If you think of the word “investment”, do you think of just the stock market? Investing is so much more than just stocks and once you choose to explore more avenues, the possibilities really are endless.
Dear Finance Diary,
Think of an object that is very valuable to you. It might be something expensive, it might be something sentimental, it might stir good memories, it might hold history that is important to you. Now if you think about this person or object that is valuable to you, and you think about how someone else might value it, you might find that it’s only you who finds value in this object.
We’re all different and we all see value in different things, which is why everyone’s investments will differ. Something that is a great investment for me is a terrible investment for another person, which is why personal finance is in fact so personal.
If you understand personal finance, and you understand what you’re doing because you have the knowledge to do so, you will in fact be able to invest for yourself.
Let’s take a moment and think about what meeting with a certified financial planner looks like: they might assess your risk, ask about your goals and then provide you with a broken down, step-by-step formula for you to reach those results. There are a lot of people that can do that for you, which is why I won’t be giving you that formula:
I’m here to tell you that every human has their own formula!
Maybe, your favourite choice of investment is art. Maybe it’s real estate. Maybe it’s classic cards. Maybe it’s a stamp or coin collection. Maybe it’s antique jewellery. Maybe it’s limited edition comic books. Maybe maybe maybe.
You should always have a diversity to your investments to help spread out your risk. A Certified Financial Planner (CFP) can help you with this. But don’t forget when planning with them that it doesn’t have to be entirely about stocks, bonds and GICs! Suggest something that interests you, and ask about how it could be incorporated into your portfolio.
Do your research, understand your risk, analyse your options, talk to your CFP about the possibility of non-traditional investments, come up with a plan and then, Invest for Yourself!