Simply put - investing means putting money into an asset, with the expectation that over time the value of that asset will increase and, you as the investor, will earn on that increase. From there, you can either sell it for more than you paid or hold onto it and gamble on the increase in value.

Investors use the term "asset" to refer to anything of worth or a resource that may help them generate money in the long or short term. The value of assets can go up or down and often both…..we know, it’s hard to keep up!

To start, you buy an asset known as an "investment". This is where it can get stressful… There are lots of different types of investments, including:

• Stocks or Shares (purchasing a piece of a company)

• Property (investing in property to rent out or for capital gains)

• Bonds (government loans)

• Exchange Traded Funds [ETF] (investment funds made up of lots of other assets).

• Managed fund - (your money pooled with other people's money and invested by someone else)

It all sounds quite complicated and intimidating…. But we don't think it should be, so Goldie is on a mission to make it easier.

Caring a little is enough for us. Investing is a great way to help you reach your financial goals, whatever they may be. Whether you want to retire early, travel, save for a wedding, or simply have some extra cash in your pocket. When investing, having a goal in mind can help keep us motivated and focused.

The good news is, not anymore. It’s true investing was only accessible to the rich, during a time when large sums of disposable income were required to attempt any increase in wealth like investing. However, the fact about investing now is that you don't need a lot of money to get started. With Goldie, you can start with as little as $10, which is ideal for first-time investors wanting to dip their toe in the water.

When it comes to investing, there is always an amount of risk involved. Because the value of an investment can go up and down, it's important to recognise that you could lose some or all of the money you initially invested.

We often hear that we should invest money that we don't need to cover our living costs and basic outgoings and that we should have a cash savings buffer in case of any life emergency. This can help us keep our investments going in the case of unexpected expenses. Investing for the long term is always a good idea, having a longer horizon helps us ride the ups and downs of investing.

Some investment options talk about ‘Risk-Free Returns’. This should be a red flag, all investing involves risk, and if it sounds too good to be true… it probably is!

These days you can put money into everything! Thanks to technology and innovation you can invest 'directly' through internet platforms, a bank (term deposits), a stockbroker (shares and bonds), a real estate agency (property), and plenty of others. If you invest directly in stocks, bonds, or real estate, it's a great idea to be well-versed in the stock market as well as the business or real estate landscape. Education is key!!

You could also invest 'indirectly' using a managed fund. These are now available through KiwiSaver and managed fund providers, as well as online platforms including Sharesies, and Hatch. Your money is pooled with that of other investors in a managed fund, and a professional fund manager invests it in a variety of investments on your behalf. Here are some resources for learning more about KiwiSaver and managed funds.

There is no one rule…. But ‘time in the market, ALWAYS beats timing the market’, or in other words, the longer term you can invest the more likely your returns will increase!  Your financial objectives should determine the duration of your investment. For example, if you want to retire at the age of 55 and are 35, having a 20-year horizon will help you make investment decisions...

As with any investment, you should only invest if you are dedicated to putting money down for a few years and are willing to ride the highs and lows, and remember it's important not to lock in any money that you might need in the near future, such as your emergency cash savings.

Compound interest is kind of like magic, and another great reason to begin investing. Compound interest helps your money grow by reinvesting the interest you have previously received from investing. The interest you receive "compounds" over time, increasing the value of your investments without you having to put in more money. It's an excellent way to accelerate your financial progress.

What are you waiting for? Make an account with Goldie today to diversify your portfolio and start investing in some real assets!