Investing is my new thing, I guess. Now that I am not going out to shoot and have some free time I have decided to learn more about personal finances. In this post I am going to tell you more about how I started investing.
Disclaimer: the information in this post is not financial advice, it merely reflects my personal experience and opinions. Please do your own research before investing your money.
First a little bit of background story on my money journey. My first savings’ account was opened by my grandmother. I have held on to that account until just a few years ago. Back when I started working I worked two jobs for about a year. Not having too many expenses I actually managed to save a big chunk of my earnings.
But mostly living below my means is “my secret” to having saved money over the years.
In Portugal I had some low risk investments that I knew very little about. Honestly have no idea how much I made from them as I just let the money sit untouched without looking at it for years.
Lately I withdrew all my saving and invested it all in a government bond with a Portuguese bank. Had it sitting there for a couple of years and almost lost money instead of making more. That is what you get when you follow someone else’s advice and don’t do your own research.
Once I noticed that that investment was not the best I got it out of there and transferred most of it to my bank account in the UK. Where it is much easier to manage. Portugal can be a pain with bureaucracies and just closing a bank account took over a month!
Was stupidly holding on to a bank account in Portugal to avoid fees when paying in Euros. Most, if not all of their bank accounts have fees just to have your money sitting there. So it was totally not worth it.
With all the money now easily reachable in my UK bank account I needed to decide what to do with it as interest rates on your regular savings’ account are awful at the moment.
If you just let your money sit there you are effectively losing money as with inflation the money you have today won’t buy you the same things in a few years.
Having watched a lot of YouTube on investing, reading a little bit about it and finally listening to my boyfriend I opened a VANGUARD ISA account. You can invest up to £20000 a year tax free with one of those.
That part was easy! The tricky bit came when I had to choose what to invest in. They have so much to choose from. It can be a bit overwhelming.
Lost count at how much I read about creating the perfect portfolio!
Started off with their ready made portfolios. The Lifestrategy funds. Those are often recommended for beginners.
But now I am dabbling in different funds and adjusting my portfolio according to what I think is good. Yes, I already have a spreadsheet for my investments. Love seeing the numbers and trying to figure out the best investment strategy.
The more I read the more I realise I know nothing about investing. Still I am enjoying the experience. Hopefully it’ll make me some extra money for the future.
Only opened the Vanguard account in June so it is all very new to me. Also with the World in the current state it is a bit of a weird time to start investing. Don’t think anyone really knows what is coming and how the markets will behave.
Am I ready for big negative balances on my Vanguard account if everything crashes again?
I think so as I am happy to have my money invested for a long time. But if it does happen and I feel differently I will make sure to let you know.
Hope you have enjoyed reading about how I started investing. If you have any questions please just leave them in the comments. For the next post on investing I might share my own amateur portfolio with you.
Disclaimer #2: Again please do not take this post as financial advice.