Want to start investing? First read these four tips!

Tip 1: Start to save and invest as early as possible

Investing is one of the most reliable ways to save effectively and build your wealth over time. Simply holding your money in a savings account or stashing it in a cupboard is not going to help you in the long run. That's because your cash won't be able to keep up with inflation.

Investing helps you keep up with (or even beat) inflation by allowing you to benefit from the wonders of compound interest. When you invest, you make money from money.

Tip 2: Set goals to motivate your commitment

Most people invest as a way to save up for their retirement. But you can invest to help you accomplish all kinds of life goals along the way - like furthering your education, travelling abroad, buying a car or a home, growing your family or starting a business.

If you know what you're saving for, it's far more likely you'll stay accountable, as you can visualise your goal.

Tip 3: Get professional advice to help you manage your investment risk

Investing is all about risk and reward. Some asset classes like cash and fixed interest are less risky, while others like property and equities are relatively riskier. But the possible reward for investing in any of the asset classes is different too! You'll need to manage risk if you want to achieve investment success.

It's generally well worth getting professional help here from a financial adviser or financial planner.

• They are qualified in knowing how to avoid unnecessary investment risks
• They can choose a fund manager that runs a balanced fund
• They can recommend options that offer maximum rewards in a way that suits your personal risk profile and financial goals.

Tip 4: Consider long term value versus costs - it's worthwhile to optimise

Aside from the capital that you'll put into your investments, you'll need to pay fees for the opportunity to earn returns by investing. Fees can vary depending on your investment plan. Speak frankly to a financial adviser and ask for a breakdown of the costs involved in investing.

However, don't fixate on getting the lowest fees if you are not earning enough of a return. Rather, pay for quality and advice to optimise your investments. Instead of just the cost, get a sound idea of your potential returns - then invest where you will get the most value over time.

Your adviser can also recommend the most cost effective ways to invest, like by contributing to a retirement fund that offers tax benefits.

Now that you know the basics, read more about what every new investor should know.