Archive | December, 2012

Action Day….

4 Dec

One of my favourite quotes ‘A business doesn’t plan to fail, it fails to plan’ can equally be applied to the investor.  Investments don’t just happen you have to plan and make your investments.  Today is Action Day.  By taking a few simple steps you can be ready to start your investment strategy for 2013.

ISA – In the UK the government allows you to invest money in an ISA and all profits or interest received from the investment is tax free.  Up until the 5th April 2013 you can invest £11,280 into a stocks and shares ISA or you can save in a cash ISA the amount of £5640. (See blog 15th September 2012 for further information)  If you are serious about starting an investment strategy there is no better place to start than with an ISA.

How Much Should You Save? – In his book ‘The Richest Man in Babylon’ George S Glason wrote about putting aside 10% of your earnings.  I advocate starting small and building up to 10% or higher.  If this week you can manage £1 then start with £1.  If you can afford £10 then make it £10 or £100 or £1000.  The whole point of the exercise is to start putting something aside each week.  Once you get used to saving the amount and living on a slightly lower income increase your savings a bit more.  Every January I increase my savings.  I have a whole year to get used to living on a lower income and/or to find a way of increasing my income.  The following January I start the whole process again. 

Most people will spend their whole income each week or month.  Training yourself to save is part of learning how to manage your money more effectively.

Automate – The more you can automate your investments the easier they become.  If you are working ask your pay department if they can pay a specific amount of your wages directly to an investment account.  Many business can and will do this for you.

For everyone else, Pensioners; Self-employed, beneficiaries or students the easiest thing to do is set up a standing order with your bank to go into your investment account.

Action –  You can read everything about investing but if you don’t take action in 12 months time you will still be reading and getting nowhere with your investments.  To use another of my favourite quotes ‘Action gives Satisfaction’.  Put your investment plan together. Decide how much you can save and automate it to start in January 2013.  Take action today.

BIC – In January we’ll be launching BIC (Beginners Investment Club) which is a shadowing service.  Each month you’ll receive a newsletter which details the investments I have made or will be making for the month.  I’ll be showing you how I build my investment pyramid.  You can decide whether or not to make the same investments.  In between if there are any changes to the investment and you need to sell you will receive email updates.  Where possible the investments will be through an ISA providing tax free profits.

Thank you for reading Investment World. I’d like to take this opportunity to send you and your families seasons greetings and I look forward to investing with you in 2013.  But don’t wait till January to get started remember today is Action Day…