Career Transition Seminar - Day Two

Day two. Finances.

As much as budgeting and financial planning is an important part of any career this subject just didn't have the excitement and motivation that yesterday's lessons did.

I've never been a good financial planner, budgeter or saver. In fact I have only recently started an automatic savings deposit every pay, this is one of my weaknesses and something that I'll have to pay quite a bit of attention to (even though it bores the pants off me).

Regardless of my distaste for the day I did get a lot out of it, mainly in regards to investing. Read the following:

Time in is better than timing

Don't try to time the investment market. If you have some money saved over and want some sort of return go buy some shares, you dont have to have thousands of dollars to invest, even if you insert a small amount of money every payday it will add up at the end of the year to something that you can earn from.

Short and long term investments are something to look at as well, don't just look at the distant future when you're retired sitting in the Greek Isles you need to give concentration to the short term future as well, something that will work as a stepping stone and help you now.

4 Investment options:

Cash
Fixed Interest
Property
Shares

Cash and Fixed Interest are a high defensive (safe) option, however they create less return and are pretty much just a savings account. If you really don't feel comfortable throwing your money out there then perhaps this is a good option until you muster up the courage to be adventurous.

The second two options, Property and Shares are something that you have to put in a bit more time and effort to ensure that you are getting something that you will profit with. Ensure that you spend at least a month doing heavy research for either option, after this if you decide not to do it you have learned a great deal anyway. These options provide a much better return than fixed interest accounts.

The best way to learn about these things is experience, get in there and do it, ask lots of questions, try lots of things. Just make sure that it's something that you can afford to lose.

Remember that objects in life are only to be used as tools to experience life, never get attached to them.