21/01 - Category: Planning Ahead

"When you know that you're capable of dealing with whatever comes, you have the only security the world has to offer." -Harry Browne

My knowledge of investing is limited. I’ll admit that until recently, it’s not really been an area I’ve been too interested in. Investing and planning for the future seemed only for those who either had significant means or a high tolerance for risk-taking. As with any subject, it’s hard to participate in discussions or educate yourself if you don’t understand the basics. And while I rely on the advice of family and friends, it seems that money has never been something I’ve felt comfortable discussing.

When your confidence is low, it’s hard to know where to begin. As a woman who is afraid of taking financial risks, investing is not really something I’ve actively participated in. In terms of attitude, I guess I’d best describe myself as ‘risk averse’. So for a novice like me, the subject of investing can seem daunting.

But it’s something that everyone should be thinking about, especially in the current economic environment. The important thing is to invest in a way that suits your needs and goals, knowing that it’s not about how much you have, but what you do with your money that matters.

I’ve mentioned before that my focus is long-term. While I’m still relatively young and healthy I want to ensure my future and that of my children is protected. And if something happens, I want to have a contingency plan in place so that we/they can cope. In the end, it comes down to wanting to be capable of dealing with whatever comes.

Since I’m investing for my future, my strategy is different to someone who has a specific shorter-term goal in mind being aware of your timeframe is key. It’s also important to know your comfort level when it comes to risk. For example, I understand that when considering investments such as shares, the greater the potential investment returns, the greater the risk. While I am risk adverse, I know that it’s important for me to think long-term about my investment decisions now.

It’s an interesting time to be thinking about investing in the share market. The credit crisis has meant money matters have dominated many conversations. But what I’ve learned through my ANZ Money Makeover sessions and on bemoneyconfident.com has given me the confidence to participate in discussions, ask questions and learn more about the share market and investing. It’s still early days and I haven’t really made too many decisions yet, but I?m enjoying the process.

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