OnlyFunds Investment Adviser Staff
Saving and Investing: Introduction
In this series we're going to be examining the two core goals that OnlyFunds is trying to help you achieve. This is a short intro, so keep on the look out for more in this series.
Saving and investing are two different activities that can go well together. Which one you focus on though will depend on what stage of life you are in. Which one of these are you?
The Saver: Some of us obsessively spend less on meals or clothes or whatever you consume, and squirrel that money away in a bank for... for something later.
The Investor: Some of us can try our hand at investing, spending hours doing research on stocks (not recommended), buying options (definitely not recommended), or yoloing into Dogecoin (please no).
The Yet-To-Start: A lot of us haven't even started thinking about either of these! That's ok, but the best time to do it is now.
Really, as with all things, we all fall on a spectrum between these extremes. But where should we be focusing our time?
If you're young and haven't built up a lot of assets yet, you should be focused on saving. The most important thing you can do is to build healthy saving habits, like setting aside a portion of your income each month that you know you won't spend. Even if you're thinking "I don't know how I can start now, I'm basically broke," building the habit itself is important: start with $20 a month. If you can build that habit now, you can work up to $50 a month, $50 a week, eventually $100 a week when you make more later in life. It adds up.
How OnlyFunds Helps: With the OnlyFunds platform you can, and we encourage you, to set up automatic deposits each week or each month. Start out small, and build the healthy habit of saving.
Once you start to get some money saved up: then start focusing on investing. Imagine you have $200k saved up. (I know, fun to imagine). A 12% difference in investing returns changes your net worth by $24,000. That's maybe more than you could save up in a year! Obviously now, focusing on how to make your investments work for you becomes just as important, if not more, than saving a bit extra.
How OnlyFunds Helps: OnlyFunds picks the best portfolio for you from a universe of over 1000 ETFs and investments. Based on Modern Portfolio Theory, the portfolio is designed to maximize your returns and minimize your risk. Additionally, the platform rebalances your investments for optimal outcomes. If all that sounds complicated - that's what we're here for!
The bottom line: to start building wealth, focus on saving, and let the pros focus on the investment for you. At OnlyFunds, we make both as easy as point, click, and save.
In the next installment of this series, we will get into the details of How Much You Should Save (Coming Soon!).