Why NOW is the perfect time to understand WallSt lingo

The need to save money could not have been more pressing for all of us than at present time. But while saving money never went out of fashion; it is even more important to understand how to make your money work for you rather then just let it slumber in the savings account. I do believe it is imperative that all of us understand how money moves in the economy, how inflation helps or hurts and what the stock markets are really about. I confess i am not an expert so writing on this topic might stick out my ignorance; but i do know one thing which i would go as far as to say is the most and perhaps the only important thing to remember; that is this...the markets always go up in the long term. Let me preface again by saying i am not an economist ,financial planner, advisor...so please do your own research.

Having been in the markets for over a decade now and having witnessed events that have caused global ripples like Great financial crises, multiple bear and bull runs, recessions, while also listening and reading top guns and most importantly making -losing and then making some money, in my experience the dictum - markets always go up in the long term - has stood the test of time. Now, it is true that not all products or all stocks go up in time , not all ETFs perform well, and not all tech sounding ish make you the next Elon . However it is not too far out to say that over the long term Mr. Market does not disappoint. In fact quick online searches will show that markets have consistently outperformed precious metals (gold,silver...etc), pension related tax saving products and most shockingly real estate over a long term (10+ year horizon).

So what exactly is the post about? It is, but a simple and might i add a humble advice to consider Mr. Market. In today's fast paced world where everybody is stretched whether dealing with office shenanigans, home affairs or just being caught up with life in general it is about time that we make sure our money works hard if not harder than us.

Having grown up in India, it is impressed on you at a very young age to save money. To a certain extent that's what all kids are told to do no matter which postcode you call home. So saving money does not really come as a shocker. The main crux however is that it is no longer sufficient to just save money i.e. saving through deposits or via saving accounts or pension funds etc...all are really a bare minimum and a "good to have" but to reiterate not sufficient.

In this age where the interest rates are rock bottom , the real effective interest rates are either extremely low or near zero (depending on where you live), the math would scream that the roi on your simple saving account wont even exceed the inflation rate so technically speaking throwing away your money in a regular " savings account" might actually be harvesting you negative returns. Imagine that!

Good place to start understanding markets is reading. My favorite is Investopedia and Investing.com . There are quite a lot of wonderful books also that will give you a kick-start in the right direction regarding investing. (Looks like i have the theme of my next post ready!).

If you have a trusted friend, family member or financial advisor then seek their advice too. Best to get a download from them on how money moves and which products work best in your favor. A lot will depend on your age, your risk type and in general your personality. Some people are okay with a lot of ambiguity dare i say some thrive on it, other need to read all the finer details. There is also the question of time. Time and tide wait for no one. How much can you keep invested in for short, medium and long term.

Next to consider is opening a brokerage account. You can get a consultant/advisor to help with that or just spend a couple of hours on a weekend searching online. Some good examples are IG - their interface is easy to use and pricing is simple. There could also be home brew brokers like Zerodha and Upstox in India or consider Stake in Oz. Discount brokers are a plenty and while some of the features are paid those are sometimes cheaper then your local Starbucks coffee.

Last and most importantly is to put your money where your mouth is. Let's get cracking investing money. I have a small article on the best way to get started on saving, spending and giving. You will be amazed on what even 50$'s can buy you. Add to this the fact that many brokers now allow you to buy stocks in fractions your Benjamin's can go a long way in helping you build your capital.

I would end by saying this - be patient. There are few of those who have become overnight successes. Fewer still who have managed to hold on to that success /wealth or who have managed to build further on that. Like with all journey's it will take time for you to understand what works for you and patience would reap you great benefits when it comes to the world of investing.

Happy investing!