Wednesday 5 February 2020

Getting into investing

My colleagues at work are always finding the best savings account to put their money in.

Of course, some might say that should not be the case as you should work more to increase your income and not to worry over such minute matters like interest rates on your savings especially when you are a fresh grad.

Read more on why your shouldn't be worrying so much on bank interest but on increasing your income: The Single Mistake Everyone Makes In Their 20s Trying To Build Wealth

One of my colleagues who know that I do invest my money was asking me whether she should start the regular saving plan (RSP) under POSB invest saver for her to hit a higher interest rate for her DBS multiplier account.

Read more: DBS Multiplier changes and what might be my next action

I think it is a rather good initiative to start investing through a RSP because it is automated and allows you to invest with a lower commission.

But what I told my colleague was that eventually, what you are buying is stocks and it will be fluctuating in price an so your capital is not guaranteed at the end when you want to cash out.

I think this is really important to know because most people invest thinking that they will be able to earn money or even huge amount over a short period of time but in reality, it takes time and doesn't necessary mean that your capital will grow.

Definitely, I know once my colleague starts the RSP, she will observe the prices daily as she is the type to keep up with her money.

Of course, when I first started investing, I was also obsessed with checking the prices frequently but after awhile, you realise that you can leave your investments alone without having to check them everyday.

Getting into investing can be good as it is how you make you money work for more money. And especially with how easily accessible investing tools are nowadays, starting young can allow your money and for you to take on more risk.

Read more:  January 2020 Portfolio, Purchase and Dividends Updates
January 2020 has passed and time really flies. With CNY almost over, it is time to be on focus with my work, haha Jan was like a dream with New Year then CNY, work seemed secondary as celebrations were in place. 

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