The Investing Myth for Tradies

Many tradies think investing is for people in office jobs with steady paycheques. That's simply not true. Some of Australia's wealthiest investors started with a trade and used their above-average income to build serious wealth.

Step 1: Get the Basics Right First

Before you invest a dollar, make sure:

  • High-interest debt (credit cards, personal loans) is paid off
  • You have 3–6 months of expenses in an emergency fund
  • Your super is on track
  • Your business has a cash buffer for slow periods

Investment Options for Tradies

ETFs (Exchange-Traded Funds)

The simplest and most recommended starting point for most people. ETFs give you exposure to hundreds of companies in one purchase. Low fees, diversified, and you can start with as little as $500. Platforms like Vanguard, BetaShares, and CommSec Pocket make it accessible.

Property

Many tradies naturally gravitate toward property — you understand it, can renovate yourself, and the leverage available through mortgages can accelerate wealth building. The downside is that it requires significant capital and is less liquid than shares.

Superannuation

Often overlooked by self-employed tradies, but extra contributions to super are one of the most tax-effective investments available. Contributions are taxed at only 15% — compared to your marginal rate which could be 32.5% or higher.

Your Own Business

Reinvesting in your trade business — better tools, training, marketing — can generate returns that beat any share market if you're in a growth phase.

Dealing with Variable Income

  • Pay yourself a consistent "wage" from your business account
  • Set up automatic investments on payday, even small amounts
  • Invest lump sums after big jobs rather than spending windfalls
  • Use a high-interest savings account as a buffer for slow months

Get Professional Advice

A fee-for-service financial adviser can help you build a plan that fits your situation. Avoid commission-based advisers — their recommendations may not always be in your best interest.