For those who debate if it is the right time to invest or not - I DON’T KNOW THE ANSWER
What I know - the longer you are in the market, the more upside you will capture
Also, this gives compounding the highest chance to do its job
Some people say that cutting through nowadays is impossible and it’s only for the rich
The reality though - if you have a mobile phone to complain online, you also have a tool to build wealth
The choice is yours if you want to be the victim or the driving force
I love to disconnect from the world by traveling
I feel like this helps me be more motivated to come back and keep grinding at my long term goals
Simple wealth building formula below
In order to build wealth - you need to commit yourself to a time tested path of spending less then you make
This might require you to make certain sacrifices but it is the end result that we are interested in
And remember - WEALTH is a journey rather than just numbers in your bank account
Before starting to build your wealth - decide why do you want it
Is it freedom, not having to work or maybe you want to volunteer more?
Build yourself a plan and turn it into a simple path that you will be able to track and adjust against
Use one of time tested budgeting methods - 50/30/20 is a great example of it
Your disposable income is spent:
50% needs
30% wants
20% investments
You can adjust these numbers to suite your specific circumstances
When it comes to investing part - do it in a simple and boring way, the results will normally be the best
Don’t trade individual shares frequently - instead buy and hold broad market tracking index funds
Vanguard and their low cost structure is my choice - $VUAG is what I use
Once or twice per year track your performance vs your long term goal
As the time progresses - evaluate your performance vs long term goals and the small steps you have planned to help you get there
Course correct and don’t be afraid to change your plan if you see that the current path is not getting you to your long term objective
https://money-hacks.co.uk/index.php/2023/04/23/what-is-the-50-30-20-rule/
I’m looking into getting my hands onto a rental property
Leveraging someone else’s money to grow my wealth sounds like a great deal to me
Inflation is the silent killer of your buying power
The only way to retain your buying power - start accumulating assets immediately
Do yourself a favour over the weekend - find time for YOURSELF
Sit down for an hour and write down what you really want your life to look like 15 years later
Break it down into smaller steps
Start executing the plan you have
Even if you fail - you will aviene an awful lot
People often ask - how can I build wealth?
The answer is simple - earn more than you spend and INVEST the difference!
There are many ways to invest
Below is a list of 5 easy to implement ideas you can start with today
Before looking into the detail of the investments consider your WHY??
Is it getting the control of your time so 9-5 is an option?
Are you looking to contribute and donate more to your community?
Do you want to help your loved ones?
STOCK/BOND MARKET
The easiest and the least cost restrictive way - equity market
Most people start their journey here
Let me save you a lot of time, money and pain
Don’t try to beat the market and pick your own stocks
Buy ETFs that track index funds - keep adding money no matter the condition of the market
COMMODITIES
A relative of the equities above are commodities
These are the likes of gold, oil, sugar, etc.
Often these offer a diversification for times when inflation increases
Most people that are far from investing know - GOLD is the most secure way of storing value (you decide if you agree with this or not)
REAL ESTATE
This often comes at a higher capital cost (unless you choose REITs)
Rental property is a great way to hedge against inflation - if you think of it, rents are only moving in one direction
There are many different ways to invest - buy and rent, rent to rent, flip, add value …
ONLINE PROPERTY
Currently everything imaginable is done online - virtual property is a trend it isn’t too late to jump onto
A lot of online property has virtually no entry barriers
Need an idea? What is stopping you from starting your own YouTube channel?
CRYPTO
While I’m not a fan - this has a place in a diversified portfolio … larger share for those who believe in this
My biggest watch out, since crypto is fairly unregulated - be prepared for a wild ride
You can read as many books and take all the lessons in the world …
You won’t see the results unless you start investing and learn on end job
There are 3 questions that need to be answered before starting your investing journey
And the important part to it - YOU are the only one who can answer these
INVESTMENT STAGE
Are you currently accumulating assets or looking to preserve these?
You will want to find a safer investment strategy in preservation stage
Accumulation stage normally comes with acceptance of higher risk levels
RISK TOLERANCE
This point is always personal to you and only you!!
No one will be able to say how much risk is right for you
Making sure you sleep well at night is more valuable than getting an extra percent or two growth into your investment account
TIME HORIZON
Before investing - decide when you plan to retire or reduce your active source of income
This is one of the key metrics to be aware of
As you are getting to the end of your investing journey often it is advised to start reducing the amount of risk you accept
Once you know the answers to the 3 questions above - don’t delay the start to your investing journey
Learn more on how to invest below
https://money-hacks.co.uk/index.php/2023/01/26/how-to-start-investing/
Investing should be automated in order to achieve success
Set a direct debit and an automated buy order
This way you avoid your emotions taking away the gains when the market recovers
Major US companies are reporting strong results
Will this be the beginning of a new bull run?
What’s your view on diversification?
Buying an index fund (e.g. S&P500) - do you get enough diversification or you should add more stuff to your portfolio?
If yes - what would you add?
I simply want to remind everyone - the best time to #invest was a while back …
The best option you currently have - invest right now
When deciding what’s the right investment strategy for you consider the following:
- Investment stage (accumulation vs preservation)
- Risk tolerance
- Time horizon
Creating a budget can be an important step in achieving financial stability and reaching your financial goals
Below you will find reasons why you should create a budget
1. TRACK YOUR SPENDING
A budget can help you keep track of where your money is going each month
By knowing how much you are spending on different categories such as food, housing, transportation, and entertainment, you can identify areas where you may be overspending and make adjustments
2. SAVE MONEY
By creating a budget, you can identify areas where you can cut back on expenses and save money
You can set goals for how much you want to save each month, and make adjustments to your spending to meet those goals
3. PLAN FOR THE FUTURE
A budget can help you plan for upcoming expenses, such as a vacation or a new car
By allocating money towards these expenses in advance, you can avoid going into debt or dipping into your emergency fund
4. AVOID DEBT
By keeping track of your spending and making adjustments to your budget as needed, you can avoid accumulating debt
If you do have debt, a budget can help you prioritize paying it off
5. ACHIEVE YOU FINANCIAL GOALS
Whether you want to save for retirement, pay off debt, or buy a home, a budget can help you achieve your financial goals by helping you allocate your money towards your priorities
Overall, creating a budget can give you a clearer picture of your finances, help you save money, and achieve your financial goals.
You can learn more about my favourite budgeting strategy (50/30/20) below
https://money-hacks.co.uk/index.php/2023/04/23/what-is-the-50-30-20-rule/
Choose investment strategy that is SIMPLE
* simple is easy
* simple is good
* simple is profitable
The only average I’m happy to accept in my life - average investing returns
That’s the reason I buy index funds