Home > What is Micro Investing?

What is Micro Investing?

new zealand trading platforms
There are a number of Australians in the low-income group, which is why many can’t invest a lot of money in any ventures.

Or maybe you just want to start with a tiny amount.

Well, in reality, there are actually quite a few investments that you can make with a low income.

It is simply a matter of knowing what those opportunities are and understanding how to invest your money. This article will provide you with the information that you need to get started.

How to Invest A Small Amount?

The first thing that you will need to understand is how to invest if you aren’t earning a lot of money.

Most individuals who are earning minimum wage will often emphasize on the lack of funds as a major barrier to investing.

Now, while you may not be able to invest a large quantity of money in the beginning, it is quite likely that you do have more to offer than you can imagine.

One way to determine this is to look at how much you spend each month.

Don’t forget your expenses

There are, of course, essential expenses that you just can’t ignore. These include rent, utilities, groceries, and similar requirements. At the same time, once you look through your expenses, you may find that there are certain activities that aren’t all that practical. For instance, perhaps you eat out quite a lot or engage in leisure activities each weekend. By reducing such events, you will find that you are left with additional money to invest.

For the sake of argument, let’s imagine that you really don’t have any money to spare as you live rather frugally. In this instance, it is all about saving up until you have enough to invest.

So, put away whatever extra money that you can, even if it is just a few dollars every week or month. You will find that, within a short period of time, you will have been able to accumulate quite a bit. You can then invest this amount.

Finally, you need to find a broker that is able to accommodate your particular budget. While there are a number of brokers to choose from, their brokerage fees alone may prevent you from making a profit. This is why you need to make certain that, when totalled, you can afford all of the charges.

Also, you may want to opt for an online broker rather than a full-service one. While full-service brokers offer you a number of advantages, they can also be rather costly to place a trade with. As a result, you may end up investing loss or placing fewer trades. To avoid this situation, always go for a discount broker that you can afford.

Best Micro Investments in Australia 2021

You are now aware of how much money you need to get started. So, let’s move onto the best type of investments you can make if you are a low income earning Australian:

1. Exchange Traded Funds

When you only have a minimal amount of money to spare, it can be difficult to invest in more than one venture. So, not only can you expect lower profits, but you will also not be able to diversify your investments. The solution to this problem is exchange-traded funds or ETFs. Here, your money is collected along with other investments in a fund. Online trading platforms like etoro and plus500 offer these kinds of assets.

Then, a fund manager will use this money, collectively, to invest in different areas.

ETFs often have a low entry point which means that you shouldn’t need too much money to join one. Also, after you have joined an ETF, you also have the opportunity to sell your share, on the stock market as it is traded in this manner. This is an especially good option if you don’t have much prior experience in investing as well.

When choosing an ETF, there are a few factors to take into consideration. For instance, you should compare the various fees offered to you by each ETF. This will make it more likely that you can find one that falls within your budget. Furthermore, you should stick with an ETF that focuses largely on the Australian market and local companies. Trading with international companies could end up raising the taxes or fees that may have to pay.

2. High Yield Savings Accounts

If you want a rather passive way to make an investment, you may want to think of opening a high yield savings account for yourself. Here, your money will appreciate, depending on the interest rate attached to the account. Now, despite being termed as high yield, you should know that these accounts often don’t generate a lot of profits. This is largely because the interest rates tend to be rather low. Nonetheless, if you were able to find a bank that offers you a more competitive interest rate, then you may find yourself with a good opportunity. Also, if interest rates do increase, you stand to benefit from this movement.

As you can imagine, the best thing about this form of investment is that you can’t actually lose any money. So, if you are someone who can’t afford to lose any of your investments, this is certainly a good option for you. It is also a rather liquid investment – if you do need money at any point, you can simply withdraw it from this savings account.

3. Term Deposits

Term deposits do bear some resemblance to high yield savings accounts. To start with, this too tends to be a rather inert form of investment. You simply keep your money in an account and it begins to appreciate, based on the interest rate quoted to you by a specific financial institution. Depending on the account that you sign up for, there will be a certain maturation date attached to it. As with the savings account, you can be quite certain that your money will be safe as the Australian government guarantees deposits up to $250,000.

Nevertheless, before opening up a term deposit, you need to understand that once your money has been placed with this form account, you can’t take it out. If you do attempt to withdraw your money before the maturation date, you will find that there is a significant penalty in place. Also, term deposit accounts are affected by increasing interest rates as they have fixed rates. So, if there is an increase, there is no advantage for you.

4. Dividend Paying Stock and DRIPs

Believe it or not, you can actually take part in the Australian stock market, even if you aren’t earning too much money. Of course, in order to be successful at such a venture, you do need to be able to choose the right stock. In such a situation, you will find that dividend paying stock is often the best. Here, you will earn a profit on the shares that you have invested in. As a result, you can expect to get paid at least once or twice a year. This can act as a second income for you.

Another thing that you should consider is Dividend Reinvestment Plans or DRIPs. Here, the company will allow you to automatically invest any dividends that you receive back into the company. So, you will essentially be buying more stock in that particular organisation – due to being a member of such a plan, you can often get the shares at a discounted rate. The reason that this opportunity works well for someone earning a low income is because it lets you turn a small investment into a bigger one.

5. A-REITs

Most people automatically think of real estate when they think of investment. Of course, if you have a low income, then buying investment property can seem out of your reach. This doesn’t mean, though, that you can’t invest in property. Rather, you can join a Real Estate Investment Trust – these are known as A-REITs in Australia. This opportunity, too, relies on multiple contributions from various investors. This money is used to buy larger properties and you get to benefit from the profits from these investments.

You will find that there are some brokers that will allow you to invest just $500 in an A-REIT. So, as you can imagine, this can prove to be quite a good investment for you. To ensure a favourable outcome, nonetheless, you should be careful to vet every trust that you may consider joining.

How Much Do You Need to Invest?

The next question you will undoubtedly have as an Australian investor is “what is the minimum amount that I can invest?” There are some people who will argue that you can invest as little as $5 or $50, so you can look out for such opportunities. The downside of these investments, however, is that they will not generate much profit and will ultimately prove to be rather futile.

If you want to actually turn your investment into a success, then you need to start with at least $500. This will help you enter the market at a decent position and make a profit that will actually make a difference to you. This is the amount that you should aim for, if possible.

Now, in the previous section, the concept of reducing your expenses was discussed. If this is something you can do, try to ensure that you free up around 10 percent of your income on a monthly basis. Although this may sound like a rather significant portion of your salary, this amount allows you to reap more short-term and long-term rewards.

How to Know If an Investment is Right for a Low Income Earner

Even within the categories discussed above, there can be quite a bit of variation. This means that not all investment opportunities may be suitable for someone earning a lower income. Here are all of the markers to be aware of when analysing a possible venture:

Consider the Risk Involved

With many kinds of investment, there is always a certain level of risk involved. As such, you can stand to lose a small or large portion of the money that you initially invested in a venture. Of course, as a low income earner, you aren’t able to withstand risk as well as some of the wealthier investors. This is why you should always understand the rate or risk and determine if this is something that you can deal with.

For example, if you need access to the full amount of your investment money in the near future, this means that you are averse to risk. So, it is best to stick with options like savings accounts and term deposits. On the other hand, if you can do without that money, then stocks, A-REITs, and ETFs are great choices for you.

Analyse the Fees

As mentioned, most forms of investment have certain fees attached to them. If unchecked, these can quickly outnumber the amount you have saved up to invest. Therefore, you will not actually end up making much of a profit. This is why you should understand just how much any venture or trade will entail. This includes initial fees, management charges, taxes, and anything else that is included. This is the best way to avoid losing more money than you make.

Short-Term vs. Long-Term Profits

When you first start investing, you will need to choose between short-term and long-term investments. Examples of short-term options are term deposits while stocks can be considered a long-term investment. When deciding which one to choose, you should think about how soon you would like to see profits. If you will need to access your money soon, then short-term investments make sense. However, if you have the means and patience to play the long game, then long-term investments are great. Of course, if it is possible, you should try to have a balance between the two. This way, you can maximise on potential profits.

This is all you need to know regarding investments for low-income earners. As you can see, your salary doesn’t have to be a barrier to your future prosperity. As long as you invest your money wisely, you stand to gain quite a bit.

How Much Do Uber Drivers Earn

How Much do Uber Drivers Earn
Uber is really popular in Australia, but have you ever thought of working for the company?

You could make a pretty penny being an Uber driver part-time. Lets see how much do uber drivers make, and answer a range of other questions you may have.

Want to invest in Uber shares? The best broker for Uber shares is eToro.

How Much Does an Uber Driver Make in Australia?

In Australia, Uber drivers earn around $31.75 per hour. Uber takes its cut which is 27.5%. It is possible to earn $1000-$2000 per week if you live in one of the bigger cities like Sydney or Perth. This is the average salary for a driver in Australia, which can be more or less depending on these factors: how much you work or where you live.

In order to find out what the pay is, I had to check out websites where people share their salary. 1100 people reported their Uber salaries on sites like Indeed so this number seems to be accurate.

Interested in Uber Eats? Find out how much money Uber Eats drivers make in Australia.

Highest paying cities in Australia for Uber Drivers

City Hourly Wage
Sydney $34.53
Melbourne $30.74
Brisbane $30.46
Perth $35.60

Does Uber pay well? You decide.

This might be too low for some, while it might be quite good for other. In comparison the average pay per hour in Australia (hourly wage) is around $44. The minimum wage is $19.84 per hour.

How Can I Become an Uber Driver?

Uber Eats is looking for new drivers in Australia and New Zealand. For a limited time (April, 2021) you can earn an extra $200 after 10 deliveries (here are more Uber statistics).

The process is easier than you think. Just follow these steps:

  1. Sign up from their homepage.
  2. Send them the documentation they need.
  3. Start earning money.

become an uber eats driver

What is Ridesharing?

Ridesharing is when you’re linked to potential passengers through an app, being able to accept or reject them if you want. There are many ride-sharing apps available. Each of them lets you earn a different amount, as they charge differently per kilometer.

Although there are countless options to choose from, there are three main ones in Australia. They are Uber, Didi, and Ola.

You can invest in Uber by buying Uber shares.

The best is Uber and it’s extremely popular, as well. Let’s take a look at how much you can make working for each.

Uber Vs Ola Vs Didi – A Comparison


It is the most famous choice. This isn’t just true down under but across the world.

uber driver australia

They came into being in 2009. They entered the Australian market three years later. What’s great about them is that they can be used across the country, in all major and regional cities.

As of now, they charge $1.52 per kilometer. The company takes around 22-27% commission from what you make.

You can make more cash if you use surge pricing. They are periods where there is excessive demand for drivers. During such times, the rates for trips are much higher than usual.

There’s also the Uber Pro Driver reward system. The company rewards you for being an exceptional member of their team. With points allocated, you can use them to redeem goodies. It all takes place in a fixed three-month period. You can take part in the system by not cancelling rides and maintaining a high star rating.


Unlike Uber, Didi joined the market recently. They became an Australian ride sharer in 2018. Unfortunately, you won’t be able to access their services throughout the nation. They are only available in Melbourne, Perth, Brisbane, the Gold Coast, the Sunshine Coast, Geelong, and Sydney.

The company charges more than their counterpart – you will make $1.74 per kilometer. At first, Didi only took 5% off whatever drivers made. But they recently introduced the Didi Advance system. Depending on how you do, the extent to which their commission is taken differs. It could be as low as 0% charged. Riders say that the Advance System is very tough. This ensures that they don’t take time off, and never cancel rides.


Similar to its alternative above, Ola is rather new. They were introduced to Australia two years ago. In terms of the locations you can access the service in, they are Perth, Adelaide, Melbourne, Canberra, Sydney, and Brisbane. The ridesharing app charges $1.70 per kilometer, so you can make more than Uber. They take a minimum of 15% commission depending on where you’re going. This would be 20% in more regional cities.

They offer a driver incentive program called ‘VIP Rewards’. Similar to Didi Advance, if they perform at their best, drivers can drop the 15-20% charge to around 0%.

At first glance, it’s clear that Uber driver pay is not as much as its counterparts. After all, they only charge $1.52 per kilometer, and they take a minimum commission of around 20%. But you are not factoring in how steep the prices can be during rush hour. And their reward system isn’t as strict as their counterparts, so you won’t be slaving around.

What Are the Benefits of Driving for Uber?

Now that you know how much you can make, you might be wondering if you should work with them or not. Well, there are several benefits of being part of the service.

You Can Rate Passengers

One of the best things about the app is that it lets you rate passengers. This would let you deal with disruptive passengers with ease. And if you complain to the company about a trip you had, they will listen. They value their drivers as much as their passengers.

Payments Are Cashless

In Australia, Uber widely uses cashless payments. According to the city you’re riding in, cash payments may be possible, though. This is a benefit as you won’t ever risk getting robbed. There is a history of cab drivers being mugged in the country.

The Company Is Popular

Most people think about booking an Uber when going out. It’s the most popular option, so you’d get the most passengers with it. Yes, they charge less than Didi and Ola, but the fact that there are more rides means that you’d make more cash. And as their rates are so affordable, their demand keeps increasing.

As they are the most popular, working for them comes with the most prestige, unike smaller driving services.

Help Society

Being a driver for the company would also help you keep the streets safe, as you’d be transporting intoxicated people home, instead of letting them drunk drive. There have even been studies done on how the accessibility of Uber has reduced the number of drunk drivers on the road.

Have A Flexible Schedule

As we discussed with Didi, if you want to make the most use of their reward system, you can’t take any days off. This is concerning as one of the benefits of being a ride sharer is flexibility.

Uber wants you to be comfortable, so you can be as flexible with your schedule as possible. You won’t be considered a permanent employee. This helps many people use the platform to earn some extra cash, like saving for a trip abroad.

Surge Pricing

Surge pricing is one of the best things about using the service. As mentioned, it causes the fares for rides to skyrocket. As surge pricing takes place several times a day, you will also end up making a lot of cash.

Uber Eats

As you’ll see below, there are a set of requirements you need to meet if you want to join the ride-sharing service. Things are less strict with Uber Eats. You can even deliver food on motorbikes or bicycles in several parts of Australia. More people tend to tip Uber Eats riders as they’re delivering food, so you could make a pretty penny at the end of the day.

We’ll cover the average UberEats driver salary/wages in another article.

Women Riders

They have quite a few female riders, as well. As they have strict guidelines and excellent support, women drivers are known to be safe.

How Do You Make the Most Cash with Uber?

If you want to make the most cash, there are several things you could do. One of the best is to accept longer rides. Taking several short trips would accumulate the time you wait for customers. This would cost you gas money. And longer trips charge the most, so your pocket would be full at the end of the day.

As the app is flexible, and you can ride whenever you want, you might casually use the platform on the weekends. However, this won’t let you make a lot of money. Remember how we mentioned that surge pricing exists? You should plan your time on the app according to when rides are in-demand. You can probably guess when this is as it’s usually during rush hour in the morning and evening. But you can also log onto the app, and it would tell you when this is as you will see a lot of passengers sending requests.

Uber is notorious for charging a lot for airport rides. This is true for rides to-and-from the airport. By sticking around in an area with a busy airport, you’ll snag multiple high-costing trips You’ll especially be golden if you use a flight-tracker. It would tell you when planes land. This means you can be in the right spot at the right time.

You’ll also make more cash if you go into it to kill. You can treat working for the company like a full-time job instead of something you’re planning to do part-time.

The car you own plays a major role in how much you’d make, as well. If you’re thinking about registering for the service and don’t have a vehicle yet, look for one that is cheap to run. You would be on the road for hours, so a vehicle that eats up petrol is not good.

What Can Affect How Much You Make?


Many Ubers offer something a little extra, such as refreshments like bottled water and mints. They help drivers get the best ratings and tips. That being said, you’ll have to purchase them out of your own pocket.

Car Maintenance

It’s recommended that you don’t use an old vehicle when working for a ride-sharing app. If you’re driving people around all day, a less-than-great car would heavily get beaten down. You’d regularly have to change the tires and get its insides looked at.

The appearance of your vehicle matters too. You should regularly polish its exterior and attend to any chipping. This would influence how well you get rated.


If you’re thinking of getting a vehicle to make money off a ride sharer, get one that’s not too expensive. You’ll be stuck using whatever you earned to pay off the debt to buy it. We recommend a second-hand vehicle, but just make sure that it’s not beaten down.


No surprise, you’ll have to factor in petrol. The more rides you do, the more money you will make. But as you can imagine, you would also be spending more on gas.


There’s no way you can work for the company without vehicle insurance. You must have third party insurance as well as third party property damage coverage. We’ll be diving more into what they’re looking for in the coming part of our article.

Mobile Data

How would you accept rides without an internet connection? Thankfully, you can claim expenses for phone plans from your taxes.

How Do You Become an Uber Driver In Australia?

To begin with, you have to be over 21 years of age.

You will have to make sure that your vehicle is up to the company’s standards.  It will be inspected by the team through a pink slip inspection. Annual inspections must be done as well.

The company will also have to make sure that you’re fit enough to work for them. A background check would have to be done. They will look for things like criminal history and more. Depending on which part of Australia you live in, the rigidity of these standards may differ.

A copy of your birth certificate or passport is needed, as you can imagine.

You’ll also need to send in copies of your driver’s license. Uber required you to have held it for at least 12 months. When it comes to uber requirements Sydney, they are known to ask for extra documents along with the driver’s license. All drivers in New South Wales have to hand in a record of their driving record along with their licenses.

Another unique aspect is the state is a Passenger Transport License Code Application. It has to be added to their licenses, as the NSW governments requires this.

As mentioned earlier, proof of insurance is needed too.

Frequently Asked Questions

Is driving for Uber worth is?

When it comes to working for the company, you’ll be making a good amount of money.

They do not charge the most per kilometer, but they are the most popular ride-sharing service, so you’ll make the most cash. The fact that the price of rides skyrocket during in-demand hours helps you make even more. The company doesn’t require much for you to register as a driver either.

There are several things you can do to make sure that the amount you make is high, like limiting the number of short-rides you do and snagging as many rides to the airport as possible.

If you are considering working part-time as a Uber driver, we recommend it. You can work for them as much or little as you want!

Resources: Indeed Uber Salaries