Hello Grasshoppa,
In my many encounters with friends & family, it is common to hear them expressing their interest to invest but they don’t know how to & where to begin. It is easier said than done especially when they are making money-related decisions. Many people opt for easier options where they just want to know how much the investment return they get back from investing their money. This may lead them to invest in investment scam & trusting wrong Financial Advisor or Wealth Planner.
No offence to some Financial Advisors or Wealth Planners out there but I’ve met some that don’t really know how to handle or advise their clients. When I was young, I was persuaded to be a Public Mutual agent which I actually took the test & passed. During that time, I had zero knowledge on investment & yet I am able to qualify as a Public Mutual agent. Surprise? That was many years ago & I’m sure they have improved on their agent education syllabus to ensure they are equipped with the right knowledge & experience.
If you are looking to start your investment journey without a financial planner, what are the steps that you should take? Below are some key guidelines that will help you in your investment.
1. Know Your WHY
This is the most important of all before you know what or where to invest. Ask yourself, WHY do you want to invest? Better future for your family? To be a millionaire? Or for an early retirement? Plan your GOAL based on your WHY. Example: I want to have RM4Million by 40 years old so I that can travel the world or I want to send my kids to Harvard University when they turn 18. These are your WHY.
2. Study! Study! Study!
Once you know your WHY, next is to equip yourself with investment knowledge. This is the part where many people give up because it will consume their free time. This is also where people will mention that investment is hard? Is it really hard or are you not willing to put your time & effort to learn? When you want to buy your first house or car, you will be doing many surveys & comparisons before you decide on what to buy. It’s the same thing. Do your study by reading books, blogs, financial news & others. There is plenty of information out there. If you want to seek advice from people, seek from those who have vast knowledge on investment. No matter how experienced they are, always reevaluate their information & learn from it.
3. What To Invest
Once you have a dip in investment knowledge, you may already have an idea on what should you invest in. Stocks, Mutual Fund, PRS, Robo-Advisor, Properties, Fixed Deposit, Gold, P2P Financing or other types of investments approved by Securities Commission of Malaysia.
4. Evaluate Your Risk
What type of risk are you willing to take? It is common to hear phrases like, “Once I invest that money, I don’t expect to get it back unless I’m lucky.” That is a very bad mindset. You should evaluate your risk based on how many percent investment return you expect to make vs how many percent of your investment capital you are willing to risk. Platforms like FSMONE, Fundaztic, Funding Societies & StashAway have their versions of risk evaluator for you to evaluate on the risk level you are willing to take.
5. Start Your First Investment With Comfortable Amount
How much are you comfortable to invest in your first investment? It can be as low as RM50. You can choose to invest every month or invest one-off. Personally, I invest on a monthly basis. The tip is, do not put all your eggs into 1 basket. Try to diversify your investment based on different platforms or products. Example: You can invest RM50 with StashAway & RM50 with HelloGold.
6. Stay Invested
Many people think that investment is just a one-off thing where you invest all your savings in & it will grow over the years. You should invest as often as possible & allocate a certain percentage of your monthly savings to invest. Some investment platforms offer standing instruction where you can automatically invest your money. I am using it for my StashAway & PRS investments. Each year, you may also look into your investment portfolio & do rebalancing to ensure your portfolio is in sync with your goal or investment risk.
7. Continue Your Learning Journey
In all parts of life, there is no end when it comes to learning. There is no such a thing as I’m too old to learn or too old to invest. It’s whether you want to learn it or not. You can be really good with whatever you are doing but always keep your eyes open to equip yourself with updated knowledge. Learning is a lifelong journey & it keeps life exciting.
OSS!
