Finance, Economics & Technology

Ladies Get Paid Event: Personal Finance 101

in Investing by

This post originally appeared on Voleo’s blog

PERSONAL FINANCE 101: TOP 5 TAKEAWAYS

Last Wednesday evening I had the pleasure of hosting a personal finance workshop for Ladies Get Paid, a New York-based but nationwide organization focused on helping women find career and financial success, at San Francisco’s GitHub headquarters. I’m pleased to say that the event made for a very engaging and interesting discussion on how different people manage their money, what their perceptions of the stock market are, and the various approaches to investing, whether through work in a 401k or directly through the stock market.

I’ve been interested in money and how to better manage it since 2013 when I first got a grasp on the vast difference between people who understand money and those who do not. Suffice it to say, people who understand money have a much easier go of it later in life, and I aim to spread the good word about making sure we can all do just that.

My main focus is simply encouraging a real discussion, guided by personal finance and investing basics, in order to facilitate the sharing of information and the removal of the ugly money stigma. I also believe strongly in the promise of fintech for it has largely harnessed the power of the stock market and made it more approachable, simpler, and easier to engage in within a myriad of mobile apps. You may have guessed, but I am a fan of Voleo for all of these reasons: you invest in the stock market together in a group so you’re learning from one another and not having to go it alone, you can pool your money so you can literally start investing today, and it’s easy to manage straight from your phone. Seeing as I included Voleo in my list of personal finance apps and platforms at Wednesday’s event, I thought I’d provide a recap of the discussion with my top five tips for personal money management.

Side hustle

At the risk of being Captain Obvious here, the best way to save more and invest more, is to make more. If you can manage it, side hustles are bomb. This isn’t to say that they’re easy, it’s a real commitment and a lot of work. But if you’re unsatisfied with your salary and not able to increase it this year, then having a side operation that supplements your income can be a great strategy and a lot of fun too; they give you a real opportunity to pursue a passion. Opportunities include writing for digital publications or company blogs, holding ticketed meetups or events for an impassioned cause, starting a blog or youtube channel, walking dogs, editing for grammar-challenged professionals (I know somebody who does this), offering creative design work, the list goes on.

Budget time

Set a realistic budget that prioritizes debt repayment (especially if it’s high-interest credit card debt), investment and savings. A budget isn’t meant to confine and restrict you, quite the opposite, it’s meant to organize and empower you for the future. A good budget shows you the power of your money and longterm can act as a vehicle for financial freedom. The catch is that you have to stick to it. Far easier said than done, I know (believe me, I know). Start by figuring out your financial priorities: do you have debt? If yes, which debt has the highest interest rate? Pay this off first. Set up an automatic payment with your financial institution so that it isn’t something you can negotiate with yourself on. The longer you wait to pay off high-interest debt, the more debt you’ll accrue and the more of your precious money you’ll waste. Next, what are you working for? What assets will make all this day job / side hustle worth it? Do you want to buy a house? Hold an impressive portfolio? Or travel the world? The answer to this determines what kind of investment portfolio you should be working to build. Note: investing makes your money work for you; it can create more money, while saving does not. Having said this, I only advocate for high-growth investments when you’re using money you can afford to lose. Generally speaking I’d recommend looking at low to medium risk investments, especially for new investors. Automate a direct deposit just after payday to your designated investment account. Then look at savings where you strictly hold cash for purposes of immediate liquidity or emergencies. What’s left is your fun money. Fun. 😉

Investing isn’t an afterthought

We need to rewire our brains. Investing needs to be perceived in the same way that saving is: you’re building up a lovely pile of money, but the money is strategically invested in order to generate more money. If you’re concerned about the stock market’s volatility and risking your hard-earned money, there are many conservative options available. Perhaps look to an exchange-traded-fund (ETF) that limits your exposure to some of the risk. Many ETFs track a broad range of stocks thus giving you diversification and generally mimicking the overall trend of the market, which – while sometimes volatile – has only gone up in the long term.

Tools to help

There are many wonderful and easy tools available to us today that make investing simple, automated, and engaging. They say anything worth doing is worth doing right, and when it comes to growing your money, I’d say understanding the stock market and how to get involved ranks pretty high up there. This is why I’m a genuinely big fan of Voleo. In starting an investment club, you’re engaging with your friends or peers about money thus encouraging financial conversations and leveraging each member for their unique knowledge. There is no greater way to learn than to practice, and with Voleo you can literally practice picking securities with play money via their SimuTrader app, or learn on the fly together as you propose and make trades in the stock market.

Investing is for you

Honestly, it isn’t really an option. Having a portfolio is having a plan for the future. We can’t wait for the day we strike it rich on a big idea or hit the lottery. If you solely put your money in savings, then in the long term you will actually lose money, that is the frustration and reality of inflation. Repeat after me: investing my money means I am paying myself first and planning for my future.

For all the rules and strategies that go along with investing, it actually is quite fun, especially as you become more adept and comfortable with it. Taking a bet on yourself is the best bet there is. Start now. 🙂

Thanks to Voleo for publishing my post! 

Olivia is a fan of technology that changes the world and promoting financial literacy. She believes in the power of blockchain, understanding finance and politics, puppy cuddles, and a newspaper with coffee on Sundays. Welcome to the Paper & Coffee.

Leave a Reply

Your email address will not be published.

*

Latest from Investing

Go to Top