Investing 101: A beginners' guide to investing

We all have obstacles to overcome when it comes to learning something new and we know sometimes being a beginner can be overwhelming. But, give yourself a pat on the back! You've already made the first step on your investing journey simply by reading this blog. Believe us when we say investing is actually pretty straightforward and our beginner's investing guide could make your first few steps a little smoother.

Sit back, relax, and let us give you the lowdown on how to start putting your money to work.

Learning the basics

Learning the foundations of investing is a great place to start. You don’t need to devote hours of your life and certainly don’t need a finance degree. We’ve created a free Getting Started Course that teaches you the basics of investing  over 10 days, in just 10 minutes a day. Or if you want to dive right in, you can do the full course in one go. 

Check out the details and sign up here.

Boosting your knowledge

There are loads of great resources out there to tap into and learn more about investing. Choose your favourite medium - whether it’s reading, scrolling, watching or chatting - and you’re on your way!

Stay up-to-date with top investors around the world

Read up about what they’ve achieved and the lessons that have led them to their successes. Some of our favourite investors include the GOAT Warren Buffett, Cathie Wood and Charlie Munger, and many have created books, websites, and podcasts to share their insights. Soak up all the knowledge you can, and you can use it to help inform your decisions and investing strategy.

Follow financial influencers on social media

There are plenty of financial influencers (Finfluencers) on social media that share actionable tips and relatable content (yes, even financial memes). Some of our Kiwi faves are Girls That Invest, MāoriMillionaire, Aaron Hamkins and The Curve. They break down the stock market into easy to understand, bite-sized content for beginners. You can hit follow on these accounts and learn while you scroll on Instagram and TikTok, or binge YouTube.

Make money chat great again!

You might have friends who love to talk openly about money and investing. Or a couple of dark horses who are quiet enthusiasts and keep it to themselves. Ask them what tools they use, where they get their information from, and what they’ve learned along the way; they may share surprising insights. Ruth from The Happy Saver gets her friends to shout her a coffee in exchange for sharing what she’s learned about the stock market. So grab a mug, fire up the Moccamaster and settle in while they spill the tea on finance!

No mates? No worries! If you don’t have any friends keen on finance, you can make some. We’ve compiled a list of our favourite blogs, podcasts and communities for your learning pleasure.

Picking your first shares

Hatch offers over 5,900 companies and ETFs, and let’s be honest, most of us struggle to even pick a movie from Netflix. With so many choices available, where could you start?

Start with the companies you know

What products, services and brands are you already spending your money on? Take a look around you: is your phone Apple or Android? Are you wearing Lululemon tights or Allbirds shoes? If you love the product, you could consider buying the shares too. 

Remember, a little research goes a long way. You don't want to fall into the hype trap - it can be easy to catch investing FOMO and want the stocks that everyone else is talking about. Doing a little research can help you make your own informed decision, and all the information you need about a company is at your fingertips. You can read up on a company’s financial reports, future plans and past performance by googling ‘investor relations + company name’. 

You can also create a Hatch account and use our search function to look at how specific companies have performed in the past. Whatever you do, take the time to suss out any prospective investments before you make a decision. Well-informed investors make smarter investors.

Exchange-traded funds (ETFs)

If choosing individual companies feels daunting, another option is to choose an exchange-traded fund (ETF). When you buy shares in a fund you’re buying a basket of individual investments (companies, bonds, etc.), and you’ll own a slice of every investment within it. Funds are a great place to start because they take the work out of picking an individual company, and help you diversify your portfolio immediately. 

By spreading your money across multiple investments (aka diversifying), you’re making sure your eggs aren’t all in the same basket. You may want to own a slice of the 500 largest public companies or maybe a specific industry or theme such as cannabis, clean energy, gender diversity or technology. We offer more than 1,400 ETFs through Hatch, so log into your account and browse the ETFs available.

Buying your first shares

The time has come to get off the sidelines and make your first investment! Here’s how to start investing in shares. 

1. If you haven’t already, create a free Hatch account and verify your identity. You can then browse and watchlist companies and ETFs and get a feel for how the platform works.
2. Make your first deposit into your Hatch account. There’s no right amount to start with,  you can deposit any amount you feel comfortable with. Choose a company you want to own a part of, or an ETF to get started. 
3. Choose how you’d like to place your order, and the amount you’d like to invest, and you’re done!
4. Keep an eye on how your investment is doing over the next few months. Your investment may go up and down, remember this is okay and don't let your emotions get in the way. Use this time to learn how the stock markets work.
5. Once you’ve built up your confidence, think about making a plan to invest regularly.

The #1 rule in the investing world is that there are no rules. There are no magic tricks or flawless investment strategies. Getting started is the only hurdle you have to overcome, and with us by your side, you’ve got this.