On Sharemarkets

I met up yesterday with a few friends who have also gotten into the sharemarket recently. We shared our resources such as books, podcasts, movies on what we have been using to learn more about the stock market and what we have heard in our ‘research’. We discussed what we should buy, what we have bought, and what we are thinking of selling.

Who would have thought I would have been interested in the stock market 2 years ago? It always seemed ‘too complicated’ for me and seemed like an ‘adult and foreign’, risky and troublesome area to get into. I stuck with safe things like Bank Long-term deposits, saving accounts, and just worked and tried to save as much as I could.

Low risk = Low returns. That’s the way life is, if you don’t take a risk then you are less likely to gain more. Yes, the stock market can be quite volatile… the cost of something can swing depending on what time of the day it is…and it can seem like you are losing Or gaining a lot of money in a short period of time. But the truth is, you aren’t gaining or losing unless you sell the stock. You can keep holding onto a stock in the hopes that it will rise up once again. ..or alternatively you can choose to sell it and lose less than you woudl have if the company takes a downturn and becomes worth next to nothing.

I guess there is always going to be a risk in every you do. I have heard it being said a few times, “It is not about the timing of the market, but the time in the market”. 

You can only start earning when you start investing and building, growing and diversifying. But I think at the same time, you should always have an emergency fund of money to access in case something like a loss of income should occur,

Financially Literate

Lately, I have been doing some adult learning (imo). I have been trying to learn more about money through various podcasts on money. AND BOY is there a lot of things I don’t know… As a young one, I have never been that interested in money and my parents did not teach me much about it, except that it was precious and we didn’t have much. *sad face*

What even is Super?? How does it even work??

Through the last year and a bit, I have encountered terms like Salary Sacrifice, Life Insurance, Bonds, ETFS, mortage brokers, credit scores, and Stocks. I think I’ve grown up a bit now that I have become interested in money, or should I say in the fancy adult word, finance.

Studying in the health sector for 5 years has allowed me to become health literate, maybe a bit too much (those wrong self-diagnoses LOL). I did not understand why some people had poor health literacy and make such bad health decisions (every 1st generation child of a migrant would understand). I have always thought that was sufficient enough to keep me healthy and sustain me through life. However, I have only just realised I am seriously financially illiterate (and many of my friends are too)! I have never really did any check up on my money and just thought putting in the bank and getting a little interest was enough to sustain me for life. LOL.

I have realised, that if you want to look after your finances well, you need to take some time and think about what your saving goals you are aiming for and to make a budget (of some sort). You need to think about where you want to invest your money, because leaving it in the bank, while it is safe, it typically has low interest rates, and hence low returns.

Your super fund is basically your retirement fund, as a young kid in my first job, I always scowled at how money from my pay went into this “SUPER” fund that I couldn’t access until I was like 67. BLEH. What if I didn’t even live to that ripe age? Gimme my money now! Is what I probably thought. But, when I am old and wrinkly, and when I get to receive that money in my fund, hopefully I will be able to thank my younger self for working so damn hard for all those years to build a better retirement future. I don’t really know how supers work, but in my limited understanding I think they use your money and a good company hopefully will use it to invest and grow the super. However, for those with multiple super accounts, they might be paying a whole bunch of fees that they are unaware of.

There is still much to learn about money and finance and surprisingly, it is becoming more interesting and appealing to learn about money. $$

I ask my self, Have I stepped another step towards this holy adulthood? As I sit on a chair wearing my snoopy PJs and thinking about how it would be great to not go to work tomorrow. *Sad face*

Got my first Credit Card

I finally got a credit card. Not because I need it for anything at the moment, just mainly to get points and to see what it’s like. I feel like this is another step towards adulthood or maybe not?…I am hoping to be able to personally get enough points to fly to London when Covid-19 blows over..!

 

Credit Cards have become a norm in the society that we live in today. With the lucrative offers of bonus frequent flyer points, free travel insurance, VIP lounge entries, and other incentives, it is almost like another form of gambling. If you pay off your debts in time, you are fine, but the temptation to spend more than you earn is always there and you pay a hefty price if you don’t pay your debt in time. This post will look into the benefits and cons of having a CREDIT CARD!

 

For those who have suddenly hit an unexpected emergency and are in needs of funds urgently, credit cards are a life-saver. It allows you to pay that debt or bill immediately and buys you some time before you have to pay it off. If you are good with money, you can use it a way to increase your cashflow as well as reap the many benefits of having the card. Other benefits including earning points on normal everyday purchases and which then can be exchanged for things like plane tickets or gift cards at supermarkets. Other lucrative benefits also include things like complimentary travel insurance, free lounge entries at airports, and other deals depending on the card you have. It basically enables people to purchase expensive items and pay it off over a longer period of time. For those who are struggling to make ends meet towards the end of a pay cycle, this is life saver to enable them to still be able to pay for rent, food, and other necessities before they get paid from their employers.

 

In saying that, the temptation to spend more than you earn has leads to many Australians into debt. By living beyond your means, you pay the hefty price of interest rates up to 20% for the amount that is owed. You could potentially end up losing a lot more money than you could save from having those points. This could lead to people turning instead to things like crime or theft in order to make a living. Financial crisis can also a very stressful thing to be in and is one of the causes for mental health breakdowns.

 

While credit cards may be great for some people who know how to manage their money, for others who do not have good self-control, it is a trap that is best avoided. Despite the huge number of tempting benefits of having a credit card, it is something that needs to be thought of carefully and not for those faint – hearted.

 

Keen to know your thoughts and do YOU have a credit card?!