My Finances? - I’ll deal with it!
Updated: Nov 9, 2020
Photo credit: Sam Manns
In my life, I have everything under control…or almost?! I juggle with a full-time job, a family, social activities and a house to keep in order. I am sure you can relate to that, and are dealing with this daily life right now, correct? Yet when it comes to finance, most of us are lagging behind and find ourselves completely helpless. How come?
How come we don’t manage our money like we do (so well!) in other areas of our lives?
First of all, you need to be sure of one thing: yes, you can!
Second, it is not only a matter of being aware, it’s also a matter of being informed properly.
Let me tell you something, before you decide if you want to invest your money, you need to know the difference between investing and speculating. This will lift a veil and break a myth about finance and will drive your why you should invest your money in the first place.
Investing is acquiring an asset with the goal of generating income or appreciation in the future.
Speculating is making bets to make short term high returns with potentially high risk.
The main difference is the amount of risk involved and the target return you set for yourself.
It is important to understand that investing your money will help you preserve your capital, while speculating will maybe allow you to make huge profits instantaneously or make huge losses.
Once you have decided what your goal is and how much risk you are willing to take, you are ready to place your money in the appropriate asset.
In my next post, I’ll tell you more about those assets…
The post was written by the author in her personal capacity. The author's views are entirely her own and may not always reflect the views of the banking industry.