12 Basic Investing Insights [8 Images]
~ Saturday, December 3, 2022 Blog Post ~
I just want to write about some basic investing insights today. I also included my latest photos at a local Starbucks. I know I promised myself I’ll quit dining out and eating fast food early this year, yet here I am. Hahaha.
My latest Starbucks photos also demonstrate how I was relishing that warm chai tea latte and chocolate mint doughnut a lot. Well, this blog is mine, so I’ll do whatever I want with it. Hahaha.
I’m also not active on Facebook anymore. I no longer enjoy that emotionally charged social media platform, compared to when I first set up my account back in 2008.
I just keep my 14-year-old Facebook account alive today for checking the daily news. Therefore, I use this blog to share my genuine views on personal and international finance, sans the emotionally charged raves, rants, and comments common on Facebook and all of which I find very unnecessary.
Anyhow, I just want to remind myself the basics of investing. Hence, I wrote this blog entry today — for myself.
- Using a savings account and an emergency fund for short-term expenses is important, but investing for retirement and the future is arguably just as crucial.
- Few, if any, start investing with a large sum of money. For many, growing your wealth happens over years and years and is a slow and steady process.
- By starting slow, even with a small amount of cash, you can begin to establish the habit of investing regularly, which will hopefully lead to a large nest egg in the future.
- By getting started today, you have the best asset that any investor can have on their side: time.
- By letting your money sit in the market longer, you allow for compound interest to take over — which is when your interest and gains stack on top of one another.
- The more money and more time you have in the market, the more likely you are to grow your investment funds.
- Growing your net worth is your goal.
- Investing can help you accomplish your short and long-term financial goals once you have a fully funded emergency fund and all high-interest debts paid off.
- Investment and disciplined savings make you rich.
- Insurance prevents your family from being poor.
- If you die soon, life insurance will take care of your family.
- If you live too long, investment and long-term care will take care of you.
Again, it’s commonsensical to point out that investing one’s hard-earned money is equally significant as saving it.
Additionally, the inevitable soaring inflation rates are a grave and present threat to one’s hard-earned funds which continuous saving cannot remedy.
References:
a. CNBC.com’s “Why You Shouldn’t Avoid Investing with a Small Amount of Money”
b. The Secret to Saving and Building Your Future: Become Your Own Financial Educator
