How do we convince a friend they should invest?

This week, we chat to a friend of Producer Sascha’s - Leah - about getting a start in investing. Leah is married, has two kids, a mortgage to consider and runs a pretty tight ship financially, so making the decision to put any of that carefully considered money aside to invest is a big deal for her family. But she ended the chat with some ideas - and a fresh copy of Don’t Stress, Just Invest coming her way.

But it got us thinking about some of the common things our friends say when we say investing is great, and for everyone…

1. Investing isn’t for me - it’s for rich people. 
   Ahhh! It’s just not true. Yes, there was a time when the threshold for investing was higher. In 2023 though? No more. Thanks to the rise of micro-investing apps, and a lot of platforms just slashing their minimum parcel sizes, you can get started from literally 1c. Check out all the brokers at our Equity Mates toolbox page. 
   

2. I don’t understand finance.
   This is such a common one. Taking an interest in securing your financial future, doesn’t mean you have to suddenly understand detailed financial spreadsheets, track chart movements and spend the rest of your life reading the AFR. We feel so passionately about this we wrote the book on it, but the pitch in a nutshell? The simplest strategy - of regular automated amounts into a low-fee ETF is more than enough.
   

3. I’m too late to start investing.
   There’s a great saying we’re going to paraphrase - the best time to plant a tree was 20 years ago. The second best time is now. We realise that sounds like it belongs on a motivational poster, but it’s so true. While it may be correct that starting earlier can yield greater returns due to the magic of compounding, there’s still benefits to starting your investing journey today - than putting it off in the future.
   

4. It’s way too risky! I don’t believe in gambling.
   This is one of the most common responses we hear! While both investing and gambling carry an element of risk, there’s crucial differences between the two. The primary one being investing is done best over the long-term, & gambling is a short-term activity, and if you do continue for a long time, the house will always win. We laid out the full case in this episode if you’re curious about our full debunk!

It’s just emotions, taking me over…

Last week, inspired by our listener call, we asked how many of you had made an emotionally-driven share purchase…

🟨🟨🟨🟨⬜️⬜️ A solid chunk of you admitted to letting your heartstrings pull at your portfolio. Hey, we get it—sometimes a stock just speaks to your soul, right?

🟨🟨⬜️⬜️⬜️⬜️ Meanwhile, some of you are the Zen masters of investing, keeping those emotions in check. Namaste to you! 🙏

🟩🟩🟩🟩🟩🟩 And then there's the "I'm not sure" crew. You're probably still figuring out if that last buy was the real thing, or just a fling.

Rollercoaster emotions
If you’re struggling to hold back on those knee-jerk purchases, then maybe it’s time to reflect and reassess your research process! Start here - with this throwback episode from 2020, where Bryce and Ren go through the 3 steps to trim down your investable choices: How to find a good company.

I’ve got my emotions in check!
Hey - have we told you that we’re proud of you? You’re doing so well! You know the saying - don’t fix it, if it’s not broken. But maybe you’re thinking about ‘what next’ and investigating new thematic ideas. In that case - make sure you’re subscribed to The Dive, where we cover business news (which often is the precursor for big new themes). Also revisit this episode from late last year - where we went over 7 big future mega-trends and how you could find ETFs that address them.

I have no idea!
We’ve all had those moments, for sure. If you’re on the fence about a decision you’ve made in the past, maybe now is the time to pull out the magnifying glass and have another look at it. To help you get inspired, check out our episode with ETF makers Global X where we got the chance to ask them, how do you know if there’s enough to this idea for an ETF to be created?

Remember, if you’ve got any investing questions - our inbox is always open.

Have you ordered Don’t Stress, Just Invest yet?

Investing doesn’t have to be hard, and it doesn’t need to be time consuming. Ren and Bryce talked to News.com.au how to turn $1200 into $256 000. You can read his interview here.