In my early twenties, my mom started pestering me about opening an investment fund with a financial advisor. At the time I didn't think I had enough money, was old enough, and it seemed like an 'elite club' for people who had a lot of money. I asked her, “You want ME to have money in the stock market?” At that time, I was super young without a set career. I didn't have much to show for myself other than a sparkly Saintsations uniform. After denying my Mom’s wishes several times, she finally tricked me into meeting with her financial advisor.
I sat down with both him and my mom, and she started showing me her investment portfolio. What’s an investment portfolio? Basically, it is all of the money you put into investment funds. There are various types of investment funds to suit people’s financial goals and needs. While looking at my mom’s portfolio, I saw how much she invested. But the crazy part wasn't how much money she had been investing, but how much her money had grown over the years. It was insane! In simple terms, she was making money while she was sleeping.
Now for those of you who are familiar with investing, yes, there can be drops within the market (with equally as many upswings). But investing is like a marathon and less of a sprint. It's a long haul with financial accountability, which I will explain in more detail soon.
It might seem as though I'm getting personal but only because I want my readers to fully understand why I invest my money and the reasons behind it. So of course, I have both a checking and a savings account. However, I don't keep much in my savings account, because I want to be able to invest as much as I can, while still having a good bit of money in my savings for incidentals. For example, if I pop two tires, I want to make sure that I can replace them with the money in my savings account.
Since I do not keep a large sum of money in savings (where it can’t grow), most of it sits in an investment fund where it does grow! Why do I want my money to grow? I want my money to grow for financial stability, independence, and for me and my family's future. Side note: when you have more responsibilities like a family, I'm sure that you may want to keep more money in a savings account for incidentals, vacations, etc... As life changes, so do your financial needs and goals. But I'm just explaining all of this to you guys with my current situation and lifestyle.
In addition to just having investment funds, finding a financial advisor you can trust and easily talk to is vital to making the investment experience a good one. I love my financial advisor because I completely trust her. I know that she has my best interest in mind. She knows what my goals are and works to keep my money growing. When I don't understand something, she takes extra time to explain things in more detail so that we stay on the same page. The financial world has a vocabulary of it's own, but it's totally possible to be apart of this "world" as a young male or female.
Q: "What if you get into a car accident and you need money for a deductible?"
A: Great question! I can liquidate my funds at any time. I call my financial advisor, explain what's going on and she gets the ball rolling.
Q: "About how long does it take to liquidate funds?"
A: Takes about two business days.
Q:"What if I don't make a lot of money, can I still invest the little I have?"
A: Absolutely. You can have any amount (like $20 dollars) drafted out of your checking account transferred directly to your investment fund. This is where accountability comes in. Instead of "trusting" yourself to put the money in, you can have auto-draft set up. Auto-drafting is so easy and holds you accountable, because the money is directly transferred from your checking account to your investment fund monthly.
Leave a comment below if you have any questions or if you would like my financial advisors contact information. I wanted to write this blog post to help educate others on how simple and easy investing can be. It's something that I wish I would have started sooner!
All selections and opinions in this post are my own.