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After you did your research
Talking about investments on a blog, even a personal finance blog, is regularly seen as risky business. People would be tempted by it and could lose a lot of money through ignorance.
I assume that my readers have a good set of brains on their shoulders and are very capable of really reading what is written and can decide for themselves whether something is for them or not.
Having said this, I still accept the challenge.
As a result of my bio, a number of readers have asked me to post an article about investing for beginners. However, there is so much to tell, that 1 article is not enough or would be too long. That’s why I decided to make a short series of it.
Despite the fact that I have successfully completed my courses, I am not really a Warren Buffet, so if you come across something that you think is not right, let me know immediately. All advice is welcome.
What is investing?
On Wikipedia I have found the following definition:
‘An investment is an offer made in money, time or manpower (personnel) for the benefit of a goal that is only achieved in the long term.’
Investing is often used in a broader sense, with the emphasis on putting time or money into a project now, which generates future returns (‘investing in yourself and the future’). ‘
In short, you want your money to work for you, to grow, by bringing it to a company / institution that will work on the stock market.
I watched an business channel the other day and the topic was women and investing. The question was why women were still far behind, compared to men, with investing their money.
The most beautiful advice I heard one of the woman give: ‘Take $ 300.00 and invest it in a company that you know or use yourself, such as L’Oreal, and then leave it for at least 10 years. You are already involved with that company through your consumer behavior and you will see that you are going to like to follow their ups and downs, because of your money growth is depending on that. That is way more attractive than putting your money in something that you have no affinity with. ‘
I hear many people around me say they do not want to invest, because gambling is in a more upscale way. Most people do not realize that your workplace pension payment is also invested. Employers transfer the premium to pension funds for you and you have absolutely no insight into what they invest in and how the results are, until things go wrong and the journal devotes 3 minutes to it.
Wouldn’t you rather be at the helm of your own money and intervene if things are not going well or put some extra money in the funds if the investment turns out to be a success? I do!
It is shocking how little people know what happens with their own hard-earned money, so follow this link to the explanation of how pension works.
Then there is the large group that never built up a pension, like me. By working for years in the hotel and catering industry, where this was not discussed at all at that time, due to relocations abroad and now as a freelancer, I have accrued something of $10.00 in the time I worked as a Financial Advisor . I recently received a letter about that, otherwise I wouldn’t have known.
If you belong to this group, you will eat a lot of dry bread on your old age, if you have not done any Fidget Spinner-like inventions or won the lottery. The only way to get some siege is by investing. In this time it’s easier and more transparent than ever before.
So many people, so many wishes
There are many different ways to invest, including:
- Investing individually in shares and trying to determine which risk you want to take.
- Invest in a fund, so that you have a little more spread of risk
- Set up an investment club with family or friends
- CFD Funds
What you do depends on your interests, goals, possibilities and time.
If you are only just a few years before your retirement, you want to limit the risks to the minimum. If you’re still young, then you can go with all the fluctuations of the market and you will not feel that much of it in the long term.
Do you want to tell your investment strategies in a guest blog, leave a comment below or send me an email. I am very curious about your stories and I am sure that others are too. Even if you do not have experience in investing, but do have your own ideas on this, I invite you to tell a guest blog why you have not started it yet and whether you want it in the future or not.
Have a great day!