I’ve had some form of investments since I began to save money in my early twenties. But, I had racked up some serious credit card debt; and it was only later that I realized that the credit card debt (plus inflation) was eating up all my savings in the bank.
It’s sad, looking back, that I could’ve been more wise with investing. And I also realize I was a total victim of consumerism. Though one could easily blame poor spending habits on oneself, it’s a fact that there are just too many factors out there… too much “mass media brainwashing” that entices people to spend, spend, spend!
Consumerism vs Investing
Though it’s far too easy to blame outside influences on whatever personal financial failures one might have had, the responsibility falls upon the individual as an investor. But, many people don’t get into investing like they should. They don’t invest, more out of ignorance or just have priorities to spend, and covet the material things they want.
I think it has only been my recent move to a more frugal lifestyle that has actually brought me to my senses regarding investing. And investing should be a way of life, a lifestyle.
Savings Accounts, Etc…
In a nutshell, here’s my epiphany that I wanted to share with all of you.
Allow this to be burned into your memory. It’s very important if you want to let your hard-earned dollars work FOR you, instead of against you.
Inflation will eat at all the savings in your bank!
Why is it important to know this? Because it’s true. A regular savings account or event a CD account will not earn enough interest to fight inflation.
I’ve recently learned that dividends from common stocks can generate 10% to 20% a year!
Don’t Be Afraid of the Stock Market
People are traditionally afraid of stocks. Why? Because stocks have a reputation for being risky. But it’s not the stocks themselves that are risky. It’s the investors that buy and sell the shares and do all sorts of complex things that make them fail at generating dividends from the stocks.
I Am A Novice Investor
I myself am still a student. But I’ve finally realized that, if played smartly, the stock market can be a very worthwhile investment for those willing to do the research on companies and also willing to be patient and make smart choices. As they say, knowledge is power… and it makes sense to be in-the-know before doing anything in the stock market.
I’ll try to post more articles about personal investing and the stock market, as I get more into this topic.
Disclaimer: I am NOT a professional stockbroker or stock market wiz. I present my knowledge and trading ideas as a means to share my experience and document my journey. This blog is not to be taken as professional advice or recommendations to buy certain stocks and other investing vehicles. Ultimately, you are responsible for your own actions in the stock market.