Welcome to the first-ever Learn with Yanmo newsletter!
This newsletter is for anyone who is trying to learn about investing. Regardless of if you’ve never bought a stock before or you already have some money invested, the aim is for me to go with you on your investment journey. Let’s jump right in.
Why should you invest?
Simply put, when you invest, your money grows faster because the money is able to earn returns. The longer you stay invested, the more returns your money is able to earn. We all know that the future is uncertain and investing for the long term is a good way to protect your financial future.
Think about putting aside $10 a month (or $120 a year) for 10 years. If you just saved it, you would have $1,200 ($120 x 10 years) at the end of the 10 years but if you invested in an S&P 500 ETF (aka the U.S. stock market) – at an average 10% annual return – you’d have $2,224 at the end of the 10 years. If you did that with $100 a month, you would have a little over $20,000 in investment instead of the $12,000 you would have got in savings.
For most people, investing is the only way to build real wealth and the great thing is that with fractional investing, you don’t need a lot of money to get started. The key is to stay consistent and allow the magic of compounding to work in your favour. Here’s a compound interest calculator I use if you are curious about how compounding can grow your money.
Every journey begins with a step. So my ask for this week is for you to take that first step. Put some money aside & make a deposit on Bamboo. It doesn’t matter how big or how small – any amount is fine 🙂
You can start thinking about what you’d want to invest in but you don’t have to. In next week’s newsletter, we’ll discuss buying your first stock & I’ll tell you about one of the first stocks I ever bought.
Finally, thank you for being an early Learn with Yanmo subscriber. Like I promised, you can email me with investment questions at [email protected] and I will do my very best to answer via email or make sure it’s addressed in a newsletter.
Enjoy the rest of your week!
Happy Investing,
Yanmo
