How To Buy Shares In 5 Easy Steps

When I started working my first full-time 9-5 job, I remember thinking to myself “goddamn there must be an easier way to make money than dragging my sorry ass to work every single morning.” Don’t get me wrong, not alllll work is bad. I just personally don’t want to do it for the rest of my life. Hence why, I decided to start investing in the share market as early as I could so that I have enough time for my money to compound and (hopefully) allow me to retire earlier than the government suggested age of 67.

The thing is, it’s all well and good to talk about buying shares, but it’s a whole other thing to actually buy them. I mean, it’s not like you can just nip down to Woolworths and ask the cashier for a bunch of Commonwealth Bank shares, can you? Although, on a side note, that could possibly be a new business venture for Woolworths to consider and I’m open to taking credit for it.

Honestly, I was completely overwhelmed when I started thinking about buying shares. Seriously, my thought process went a little like this:

Will I need to hire a financial advisor? Is it expensive to get a financial advisor? Am I going to lose all my money? Where the hell do I even buy them? Is there some place that stockbrokers meet up to buy and sell shares? Oh, yeh I guess that’s Wall St. DO I HAVE TO GO TO WALL ST?! I should probably just forget about it and watch Wolf of Wall St again. Damn, I forgot how good Leo looks in this movie.

Photo by Serpstat on Pexels.com

So, if you’re anything like I was and feeling as overwhelmed as I did when it comes to actually buying shares, then look no further because I am gonna break down the (very easy) process for you right now.

1. You DO NOT Need To Hire A Financial Advisor

Repeat after me: I am capable of buying my own shares.

It doesn’t matter whether or not you actually believe that right now, because in a few minutes you’ll see just how damn easy it is to buy shares on your own. So please, don’t pay anyone to do it for you. That’s a damn waste of money that you could, instead, be using to just buy more shares.

2. Do Your Damn Research

I’m not here to tell you how much money you should invest and what shares you should buy, but you better believe that there is more to it than just investing your life savings into a random company and hoping for the best. That’s why you’ve gotta commit and do some damn research.

I would firstly recommend that you read my post “Should You Invest Your Money?” (shameless plug I know, I’m sorry!!) but it’s a good place to start when figuring out if you’re actually in a financial position to start investing. Secondly, I recommend that you read “WTF is an ETF?” (yet another shameless plug, ugh I hate myself), followed by the Barefoot Investor articles that I linked at the end of that post. Then, take some time to research the shares that you’re interested on the Simply Wall St app. I also really like to read articles written by ‘The Motley Fool‘ because I find them super easy to understand and very useful when deciding which shares to invest in.

At this point, the more research you do, the better off your share portfolio is going to be.

3. Get A Free Investment Account

When I first wanted to buy shares I physically went into the bank to sign up for an investment account thinking that it was going to be this huge ordeal. It was not. When I asked to sign up for an account, the bank teller just stared at me blankly while he told me to go home and sign up online. It was a very underwhelming experience, let me tell you.

To avoid this, stay at home and spend five minutes filling out an application for an investment account with whatever bank you already use. I signed up for an ANZ Share Investing account, purely because I already have an everyday transaction account with ANZ. Commonwealth Bank has the Commsec Pocket account, Westpac has the Westpac Online Investing account and NAB has NABTRADE.

If you aren’t with a Big Four Bank, check to see if your bank has an investment account option. If not, you can open a free everyday transaction account with any of the Big Four Banks and then open a free linked investment account. Remember that all of these accounts are free to open, so if you want to just sign up and then decide you’re not interested in buying shares, you won’t actually lose anything.

4. Buy Shares On Your Banking App

No matter what investment account you signed up for, there is going to an associated app or website that you can use to buy shares. The regular ANZ Mobile Bank App, for example, has a separate Invest area in the For You tab in the app which covers all things investments. There’s a Commsec Pocket app, a Westpac Online Trading App and NAB has a NAB Trade internet site that you can open on your phone browser. Find yours and download it now.

Once you’ve sussed out your relevant platform, make sure you have your money in your investment account and then use the platform to search for, and buy, whatever shares you’re interested in. Things to remember when buying shares are:

1. The share market is only open from 10am – 4pm (AEST).
2. Every time you purchase or sell shares, there is a brokerage fee (a fee that the bank charges in exchange for making the deal for you).

BANKFEETRADE SIZE
CBA$10
$19.95
Up to $1000
($1000 – $10,000)
ANZ$19.95
$24.95
(Up to $5000)
($5001 – $10,000)
NAB$14.95
$19.95
(Up to $5000)
($5001 – $20,000)
Westpac$19.95 or 0.11% of trade value (whichever is greater)

3. Buying ‘at market’ means you’re happy to buy that share at whatever the current price is. You can only do this when the market is open.
4. Buying a ‘limit order’ means that you can set your target price, and if the share hits that value, then the order will take place.
5. Buying shares is the same as buying an item at a regular market. Someone has to be willing to buy the share if you’re tying to sell, and someone has to be willing to sell the share if you’re trying to buy. If you’re not successful this time, it doesn’t mean you should give up on it.
6. DO NOT PANIC. The first time I bought shares the price fell pretty much straight after I purchased them. Trust the process. Remember it’s a long-term investment and just have fun with it.

And honestly, that’s it. Once you become familiar with the process, it really only takes a few minutes to actually buy and sell shares when you know what you want.

5. Alternatively, You Can Use Automatic Investment Apps

If you want an alternative way to start investing that isn’t as complicated, you can also sign up for investment apps that do all of the hard work for you.

I use the Raiz Investment App which rounds up purchases that I make from my everyday transaction account, and then invests the difference for me. The reason I love it so much is because I don’t even notice that the money is gone. If I spend $4.30 on a coffee, and 70c is then invested into the share market without me noticing, I feel like I am absolutely winning at life because these little contributions are seriously going to add up over time. You can also deposit one-off lumps sums of money or make recurring investments so that your share portfolio can grow even faster. The best thing is the app also lets you withdraw that money at any point too. The Raiz App also has a Rewards section which offers cash back deals on online shopping purchases, in which your cash back is invested directly into the share market.

If you want to sign up for Raiz and get a FREE $5 in your RAIZ investment account, click here. That link is a referral code given to all users which means we will both receive a FREE $5 when you use it to sign up.

It’s also important for you to know that RAIZ charges $2.50 per month. So, make sure that you’re using it enough for it to be worth it.

Another example of an automatic investment app is Spacheship, which doesn’t charge any fees on your first $5000. Alternatively, you can use an app like Longevity which invests your spare change into your super fund which is technically investing in the share market (just a bit more indirectly).

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The Stingy Bitch

Based in Sydney, Australia.
Created in 2020.

Disclaimer:
This site and all of it’s contents are provided for entertainment purposes only and do not constitute personal financial advice. All products that are mentioned are general product advice only, not personal product advice. Not all options are presented and my opinions are subject to change. All content and posts have been prepared as a general summary only and is not intended to be financial advice with respect to any particular matter. This post should not be relied on with respect to any particular matter. If you have questions about any aspect of the content or this site or otherwise require personal financial advice, you ought to seek financial advice. The author disclaims liability to any person who relies on this post.

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@thestingy.bitch

Published by thestingybitch

A Twenty-Somethings Guide to Saving Money Whilst Still Living Your Best Life

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