Important Note: This is not personal advice. If you are not sure whether an investment is right for you please seek advice. If you choose to invest the value of the investment will rise and fall, so you could get back less than you put in.

I have known about investing through media and family but never took the step. Upon researching the whole world of investing I decided to take the plunge into the investing world a year ago to invest in the long-term into my future.

What Have I Invested In?

Individual Investments

There are many platforms available to start your investment journey. My first step was to invest in companies that I believed in such as electric cars and technology companies. Initially, I used the investment platform eToro however as this platform is a US platform it used dollars as a currency. Shortly I decided to move over to a UK investment platform called Freetrade to invest in individual companies. Upon moving to the UK platform I decided to invest in companies that provided high dividends (high percentage payments per share) such as Tesco, Aviva, Vodafone, and BT.

Stocks and Shares ISA

During my research into investing, I discovered Individual Savings Account (ISA) which provides tax-free investing but with a limit on how much you can invest within a financial year. I decided to use Vanguard as an easy way to invest in a wide range of companies to diversify my portfolio. I opted for their LifeStrategy 80% Equity Fund which invests 80% into stocks via index funds and 20% in bonds. Regular monthly payments go into this ISA account for continuous investing. You can view What is an ISA? post to find out more about investing via ISA.

Lifetime ISA

Part way through the year I was introduced to Lifetime ISAs which involves the government contributing 20% of what you invest into the ISA. There is a limit to the amount of money you can invest within a financial year and the money can only be taken out upon retirement age. I decided to go with MoneyBox for my Lifetime ISA as I can view the breakdown of my investments via an app.

Cryptocurrency

Cryptocurrency is a topic that has been circulating for years with many individuals being vocal about their returns. The blockchain technology behind cryptocurrency has future applications so I decided to invest a small amount into a few cryptocurrencies to see what happens.

What Have I Learned?

24 Hour Monitoring

For the first couple of months into my investing adventure, I was monitoring my investments every day as if I was a professional investor. Seeing the greens and reds in my investments made me nervous even though I knew my investment can increase as well as decrease. During this stage, I was still reading and watching YouTube videos about investing to further my knowledge of the topic and many suggested not to monitor investments daily as you will get emotionally attached during the weeks when investments could stay red. As my investment adventure continued I found myself not checking my investments daily or monthly; I do check every so often, however I am not as emotionally attached as I know there will be days of green and reds.

Listening to YouTubers What to Invest In

One big regret is listening to investment YouTubers on what to invest in. During the early stage, I was investing in companies that have potential in the Metaverse so invested in Matterport which scans properties and display them as a 3D model based on what a YouTuber was doing. Investing based on what other people are saying is risky as no one knows what companies will do well. Matterport stock prices tumbled throughout 2021 causing significant loss in investment. Basing an investment decision on someone else’s opinion is a big gamble as they may have different objectives and beliefs.

Exchange-Traded Funds (ETFs)

Discovering ETFs is one of the best ways to diversify my investment portfolio so my portfolio is not solely relying on a particular company or industry to do well. I have discovered an investment platform called Invest Engine that enables you to build a portfolio consisting of ETFs and gives you information on your investments such as countries and companies you are invested in, thereby giving you better control and insight into your investment(s).

Environmental Social Governance (ESG)

After the COVID pandemic companies have been under scrutiny on how they impact the environment, treat their employees, and contribute to society. Investors are now considering these factors as to whether to invest in companies that match their values. By investing in companies that contribute to the world for the better they continue to thrive and improve these factors. Find more about ESG by reading the What is ESG? blog post.

Government and Politics

During the journey, I have learnt how politics has a huge impact on the stock market. An unstable government such as the UK government causes the UK stock market to decrease and affects the value of the pound. The financial budget announcement by the Chancellor of the Exchequer can bring confidence to investors to continue to invest in the UK market which can increase or decrease the value of the pound. Another contribution to stock prices is world events such as the war in Ukraine and how it affects oil and gas prices which in turn causes inflation. Inflation causes businesses to increase prices and therefore could affect profits and future projections. Future projections influence investors on whether to continue to invest in the company or bring in new investors.

Learning About Money

One big lesson I have gained from my investment journey is learning how money works in the financial world. From how inflation works to different types of investment methods and how they contribute to the economy. Many may agree that we should all be taught about money at a very early age to ensure we all make good financial decisions.

Dollar-Cost Averaging

One method of investing I have discovered is called Dollar-Cost Averaging. This method is about investing at regular intervals over some time regardless of price. Over time you will lower the average cost per share and reduce the impact of market volatility. Some months you may buy shares when they are high and other months you will buy at a low.

What Are My Future Investment Plans?

Investing for one year has taught me a lot about the financial world and that variety of factors can impact the economy. I plan to continue to use the dollar-cost average investment method for my long-term investments. For advice, I will continue to watch YouTube videos and news segments regarding the economy but will take the information with a pinch of salt and do my own investigation to make financial decisions. I will look into ESGs in the future to align my investments with my beliefs and continue to learn about the financial world.

What I Learned From 1 Year of Investing