Young Aussies think you need $20k to start investing – they’re wrong

By Peter Terlato · · 2 min read
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Young, happy woman investing on phone

Many young Australians believe investing is out of reach unless you have tens of thousands saved but the reality couldn’t be further from the truth.

According to HSBC’s latest Investor Insights Survey, Gen Z and Millennials estimate you need more than $20,000 to begin investing. In fact, the average minimum amount Australians think is needed to start investing has jumped to $18,002 – a steep increase from $13,251 last year.

But here’s the truth: you don’t need a huge lump sum to grow your wealth.

More than half of Australian investors (51%) are now using a dollar-cost averaging strategy, regularly contributing smaller amounts over time. This strategy has become increasingly popular in today’s volatile market. Not only is it easier on your budget, but it also helps reduce the risk of trying to ‘time’ the market.

Term deposit laddering: balance returns with flexibility

Aussies are getting smarter with their money moves

Despite inflation and economic uncertainty, Australians are doubling down on their investment strategies. The survey found that:

  • 23.4% of monthly net income is allocated to investments, up from 15.3% last year
  • 76% of investors check their portfolio at least monthly
  • Just 2% aren’t monitoring their investments at all, compared to 10% last year

It’s clear more Australians are making consistent, informed money moves – not chasing trends or pulling back during downturns.

“What we’re seeing is investors leaning into the golden rules of investing. They’re not trying to time the market. They’re making regular contributions, taking a considered approach.”

– HSBC Australia Head of Investments Donahue D’Souza

You can start investing with far less

Thanks to the rise of low-cost investment platforms, it’s possible to begin investing with as little as $5 to $100 – far from the $20,000 figure younger Aussies believe they need.

Whether you’re looking at micro-investing apps, ETF platforms, or robo-advisers, many offer:

  • Recurring investment features
  • Access to international markets
  • Low or no brokerage fees
  • Fractional investing, so you can buy into big companies with small amounts

Compare investment platforms to get started

You don’t need $20,000 to start investing – what you do need is a plan.

By making regular contributions, diversifying your portfolio, and taking a long-term view, you can build wealth steadily, no matter your starting balance. Mozo can help you compare platforms based on fees, features, and minimum investment requirements. For example:

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