#9 Take things slowly and watch out for scams
If you’re like most people, its easier to spend your money than to save it. But saving and investing are often the only way to achieve your big goals – buying a new stereo system, buying a car, going overseas.
Often it’s easiest to save small amounts frequently – maybe by directly transferring some of your pay each fortnight to a special savings or investing account.
If you’re thinking about investments – managed funds, shares, and others – you need to think about what level of risk you are prepared to take. The higher the return, the higher the risk that you will lose all your money.
Remember that there are no easy ways to “get rich quick”. Stay away from investments that promise incredibly high returns for low risk and little work. They are usually scams.
Other warning signs for scams are:
• lots of exclamation marks and capital letters in the advertisements
• no ‘real life’ address – just an email address, or post office box and
• lots of assurances that the scheme is legal.
Be cautious. If you think an investment opportunity looks a bit dodgy, make some enquiries before you commit your money. Check out FIDO, our consumer website, or talk to a licensed financial adviser.
© Australian Securities & Investments Commission. Reproduced with permission.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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