Simon's "1 Minute Money Message" (Episode 12): 3 Life Lessons That Also Apply to Investing (part 1)

Welcome to Episode 12 of "One Minute Money Message" where Simon will outline Simple Ideas to Grow, Protect and Manage Your Wealth.

"Opportunity is missed by most people

because it is dressed in overalls and looks like work"

That's quote by Thomas Edison.

So what are three more life lessons we can apply also to investing?

One is that uncertainty creates opportunity.

Uncertainty can be uncomfortable, but it is necessary for growth. In life it's what helps us grow when we take risks, like moving to a city, a new city, for example, or starting a new job.

Investing land returns compensate us for that uncertainty.

So without risk, there is no reward, but not investing also carries its own risk, like leaving your money in the bank and losing purchasing power over time as inflation eats away. Embracing uncertainty helps us to focus on those opportunities ahead.

Also, plan but don't predict. So we can't predict the future, but we can plan for it. In life, we prepare for various outcomes. Might be something like applying to multiple universities or packing extra for trips just in case.

Similarly, in investing, focusing on long term planning rather than short term predictions can lead to better experiences.

Markets have historically returned around about 10% a year and low cost, well diversified strategies make those returns pretty easily accessible.

So trust the market and stay prepared for the ups and downs.

Also, flexibility in life and investing can add value. The flexibility in life can help you get what you want, maybe faster, sooner, or at a better price.

In investing, being adaptable with stock choices and trade timing can also improve outcomes. So index funds are great, but sometimes they're rigid trading schedules can miss optimal pricing. Flexibility helps capture more value over time.

So if you'd like to know more about those comments or ideas, book a call via our website with me or we can provide you with our Investment policy Gold Pilot tool, which might help you put some plans together.

Thanks for watching!

Simon

p.s/ - If you'd like to check out previous episodes of "1 Minute Money Message" click here!

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