Most people invest because they want to make money. Of course! But what is behind that desire to have more money. What do you hope that it will bring you that you do not have right now?
I started investing for 2 reasons. One, I thought there might be better a way of earning a living than my work as an architect. I wanted to be free of doing something I did not enjoy for an uncertain financial reward. Two, I thought learning about investing from my Dad would allow me to share an interest of his. For me it was about freedom and better communication with someone I loved.
INVESTING CREATES ASSETS
The purpose of investing is putting money into assets. Assets create wealth for you in the long term by giving you an income and/or increasing in value. This could be stocks and shares, property, interest bearing accounts, artwork, jewellery or wine! The wealth that an asset creates is independent of your time. This is very different from having a job or business when we sell our time for money. By investing you have money working for you rather than being a wage slave.
WOMEN RETIRE ON LESS THAN MEN
If you are under the age of 50 you cannot expect to live on the state pension alone and need to top up with a private pension. The average amount in a 60-year-old woman’s pension pot is £51,100 compared with £156,500 for men1. This is 67% less! The average private pension for women in the UK is far less than men because of generally lower salaries, timeout for childcare, care of parents, childcare costs and a lack of knowledge and understanding about money and pensions.
THERE HAS NEVER BEEN A BETTER TIME TO INVEST
The great thing is that there has never been a better time to invest in the stock market. And there is no better person than you to do it! As you are the one that cares the most about your money. With a basic understanding of a few principles behind investing and a bit of discipline you are perfectly capable of becoming an investor and creating far better returns in the long terms than leaving your money in a savings account. The internet has made it really easy to invest in a way that works for you in your life. You can start with as little as £25 per month.
START SIMPLY, START SMALL AND START NOW!
Managing, controlling and investing money is an essential life skill to protect and provide for your financial future and for those you love. We are not taught this at school. So please do not feel bad that you don’t know how to do it or have not started already. The fact you are reading this means you are taking an interest on your financial education. Well done! If you are interested in investing please join one of my online INVESTING TASTER CLASSES. It will teach you the first steps of investing. These first steps are simple, easy to follow and build confidence. With this support and encouragement many clients have gone on to become enthusiastic, successful investors.
1 Pensions Policy Institute, Understanding the Gender Pensions Gap, July 2019
Disclaimer: Simple Successful Stocks are not financial advisors and the content of this article is for financial education only. Please read our disclaimer here.