This is the second part of my experience of my first year investing in the stock market. Please read Part One first.
Being a foreign investor
I had no clue how things worked being a foreign investor, could it be done? The answer is yes. The great thing about the Internet is that it has opened everything up so that even someone as clueless as myself can own a share in companies all over the world.
I can’t comment on companies beyond the UK and US, but for my US shares, I just had to sign some additional forms declaring my legitimacy for receipt of dividends.
Another tip to consider is to always take into consideration the current exchange rate, I have overestimated how many shares I can buy due to miscalculations.
Continue reading “Investing in the stock market for the first time: a retrospective (Part 2)”
Investing in the stock market: the risk-averse saver
I have always been a good saver and back in the pre-recession days (of 2007) I enjoyed the benefits of getting a whopping 6% interest. Not bad for low/no risk investment.
But since the crash, rates have never recovered and you are lucky to get a saver that offers 1.5 percent. I felt like I was being punished for being a saver – watching my money gradually lose value against the rate of inflation. I decided rather than blaming the system, I should start pursuing other options.
The stock market always made me feel a touch cautious, the fact that money I invested – my hard earned money, could be less or even disappear completely was daunting.
The media didn’t help either, quick to report when the share prices dropped (but not so much when it recovered) and trading websites were overloaded with ‘expert’ analysts using confusing terminology saying why a stock was a poor investment, it all seemed confusing.
I decided after sitting on the fence to make a relatively small investment that would not impact my life if things were to go bad. And with that, I made the jump into the world of investing.
Continue reading “Investing in the stock market for the first time: a retrospective (Part 1)”
In my last post I discussed about keeping goals simple. A major part of this is how important it is to apply a metric to any goals that you set so that there is room for measurement as you progress.
This got me thinking about a goal that is very easy to apply a metric to that I would say 99.9% of people in the self-improvement field possess. Of course, I’m talking about –
Money goals come in many forms:
- To get a job that earns ‘X’.
- Be a millionaire.
- Make ‘X’ amount a month in passive income.
- I want to be rich.
- I want to be debt free.
- Increase my business profit.
Some of these read better than others, applying a metric is better than a vague aspirational statement saying – “I want to be a millionaire” is worthless, as it is nothing but a dream without any clear plans in place or a clear why you want to achieve that goal. Continue reading “Why do you want more money?”
The Millionaire Fastlane: Crack the Code to Wealth and Live Rich for a Lifetime, is a book that inspires but also makes you feel terrible that you are not a multi-millionaire.
MJ DeMarco, highlights the way to becoming wealthy through the concept of the slowlane and the fastlane. The slowlane is explained as getting a good job, saving, investing in the stock market, being careful with money – until the ‘payoff’ when you are old you’ll also be rich.
The fastlane – the main theme of the book is about using finite time effectively to maximise the amount of money made.
The first few chapters really repeat ‘Get rich slow’ and constant references to Lamborginies, therefore I did begin to wonder if the author was just a one-note bragger, critiquing a lifestyle without offering answers to achieve wealth.
Continue reading “Review: The Millionaire Fastlane”