Investing Basics: What To Expect If You're Just Getting Started

over 3 years ago9 mins

Investing Basics: What To Expect If You're Just Getting Started

Why Even Invest?

Why people choose to invest

1 min

Hey there Finimizers! In this pack, we’re going to lay out the basics of the wonderful world of investing. Don’t worry though, we’re going to ease you in gently!

What even is investing? At Finimize, we like to distinguish between saving and investing.

Saving is sticking all your cash in a bank account, while investing is using that cash to buy assets – like shares in companies or property for example. You may already be a diligent saver, with a handy little pot of cash, but the problem is – over time – inflation will reduce the value of those savings.

Inflation basically means that every dollar, euro or pound, buys less stuff - be it toothpaste, jeans – or even a super-secret lair to store your luxury yachts! And those losses build steadily over time. For example, over roughly 25 years, a modest inflation rate of 3% will trim the value of your cash – in half.

That’s where investing enters the ring. Essentially, investing is all about trying to steadily grow your pot of money. Hopefully, with time, the relatively small annual gains build to something pretty impressive.

“I started really small. I bought things that I knew and understood – products that I used on a regular basis. I worked for Nike at the time, so I bought a ton of Nike stock. I used to drink Starbucks; I bought Starbucks stock. I just basically bought a little bit when I had money and I forgot about it when I didn’t.”

Risk is one thing you will have to accept. Your nest egg might go down as well as up. But, bigger risks, bigger gains.

For many investors, the goal is simple. To stop their savings being eroded by inflation.

Our goal at Finimize is to provide you with all the tools and information you need to get financially savvy, and to open up the world of investing.

And guess what? It’ll only take you a few minutes each day! Oh - and another thing - there will be no tedious jargon here thank you very much.

In our next session, we’ll explain the three golden rules of investing.