{"id":799,"date":"2020-07-13T01:44:49","date_gmt":"2020-07-13T01:44:49","guid":{"rendered":"https:\/\/bitesizebkk.co\/?p=799"},"modified":"2020-12-03T15:00:22","modified_gmt":"2020-12-03T08:00:22","slug":"introduction-to-investing-101","status":"publish","type":"post","link":"https:\/\/bitesizebkk.co\/introduction-to-investing-101\/","title":{"rendered":"Bitesize Finance: Introduction to Investing 101"},"content":{"rendered":"

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\nThe pandemic has thrown us all in for a loop. <\/span>Global working hours are expected to have fallen by <\/span>14% <\/a>in the second quarter of 2020, which equals to the loss of 400 million jobs, according to the International Labour Organization. This means reduced income, increased reliance on savings and more.\u00a0<\/span><\/span><\/p>\n

What the pandemic taught us, was how important it is to be financially responsible and financially savvy. If you\u2019re fortunate to have been investing, then consider yourself lucky. Investing is still a novel concept to many, and it boils down to one key thing.\u00a0<\/span><\/p>\n

Barrier to entry to financial investment is high. Why? Financial products and markets are complex, there are many asset classes to understand.\u00a0<\/span><\/p>\n

What else? There is often a lack of affordability to invest in blue-chip stocks (corporations with billions in market cap, typically) and high-growth securities. It\u2019s also difficult to pursue portfolio diversification and more often than not, there are hidden fees and charges to investment services.\u00a0<\/span><\/p>\n

With this in mind, we think it’s important to be financially literate, to understand and differentiate different asset classes and generally prepare for a healthy financial state. As 2020 has taught us, nothing is ever a sure thing.\u00a0<\/span><\/p>\n

We\u2019d like to introduce a new section to Bitesize, \u201cBitesize Finance\u201d which will cover a range of different financial news, bitesize coverage of different financial products and more. For this week, let\u2019s quickly dive into investing 101.\u00a0<\/span><\/p>\n

Identify financial goals<\/b><\/h4>\n

Just like beginning a new workout regimen or changing your job, it\u2019s important to identify the \u201cwhys\u201d. Identifying financial goals is essential to mapping out a basic investment strategy. Most people invest to diversify their income and achieve financial freedom.\u00a0<\/span><\/p>\n

These are the 3 bitesize steps to follow:<\/span><\/p>\n

Step 1: Identify Goal<\/span><\/i><\/p>\n

Short Term: <\/b>For immediate expenses, or a near term vacation i.e. a ski trip to Japan (whenever that can happen!)<\/span><\/p>\n

Medium Term: <\/b>Financial planning for the next year, such as planning a car purchase<\/span><\/p>\n

Long Term: <\/b>Setting yourself up for financial freedom or making plans for the next 5 years. For example, saving up to become homeowners\u00a0 by the time you turn 35.\u00a0<\/span><\/p>\n

Step 2: Personal Finance Management<\/span><\/i><\/p>\n

The next step is knowing how to manage your expenses and savings. Personal finance management is crucial to financial health. You know what\u2019s not healthy? Paying off 3 credit cards on an entry level salary. About<\/span> 77%<\/span><\/a> of Bankokians are in debt, and the first culprit? Credit cards. We recommend following T Harv Eker\u2019s framework of the <\/span>6 Jars System<\/span><\/a>, dividing your income into 6 portions.<\/span><\/p>\n