Kate Campbell reveals where she would invest $10k
Where would you invest $10,000? We spoke to eight finance experts to find out what they would do with such a windfall.
At the moment my investment strategy is still evolving as I learn and figure out what works for me, but I'm working towards a core and satellite portfolio.
So, essentially 80% of my portfolio is allocated to a diversified selection of ETFs, and then I have some direct investments in shares, managed funds and a few alternative assets making up the other 20%.
It's not very exciting at all, but that's exactly the point: the best investment strategy is often the simplest and most hands-off one.
However, right now I'm focusing on investing in myself and my education. This is helping me grow my employable skills and improve my ability to approach new problems.
What COVID-19 has meant for my FIRE plans
If anything I'm more fired up to work towards my financial independence goals this year! The events of 2020 have certainly given me a much clearer perspective on my goals. I honestly believed FIRE (financially independent, retire early) would be a phase like most things.
However, I realised this year that the idea of working towards financial independence was starting to become part of my personal framework.
The ability to look after yourself in a time of crisis was hammered home this year, and I want to ensure that I am always able to look after myself and my family.
My mindset towards money has also shifted towards viewing it as a tool, neither good nor bad, but as something that can be used to your benefit with training and practice. It's also encouraged me to always keep learning and investing time in my relationships with my family and friends. I'm glad it's starting to open up more conversations with people around the world about taking control of their finances and setting financial goals.
I've also realised that cutting my expenses to bare bones and removing any discretionary spending is not an approach that works for
me - it's all about balance and finding the approach that works for you.
Think about the things in your life you spend money on that bring you joy - are they convenience, travel, health, experiences, freedom, relationships, generosity, luxury, social status, self-improvement? Arrange your finances to maximise your spending where it brings you the most happiness and cut your spending in the other areas of your life.
Your FIRE goals shouldn't be making you miserable, and if they are it might be time to take a step back and work out a better plan.
I've also spent my spare time this year investing in my education, both through tertiary education and increasing my skills at work.
As a young person, increasing your skills and abilities can be the best investment you make, as it helps you to increase the gap between what you earn and what you spend.
I've set myself financial targets at the start of each year with my FIRE goal in mind and have been fairly consistent with reaching them.