There is one statement that stands out to me when I think about what encouraged me to finally take the leap and start investing in the stock market.
Investing now is practice for when you are retired and your entire income is dependent on your investment returns.
A very intelligent man in my company told me this – Jeff Moser. You won’t find him on any Fortune 500 lists or publications about stellar stock pickers. But for me, he’s been the most influential person in my investing life. I don’t know that he is aware of that, but someday soon I should probably let him know.
His words and attitude were very freeing to me. It allowed me to invest money and, more importantly, lose money, without that loss paralyzing me into never taking a risk again.
Investing is no more magical than any of the financial decisions you make every day.
- Should I save this money or spend it?
- Should I refinance now or wait for rates to drop further?
- Should I sell the antiques in my garage that I don’t use or should I hold on to them until their value increases?
- Should I pay down my credit card or put this surprise bonus into savings?
There are plenty of financial decisions facing you on a daily basis. How do you get better at anything you try? Practice! You make a decision, live with it, and then learn what to do and what not to do next time.
Yes, there are rules you can follow and research you can do to hedge your bets, but the best advice I’ve ever received?
Invest in what you know.
The first stock I ever invested in was Gap (GPS). Why? Because I was in my mid-20′s and knew that no matter where else I shopped, I could always find wearable clothes – my staples – at Gap. Also, I had 2 or 3 friends that raved about Banana Republic and I personally had found GREAT deals at Old Navy. Did you know all 3 are owned under the Gap umbrella? I bought $1,000 of GPS and in a year it returned 30%. Pretty good return!
Are you trying to gather the courage to invest in the stock market? Do you have $1,000? What’s holding you back from learning the name of this game?