Where to invest $3000

I currently have $3000 saved which I add to every few weeks and never touch. It's currently in an ING acct. I'm wondering if it's best to leave it in the ING acct until I get a more sizeable amount or find something else with a higher interest rate? My purpose for these funds is to buy shares eventually.

Thanks : )

 

Welcome to the forums MissMoney.

May I ask how old you are and what are your current life circumstances?

If I was under the age of 25 with limited liabilities or obligations, I'd want to always have a couple of thousand dollars tucked away for a rainy day.

But once I had a couple of thousand tucked away, I'd continue accruing my savings within a high interest bank account and then once $2000 had accrued I'd invest it in a low cost index fund (STW or IOZ) via a regular online broker like commsec, etrade, etc.

The reason I suggest buying an index fund rather than individual companies is due to the fact that as a young person with limited capital to invest. So even if your share selection skills rivaled that of Warren Buffett it won't make you much money with such little capital invested.

So I believe that a young person's time is likely to be better spent investing in their education or progressing thier career to maximise your earning potential which will allow you to save more and overtime accruse more capital to invest in shares.

 

I agree with Chris. If you're younger then you're better off using "smaller" amount like the $3k to further your education or career. Once you've got a more sizable sum saved then you should consult a financial planner or broker and invest wisely from there.

 

"Once you've got a more sizable sum saved then you should consult a financial planner or broker and invest wisely from there."

The last people who know anything about this business are financial planners, stockbrokers and taxi drivers.
Financial planners/stockbrokers are like car salesmen. They do not sell cars but they sell financial products only.
The more they sell the more commission they earn. They have their pockets on mind not their clients'.
If they knew what they were doing they would being doing it for themselves and not talking to you!