In December last year, I accompanied a friend to open a trading account at POEMS. Several weeks later, the trading and CDP accounts were opened. Good to go, right?
Fast forward to the present. He shared that he still doesn't know how to start. It then got me thinking about the underlying causes. There could be other underlying reasons that I am not aware of, so I could be wrong.
Could it be due to a lack of information? A lack of time? A lack of drive?
As I thought about it, it cannot be due to the first reason. The internet has provided endless information. Neither is it due to a lack of time. There are certainly pockets of free time and it depends on how we prioritize it.
So, how could I maybe, help him to get started? It is rather straightforward but easily the most difficult.
First, he needs to be interested in the world and its economy. It may be boring, especially if one does not have an interest but it's the most important. Read about the different ways to invest. It doesn't have to involve just the purchase of shares. It could even be the Singapore Savings Bonds as an option depending on the risk appetite.
Secondly, only then develop a deep drive. It is probably confusing that this step is not the first. Allow me to clarify. I am of the opinion that while many folks know that investments increase the possibility of achieving our financial goals earlier, many do not act on it. This could be due to a lack of understanding on terms such as compound interest. I believe that as one becomes more knowledgable about the world and perhaps even influenced by FIRE (Financial Independence, Retire Early), an inner drive will develop and it is likely to position the individual on an advanced footing.
Disclaimer: It has been a long time since I blogged something! So I thought maybe this short post can contribute a little to those who are stuck. Don't forget that there are risks in every investment and you should do your own homework. Even putting your money in the bank carries a risk of the value of your money becoming smaller due to inflation.
Till next time,
K
Fast forward to the present. He shared that he still doesn't know how to start. It then got me thinking about the underlying causes. There could be other underlying reasons that I am not aware of, so I could be wrong.
Could it be due to a lack of information? A lack of time? A lack of drive?
As I thought about it, it cannot be due to the first reason. The internet has provided endless information. Neither is it due to a lack of time. There are certainly pockets of free time and it depends on how we prioritize it.
So, how could I maybe, help him to get started? It is rather straightforward but easily the most difficult.
First, he needs to be interested in the world and its economy. It may be boring, especially if one does not have an interest but it's the most important. Read about the different ways to invest. It doesn't have to involve just the purchase of shares. It could even be the Singapore Savings Bonds as an option depending on the risk appetite.
Secondly, only then develop a deep drive. It is probably confusing that this step is not the first. Allow me to clarify. I am of the opinion that while many folks know that investments increase the possibility of achieving our financial goals earlier, many do not act on it. This could be due to a lack of understanding on terms such as compound interest. I believe that as one becomes more knowledgable about the world and perhaps even influenced by FIRE (Financial Independence, Retire Early), an inner drive will develop and it is likely to position the individual on an advanced footing.
Disclaimer: It has been a long time since I blogged something! So I thought maybe this short post can contribute a little to those who are stuck. Don't forget that there are risks in every investment and you should do your own homework. Even putting your money in the bank carries a risk of the value of your money becoming smaller due to inflation.
Till next time,
K
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