Disclaimer: In Real Life is a platform for everyday people to share their experiences and voices. All articles are personal stories and do not necessarily echo In Real Life’s sentiments. This story is not sponsored.
A young man who recently became a father shares his journey of learning how to invest to prepare for his son’s future.
For over 10 years, I worked in Malaysia’s largest bank as a data analyst. Ironically, when it came to the world of investments, I had zero knowledge. With a decent career and a satisfying wage, I didn’t have to.
But with fatherhood approaching around the corner, I felt a heavy responsibility to provide for my family, and to ensure a bright future for them. To start a family, I needed at least twice the amount I had saved up.
That was the turning point that pulled me into starting my investment journey. At first, the world of investing seemed way too complex for me.
I just wanted to diversify my savings, and I needed something simpler and low-risk as a good place to start. So I came across Versa, a digital cash management app.
I started investing a few thousand ringgit with Versa
What really drew me to Versa was that it was newbie-friendly. As a beginner investor, I could test the waters without too much risk. You can start investing as long as you have some cash on hand, a smartphone, and your IC.
The app’s simple interface makes it easy to navigate.
The platform also had weekly educational blogs, which taught me the basics of investing, such as “dollar cost averaging” and money market funds (MMF), which are a type of mutual fund that is both stable and low risk.
While you can start investing with a deposit of only RM1, I decided to put in a couple of thousand which I had saved up since the start of 2021.
Unlike traditional fixed deposits, Versa doesn’t have any lock-in periods or hidden fees. That was a relief, knowing that in case of emergencies, I would still be able to withdraw my money anytime.
The UI is also where Versa excels. As someone with little investment knowledge, I like that Versa occasionally sends me useful tips and tricks such as “Did you know you earned money while sleeping?”
Around this time, I was also investing about the same amount in Stashaway. I was trying out a riskier mode of Exchange-traded Fund (ETF), and my venture with Stashaway was generating losses.
It didn’t have me worrying, as it was within the RM 10 – 20 range. But no one likes to see the number going down, so I moved more of my funds to Versa. It was fairly simple to move my funds electronically from one app to another.
I researched into stocks, but it seemed like a very time-consuming hobby
For many of my friends, stock trading has become a hobby — it requires a lot of dedication, similar to a full-time job. In fact, I have seen friends who quit their full-time jobs in order to devote all their time to stock trading.
But more than just a new “job”, it had become their new lifestyle; a routine, even. They trade like machines, sometimes spending hours from dusk till dawn due to international market hours.
I know I’m not one to judge, but from the outside, it almost felt like a chronic addiction.
I’ve thought of trying out stock trading quite a few times myself, but since I still had a lot to learn about money market funds, I decided to wait it out till I understood what I was getting into better.
Knowing that I don’t know much, staying in the low-risk lane is the smart move.
After trying out Versa and Stashaway, I ventured out to other platforms in hopes of gaining bigger profits, and that’s how I joined TD Ameritrade, Etoro, and even Webull.
One thing that I also find to be a crucial part of the investment experience is the user interface (UI), which is why I like Webull.
I approach investing like betting on my favorite fantasy football team
I am a huge fantasy football fan. When you place bets on them, you have to do the necessary background research on a player first.
The way I saw it, investing is basically the same: You do the background research on a company, read their yearly returns, find out who runs the company, and the people joining or leaving the company, then you proceed to place your bets on your chosen company.
One thing I’ve always kept in mind is to be aware of the consequences and not to be blinded by the big bucks.
As a soon-to-be dad, I have to keep in mind that I now have a young family to care for. So unlike my friends who can go all-in, I have to be more risk-averse and play it safe, because I have more to lose.
If I were to describe my risk appetite using a scale of 0 to 100, I would only go as far as a level of 10. I would still be comfortable with going two or three steps riskier than fixed deposits, but definitely not going from 1 to 100 steps in one stride.
I have been applying this theory to investment platforms like Etoro where I can implement my own predictions. When I dipped my feet into crypto, I sought ample advice and insights from friends who were already really into it and have significant experience.
Despite all that, I still couldn’t help but feel anxious and worried what with the little knowledge I had on it — which admittedly, made the entire crypto experience an emotional rollercoaster.
I heard that some of my friends even dumped as much as 50% of their net worth into crypto. Call me a skeptic or a prudent investor but that is just too much!
That’s when I realised venturing into the unregulated crypto market is too huge a leap for me. But that still doesn’t mean I shouldn’t make tiny strides in my journey of learning about investments.
So I continue to put my savings in a versatile portfolio that includes a mix of ETFs, MMFs, FDs, and perhaps even property in the future.
Overall, I only have one regret…
I wish I had gotten into investing in my early 20s. If I’d started at 22, I’d be 10 years ahead in investing than I currently am at 32!
Not to mention the potential returns I would have accumulated over the years — I would have saved at least 6 figures. At the very least, I’m glad it’s not too late to start now.
In the past, people used to have the mindset that in order to start investing, you would need a few RM1000 to spare, at the very least. In today’s world though, literally anyone can invest.
Apps like these are a great starting point for beginners and especially those prefer to play it safe.
Just a decade ago, there were hardly any of these convenient features or platforms. Today, you only need a minimum capital of as low as RM 1. Other platforms such as GO+, Touch N Go’s new investment feature, allows investors to start from RM 10.
If there is something that I would do now, it is to encourage today’s young adults to start investing at an early age, regardless if they are working or still studying.
Lessons I learnt from investing later in life
Investing can prove to be a good and reliable backup plan. It’s never too late to start saving up for whatever the purpose.
The key takeaways I had from investing are:
- Have clear investment goals. What do you want to achieve with your money?
- Do your research. Pick the investment type that suits your risk tolerance, even if it may not bring you the biggest profits.
- Approach it with the right mindset. Investment is a commitment that requires time. Don’t be impatient and greedy.
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