simple steps. And for those keen beans who are looking for more out of the box ways to invest $10,000, make sure you stay till the end of the video.

1. Do You Have An Emergency Fund
First thing first, with 10,000 dollars, the first question is *whether you have an emergency fund?*

Life is incredibly unpredictable, and you want to be prepared to make lemonade when life throws you a lemon.

On top of that, if life throws you an opportunity of a lifetime (aka stock market crashes), you want to make sure you're prepared to make the most of it when the opportunity shows itself.

With emergency funds, the rule of thumb is that you should have 3-6 months worth of expenses tucked away in a high interest savings account.

Frankly speaking, it's absolutely fine to start with 2-3 months worth of expenses in your emergency fund then build it up to 6 or even 12 months worth.

2. Get Rid Of High-Interest Rate Debt
Second, do you have any high-interest debt with an interest rate above 10%?

Unless you're using that debt to fund your business which generates steady cashflow, I personally would use a portion of that 10,000 to pay off the high-interest debt before I consider investing.

That's because at the end of the day, we know that the stock market generates 8-9% per year over a 30 year period, and if you have high interest debt above 10%, all your market returns would be eaten away.

3. Dollar Average Into Assets

Third, assuming that you don't need this money for the next 12 months, you want to put that money to work by dollar averaging into investable assets.

Let me explain.

Dollar average means that you're investing the same amount of money every week or month into an asset that'll appreciate in value over time.

That is, instead of investing the entire 10,000 into stocks next month, you can dollar average $2,000 every month for the next 5 months.

The reason why we don't want to put the entire 10,000 in at once is that we have no clue whether the markets are going to up down or sideways.

If you invested 10,000 tomorrow and the market crashes 30%, you'll lose 3,000 and your confidence would completely shatter.

Whereas if you consistently invest $2,000 every month, even if the market crashes 30% in one more, you're only losing 600 bucks compare to 3,000.

But the downside is that if the market goes up by 30% tomorrow, then of course you would gain way more if you invested the 10,000.

Timestamps:
0:00 Introduction
1:04 Do You Have An Emergency Fund
2:25 Get Rid Of High-Interest Rate Debt
3:00 Dollar Average Into Assets
7:53 Courses To Help You Earn More
8:29 Invest In Your Relationships
9:36 Portfolio Update

Disclaimer: I’m not a financial advisor. The information contained in this video is for educational and entertainment purposes only. Any purchases of stock that I show during the video should not be considered financial advice and you should consult a licensed financial advisor before making any investment decisions. I will not be held liable for any losses incurred for investments or trades that mirror my strategy. Please be careful!

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