You’ve probably heard hype surrounding the concept of gearing. Gearing is basically borrowing to invest. More often than not people borrow to invest in property, but you can also borrow to invest in shares in the form of a margin loan. The hype is all about negative gearing, but what is it and what are the other forms of gearing? Below is a quick explanation of gearing.

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One of the easiest options when starting out in share investing is investing in an index fund.

An index fund is a managed fund that aims to replicate the movement of a specific index. For example, the S&P/ASX 200 is an index that represents the top 200 companies listed on the Australian Share market by market capitalisation. The rise and fall of this index reflects the movements of the top 200 companies. An index fund based on the S&P/ASX 200 holds shares in the top 200 Australian companies and will follow the trend of this index and match its total return.

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Some personal financial advice is timeless, which explains why George S. Clason’s book The Richest Man in Babylon originally published in 1926, is is still in print today, recently revised and updated for the 21st century.

The book is a collection of parable like narratives set in ancient Babylon, renowned as the wealthiest city of the ancient world. In the book, Arkad shares with his friends the secrets of wealth (below) and tells of how he went from having no money to his name to being the richest man in Babylon.

Despite the antiqueness nature of the narrative, the basic principles to wealth creation are just as relevant today as they were when the book was written in 1926 (and indeed in ancient times) albeit that we may need to  consider modern investment strategies.

The Richest man in Babylon offers the basic underlying principles of wealth creation, and is a good introduction into the world of personal finance before moving on to more specific and detailed information about modern investment strategies. The principles are basic, the effort lies in the execution of the details.

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If you love a bargain, now may be the best time snag a bargain buying shares. And buying shares has never been easier – shares can be bought and sold at the click of the mouse and in the comfort of your own home. If you are unfamiliar with the process, then here is an outline of how to go about buying shares online.

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