Learn and Earn - My Financial Strategy for 2021 (part 2)
So in 2020 I learnt my lesson.
I need to build up some savings for when the bad times come.
But savings alone will not be enough.
With the current non-existent interest rates savings will just be eaten away by inflation.
I've realised I need to go one step beyond and enter the world of investments.
This is new territory for me.
The only 'investment' of any sort that I have ever made has been our property. And that will just be for the children when the time comes.
Any spare cash I've ever had in the past has just gone into a bank account or a few Premium Bonds. And I haven't found favour with Uncle Ernie so far.
I need to try my hand at investing.
But I don't know what and I don't know where.
That is my task for the year.
I am going to take it slow and steady, learn on the job, and invest little by little as I gather money and gain experience.
I watched this 'Million Dollar Cup of Coffee' video from Larry Jones on YouTube that gives me encouragement...
It is rather late in the day for me to make a million but you have to start somewhere.
I think I can manage £10 ($13.5) a day at the moment so that is my starting point.
Popping some numbers into one of these investment calculators can be fun...
In his video Larry throws about some wild 35% annual returns.
That's too fantastical for my way of thinking. I'd settle for a more realistic 10 - 15% per year if I can play my investment cards right.
First I have got to learn about investing.
I am going to try my hand at both stocks and crypto.
Crypto might be fast and furious but I fear the road might be too bumpy.
Stocks may be a little more safe and steady but I know they can be dice rollers too.
So my investment journey begins.
For stocks I am setting up an account on Freetrade...
This seems to a popular free trading platform for the UK. I believe RobinHood is the main equivalent in the US.
If anyone has any experience of using Freetrade in the UK do let me know.
For crypto trading I need to find a UK friendly, easy to use for beginners exchange.
Any recommendations?
I now begin my studying in earnest, and hope to make my first stock and crypto purchases in the next few days.
This could be fun, or it could be fearful.
Hot tips welcome...
[ image from pixabay.com ]
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