Do you want to get rich quick? Well we don’t recommend
You already know that Investing in shares can be smart way to build actual wealth, especially when you think about your cash growing quietly over years without you having to babysit it. But here’s the part you probably reaaaaally do not want to hear investing in shares should be for the long game, not the fast lane to buying a megamansion…
If you’re thinking about investing because you need money in a couple of years for a house deposit, a wedding, a car, or whatever else, we need to have a real chat about why that might not be the best fit right now.
The sharemarket doesn’t move in a straight line up (we wish). Some days your investments go up, other days they drop. That’s totally normal. The way most smart investors manage this volatility is by staying invested for the long haul, not pulling money out the minute the value dips. Historically the market has recovered from every downturn, but that doesn’t usually happen in just one or two years.
So if your plan is short-term, you’re taking on way more risk than you might realise.
And lets not forget money is sooooo emotional
When you’re in it for the short term, it’s tempting to watch every market move. If a stock dips, your brain might scream sell now! instead of stay calm and keep going. That emotional reaction can lead you to sell at the wrong time and actually lock in losses.
Long-term investors don’t stress every little wobble because they know markets move up and down all the time like a rollercoaster.
You and me both know that there are smarter places for short-term goals
If you’re saving for something you’ll need that money for soon, investing in shares might not be the best idea right now. Instead, we can focus on your savings plan: tidy up your budget (we have a free on you can use) , see where you can free up extra cash, and use something with less risk, like a high interest savings account!!!
Investing is amazing, and we love it, but there’s a right time and place for it. Make sure you’ve got the time horizon, intention, and knowledge sorted before you dive in.
When you’re ready to invest for the long term, we have hundreds of hours of podcast to get you started and confident.
***Please remember our blogs aren’t intended as financial advice - they’re intended only as a starting point to give you a little extra info! For more in-depth advice catered to your personal financial position, please see a certified financial advisor.
