Should I Start Investing?

Should I Start Investing?

If we’re talking finances, we CANNOT not talk about investing. They are closely linked. We all need to find some ways to invest.

But why?

Why should you invest? Your reasons for investing may not be the same as mine. Obviously we all have different financial goals and needs. We also have different values and beliefs. So you need to find your own reasons for investing. But I can definitely help you find some valid reasons.

Most people think of investment as a strategy for retirement. Others would invest to buy a property (summer cottage) or an item (a boat) later on. Some would invest money for their kids’ future. Whatever the reason, it’s good to think about investing.

But some think investing is too risky. It’s better to “save” money, without necessarily investing it. It would be great, or at least a decent strategy if this thing did not exist: INFLATION.

Inflation is a sustained increase in the general level of prices for goods and service. With that also comes a fall in the purchasing value of money. So, in plain English what that means is the 5$ purchase I was able to make in 2000, would perhaps cost me 8$ (purely fictive example) today in 2016. In other words, my money value changes over time, and if I can’t make my money “work”, it’s going to get lazy and depreciate. It’s like you’re holding your money in your hands, and it’s literally melting away!

Seen that way, it might be riskier NOT to invest your money!

There are tons of products out there, so many that it can be overwhelming for new investors. It was for me. The first advice I would give you is to get educated. You have to know a difference between a stock and a bond. You also need to get more info about the different products out there. For example, you need to know the difference between a mutual fund and an exchange-traded fund. Don’t worry, we’ll go over the financial jargon in one of my next blog.

Your investment choice will vary according to different factors, for example, your tolerance to risk. You might be eager to dive into the world of the stock market, or you could be more of a passive investor. Your age may also influence your choice of placement: if you’re in your 30s, you have more time to make your money grow than if you’re 60 AND approaching retirement. There’s also the generation factors. Very often, younger individuals like to more be hands on, whereas older ones usually prefer the kind of “leave it alone” approach.

The thing is to get informed and start somewhere. Because another benefit of investing is the power of compound interest. The sooner you start, the sooner you tap into the power of compounding. How did I learn that? One book: Money Master the Game by Tony Robbins. This guy created a jewelry of info in this one book. You must have heard about him. In this book, he reveals the strategies of the wealthiest to stay on top of their wealth. He also proposes tools for the middle class.

If you’re serious about learning the ABC of the finance world, I’d say you’d give it a go. I have to say though, this book is lengthy, it took me a few weeks to finish. And it’s written as if you could hear Tony speaks, but I liked that about it. It’s a real “hands on” book. It won’t only give you this theoretical knowledge: you will know where to start, what’s the next step to do, what questions to ask your financial adviser etc. You’ll feel empowered to take control over your financial situation ad get things done.

What are some of the investing strategies you’ve implemented?

What are your fears when it comes to investing?

RN Didi

2 thoughts on “Should I Start Investing?

  1. Interesting read Didi! I may be a little young to be thinking about investing, but I feel like now is a great time. Especially since the DOW just broke 20,000 for the first time ever!! Needless to say I was pretty excited haha.

    But anyway, Maybe I missed it, but how much is the Tony Robbins Money book?

    1. Hi Nick, you’re never too young to start investing! Get informed and seek out for opportunities… these are key to invest. If you’re interested in the stock market, read on it, understand how it works and go with your level of risk/comfort. To know about Mr. Robbins’ book, you can click on the link or the book itself (the price varied on Amazon). But do know that I’m part of an affiliate program: by clicking on the link and purchasing the book, I will get a % from this sell. It does not however increase the price of the book itself.

      Happy investing!

      RN Didi

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