From Acorns to BrickX: four ways to invest $100
Let's set the record straight: you don't have to be rich to invest. For as little as $100, you can invest in a range of products to grow your cash.
Invest in property with BrickX
Priced out of the property market? A new investment platform can help you invest in residential property for just $100 per share. BrickX currently has properties in Sydney and Melbourne open for investment but will continue to add more. Investors can buy a "brick", a fraction of a property, for less than $100. At the end of every month, investors get a cut of the rental income, minus the ongoing property management costs. Plus, if the value of the property goes up, you can sell your shares for a profit. The platform charges a 1.75% transaction fee when you buy or sell bricks.
Invest in ETFs with Raiz (formerly Acorns)
The Raiz Invest platform (formerly Acorns) might be relatively new in Australia but in that time it has really changed the game for small-time investors. The platform offers five portfolios with different levels of risk. Each invests in seven exchange-traded funds (ETFs) with different asset allocation weightings. Users have three ways to invest: sync your credit or debit card with the app to round-off your everyday purchases to the nearest dollar, and the difference will be invested; you can create a recurring daily, weekly or monthly investment; or you can invest a lump sum (greater than $5). Balances under $5000 accrue a fee of $1.25 per month, while balances above are charged a fee of 0.275%pa.
Top up your super
Looking for a way to pay less tax? Superannuation contributions made from before-tax income are taxed at just 15%, so regular concessional contributions through salary sacrifice can mean you pay less tax. For those earning under $37,000, the low-income super contribution (LISC) is 15% of the concessional contributions you or your employer make in a year (to a maximum of $500).
You could also get the government to top up your super by making after-tax (non-concessional) contributions. Earning under $51,021 per year? You might be eligible for a government co-contribution, meaning you'll effectively be paid by the government to put more money in your super.
Invest in an online savings account
Although online savings accounts are paying less than what they used to, they're still one of the most cost-effective and safe ways to stash your cash. Some have strict access conditions to get the maximum rate, so you'll be less tempted to dip into your savings each month. These accounts usually pay out around 2% per year.
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