In this article, we take a look at why it’s smart to learn about investing and take control of your personal finances!
Remember that straightforward, easy to understand personal finance class you took in high school — the one that clearly explains how to manage your investments, pay your taxes, and save for the future?
And, apparently we’re not the only ones. According to the Australian Securities and Investments Commission, 40% of Australians say that thinking about their long-term financial future makes them uncomfortable, and 20% say that they don’t understand the information in their financial statements.
Studies also show that few Australians are confident in their ability to invest, with 66% of the population saying that they would not consider both the risks and the return when choosing an investment.
So, why should you invest? What is the point?
Well, having good money skills — and an understanding of how to use your money wisely — has never been more important. In fact, in a time when the economy is not as predictable as it used to be, safeguarding your financial future should be high on your priority list.
Investing allows you to potentially grow your money at a higher rate. Whether you invest in stocks, bonds, property, fine art, or classic cars, the objective is always the same: to use the money you already have to generate more money. In fact, you can even make money while you’re asleep!
The bottom line? There are only two ways to make money: by working your butt off or by having your assets work for you. But, investing gives you greater flexibility and more freedom!
Investing in your knowledge
At Financial Mappers, we think one of the best investments you can ever make is an investment in yourself. It makes perfect sense; the more educated you are, the better your financial decisions will be!
So, before you go jumping into a new investment, we recommend taking your time to consider your investment goals, develop a comprehensive plan of attack, and learn the skills you need to make informed decisions. As the saying goes, “knowledge is power”.
Some of the things you may like to consider looking into include:
- Financial planning and advice books
- Workshops, conferences, and seminars
- Short courses and TAFE study
- Websites, blogs, and online programs
- Speaking with a financial advisor
- Cloud-based Financial Mapping, budgeting and investing tools
- Speaking with your bank about investment options
When is the best time to start investing?
The right time to start investing will always depend on your personal circumstances and how much money you have to spare. However, it’s been proven that the longer you are invested in the stock market, the greater your return will be. If you start investing early, you can capitalise on the power of compounding interest and reinvest your earnings back into your original investment.
The best part? Thanks to modern technology, investing in yourself and your financial future has never been easier. The online world offers enormous potential for anyone with a few extra pennies and a good internet connection.
Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products.