Day 23 / 31 Should you Invest?

Day 23: Should you Invest?
Day 23: Should you Invest?
Day 23: Should you Invest?

Now that we have covered the basics of investing and the stock market, you might still be wondering whether investing is the right move for you. This challenge starts with looking at reasons to invest, followed by some reasons to hold off investing, after which you should be able to make a more informed decision.

Why should you invest?

Let’s start with some of the main reasons that makes investing worthwhile to many.

  • Investing is an alternative to saving: by setting money aside people hope to grow it and with time build up a nice small capital. 
  • Over long periods of time, the stock market generally goes up. Even if there is the occasional crash when stock prices go down, if you have the time and the patience to sit it out and wait, the market will recover again.
  • On average the markets go up by somewhere between 7-10% yearly. That is more than most yearly inflation rates;
  • The market average is also normally higher than interest rates offered on saving accounts;
  • Another fun advantage of investing: many people like to track their shares and see how they are doing with their investments.

Continue reading “Day 23 / 31 Should you Invest?”

Day 22 / 31 Discover the 3 Ways to Invest

Day 22: Discover the 3 Ways to Invest
Day 22: Discover the 3 Ways to Invest
Day 22: Discover the 3 Ways to Invest

There are generally three different ways to invest in a stock market and today you’ll find out about the advantages and disadvantages of each approach.

Handpicking shares

Firstly you can handpick your own shares, meaning you select one or a few companies you want to invest in, buy their shares and wait for the magic to happen. The key advantages as well as disadvantages are summarised below. Continue reading “Day 22 / 31 Discover the 3 Ways to Invest”

“So what, now what?” in conflict resolution

-So what, now what--.png

I strongly believe a great manager should as a general rule be aiming for as many win/win scenarios as possible, ones which have a productive outcome for all parties. However there will always be moments where staff are so stuck in a mindset that taking the step by step understanding approach as the first port of call will not achieve what is required. Often two sides can be so entrenched in their own sense of being right that finding a middle ground, a third way, just isn’t possible without first getting them out of that “am i right” mindset. Likewise a whole team can have become so frustrated by something that a culture of complaining has become the norm and no amount of listening to these issues makes a difference to that starting attitude. It is in these situations that the “So what! Now what?” approach is required. Continue reading ““So what, now what?” in conflict resolution”

Principle Centered Leadership

Principle Centred Leadership

“A principle is a natural law like gravity. If you drop something, gravity controls. If I don’t tell you the truth, you won’t trust me; that’s a natural law.”

Stephen Covey

When we trace the decisions we make and analyse what was behind them, very often we can detect “centres of influence”. Centres of influence are forces that guide us towards thinking and acting in a certain way and more often than not although many centres influence us, each of us has inclination to be more influenced by certain areas over others. Stephen Covey in his “The 7 Habits of Highly Effective People” presents that we have the following centres that influence us most:  Continue reading “Principle Centered Leadership”

Day 21 / 31 Learn about Shares and Bonds

Day 21: Learn about Shares and Bonds
Day 21: Learn about Shares and Bonds
Day 21: Learn about Shares and Bonds

Today’s challenge will be a crash course on investing. Since there is a lot to go through and not much blog post length to use, let’s dive straight into this…

Shares

Any company is made up of shares and each share is essentially a very small part of a company. If you have a share, it means you own a part of that very business. The more shares you have, the bigger the part you own of that company.  Continue reading “Day 21 / 31 Learn about Shares and Bonds”

Day 20 / 31 Calculate your Savings Rate

Day 20: Calculate your Savings Rate
Day 20: Calculate your Savings Rate
Day 20: Calculate your Savings Rate

Now that little by little you are improving your financial life, it is equally important to understand how people succeed and how people fail in this area. Why exactly do so many people still have debt or not enough pension or no financial plan for their future?

Ask anybody in your environment and a vast majority will say that they just do not have enough money to pay off their debt or to throw at their pension fund. But even when those same people get a pay rise, chances are they still won’t be using that money to pay off their debt, nor will they tuck it away and use it to invest in their pension. They will simply spend it on new things and without them even realizing it, their lifestyle will gradually inflate to a new level. Continue reading “Day 20 / 31 Calculate your Savings Rate”

Day 19 / 31 Discuss Finances with your Partner

Day 19: Discuss Finances with your Partner
Day 19: Discuss Finances with your Partner
Day 19: Discuss Finances with your Partner

Now that you are getting ready to take full control of your finances and future goals, this is a good moment to discuss and share your financial planning with your partner – if you have not done so already.

Discussing money matters and making sure you have the same short-term and long-term goals in mind is essential to not only achieving your financial goals but also keeping your relationship healthy and happy. At the end of the day if you are trying to save, invest or grow your capital whilst your partner is more of the “let’s spend it all now” school, you likely both wind up frustrated with each other, meaning both your financial goals and your relationship happiness will take a hit and suffer sooner or later. Continue reading “Day 19 / 31 Discuss Finances with your Partner”

Day 18 / 31 Track your Progress

Day 18: Track your Progress
Day 18: Track your Progress
Day 18: Track your Progress

One of the most fun parts of setting goals is seeing yourself getting closer to them with each step that you take. By tracking your progress, achieving financial excellence is not just a great end goal in itself, it will also become a fun journey with many smaller milestones to work towards to and keep track of along the way.

You can track your progress for many different financial aspects, such as your net worth, your savings, the debt you are paying off, your emergency fund or your pensions. The options are endless.  Continue reading “Day 18 / 31 Track your Progress”

Day 17 / 31 Plan your Pension

Day 17: Plan your Pension
Day 17: Plan your Pension
Day 17: Plan your Pension

Although it is nearly impossible to predict how your pension will develop over time and how much pension schemes will change, especially if you are still many years, if not decades, away from your retirement, calculating your pension regularly and setting pension goals is a key habit to develop and establish if you do not want to be taken by surprise when you finally get to retirement age and start needing to rely on these payments to replace your regular income.

For today you are going to take control over your pension and start putting in a plan to make sure that by the time you retire you have enough money coming in. Continue reading “Day 17 / 31 Plan your Pension”

Day 16 / 31 Check your Pensions

Day 16: Check your Pensions
Day 16: Check your Pensions
Day 16: Check your Pensions

A pension is a fund into which the state, an organization and/ or an employee pay money, in order to finance retirement. This allows people to stop working when they are older, whilst still being able to have access to a monthly income or alternatively a lump sum of money that has been saved over the years.

Pension schemes can generally be divided into three different types, although each type can have different characteristics depending on the country, state or industry you are in. Continue reading “Day 16 / 31 Check your Pensions”