You’re probably an Investor already

|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.

By Lucy Whisker on March 7, 2020 / Blog /
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