Investing

Mar’s Musing on Investing

Following the thread of budgeting, savings and now what do you do with your money?

I’m not a financial adviser, yet there are a few key points to consider when investing your money 

1. Your Goal of investing – your Why!

  – Is it for retirement? A down payment for a house?

  – All these will be influencing factors on how and what you’ll be investing in.

2. What you are investing in

   – There are many different asset classes, so this is a personal determination of what you believe in, and where you want to put your money.

3. Horizon, what are you investing in often determs for how long your capital is locked?

    – I.e. can the money be accessed easily or will it be tied up for a period of time?

4. How much Risk you are willing to take

     – Any investment has risk attached and generally the higher the return the more Risk is involved!

5. Time that you personally want to spendon it and how involved you want to be.

     – This is a consideration as there are many different options on how involved you want to be from platforms to trade online to giving it to a banker.

     – For me personally I know that going back to trading daily is not a healthy dynamic and brings me more stress.

These are the bare backbone of what to consider when you are looking into investing and taking the next steps in this direction.

As a trader I always took small steps, calculated risk that added to large returns at year end. I believe in these small steps that we can take versus large risky swings. Plus compound interest helps us grow our portfolio. Warren Buffet quotes, “My wealth has come from a combination of living in America, some lucky genes, and compound interest.”

Are you ready to take your first steps on your investment journey?

I am in conversations with another financial money coach who was also a financials trader in London and we’re creating something on “Financial Wellbeing” that we hope to share soon!

Is this something that would interest you? 

Love Mar Michelle