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Finding Your Inner Investor

Before you join the exciting life of investing, it’s important to determine what type of investor you want to be. Just like selecting your ideal character in a video game, you need to first consider which goals you plan to achieve.

 

Timeline

How long do you want to hold a particular investment? Are you planning on making short-term returns that you can use later in the year, or do you want to let your money accumulate so you can fully reap the benefits in the long-term?

 

Risk Level

All investing includes risk in one way or the other. Are you able to watch your investment fluctuate and go up and down in value? Your risk level will likely be determined by how urgently you need the money. If you’re approaching retirement,  it probably isn’t the best idea to invest in something with high fluctuation potential. However if you’re in your 20s or 30s saving for the long-term, you shouldn’t care as much about the volatility of your investments.

 

Frequency

How often do you want to be checking up on your investment? Do you want to buy something, continue on with life and check back on the investment months or years down the road? Or do you want to be continuously monitoring the investment and taking advantage of any potential opportunity that arises?

 

Knowledge Consumption

What is your willingness to learn everything you need to know about a certain investment? Some investments are made super simple, while other demand more study time. Do you want to become an expert in a certain type of investment? Or do you want to keep it basic and and continue on with your daily activities?

 

You’re in control of who you want to be as a person and an investor.

So the question is:

What type of investor do you want to be? Write us your thoughts down below! 

 

Welcome to Investing!

Let’s start with the basics. What does “investing” even mean?

Investing:

The act of spending money into something with the expectation of getting more money out of it.

It’s that simple.

Investing is about prioritizing your money, and “working smarter, not harder”. It’s a way to let your money grow in your sleep, vs. working full-time to make ends meet.

We all know the instant gratification we get when we purchase something we want, whether it be new pair of shoes, a cute outfit, a vacation, etc. Yet it isn’t long before that pleasure wears off and suddenly your wallet seems a whole lot smaller.

Investing on the other hand, allows you to set your money aside, and let that money work for you while you enjoy life. It is the aim to purchase something that will give you even more money than you had spent in the first place. It’s a type of purchase that will excite you not only from the moment you buy it, but as long as you have it.

You work hard enough, it’s time to make your money work for you.

Investing – An example:

Kanye West is launching another “Yeezy shoe giveaway” contest. Here, 100 winners are given the opportunity to buy one of 100 pairs of Yeezy shoes at 200$. As an investment, you would buy one of these pairs of shoes (at 200$) in the hopes of selling these on eBay for much more.

Why Investella?