Not everything comes from the share market
Investing isn’t limited to buying shares. You might earn interest on savings, lend through bonds, buy a rental property, build a business or make extra income from a side job. Each one needs a different mix of money, time, effort and risk.
They do different jobs. Some are investments you can sell. Others need time, effort and ongoing expenses. There is no single option everyone needs to own.
Property and rental income
An investment property may bring in rent and could rise in value. But you need to allow for the deposit, stamp duty, interest, repairs, rates, insurance, agent fees, vacancies and tax. If you borrow, price falls can hurt more because you still owe the loan.
You can also get property exposure through a listed property fund or REIT without managing tenants. These funds have their own market and property risks.
Government and corporate bonds
Buying a bond generally means lending money to a government or company under agreed terms. Bonds commonly pay interest and return the face value at maturity if the issuer meets its obligations. They can help balance a portfolio, but their market value can fall when interest rates rise. Companies can default, and even government bonds are not the same as cash you can spend today.
You can research individual bonds or bond funds. The risks, terms and costs are different.
Savings accounts and term deposits
A high-interest savings account is useful when keeping cash safe and accessible is the main job. A term deposit usually locks in an interest rate for a fixed period, with withdrawal restrictions. Check bonus-rate conditions, deposit protection limits and whether the interest rate is variable.
They can be sensible for near-term goals, but inflation can reduce what your savings buy over time.
A business or a side hustle
A side job, freelance work or small business might increase your income. That can free up more money to save or invest. You might need little money to start, but you'll spend time finding customers and doing the work. Income is not guaranteed, and businesses may lose money.
Keep records of costs, tax and hours worked. A business that makes A$500 after expenses but takes 50 hours is a very different proposition from one that takes five.
Try the trade-off explorer
Choose the situation closest to yours. This does not pick an investment for you. It shows which questions matter most.
WHEN MIGHT YOU NEED THE MONEY?
CHOOSE AN OPTION ABOVE
Different goals call for different trade-offs.
Start by thinking about when you need the money, whether you can handle a loss and how much effort you want to put in.
See the full decision checklist →A practical way to compare your options
Look at time, access, risk, cost and effort. If money is for next year's rent or a house deposit, a risky investment may not fit that deadline. If you have a decade or more, you can investigate growth assets, knowing losses are still possible. If you want more income, researching your skills and potential customers may be more useful than buying a financial product.
Before choosing anything, check the actual terms, ongoing costs, tax treatment and what happens if things go badly.
Further reading & official sources
Check the latest documents and information directly from the publisher or official source.
ASIC MoneySmart: choose your investments ↗ASIC MoneySmart: diversification across asset classes ↗ASIC MoneySmart: develop an investing plan ↗KEEP READING