{"id":1664,"date":"2018-02-02T11:00:20","date_gmt":"2018-02-02T17:00:20","guid":{"rendered":"http:\/\/kerryaclark.com\/?p=1664"},"modified":"2019-10-29T08:37:47","modified_gmt":"2019-10-29T13:37:47","slug":"dont-make-investing-complicated","status":"publish","type":"post","link":"https:\/\/www.kerryaclark.com\/blog\/dont-make-investing-complicated\/","title":{"rendered":"Don\u2019t Make Investing Complicated"},"content":{"rendered":"<h2><span style=\"font-weight: 400;\">The 5 Basic Financial Categories \u2013 Part 5<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When I was in my twenties, I found myself in a very favorable investment opportunity [by accident, I might add]. &nbsp;The consulting company I worked for, offered employee stock purchases and I had signed up for the maximum percentage to match. &nbsp;Years passed and I forgot all about those stock purchases.&nbsp; One day with much excitement a coworker was telling me about how the stock had risen. &nbsp;In fact, most of the stock I had purchased all those years had pretty much doubled. &nbsp;I couldn\u2019t believe it. &nbsp;This turn of events had now become the answer to my prayers. &nbsp;I sold the stock and what was earned was enough to pay for my very first post-college [luxury] vehicle. &nbsp;I was left with just one thought, buying stock is a powerful thing. &nbsp;<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Don\u2019t get excited yet. &nbsp;While that\u2019s a true story, this is no way to invest. &nbsp;What happened in my twenties was a once in a lifetime event. &nbsp;However the point I\u2019d like to make is that you need to learn how to invest so that my story can one day be your story if you execute a plan for it. &nbsp;Let\u2019s discuss this 4th category: investments.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">We\u2019ve found that most people [which means \u201cnormal\u201d people] have very little insight into the 4th of the 5 <a href=\"http:\/\/kerryaclark.com\/blog\/art-of-budgeting\/\">Mint<\/a> <\/span><span style=\"font-weight: 400;\">categories. &nbsp;Category 4 is investments which is an asset in your <a href=\"http:\/\/kerryaclark.com\/blog\/art-of-budgeting\/\">Mint<\/a><\/span><span style=\"font-weight: 400;\">&nbsp;portfolio. &nbsp;<em>[If you need a refresher on <a href=\"http:\/\/kerryaclark.com\/blog\/art-of-budgeting\/\">Mint<\/a>, click the hyperlinks.]&nbsp;<img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-1668 alignright\" src=\"https:\/\/i0.wp.com\/kerryaclark.com\/blog\/wp-content\/uploads\/2018\/02\/20180202-TIF-SM-The-5-Basic-Financial-Categories-Part-5-400x400.png?resize=400%2C400\" alt=\"\" width=\"400\" height=\"400\" srcset=\"https:\/\/i0.wp.com\/www.kerryaclark.com\/blog\/wp-content\/uploads\/2018\/02\/20180202-TIF-SM-The-5-Basic-Financial-Categories-Part-5.png?resize=400%2C400&amp;ssl=1 400w, https:\/\/i0.wp.com\/www.kerryaclark.com\/blog\/wp-content\/uploads\/2018\/02\/20180202-TIF-SM-The-5-Basic-Financial-Categories-Part-5.png?resize=300%2C300&amp;ssl=1 300w, https:\/\/i0.wp.com\/www.kerryaclark.com\/blog\/wp-content\/uploads\/2018\/02\/20180202-TIF-SM-The-5-Basic-Financial-Categories-Part-5.png?resize=100%2C100&amp;ssl=1 100w, https:\/\/i0.wp.com\/www.kerryaclark.com\/blog\/wp-content\/uploads\/2018\/02\/20180202-TIF-SM-The-5-Basic-Financial-Categories-Part-5.png?resize=600%2C600&amp;ssl=1 600w, https:\/\/i0.wp.com\/www.kerryaclark.com\/blog\/wp-content\/uploads\/2018\/02\/20180202-TIF-SM-The-5-Basic-Financial-Categories-Part-5.png?resize=150%2C150&amp;ssl=1 150w, https:\/\/i0.wp.com\/www.kerryaclark.com\/blog\/wp-content\/uploads\/2018\/02\/20180202-TIF-SM-The-5-Basic-Financial-Categories-Part-5.png?resize=768%2C768&amp;ssl=1 768w, https:\/\/i0.wp.com\/www.kerryaclark.com\/blog\/wp-content\/uploads\/2018\/02\/20180202-TIF-SM-The-5-Basic-Financial-Categories-Part-5.png?w=800&amp;ssl=1 800w\" sizes=\"auto, (max-width: 400px) 100vw, 400px\" \/><\/em><\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Of the 5 categories, investments is the last one on our list of priorities, but should be our first. &nbsp;Here are just 3 reasons why:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"color: #0000ff;\">During the first few decades of your life, much cash is needed and burned.<\/span> &nbsp;I can\u2019t go into something I call my \u201cdecade calendar\u201d at this time, but from age 0-9 (decade 1), you have no money of your own. &nbsp;From age 10-19 (decade 2), most spend the majority of their funds on themselves. &nbsp;From age 20-29 (decade 3), the money is spent on establishing a life for oneself. &nbsp;It\u2019s tough to invest when you\u2019re spending more than you have in hand. &nbsp;It\u2019s also hard to justify investing when this occurs.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"color: #0000ff;\">Credit (i.e. credit cards) gets us behind and there\u2019s nothing left to invest.<\/span> &nbsp;Living on credit is \u201cnormal\u201d and \u201cnormal\u201d living is tough. &nbsp;That statement itself should be enough to convince you that you need to do something differently, invest.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"color: #0000ff;\">Because of the lack of cash and abundance of credit cards, we need loans for the really big purchases.<\/span> &nbsp;Can you image purchasing the car of your dreams with cash? &nbsp;If not, you\u2019re \u201cnormal\u201d. &nbsp;I\u2019m not \u201cnormal\u201d and I want this experience and if you follow me this is exactly where we\u2019re headed. &nbsp;As a result of ordinary thinking, it\u2019s not until later in life [40\u2019s and 50\u2019s] that \u201cnormal\u201d people get beyond the lack of cash and abundance of credit cards and I don\u2019t want this to be you.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Here are a few investments that come to mind when we \u201cnaturally\u201d think of investments.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong><span style=\"color: #0000ff;\">401k \/ 403(b).<\/span><\/strong> &nbsp;Honestly, I can\u2019t tell you how these totally work. &nbsp;The reason why is I just can\u2019t imagine money hungry companies giving you [employees] a benefit that doesn\u2019t profit the company more. &nbsp;Nonetheless, these are retirement benefits. &nbsp;It\u2019s saving for life beyond decade 6 [the 60\u2019s]. &nbsp;There is nothing wrong with saving for your future, but what about your now, the time you need it most? &nbsp;If a company offers a matching program for every dollar you put in, then take advantage of this savings.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">The lesson here is this \u201cwhatever gets scheduled gets done\u201d. &nbsp;In other words, whatever\u2019s taken out automatically or systematic gets saved when it comes to your money and plus you can\u2019t get it until a future date.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">We have yet to see how these 2 will pay off for us, but I can tell you this; this savings sure does add up to more than what you\u2019d ever save on your own. &nbsp;It\u2019s worth that if nothing more. &nbsp;Remember this, normal people don\u2019t save like this, that should be a sign to you that it\u2019s worth doing. &nbsp;It\u2019s worth it to keep you from being like everyone else.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong><span style=\"color: #0000ff;\">IRA \/ Stock.<\/span><\/strong> &nbsp;Let me tell you about this investment. &nbsp;I am fortunate enough to be a recipient of a pension, which is uncommon these days. &nbsp;So we decided to use these funds to open an IRA account. &nbsp;This account is setup so that we don\u2019t blow what was a gift to us [from God].&nbsp; It gives the flexibility to have your savings grow and you&#8217;re able to withdraw without the penalties of a 401k plan.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Investing can be a way for you to put away those unexpected funds. &nbsp;Don\u2019t add the unexpected into the general budget. &nbsp;Hold it, pray about it, and ask [God] what to do with this money. &nbsp;Make the most of your investment; it\u2019s not money to just blow.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">If these are the only investments you can think of, that\u2019s not okay, it\u2019s just \u201cnormal\u201d and I want to give you some examples of how to think beyond the norm. &nbsp;Investing is not an account, but a mindset. &nbsp;Let\u2019s say you can turn $1 into $2, would you do it? &nbsp;That\u2019s what investing is all about, how money can make money. &nbsp;You have a way to make this happen. &nbsp;Let\u2019s say you bake cakes. &nbsp;If the ingredients to make that cake costs $10 and you sell your cake for $30, then your $10 made $20. &nbsp;That\u2019s how you make money. &nbsp;Let\u2019s say you\u2019re a teacher, if you tutor students twice a week at $20 an hour. &nbsp;In just 2 hours per week, you made $40 from $0. &nbsp;You have the ability to make an investment of yourself. &nbsp;Do what the uncommon do, give investing a try.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Today is Friday!<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\">Turning your gifts and talents into a product; that\u2019s what we call investing. &nbsp;It\u2019s you adding value and allowing that value to produce for you. &nbsp;Use what you have to invest into your life now. &nbsp;It\u2019s not common and neither are you.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"><div class=\"su-note\"  style=\"border-color:#c7ced4;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#E1E8EE;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note\"  style=\"border-color:#e5e5e5;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#FFFFFF;border-color:#ffffff;color:#000000;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><a href=\"https:\/\/www.kerryaclark.com\/blog\/familyplan\/\" target=\"_blank\" rel=\"noopener noreferrer\">The Family Plan Binder<\/a><a href=\"https:\/\/www.kerryaclark.com\/blog\/familyplan\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-1025\" src=\"https:\/\/i0.wp.com\/kerryaclark.com\/blog\/wp-content\/uploads\/2017\/04\/Family-Plan-Cover-e1493399146525.png?resize=115%2C149\" alt=\"\" width=\"115\" height=\"149\" \/><\/a> is available now! <p><\/p>\nOur team has worked very hard putting it together. We designed it to help you and your family move the needle forward in making your life your business. \nFind out more about the Family plan <a href=\"https:\/\/www.kerryaclark.com\/blog\/familyplan\/\" target=\"_blank\" rel=\"noopener noreferrer\">here.<\/a><\/div><\/div><\/div><\/div><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 5 Basic Financial Categories \u2013 Part 5 When I was in my twenties, I found myself in a very favorable investment opportunity [by accident, I might add]. &nbsp;The consulting company I worked for, offered employee stock purchases and I had signed up for the maximum percentage to match. &nbsp;Years passed and I forgot all [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1667,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22,51,50],"tags":[139,63],"class_list":{"0":"post-1664","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-accounting","8":"category-mint","9":"category-the-5-basic-financial-categories","10":"tag-decade-calendar","11":"tag-mint","12":"entry"},"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.kerryaclark.com\/blog\/wp-content\/uploads\/2018\/02\/20180202-TIF-Blog-The-5-Basic-Financial-Categories-Part-5.png?fit=760%2C360&ssl=1","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4jb7V-qQ","_links":{"self":[{"href":"https:\/\/www.kerryaclark.com\/blog\/wp-json\/wp\/v2\/posts\/1664","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kerryaclark.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kerryaclark.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kerryaclark.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kerryaclark.com\/blog\/wp-json\/wp\/v2\/comments?post=1664"}],"version-history":[{"count":14,"href":"https:\/\/www.kerryaclark.com\/blog\/wp-json\/wp\/v2\/posts\/1664\/revisions"}],"predecessor-version":[{"id":2826,"href":"https:\/\/www.kerryaclark.com\/blog\/wp-json\/wp\/v2\/posts\/1664\/revisions\/2826"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kerryaclark.com\/blog\/wp-json\/wp\/v2\/media\/1667"}],"wp:attachment":[{"href":"https:\/\/www.kerryaclark.com\/blog\/wp-json\/wp\/v2\/media?parent=1664"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kerryaclark.com\/blog\/wp-json\/wp\/v2\/categories?post=1664"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kerryaclark.com\/blog\/wp-json\/wp\/v2\/tags?post=1664"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}