Why you should invest not splurge this holiday season

With Christmas comes big spending and an urge to pamper ourselves and our loved ones. Instead of blowing hard-earned money on expensive gifts and treats, opting for smaller thoughtful presents could put you in a great position to grow your wealth through investing.

In a few years, you might be grateful you chose investing over splurging in 2021.

As Christmas approaches and Australia prepares to open its borders to welcome the world once again, there are many reasons for Australians to look forward to the year ahead.

But after almost two years of hunkering down, spending life in lockdowns, quarantine, and on Zoom, many Australians will be opening their wallets and maxxing credit cards in a bid to taste the full plethora of freedoms they can enjoy again.

Collectively, average Australians are billed to fork out $23.9 billion this festive season – a staggering 38 per cent increase from last year.

On a per capita basis, New South Welshmen and Queenslanders are tipped to spend $1,361 and $1,146 respectively on presents, food, alcohol, takeout, and travel. It’s big money. Especially when you consider this spend per family could buy you a significant shareholding in one or two great companies.

It may not seem like a fortune, but don’t underestimate the power of $1000 invested well into areas you’re comfortable with. Don’t get me wrong, I know spending is hedonistic for many, but it’s also a nice feeling to put your hard-earned money to work in other ways and watch it grow. Be careful, it might be addictive.

If you’re looking to grow your wealth in 2022 and beyond, consider adding these five investment areas to your watchlist.

For the bricks and mortar investor:

Property

Investing in property in early 2022 before international migration really picks up again presents a solid opportunity. With Brisbane poised to host the Olympics in 2032, investment into the state is slated to rise significantly over the next 10 years. Low interest rates and solid rental demand are supportive of this strategy.

For the electric vehicle believer:

Lithium

It’s not too late to jump aboard the electric vehicle/rechargeable train (or car). COVID-19 caused a decrease in demand for EVs as cities and countries came to a halt, but as borders start to reopen and global human movement rises, markets will start to rebalance – meaning lithium demand will likely swing higher.

For everything electric:

Copper

Copper is slated to strengthen due to increasing manufacturing and construction activity as the world moves out of hibernation. Mine supplies are expected to ramp up in line with demand, which could be a good omen for new and existing investors.

For the ESG Investor:

Palladium

It’s anticipated the palladium supply will be scarce in years ahead while industrial demand will grow. This scenario of tight supply and increased demand suggests strong future prices.

For the futurist and the speculator:

Cryptocurrency

If you have time on your side and a real ‘in for the long haul’ mindset, cryptocurrency may be for you. Over the past few years, it has been somewhat volatile, so it will take some research to find a stock you’re comfortable to buy. Not to mention, NFTs (non-fungible tokens) are also on the rise, meaning crypto is potentially a great opportunity to consider adding to a well balanced portfolio.

As the festive season fast approaches, take a look at your spending. It’s possible that with some minor recalibrating and good financial advice, you could potentially grow your hard-earned money instead of buying expensive presents that’ll sit in the garage collecting dust for years to come.

Let’s head into the new year with a glass-half-full mindset and remember when asking yourself the question: To splurge or not to splurge?

The answer is….to invest.

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