Investing 101

Hey there! 👋🏼

Every investor has to start somewhere, and here’s your somewhere. We’ll walk you through why people are so keen on investing, what kind of investor you might want to be, and, of course, how to actually make your very first investment.

In this guide, we’re going to lay out the basics of the world of investing. Don’t worry, though; we’re going to ease you in gently! What, even is investing? At Wealthyhood, we like to distinguish between saving and investing. 💸

Saving or investing?

Investing involves using cash to purchase assets that are expected to appreciate, accepting the associated risk of loss in return!

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.

What is inflation?

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.

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

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, although there is no guarantee of this. 📈

What about risk?

When investing, risk is one thing you will have to accept. Your nest egg might go down as well as up. Bigger risks often come with bigger gains, so your nest egg might go down, as well as up.

Our goal at Wealthyhood is to provide you with tools and information that can help you 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.

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Although this material is intended to be educational, it may promote the services provided by Wealthyhood.