Apparently not! I was listening to a podcast yesterday by @JasonGraystone who was a featured guest on @BenCoomber Radio and he made it all sound very simple and accessible. It got me thinking about whether I should be investing. I still don’t believe in saving or investing while I still have debt, so this is still my number one goal for this year, but after listening to Jason, maybe I now would consider it….
Jason explained that people should try and invest 10% of their salary. He explained the difference between low risk and high risk investments and it actually seems somewhat attainable. He gave some interesting examples of low risk investments which all sound very interesting.
Investing always seems in my mind to fit into the same category as gambling – risky, and something which definitely scares me. I even stay away from playing the lottery as I believe the lottery often taxes people that are already struggling financially!
Investing does kind of fit into what I was saying in a previous blog about thinking more long term. I don’t think I should start investing for any short term gains, but investing for 15 or 20 years into the future probably makes sense. The trouble is that I, like most people in my situation, have had zero education in investments and if you have to pay someone to do it for you, then you don’t know if that person is really trustworthy and just trying to make money out of you (coming back to my perception that it is in the same category in my mind as gambling – risky).
A few weeks ago I was listening to a podcast by @AnthonyONeal on @theminimalists podcast and he was talking all about educating young people about money – budgeting, debt, and investments. I think this is great and should be part of every school curriculum but we all know what we do with most of the things we learnt at school which we didn’t need at that specific time – we forget it! (Remember learning algebra?)
So how can we get to educate people like me? Working mums, business women etc.?
Someone who knows more about money than I do should definitely come and teach us all of this stuff instead of us having to go searching, or stumbling upon it by accident like I have. I will be honest and tell you that the only thing that got me thinking about investing was whilst listening to podcast on my way to work about minimalism, and also a healthy eating podcast by Ben Coomber and they just happened to feature guests who were talking about this stuff!
If I was a gambling person, I would bet that more men invest their money than women but that might be unfair. Instead of gambling, I did try and find some statistics on this for you and I found one study by Fidelity who confirmed that more than a third of women who took part in their study did not feel confident investing. I bet if that category was sectioned into 20 to 45 year old women, it would be even less.
That is not to say that women aren’t good savers, because in general they are.. but they tend to put cash into savings accounts or Isa’s and leave it there. We all know that the rates are so low in these accounts that in actual terms if you consider inflation, you are technically losing money and through investments you are likely to get a better return.
Jason Graystone advised having between 2 and 6 times your monthly outgoings in savings before you start investing so this means for me, get out of debt, save for a buffer and then start investing 10% of my salary. This means it will be a while before I get there but I think it is a sensible goal.
In the meantime, I do think it makes sense to understand more about the subject so if someone understands it all and is someone we can trust is willing to help us working mums understand the minefield that is investing, I am sure we would all really appreciate it and hopefully benefit from it for ourselves and help us to plan for our kids future’s as well.