Make me an investor

An absolute beginners guide to investing

Guide Chapters

1. What is Investing?


What are the basic purposes of central banks?




2. Why saving isn’t enough


What are the basic purposes of central banks?




3. But what am I investing in?


What are the basic purposes of central banks?




4. How much can I make?


What are the basic purposes of central banks?




5. The magic of compounding


What are the basic purposes of central banks?





GUIDE SECTIONS

 

1. What is investing?

The and the reason you’re here is because you want to make more from your money.We can define investing as:

 

INVESTING: the purchase of assets or goods with the aim of making more wealth in the future.


Usually, this means buying something that will either provide you with income as a result of holding onto it, such as a house that you buy and rent out. It can also mean buying something that will increase in value whilst holding it, so that you can sell it for a profit later down the line. This profit is called capital gain. This might be a house you buy to live in, or a growth stock. So there are lots of different ‘assets’ that you can invest it but in this guide we’re talking about the ‘stock market’.

2. Why saving isn't enough

I’m going to assume that you’re not here because you have a burning desire to learn all there is to know about and probably don’t fancy yourself as a Jordan Belfout (advanced).

✔ Track your savings growth
✔ Get notified when it's time to trim it
✔ Find the perfect style for your facial features
✔ And much more!

✔ Track your savings growth

✔ Get notified when it's time to trim it

✔ Find the perfect style for your facial features

✔ And much more!

 

3. What am I investing in?

So far, there has been a lot of chat about the ‘stock market’ but what does that actually mean? What are you investing your money IN. For simplicity, we can break investment assets down into three categories:Track your savings growth

 
 

4. How much can I make?

So, there is no promise when it comes to investing. Investment providers will tell you that ‘Your capital is at risk’ which means that you might end up with less than you originally invested. 

However, we can look at how the stock market has behaved in the past to learn perhaps one of the most important investing strategies which maximises your chance of investing success: INVESTING FOR THE LONG TERM. 

The S&P 500 Index is a bundle of 500 stocks intended to reflect the overall return of the stock market as a whole.When we look over the last 90 years, the average return of the S&P 500 was 9.8 per cent. 

index - a definition


However, statistics like this can be very misleading; unlike your savings account which promises you 1% per cent each year, an investor in the S&P 500 Index can’t expect a certain 10 per cent annual growth and to see their investments double every ten years. Firstly, once you adjust for inflation, this figure falls to around 7 per cent but you also need to consider that, whilst the average return might be 10 per cent, it’s rare that the stock market is ever close to that average in any given year – it often falls vastly over or vastly under that figure. In other words, it’s unpredictable or ‘volatile’ in investing speak. Bear with me if you’re confused right now…

 

This year by year volatility is why people are typically advised to invest for the long term. Which in in the world of investing is 5 years plus. 

(graph)

By investing for the long term, you’re given your money the chance to ride out any bumps in the market. 

(graph) 

However, with this potential for higher reward comes higher risk and uncertainty. Whilst that level of risk differs across assets, investors have to accept that their investments, whatever they might be, could depreciate in value and end up losing them money. 

So investing can mean a whole load of different things but the defining factor is that the buyer of an investment believes that at some point in the future, it will increase their wealth
 

 

5. Am I ready to invest?

However, statistics like this can be very misleading; unlike your savings account which promises you 1% per cent each year, an investor in the S&P 500 Index can’t expect a certain 10 per cent annual growth and to see their investments double every ten years.

 

Firstly, once you adjust for inflation, this figure falls to around 7 per cent but you also need to consider that, whilst the average return might be 10 per cent, it’s rare that the stock market is ever close to that average in any given year – it often falls vastly over or vastly under that figure. In other words, it’s unpredictable or ‘volatile’ in investing speak. Bear with me if you’re confused right now…

 

6. The 5 rules of good investing

However, statistics like this can be very misleading; unlike your savings account which promises you 1% per cent each year.

3. I am a title page

So far, there has been a lot of chat about the ‘stock market’ but what does that actually mean? What are you investing your money IN. For simplicity, we can break investment assets down into three categories:Track your savings growth.

3. What am I investing in?

So far, there has been a lot of chat about the ‘stock market’ but what does that actually mean? What are you investing your money IN. For simplicity, we can break investment assets down into three categories:

Shares (box)

Make this yours. Add images, text and links, or connect data from your collection.

Bonds (box)

Make this yours. Add images, text and links, or connect data from your collection.

Cash (box)

Make this yours. Add images, text and links, or connect data from your collection.

Need more help? Check out our comparison section

sign up

✅ Bonus guides

✅ GFY news

✅ Financial reminders

By submitting this form you agree to the Terms and Privacy Policy of Go Fund Yourself 
Disclaimer
Contact: info@gofundyourself.co
(not .co.uk or .com !)
  • Twitter
  • Instagram
© 2019 GO FUND YOURSELF