“Investing is like buying groceries, not perfume” – Benjamin Graham
Investing can feel intimidating. It’s a loaded word (especially when coming in with fresh eyes on the subject), but it doesn’t have to be and it actually isn’t that complex. I get so many questions from first-time investors on how and when to start on this journey. So I’ve broken it out into 4 simple steps to showcase that investing shouldn’t be thought of as an accomplishment, not a chore!
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- Start investing and stop making excuses. It’s not about “saving enough” or waiting for the “right time” to invest. These are simply excuses… and we all know there is never a right time. When we look at the compounding wealth factor (Definition: the interest you’ve earned on the money saved AKA your money making more money), it’s better to have a little something in the kitty now compared to nothing. This is the magic of compound interest; the money invested grows and that growth grows too. Growth, on growth, on growth (it’s like that snake plant that never dies… in the best possible way!
- Ask questions and become educated in your own financial affairs. We were not all born Financial Wizards, and that’s OK, as there are so many financial wizards out there…#wealthwithjulie. Look for a financial partner or coach that will guide you through your lifetime financial journey. When looking for this magic person, I always recommend finding someone that aligns with your own values and your vision for your finances.
- Invest in #futureyou. Put money aside from each paycheck, and start doing it sooner than later (10 years down the road you will be so thankful that you chose to put that $200 away rather than buying a pair of trendy summer kicks!) Spend what is left AFTER saving, rather than saving what is left AFTER spending.
- Purchase regularly. The more chance you have of catching a “sale price” of a stock, the better. This past month a giant clearance sale of stocks was released (some stocks were up to 60% off!). A financial partner or coach will have insight into these sales and will ensure that more of these items were purchased because it was such a good deal. The amount of “consistent money” invested in the market (money invested at regular intervals irrespective of the stock market’s performance) has a much better value than the “timing” of putting it into the market.
I hope the above-noted points have given you food for thought, and have enabled you to let out a sigh of relief with the knowledge that by following the above tips, you can start investing now and watch your savings grow!
The information contained herein has been provided for information purposes only. The information has been drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Wellington-Altus Private Wealth Inc. (WAPW) does not guarantee the accuracy or completeness of the information contained herein, nor does WAPW assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact your financial advisor. WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.
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