So I'm in university at the moment, hoping to get a law degree by the end of it . Anyway, I was wondering what you guys think is the best route to take investments wise for someone like me. I have a steady income averaging about $500/week. I have just over $10,000 in my savings account. I own $520 in stock. I'm looking to diversify. My savings account pays 4.40% interest, calculated daily, paid monthly. I figure this is the rate I'm trying to beat, opportunity cost wise. I've been getting into the share market lately, bought $500 in stock on the ASX (consumer services sector), and it seems to be going well so far. I've aimed for long term rise in stock price, as indicated by its P/E ratio being far above the sector and market averages, and EPS forecast to increase by ~40% in the next 2 years. I'm new to fundamental analysis, any books on the topic you can recommend? What's the best strategy when you have an income such as mine? I'm aiming for growth rather than income, is this wise? Which sectors are generally best for someone like me? I'm trying to spread my investments across as many areas as possible so as to minimize risk. I'm not too savvy on other investments - property requires too much capital, options are too risky (apparently). Anything else you can recommend for the college investor? I want to spread across multiple investment methods, not just stock and savings - if this is wise. Oh - and what's a good ratio between investments and savings? I'm going to move more money from my savings into shares, but I'm unsure how much I should go with. Purely from a clueless perspective I've decided to split my income evenly between my transaction account, savings account, and the stock market. Is this wise? Thanks guys
The best investment you can make is to not get into debt. If you plan to buy a house someday, start saving up. A house is one of the few things where it is appropriate to borrow money for. The ratio between investments and saving depends on your situation. It also depends on how liquid your investments are, if you can easily take the money out on short notice if you need it.
