Originally published by Chamber of Merchants
"The Patron" is a new series by Chamber of Merchants that follows a beginner investor trying to turn $10,000 in to $20,000 in less than a year. Click here to read The Patron's first post.
Christmas time is closing in and I can still remember a time when Santa Clause was real and my parents played along by leaving milk and cookies by the tree.
I would wake up and be ecstatic to find the milk and cookies had been eaten, apart from a few crumbs.
Then my older Sister ruined the magic one day by revealing the hidden truth…There was no Santa..
Almost 2 months ago I sat with my loving wife and went through our superannuation and savings account. The interest we earned ranged 2-3% per annum. Now if you’re aware of the inflation rate here in Australia then you’ll understand why my wife and I decided it was time to take action! So we decided to step into the ASX and invest a small amount into 5 different companies all of them being in the precious metal sector. We originally began with $9,999 and had aimed to gain 7% growth within 3 months. This proved to be true, as we gained some value, however it also moved in the opposite direction which leaves us with a loss. We are confident in the market and the near future, and are not dismayed in our efforts, rather the opposite and looking to move some more capital into our shares.
We have now seen how fluid money can be, and the opportunity available to accumulate wealth at a greater rate than our superannuation and savings account. Here are some lessons we have learnt and have yet to apply: 1) Do not let your emotions dictate how you trade…rather let good research, results and sound advice be the guide. 2) Be content with the gains you make and leave the last 10% for someone else…greed will never be a friend. 3) Hold yourself accountable…Whether it be through conversation with like minded friends and relatives, or by revising the goals and objectives you originally set out.
This is one of many journeys in my life, and I am grateful to be in a position where I can experience it while learning from those who have walked the same path.
I reflect on my own family and friends who never really took or spoke of stepping into the stock market. I feel they missed out on a wonderful journey, which could have been very profitable had they tried.
Now I pass the message onto others in my life, encouraging them to look at their investments and their future retirement plans.
“…Hold yourself accountable….”
I’ve always heard ignorance is bliss!
No different to the joy children have when they believe Santa is real, except, we cannot live our whole lives in ignorance.
The ignorance and bliss people have about their financial freedom will end one day when they ‘try’ to retire.
I believe it is far better waking up to our financial responsibility today, as it is something of great importance and early action will only reap greater rewards.
P.S. To those who may have not known Santa was actually their mums and dads until reading this…I’m sorry
Yours Faithfully
The Patron