Investing in My Future

Investing in My Future

FIN100

Investing in My Future

Financing is exciting and is used in everyday life. In this course, I learned different ways of how to grow my money. My financial goals are to have enough money for retirement to enjoy life. If I could have enough saved, I may be able to even start a business venture during retirement.

Three (3) Ways I will Invest in My Future

First way of investing my money that I am doing now is investing in my employer 401k. Each paycheck a percentage is taken out and placed into this account. My employer also matches this percentage so double is being saved. These accounts are good because you are not allowed to take out the money without a penalty until your retirement. If you take it out beforehand you will be penalized and not get the full return.

Another way I will invest my money is into stocks. Stocks can be a risky investment, but the outcome can be big. Investing into some stocks can give you a big return if the company is doing good. When I want to exit the stock market, I can sell my stocks to others and get the cash in return. I read that it is better to stay invested for a while and not try to live so quickly. The longer I am invested the more likely I will get back a 10% return (Royal & O’shea, 2/24).

Lastly, this is the way I have been saving my whole life, savings account. Whatever money I have left over from previous pay checks I move it over to my savings account. No matter what the amount is I will move it over so I can build on this. Two months out of the year I get an extra paycheck where no bills are taken out of and this goes into that savings account too. I try not to use my savings unless it was for a future goal. I just cleared out my savings because I purchased a home. Knowing that the money I saved for is there for me at any point in case there is an emergency or whatever I was saving up for is important to me.

My Confidence Concerning Investing in My Future

Out of the three investment options what I feel most confident in is my own personal savings. I know that it doesn’t have a big return rate, but I know how much is be put in and that’s how much I can take out. The personal savings is accessible whenever I need it and won’t go anywhere is something like the stock market crashed. I am good with saving and managing money, so it is an easy option for myself.

Challenges with Investing in My Future

The biggest investment challenge would be investing into stocks. The reason why is because I don’t know much about it. There is a fear of losing out all the money that I invested. If I did more research on how to invest my money into stocks, I might feel more comfortable. I will want to speak to someone who knows more about the stock market to see exactly what I need to do in order to get a return on my investment. Having someone with a bit of background in the stock market can be useful and make me feel more confident.

Conclusion

Investing my money for future goals is very important to me. Whether they are short- or long-term goals it is important to have that security. How to invest my money I will open a 401k account, invest in stock, open a savings account or do all three. Figuring out what will be my best interest will determine what exactly my goals are. These goals can change over time and the way I invest can change as well. If I am doing investing, I think it will benefit my future. Continuing to learn how to invest my money will also be beneficial for my future goals as well.

Reference

Royal, J., & O’shea, A. (2/24/2020). How to Make Money in Stocks. Retrieved from http://www.nerdwallet.com/blog/investing/make-money-in-stocks/