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Money Matters

Been thinking a lot about money lately. How to earn it, how to save it, how to grow it…and yeah how to spend it…and I realised…I have literally put all my eggs in one basket…I work for my money and then I get money… I put money in the bank in a savings account..and I thought I was doing good. Getting like 1.59% interest for my savings. But ACTUALLY, I just found out that I am doing pretty bad! I am doing the safest way to hold onto money. But pretty much the worst way…

Due to my Christian upbringing, I know of a story of a rich man who entrusted three servants with varying amounts of talents (a form of currency back then). The first man who was given the most… say 10 talents -doubled the number of talents he had by trading and had 20 talents to give back to the master when he came back. The second man who was initially given 5 talents, also invested his talents and came back with 10 talents for his master. The last servant who was given one talent, was lazy and buried his talent into the ground, so that he could, according to him, “keep it safe”, because he knew how hard-working his master was. The master praised the first and second servants and said that they were faithful and that he would promote them. However, to the last servant, he called him wicked and lazy and he cast him out. He told the last servant, at the very least you could of put the money in a bank and get interest payments from it…

I think this is a concept I need to put in my life a bit more. I am always so afraid to take risks…scared to lose what I worked so hard to earn. But being scared is holding me back from my potential to earn. It occurred to me that I am relying on my ability to be able to work crazy hours as a source of income. How about instead, I make my money work for me? In the past, I have done long-term deposits with my money…and yes they have a slightly higher amount of interest that you can get, but they have so many terms and conditions and exit fines if you withdraw deposit early…You basically are lending your money to someone at a super low-interest rate. I have been looking at ways of investing lately…my long-term goal would be to get an investment property…BUT I realised in order to get there I need to earn more…sure my job salary is great…but I am really not working the money I already have. So…I have taken an interest in buying stocks. I never really understood stocks previously… It seemed so adult..a foreign thing that I did not understand and I did not take the time to understand.  Until I realised, I am an adult now..and I should think about other sources of income..to prepare for my future…and life post-work. Passive income, that’s what they call it. In stocks, investments, bonds, etc…many I don’t understand. But hey, it is never too late to start right?

My plan is to start with a small investment initially…and hopefully when I get some dividends from the company…I will use that to reinvest to buy more shares…and hopefully, that will grow and grow!  Yes, initially it will hurt to use my money to buy a piece of the pie…but if that pie grows and becomes more valuable, then that’s when I will know it’s a worthwhile investment.

Oh gosh, who would have thought I would be writing and interested in the share market?

 

Am I growing up now?

 

2020… What other surprises will you bring?

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