Search

You're probably an Investor already

Would you call yourself an investor?


An Investor is a person or an organisation that invests money in something, with the expectation of seeing a financial return.


Let's consider the ways in which you may already be an investor:


1. You invested in you


You may have invested in a college course or degree, a night school or apprenticeship, or even some professional development books. This investment may have helped you get a return via better career opportunities, salary increases, or the confidence to start a business.


2. You invested in a home


Whilst a home isn't technically a traditional investment, there are ways it can "pay" a return. For example, you could move up in house size and value, to then later dow

nsize and "realise" (cash out) your capital growth. You could house hack and rent a room / granny flat / Air BNB your property to generate rental income from it. Many in our community do not see a house as an investment unless it fits one of the above two scenarios.




3. You invest in a pension


If you are employed in the UK and meet relevant criteria then you are likely to be auto-enrolled in a pension. There are three ways you are an investor here:


(i) The tax uplift you receive into the pension from the government for choosing to invest in your pension (e.g. you put £0.80, they put £0.20 in for you also).


(ii) The company-required match if you work for an employer, which at today's date the legal required match was 3% from your employer, where the employee is putting in a minimum of 4%. There's another extra return from investing in your pension.


(iii) The money in your pension is then invested in a variety of "things" - stocks and shares, bonds, cash etc.


4. You "save" or "invest" in an ISA or a regular savings account


By investing in these accounts, you will make a return either by interest (if a cash savings account) or growth (if a stocks and shares account).


Whilst there are many more ways to invest, such as rental properties, buying gold, silver and bitcoin, investing in a business venture, the above 4 are simple examples of investing that many of us are doing, or plan to do, on a daily basis.


So, are you an investor already? Most people probably do 1 and 2 with focus, 3 because the government told them to and 4 only even happens to save for "something".


Why not make the leap to do category 4 with the purpose of intentional investing? Thoughts?


We would love it if you could share on social media if you think someone could benefit from this article.


SUBSCRIBE VIA EMAIL

© 2020 Financielle.