My First Experience Of True Investing
Starting with a little and ending up with a lot - count me in
My first long-term investment was on 17th December 2019 - (I was 23 years old) and it was with Wahed Invest, the Islamic investment platform. The amount was roughly £200. Not a lot, but also as a relatively naive ‘Investor’ probably quite a lot. I put investor in quotations marks as I then decided to withdraw £130 of the £200, around 3 months later.
Probably not the best story to tell on investing.
But it did teach me a few lessons:
I could cateogrise myself as an investor - but probably not a savvy one
I knew that I could set aside some money rather than spending it unnecessarily or in haste.
I understood that investing was a way to build wealth, however not quickly.
I became more aware of investment lingo and terminology which has benefited me to this day.
Finally, I became more aware that my attachment to money was actually not that strong.
If money actually grew on trees.
I would quit my job and turn into a gardner.
Honestly, speaking that £130 I withdrew, I probably spent it on a pair of shoes or clothing.
Justifiable? Well maybe, depends who you ask.
Could I have kept it in the investment product and gone on with my life in the usual way - yes.
And, this is the question I often ask myself today, six years later.
Often three situations arise when people acquire some level of capital.
Option (A): They simply spend the money today and get some short-term satisfaction, which despite admitting it, the novelty usually fades away.
Option (B): Save the money and watch the numbers on their mobile banking app incrementally increase each month (or go down)
Option (C): Allocate it to an investment portfolio and assume it achieves some sort of growth.
I want you to understand, that even to this day I still consider the above examples and consider Option (A) being most attractive. Who wouldn’t want to splurge on that new laptop, jacket or sushi platter.
As humans we are reactive, impressionable and heavily reliant on validation from others. Which causes us to choose Option (A).
Yet, conditioning ourselves out of this habit is pivotal and requires discipline, setting our ego aside and knowing what your vision is for long-term growth will set you apart.
I learnt such lessons a little later. However, without programming my mind away from short-term gains, my focus on long-term growth would never have become a reality.
Investing starts as a mindset struggle, but when you learn to separate yourself from money and focus on long-term wealth building, it becomes clearer.
If the above resides with you, drop a comment.
