Advice from a teenager to teenagers.
Dear future Warren Buffet. When you receive your pocket-money or salary what do you do with it? Spend it? Put it in your bank account? What if there was something else that could make your money grow and not just sit in a bank account earning minimal interest. The answer is investing.
The Oxford dictionary states that investing is:
To put money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.
Your money is put into financial assets that grow in value over time. Once you sell your asset after some time, if it has had positive growth, will be worth more. Financial assets can come in many forms as the Oxford dictionary stated, this could be shares, property or businesses.
With investing, however, there comes the risk of loosing money. The best way to avoid the chances of this happening is to look for long-term investments, at least one year-long that will earn you dividends along the way. Many people are engaged in short-term investing, which greatly increases the chances of financial loss. A famous quote from Robert Kiyosaki, an American Millionaire, stated that:
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”
This therefore shows that long-term investments are the best and safest way to grow your money.
Investing has been used for thousands of years as a means of growing money, not just leaving it in a safe place. This may come with risks but the end result, if done right, will produce much reward. Me, as a 17-year-old, have had my first positive growth in the stock market. This is a 81% growth in Sirtex Medical, 19% growth in Woolworths and 8% growth in Apple for the year, with over $300 worth of dividends paid out. Much better than my banks interest rate. This came through prayer, in depth research and buying businesses that I think are just. I believe that I should not give my money to places I do not agree with even if they have a good growth record.
Bible verse about investment.
Ecclesiastes 11:2 Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.