Investing

I had never given investing a thought until 2 months ago. The most exposure I have had to investing is watching movies like The Wolf of Wall Street. Even in the movie a lot of the financial jargon went over my head.

wolf

But hey, you cannot deny that whatever Leonardo DiCaprio’s character was doing was making decent money (albeit illegally).

My interests were peaked one weekend I was at home alone. I was scrolling through Twitter and I came across an article about investments for beginners.

I had seen those plus500 advertisements which would give you a pile of fake free digital money for you to fake spend on stocks and shares. I wouldn’t have had a clue what to do with free money, never mind my own.

However, after reading the blog entry about shared funds it appeared that I would not be the one making the financial decisions. I had a review of a couple of different articles such as this one by The Smart and Lazy blog. It gave me a real understanding of what investment opportunities were available to Joe Public (me).

My main take away points were:

  • I had no debt

This seems to be important as debt interest is quite high. So even if you are making great investment returns the debt will stifle your profits.

  • I was already contributing into my pension

I am currently paying 4% into my pension and my employer is also adding another 3%. The New Zealand government add an extra lump sum by the end of the year too.

  • Investing involved placing money on certain companies. If they do well, you do well.

A good example is Apple, who have been valued as a trillion dollar company. Their share price have increased over the last 10 years. If you invested $1000 in 2008, it would now be worth $9,222.50 today.

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  • Invest when you can

I am just beginning my journey of investing but every blog I have read and every financial advisor I have spoken to has recommended investing. In my case……only time will tell.

So what did I do?

Catch up on the next blog post

 

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