Many young Australians are unsure what to do when their financial situation finally stabilises, leaving them with some money to spare after years of scrimping, saving, and scrambling to keep ahead on rent, utilities, and other expenses.

Spending money on luxuries and experiences is a viable alternative that might provide you with a well-earned reward in the short term. Just by investing your money in a way that meets your financial goals, you can turn a little bit of spare cash into a sizable amount for retirement. For an Australian, the investment opportunities are many, and this article will provide you with an idea about the places where you can invest for good returns in future.

Australia has long had a reputation as a wealthy, underpopulated country prone to natural calamities, with an economy mainly reliant on agriculture and foreign investment. This statement was fairly accurate during the first century of European settlement, when wool exports were popular. But now, the economy has changed, and the country has many sectors that contribute to the GDP.

The important sectors which contribute to the Australian economy are:

• Agriculture, forestry, and fishing
• Power and resources (hydroelectric, wind, solar, biomass)
• Minerals and mining
• Manufacturing
• Finance
• Services
• Trade(export and import)
• Transportation and telecommunication
• Health and welfare
• Education(foreign students)

Now, the economy is thriving, and everyone has surplus money in their pockets. The article will list the options where you can invest your money and let it grow over time.

1. Individual Savings Accounts

A savings account differs from a traditional bank account. It allows you to receive interest on the money you deposit. It is one of the most straightforward investing alternatives accessible. This motivates you to keep making deposits and avoid withdrawals because the more money you put into a savings account and the longer you leave it there, the more interest you can earn and the faster you can meet your savings objectives.

A savings account isn’t a quick way to become extremely wealthy. And earning a big amount of interest can take a long time – but it’s typically preferable to leaving your money in your transaction account or stuffing it under your bed.

2. Long-term investment

Term deposits are very similar to the savings account in that it allows you to deposit money with a bank and collect interest over time. Longer the term, the higher the returns.

3. Equities 

Many people think of equities (also known as shares, stocks, or securities) when you mention investment. Getting started in stocks trading can be challenging at first, especially if you’re unfamiliar with the stock market.

4. Mutual Funds (Managed/Indexed)

Many investors put their money into a pool of funds, i.e., in a managed or index fund, which is then utilised to invest in various assets. The value of these assets, as well as the amount of money you invest into the shared pool, will determine your returns.

5. ETFs (Exchange Traded Funds) 

ETFs, or Exchange Traded Funds, are a combo of equities and index funds. In ETFs, money is invested in various assets from a specific class, similar to a traditional index fund (e.g. shares, currencies etc.).

7. Gold

Gold’s long-term security and consistency are one of the reasons it remains a popular investment in the current day. Even if the stock market crashes, the housing bubble explodes, or Bitcoin goes extinct, gold will continue to be a valued commodity in many markets.

8. Cryptocurrencies

Bitcoin and other blockchain-based cryptocurrencies and altcoins may or may not be considered valid currencies, depending on who you ask. Regardless, many investors have invested their money into cryptocurrency in the hope of duplicating those success stories where the value of a cryptocurrency skyrockets in a short period, allowing a lucky investor to cash out for a tidy sum.

These investment plans are way better than just saving your money in your bank account or at home. For an Australian, the investment opportunities are vast here, and with proper research and understanding, you can invest to succeed.