Article 7 investment myths holding young Australians back. 20 March 2026 Read time: 8 min Author David Bennett, AFP® Expert Reviewer Rae Stagbouer If you’re in your 20s or 30s, investing can feel like something you should be doing — but not something you fully understand yet. There’s a lot of noise. TikTok tips. “Hot takes.” Headlines about crashes, booms, and once-in-a-generation opportunities. And underneath it all? A handful of investment myths that stop people from ever getting started. So let’s clear them out and bust some of the most common investment myths. 7 investment myths holding young Australians back: The “I don’t earn enough to invest” myth The “investing is basically gambling” myth The “you need to pick winners to succeed” myth The “I need to understand everything before I start” myth The “super will be enough” myth The “property is the only real way to build wealth in Australia” myth The “I’ve missed my chance” myth Investment myth #1: “I don’t earn enough to invest” This investment myth is the quiet trap. It sounds responsible. Sensible, even. But in reality, it delays the one thing that matters most: time. Compounding — the process where your returns start generating their own returns — creates an incredibly powerful snowball effect. Investing $20 a week in your 20s will almost always outperform investing $200 a week a decade later. Why? Because investing isn’t just about how much you put in — it’s about how long it has to grow. There are also some ultra-low-minimum-investment accounts (like ETFs) that let you get started with very small amounts. Always check the fine print before committing — including the Financial Services Guide (FSG), Product Disclosure Statement (PDS) and Target Market Determination (TMD) — to make sure any product is right for your circumstances. Better yet, talk to a financial adviser early. A little guidance now can make a huge difference down the track. What actually matters: Start investing early Start small Build consistency Let compounding do its thing Still not convinced? Try this. Test your readiness to invest. Ask yourself: How much could I comfortably set aside each week without impacting my day-to-day life? Even $10 or $20 can work, as long as you won’t miss it. Could I maintain this habit consistently for the next 6 months, without touching the money even in an emergency? If I don’t miss it after 6 months, what does that tell me about my readiness to start investing? How might it feel to watch that money grow and compound over time? Theory aside, one way to safely test your readiness is to set up a small, automatic transfer into a separate account — or pop cash into a good old-fashioned piggy bank. Whatever works for you. Putting the money out of sight and not accessing it is a great stand-in for an investment account. If you can maintain the habit and haven’t missed the money after 6 months, you might be ready for the next step. At that point, consider speaking with a financial adviser or doing some research into low-minimum investment accounts that could suit your goals and circumstances. Back to Top Investment myth #2: “Investing is basically gambling” Short-term movements can look random. Headlines can feel dramatic. And it’s easy to mistake volatility for risk. But while gambling is short-term, zero-sum, and luck-driven, investing is long-term, growth-driven, and strategically backed by real assets like companies, property, or infrastructure. Yes, markets move. Sometimes sharply. But zoom out far enough, and a clear pattern emerges: investment markets reward patience and a cool head over time. Avoiding investing altogether may feel safer, but it introduces a different kind of risk: falling behind inflation and missing out on growth opportunities. What actually matters: Focus on long-term investments Expect short-term ups and downs Keep your eye on growth over years and decades Still not convinced? Try this. Shift your mindset from quick wins to long-term growth. Many people treat their investment account like a bank account — checking it daily for “available cash.” That approach is fraught because it encourages short-term reactions to normal market swings. Instead, think of your investments as a long-term growth engine. Check in occasionally, but avoid letting short-term noise drive your decisions. Back to Top Investment myth #3: “You need to pick winners to succeed” This investment myth is where a lot of people get stuck. The idea of picking a winner — getting in early, backing the “next big thing” — is appealing but consistently doing so is incredibly difficult. Even professionals backed by the best research houses in the world don’t get it right most of the time. A more reliable approach is diversification. In simple terms, diversification means not putting all your eggs in one basket. It allows you to spread your risk across: Hundreds or thousands of investments Multiple industries (e.g. tech, healthcare, renewable energy) Different asset classes (e.g. shares, property, fixed income) Global regions Diversification reduces your reliance on any single outcome. You’re not trying to pick the winner — you’re participating in the growth of many. It’s a quieter strategy. Less exciting, perhaps. But it’s far more resilient over time. What actually matters: A well diversified investment portfolio A systematic approach to review and realignment of your portfolio Still not convinced? Look at this. Here’s why even the experts can’t reliably pick a single winner. This data from Vanguard shows the best and worst performing asset classes have varied year to year, over the past 30 years. Some years shares lead, other years bonds or property take the top spot. The only consistent pattern is there’s no consistent pattern for which will “win” next. And that’s why this investment myth deserves a hearty debunking. It’s also why diversification matters so much. Spreading your investments across multiple asset classes smooths out returns and reduces reliance on picking the next winner. (X) denotes the number of times each asset class was the best/worst performer during a financial year ending between 1996 and 2025. Source: Andex Charts Pty Ltd, June 2025. Back to Top Investment myth #4: “I need to understand everything before I start” Ahh yes — the research trap. This investment myth keeps people stuck for years. Learning lots but never quite feeling “ready” to act. The reality is, learning is great — but waiting for complete certainty is not. You don’t need to know everything before you begin. You just need to understand the basics well enough to take the first step. Investing, like many things in life, is something you get better at by doing. What actually matters: An understanding of the 9 things you can do with your money A simple structure and investment strategy A long-term mindset An understanding of diversification and risk An informed opinion on where you think the world is headed A willingness to learn and refine over time Still not convinced? Try this. Okay — so you’re still down for more learning. We got you: 9 things you can do with your money Why Consider ESG in Investing? Your no-nonsense, Sustainable Finance Glossary Screening Techniques for Responsible Investing Pros and Cons of Self-Managed Super Funds Green-Hushing: Why Leading Firms Are Staying Silent 13 Elements of impact investing Super Contributions 101: Concessional vs Non-Concessional Back to Top Investment myth #5: “Super will be enough” Superannuation is powerful but it’s built for retirement, not flexible financial goals along the way. It’s also largely out of sight, which makes it easy to lose track of how it’s invested — or whether it aligns with your current lifestyle and priorities. Building wealth outside of super gives you extra control and flexibility, including: Access to funds before retirement Choice over what you invest in Ability to align investments with your life goals at different stages What actually matters: Understand your super deeply — know how much you have, where it’s invested, and whether it aligns with your values and goals Explore other investments that provide flexibility and access Align your overall strategy with your life goals, not just retirement Still not convinced? Try this. Book an introductory chat with a financial adviser. They can help you strike the right balance between super contributions and accessible investments, ensuring your strategy fits both your lifestyle today and your plans for the future. Back to Top Investment myth #6: “Property is the only real way to build wealth in Australia” Property is deeply ingrained in the Australian psyche, but it’s not the only path — and often not the best first step. Buying property requires significant capital, involves ongoing costs, and concentrates your risk in a single asset. Other investment approaches allow you to start smaller, diversify more broadly, and grow steadily over time. What actually matters: Think in terms of portfolio, not just a single asset. Diversify across asset classes, don’t become property heavy Still not convinced? Look at this. Over the long term, shares, property, and cash all trend upwards over time, but the journey looks different. Shares deliver the highest returns over time, but with more volatility. Property tends to be less volatile than shares, but generally will not offer the same return or growth potential. Cash is the most stable, but over time inflation can erode its value. In short: it’s too simplistic to say that property is the only way to build your wealth. Consider this investment myth busted. And the most important takeaway? Again – diversification is key. By having exposure to all three asset classes, you balance growth and risk, smoothing out volatility and improving your long-term position. Source: Kearney Group Economic Charts & Graphs 2026, Understanding cash, property and shares. Back to Top Investment myth #7: “I’ve missed my chance” Markets feel high. Prices feel stretched. It’s easy to think the best time has passed. Long-term investing isn’t about timing the market — it’s about being invested over time. Missing the perfect moment is far less costly than missing years of compounding growth. What actually matters: Time in the market beats timing the market Stay invested and build gradually Focus on long-term growth, not short-term highs Still not convinced? Try this. Start small today. Speak with a financial adviser to create a plan that lets you invest consistently and confidently, no matter market conditions. From investment myths to momentum. Investing isn’t about luck. It isn’t about waiting for the “perfect moment,” or having a huge salary, or finding the next big winner. It’s about time, consistency, and making smart, informed choices early. The common investment myths we’ve busted here all share one lesson: the sooner you start, the more compounding, diversification, and long-term growth can work in your favour. Even small, regular contributions today can make a huge difference over a decade or more. Super is powerful, property has its place, and there are now plenty of low-barrier ways to begin investing — and best of all, you don’t have to do it alone. Speaking to a financial adviser early can help you: Understand your options Build a strategy that fits your life goals Avoid costly mistakes and unnecessary stress Set yourself up for a lifetime of success The takeaway? Action beats perfection. Start small. Stay consistent. Learn as you go. And let time do the heavy lifting. Your future self will thank you. Busting myths. Making moves. Building futures. Whether you’re looking to unpack other investment myths to dive straight into the deep end, we’re here. Lock in a chat
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