This post is not advice. This post is information only.
When it comes to investing, ignore the noise. Make educated investing decisions, despite what’s going on around the world. Despite the global uncertainty that is happening in early 2022.
My heart goes out to people involved in the conflict in Ukraine. My heart goes out to people involved in the trucker protests in Canada. And my heart goes out to people suffering from inflation. Especially people really suffering in countries like Venezuela, Argentina and Turkey.
It is ok to have empathy for people around the world and show your support. Like how my wife is doing 10k steps every day in March for the people in Ukraine. But in my opinion, it’s important to continue to invest, if possible.
Don’t keep your money in a high street bank because of fear. Because of uncertainty around the world. If markets crash, keep your cool and stick to dollar cost averaging. If you’re having doubts, double down on your education. Read books about how the experts invest. And what they all seem to recommend is to dollar cost average despite market ups and downs.
The mentality is that if the markets are down, then the sales are on. If you continue to dollar cost average with your investing, you benefit from the sales. You might dollar cost average into index investing (stock market) or even BTC if you believe in this decentralised digital currency.
Financial crisis of 2008
After the 2008 financial crisis, I done none of the above. In fact, the financial crisis led to a negative decade. I didn’t ignore the noise. I became fearful and was negative about investing.
I tried to chase quick easy money with premium bonds, single shares, football bets and the lottery. I had a 12-year gap between rental property number 3 and rental property number 4.
If I’d continue to invest in property after 2008, I am convinced I would be financially independent by now. Unfortunately, I made every mistake in the book during my negative decade. I made very questionable investing decisions. Part of duffmoney, is for me to try and help other investors to avoid my mistakes.
During this period, I focused on my job, my main source of income. I pushed hard at work and even got myself a degree. But this is industrial age thinking. This is like the 40/40/40 approach to life. Work 40 hours per week, for 40 years, for 40% of your income.
My degree hasn’t really done anything for me career wise. I spent around £15,000 for a degree that hasn’t had the desired effect on my career. Eventually, I learn my lessons and in late 2018, I found personal development. Much needed personal development.
This has led to focusing on books, podcasts, audibles, YouTube videos etc. Basically, anything that I feel will help me achieve my goals. And my main goal is to be financially independent. To get me some early financial independence, I really need to focus on investing and business. And I need to do this, despite global uncertainty.
Investing despite COVID
Unfortunately, I wasn’t able to ignore the noise after the financial crisis of 2008. But I do eventually learn my lessons. And I was able to ignore the noise during COVID.
I continued investing despite what was going on around me. Markets were crashing and I kept on dollar cost averaging into my index fund. My fund was down at the start of COVID in early 2020 but I stuck to what I’d been reading. I imagined I was shopping at the sales and kept on investing.
This worked out as the markets soon settled down and got used to COVID. In fact, my index fund (LS 80/20 Vanguard index fund) done well during this period. When I checked in May 2021 it had performed well. The interest earned between May 2020 and May 2021, was just above 20%.
I’d done the initial research and started to invest into my index fund in 2019. I took on board what I was reading and researching and used the info to help me during moments of doubt. Like the start of COVID. But I got what I was reading in the books and focused on long term. I stuck to the plan. And my plan was and is long term buy and hold with property, index investing and crypto.
As well as index investing, I managed to get some more rental properties and continued to invest into crypto. Whatever it is you invest into, try and stick to your plan despite global uncertainty. Try and ignore the noise.
And what I intend to do going forward
Although I managed to buy some properties during COVID, I have been frustrated property wise over the last 12 months. This is because the property market has gone crazy.
At the start of 2021, I done loads of property training with PIN (Property Investor Network) and felt ready to push on and be a full-time property investor.
I’ve been to loads of viewings. Spent hours scrolling through Rightmove and Zoopla. Done some networking. But ultimately, things just haven’t gone to plan.
You can only do what you can do… There have been times when I’ve been too frustrated and a little bit obsessed with my goals. And especially my property goals. But my better half has helped me to get a grip. I need to focus on being present on the moment and enjoy life.
I will continue to work hard towards my goals but will also be working hard to get a bit of balance over the next few months. If it’s not happening property wise, I will focus on my other goals. Like pushing hard to achieve my goals in my favourite sport – BJJ.
Investing wise, I’m still in the property market but I’m not a motivated buyer. If an opportunity comes my way, I’ll take it with both hands. I’ll dollar cost average into my index fund. And I’ll be doubling down on crypto investing.
It is very early for crypto, and the market is very volatile, but I do believe in BTC and crypto. I’m at the point where I really understand the fundamentals of BTC and feel that any governments adopting BTC are one step ahead. I feel if the UK government adopt it now at this early stage, it would benefit us all greatly in years to come.
In my opinion the future of money is purely digital one way or another. The current financial system is clearly broken and BTC offers a genuine solution in my opinion. If only the UK government were more open minded.
Last year (2021) I well and truly fell down the crypto rabbit hole. I bought plenty of different alt coins for various reasons. I bought some Ethereum, Cardano, Solana and even dipped my toes in the Metaverse with tokens like AXS and SAND. I didn’t buy enough BTC if I’m being honest. Probably because I didn’t fully understand it.
With more understanding, I am focused on accumulating more BTC going forward in 2022. When I have the opportunity to buy some, I will buy some as I feel it has a major part to play in the future of finance.
Don’t take my word for it …
As always, my message for anyone reading this post is to do your own research. It’s massively important.
This has just been a post to tell you how I’ve invested in the past when there is a lot going on around the world. And how I intend to invest going forward.
If you’re new to investing, go and get yourself a copy of Rich Dad Poor Dad, by Robert Kiyosaki. This book will hopefully move you from the employee / self-employed mentality to the investor / business side of things. Once this message sinks in, you can start heading towards financial independence.
Investing is important and will help you live life on your terms. It will help you to secure your financial future. And then without any money worries, you will have the freedom and creativity to live life on your terms. Imagine, waking up on a Monday just as happy as you are on a Friday afternoon.
Anyway, that’ll do for this post. I hope you have taken some value from it. I hope you can go and invest despite what’s going on globally. And I hope you can ignore the noise and continue to invest despite uncertainty and doubt.