Encourages Investing And Saving – Loans
September 27, 2019
Good Finance is an actor and city councilor who wants to normalize the talk of money and especially encourages women to take responsibility for their own money. In addition, Good Finance wants to bring the investment and money debate into the perspective of the average person, who still talks about media investment mainly from the perspective of big investors.
In our interview, Good Finance talks about the early stages of his investment career and shares his best investment tips for the budding investor. Inspiring moments!
Although women are concerned about their own finances, they are strongly underrepresented in the media. Women are also duped by irrational consumption. When I was told in Gloria that a handbag might be an investment, I stopped subscribing.
The finance gurus of the sewing club were born out of the need to create a forum for women where the economy can be talked about in a confidential and supportive environment. In our group, all questions are allowed, and there are experienced stock market sharks as well as women who are just starting out.
How did you initially become interested in investing and your finances in general?
I find myself repeating the example of my parents in saving. From a young age, I watched as systematically my parents saved their family for a vacation or other purchase. I was in my early days when we bought our summer cottage. I still remember how we decided to buy the cottage and borrow it together. At the same time, we kids committed to not being in jeans all the time because the summer cottage was a big purchase.
For a long time, I considered investing as notorious speculation and really risky. I started investing six years ago at the age of 27. A friend of mine had recommended to me Gold and Myllyoja, “What Every Housewife and Other Women Need to Know About Placement”. This book made me understand the basics of investing.
Could you tell me how you started investing? For example, what types of investments did you start with?
The same summer as I was reading the book by Myllyoja and Kullas, I bought Nokia. I chose Nokia because the company was familiar and much in the media. The stock price was really low that summer, so I was thinking of buying a “discount”. No longer do I select shares with this principle.
What are your principles for managing your finances?
I want to keep a cash buffer in my account because you have not had to sell my shares at a bad time. A 2-3 month net income buffer gives me great peace of mind.
If I make a bigger purchase, I will save first and then buy. I would not recommend consumer loans or instant tricks to anyone. A new piece of furniture or a holiday trip feels much more meaningful when you design it and save for it.
What do you think about credit cards or loan money in general?
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Credit cards are ok, they provide security and I always buy trips with a credit card, for example. However, I will never use my credit card over my funds, but will pay off my credit card bill at once.
Instead, for example, a mortgage is affordable and I am in no hurry to pay it off. My investment apartment is located in Helsinki, where a collapse in house prices is highly unlikely. This assumes that the value of the pledge will not fall below the loan amount. If I am saving money, I would by no means pay off a mortgage at an accelerated rate. It is pretty much the same whether the loan is EUR 150 000 or EUR 140 000. Instead, the dozen shades saved in the bumper provides significant security.