We work hard. We often deny ourselves many pleasures to save. Have you ever wondered if you would not only save the money you earn on your account, but also invest? Especially since the pound has been falling recently. The author of the Money Grower blog will tell us how to do it.
The author writes in English, but to those who do not feel good reading in this language came out another blogger, this time Polish: SmartPolak. Well, he interviewed about what to invest money in the UK. We will learn from this conversation many interesting things that may encourage us to multiply the funds accumulated in the savings account. Of course, every investment carries some risk, so it’s worth doing wisely and don’t put everything on one card.
Not to work …
The Money Grower blog has been around for 4.5 years. Initially, the author wrote about personal finances. However, he decided to document his path to financial freedom. Perhaps his path will inspire someone.
According to him, financial freedom consists in a situation in which passive income is enough to live on such a level that you no longer have to work. It is something similar to retirement, except that you are still healthy and full of strength.
The stock exchange is not a casino
The author tells how the stock market stopped appearing to him as a casino. After reading several books, he began to see the logic in the random fluctuations of the bars so far. He began his adventure with the stock exchange in 2015 by buying shares in Zambeef, which he still has today.
He was prompted by the fact that they were much cheaper on the London Stock Exchange than on the home market. It was a good investment. Since then, their price has increased by as much as 60 percent. Then he began to invest in shares providing dividend. Dividend is a percentage of the company’s profits paid to its shareholders. This means that if a company earns well, you get money while still owning its shares.
What to invest in money?
Dividends are for the author of the blog a key factor for which he invests money in given shares. He says: “My style is buying high quality companies at a reasonable price. I just want to buy companies that have a lasting competitive advantage and will generate revenue year after year, regardless of the macroeconomic situation. ” This ensures that in the future these companies will share the profit with it. He also warns against buying shares just because they are cheap. He’s been stunned by it himself. Although he learned a lesson from this lesson.
How to play the stock market?
The author acknowledges that there are many ways to earn passive income. However, for several reasons, he chose to invest in dividend paying companies. Well, you don’t have to worry about price fluctuations of their shares. Not only that, when they get cheaper, you don’t have to sell them, but you can buy even more.
So, in principle, he does not play on the stock exchange. His finances do not depend on whether he buys the shares cheaply and sells them dearly. He is only interested in the profits of a given company, because it depends on how much dividend will affect his account.
As he states, he is more of a company owner than a broker. He claims that he does not go by selling some shares, why cut down a tree that bears fruit? Of course, for a money to be credited to your account regularly, your business must be in good shape. If he goes bankrupt, we won’t get anything.