In the world of investing, companies love to use
complicated terminology and vast graphs to show how well their funds are doing.
And to the average Joe like you and I, it can be overwhelming and even make you
feel lesser than and make you turn away from investing.
It shouldn’t be like that! So, I have listed the 3
top things I look for when investing:
What are the fees??
I’ve touched on this before but fees can make a
monumental difference in your actual return. And you need to ask yourself if
the fees are worth it. If you are paying 1% for an advisor who helps you make
your investments and keeps an eye on them for you all well and good. But if you
are paying 3%? It may be a bit steep! So always look at the TER or Total
Expense Ratio which shows the total percentage that is taken off as fees every
What are the Returns?
Yes, the saying is true “Past performance doesn’t
predict future results” but they do tell you something about their consistency.
A fund that is running at a negative return may have a boomer of year next
year, but is it worth the risk? I always check for the average return over the
last 5 years to see that they are at least making some money.
Getting my money back?
Also known as exit fees! Make sure you check if
there are penalties for removing your money within a year. This is when a
company charges you money for removing money out of the fund under a certain
period, I.e. less than 12 months. It’s not necessarily a bad thing, but should
be noted. So that you know where you stand to avoid incurring unnecessary fees.
I want to jump in, as they say, head first. Saving is a necessity to building long term wealth, achieving goals of travel, buying a house, or paying for your child’s education. It can also be great to have some stashed away for a rainy day. But with so many opinions out there how do you save? How much should you save? And where do you put your money?
It can all be extremely overwhelming! Trust me! I have been there! So, I have compiled 3 questions which have always helped me determine this for my savings goals:
When do I need the Money?
If you have a set date for a vacation or for
studying you will know how many years/ months you have to save for. You can
also determine where you can get the best interest, and many even invest the
money for long term goals.
However, for an emergency fund or short-term goals you don’t know when you will need the money and could need it fast! So, you want to earn decent interest with quick access.
When will I start?
By working out when you can affordably start, means
you can work out how long it will take and how much you will need to save
How much money do I need?
This will help you determine how much you will need
to save how often. You can set up automatic transfers to save the money before
you are tempted to buy another pizza 😉 By asking these questions you will know how much you will put away
periodically, how long it will take you to reach your goal, where to store the
money, and let you ace those savings goals. The most important this is to do
what works for you! Every person is different both physically, mentally, and
financially. Be you and be proud of who you are
Got a question? Ask us here!
Welcome to Once a Week Financial Blog. We’re young, innovative, and definitely not experts. But through life and working things out we have learned about the world of saving, investing, and all things financial. These are what we want to share with you.
We are not finacial gurus, and we do not offer advise. You should always speak to a qualiffied advisor for that. We want to offer our own experiences and those of our guests to help you navigate the world of fiannce on your own journey to financial freedom, financial independence, financial security, or just being able to flash more. Your goals are up to you!
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