Is it really 50/50?
I've always struggled to understand money. I know I need more of it, but I grew up in a household where money was always tight. Now, I'm on a journey to learn about investing and navigate the world of finance.
Written and illustrated by: Alvin Lim
Growing up, my parents always emphasised our tight finances. Whether it was realising that my milk powder came from the generosity of family friends or seeking refuge beneath the covers when the echoes of slamming doors and arguments about money reverberated through our HDB flat, financial struggles were a constant backdrop.
In no way do I want to sound ungrateful. Throughout my life, my parents have tirelessly worked, often putting in longer hours and making personal sacrifices to ensure I had enough. However, their limited financial knowledge stemmed from their upbringing in a less-developed Singapore. As our city evolves, the soaring cost of living makes financial literacy increasingly crucial.
As I approached my secondary school graduation, a daunting question loomed large in my mind: Was it time to dip my toes into the world of investing? I wasn’t alone in this dilemma; many of my peers were starting to grapple with the importance of financial management.
Understanding the importance of investing was the first step, as emphasised by financial advisors and seasoned investors. Investing, they stressed, was a powerful tool for financial growth, securing future finances, and gaining insights into the world.
“ Investing puts your money to work in stocks, bonds, or other assets. This gives you the chance to earn returns that can beat inflation and grow your wealth over time.”
While the benefits sound promising, I soon realised that, like life itself, investing came with risks. Horror stories of people losing money or spiralling into debt due to investments were not unheard of.
My firsthand experience with the MAS-licensed investment platform, “Syfe”, served as a lesson in risk. Armed with hours of research and swayed by TikTok investment gurus, I chose to invest in lesser known companies, and as the market initially grew in my favour, my confidence soared.
However, my illusion of mastery was short-lived as the market shifted, resulting in a $300 loss. While seemingly insignificant in hindsight, it felt like a substantial setback then, leading me to cut my losses by selling the assets.
While it is important to seize opportunities, ample research and only taking manageable risks are imperative. I'm still on my investing journey, having learned that it’s not a gamble but a methodical way to grow wealth overtime.
