Smart Thinking On Investing – June 11
Smart Thinking On Investing – June 11
Pick A Card, Any Card
- Low-risk Jack: Individual retirement accounts (IRAs) and online savings accounts are great ways to hold money for long and short goals—respectively—or go for a Certificate of Deposit (CD) with your bank
- Medium-risk Queen: Seek guidance from a robo-advisor to dip your toes in the stock market safely with a portfolio tailored to your risk appetite
- High-risk King: Speculating in stocks is an option, but don’t try to beat the market or let your emotions rule you
- The Ace: For the best route to long-term wealth accumulation, leverage time by investing now with compounding interest—long-term investing style
Wisdom For The Problems Investors Face
- Nick Murray’s quote, “Timing the market is a fool’s game, whereas time in the market is your greatest natural advantage,” is a nugget that every investor should aim to remember
- “Expertise is great, but it has a bad side effect. It tends to create an inability to accept new ideas,” Dean Williams thought that we can all afford to be more open-minded to new and creative approaches to investing
- And Charlie Munger’s words cut straight to the point, “Spend less than you make. Always be saving something. Put it into a tax-deferred account. Over time, it will begin to amount to something. This is such a no-brainer!”
The Youth Of Today…
- …are being misrepresented. Looking closer at data shows that they are a more educated generation (a 35% leap in the numbers gaining a degree from 20 years ago) looking for purpose in their careers
- While 40% of Millennials want to own houses; greater economic instability and rising house prices have made that difficult, but not an unattainable goal in the right places
- And rather than being naive when it comes to money, data demonstrates that as well as being more conservative they’re also more socially aware of the companies they want to invest in
How To Start Investing After Graduation
- Start investing as soon as possible and capitalize on being young and make your money work for you in the long-run for future financial security
- While you have fewer outgoings—no mortgage payments, etc.—bankroll your savings now
- Be sure to take advantage of your employer matching your 401(k) contributions; it will pay off when you come to retire—a long way off I know but worth the effort for free money
Ways to Have More than $2.50 Just Before Payday
- “Track your expenditure, even your coffee. Writing it down makes it way harder to just be frivolous about things,” this is a great idea to take control of your budget and be able to put money aside for bigger goals
- “Work out how much money you need to get through the month. Then break it down to how much money you need to get you through the week. Withdraw this amount on Monday and do not touch your account again until the following week,” breaking finances down into manageable chunks is a smart way to get through the month
- “Always eat before you go to the supermarket. That makes food less tempting,” this way you don’t spend more than you intend to 😛
Do you want to start investing on your own, but don’t know how?
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DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article. Andrew Stotz doesn’t necessarily endorse any stocks or shares mentioned in the articles or the author of such articles linked to and summarized in Smart Thinking On Investing and cannot guarantee the accuracy of its information.