21 Jun 2023
Everything you need to know about investing
As Christians, we are called to work using our God-given talents and abilities, however, many people dream of a future where work becomes a choice rather than a necessity for money. This could mean working fewer hours while maintaining their lifestyles or pursuing more meaningful work. The key to making work optional lies in how we use our money today. The Humble Penny have outlined four powerful assets to invest in that can lead you to a future where work becomes optional.
Investing in Stocks or Funds
Investing in the stock market is one way to make your money work for you. There are three broad approaches to investing in stocks:
* Index funds and ETFs (Exchange Traded Funds) involve investing your money in a basket of many companies, aiming for capital appreciation and reinvesting dividends.
* Individual stocks can be riskier as most people who pick individual stocks lose their money. However, if you want to learn this approach, allocate less than 5% of your overall investment portfolio.
* Dividend-paying stocks provide income which you can reinvest or use to supplement your lifestyle.
Investing in Property
Property investment is another popular option for creating long-term wealth. This can include purchasing rental properties, participating in property crowdfunding or real estate investment trusts (REITs), or even house-flipping.
Investing in a Business or Side Hustle
Starting your own business or launching a side hustle offers an opportunity to generate additional income streams and potentially grow your wealth over time.
Investing in Yourself
Investing time and resources into personal growth can pay off tremendously by improving your skills, knowledge, and confidence, ultimately leading to better career opportunities and higher income potential.
Here are five steps you can follow to start investing:
1. Decide on your investing goal.
2. Choose a reputable investing platform.
3. Determine how much you want to invest monthly (you can start from as little as 20 a month).
4. Invest in cheap, globally diversified index funds and ETFs to reduce risks and keep your money spread across different companies.
5. Automate your investing with direct debits for consistent investment and enjoy the power of compounding interest.
Investing can seem daunting at first, but once you get started, but Ken and Mary say it becomes easier over time. The critical factor is to think long-term and manage your risks by not putting all your eggs in one basket. Stay positive, stay practical, and stay prayerful in all things related to money. Follow The Humble Penny on Instagram, YouTube, or head over to their blog at TheHumblePenny.com for more articles on investing.
Written by Cassandra Maria
Share this page...