Investing 101

Enough of the why, HOW do you invest?

You know the basics - now it’s time to get stuck in. If you want to put your money where your mouth is, allow us to run through some of the choices available.

The first thing to decide on is whether you are going to invest a lump sum, or instead make regular ongoing contributions. 🤔

What is dollar-cost averaging? 🤑

If you make regular contributions, you can spread your payments over a longer period of time. This then reduces the chance of making a large investment just before a market fall.

You might hear some people refer to this as dollar-cost averaging. Although, it also reduces the chances of investing just before a large market gain. 📈

Oh, and if you’re putting aside a portion of your paycheck each month, we have one suggestion: try to shift money into your savings the moment you get paid. Don’t wait for the end of the month. Or, as the famous investor Warren Buffett puts it:

”Do not save what is left after spending. Spend what is left after saving.” 💪🏼

Kicking off your journey

In our earlier session, we talked about whether you want to be an active or a passive investor. No matter what, you’ll need the right tools to get started. 🛫

And here comes Wealthyhood!

Made especially for beginner investors, we take all the jargon away to do the best to offer you the tools to create your portfolio, and enjoy a seamless and pleasant investing journey! You can think of it that way: Wealth-building is a marathon, not a sprint, and we’re here to help you run the race! 🏃🏻

Congratulations! 🎉

You’ve completed our Investing Basics guide and taken your first step towards taking control of your money. Before we go, let’s have a look at some of the key takeaways from this guide:

🔹 People who invest money, outside of keeping cash in the bank, tend to take on more risk, but with that risk could come higher returns.

🔹 If you leave your money in cash, inflation may erode its value over time.

🔹 Some investors want to be very hands-on (a.k.a. active), some prefer to sit back and chill (a.k.a. passive), while others prefer a combination of the two.

🔹 There are lots of different assets an investor can buy or sell. Many choose to build a balanced portfolio so any losses are hopefully offset against possible gains. This is the Wealthyhood way! 🚀

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That’s all for now.

And remember - When investing your capital is at risk. The value of your investments can go up as well as down and you should not invest more than you can afford to lose. Although this material is intended to be educational, it may promote the services provided by Wealthyhood.