For several years I have been actively studying the topic of investing. I was spurred into action by steadily declining deposit rates in 2016-2017. That is, I have been investing for five years now and will continue to do so in accordance with my long-term plan when the stock market starts to work again.
Why am I investing?
My main financial goal is to create capital for passive income. I plan to save enough so that at the age of 50 I will be able not to work and live on interest.
Yes, not everyone’s age or income will allow them to quickly accumulate capital, the interest on which will be able to cover all expenses. But everyone can secure an increase in their pension. And for this it is enough to invest even 1000-5000 rubles. per month for at least ten years.
I’m in my sixth year of blogging on personal finance management and I see how attitudes towards investing and self-management of a pension are changing. At first, this topic was of little interest to anyone. Then the retirement age was raised, and more and more people began to think about it.
But the problem is that not so many people move from thoughts to actions. The thought of a future passive income motivates me to act, but someone does not. Why? Difficulty in investing? No. The goal inspired me so much that I figured it out.
Maybe these people do not understand what kind of old-age pension awaits them? They understand. Then what is it? And I think I found the answer.
For many people, the wording “Passive income X thousand rubles a month” is just an abstraction. Just words and numbers. People do not understand how the presence or absence of passive income will affect their lives. And I understand how passive income will make my life better.
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Investing is not about the fact that when I become a decrepit old woman (for some reason, many perceive retirement only in this way, although there are other options), I will finally start to enjoy life if I live (although statistics show that I will). The process of investing, not just the end result, helps me realize my values.
Conversely, understanding what value can be realized through investing helps me keep investing.
Values that investing helps me realize
By investing, my capital grows. And with it comes freedom. Freedom to choose . This I will do, but I do not like it, and therefore I will not. Freedom not to choose . I like this and that. And I can afford to choose both options. Freedom to refuse. Get up and leave from where something does not suit you. Freedom to agree. Because you really want to. And not because “it’s so right.”
Someone is afraid to invest because it can be risky. But for me, investing, on the contrary, is an investment in my security. For the sake of the idea that even if I suddenly stop working, passive income will be enough to live on at least for the near future. I invest so that in old age I can safely go to the store and pharmacy and buy everything I need.
It is very important for me to be able to control the situation and my future. Of course, I cannot influence where the markets go next. But, firstly, according to long-term statistics, the markets are growing, even despite large drops. Secondly, I can choose how I will live: only on a pension from the state or I will keep my usual way of life. I want to decide whether to retire at 60 or 50. It is important for me to know that I am making decisions, and not passively waiting for someone to decide for me. It is important that I act to make my life better. It is important to see the result of my work, to see that my capital is growing and that this money is not spent only on current expenses.
Another of my main values is peace of mind. I want to be calm, confident in the future. I don’t want to think about where to get the money and how to feed the child if the income suddenly disappears. I provide myself with peace of mind, including discipline in relation to money and investing, which brings me closer to my long-term goals. I think about money in the strictly allotted time for this. For example, when I keep track of income / expenses, plan or analyze them, and also when I invest. Calmness and the absence of constant thoughts about money makes life better and helps you achieve other goals, such as career goals, faster and easier.
Investments for me are not something abstract, not happiness that will come in the future. This is what is changing my life right now. Whoever I talk to among those who are not saving for retirement, everyone has the thought: “What will I do when I retire? On what and how to live? I do my best to avoid such thoughts. So that I do not waste time, nerves and energy on this. And sent them to what I choose myself. For example, for a favorite business and family.