Why investing can be risky 😬

published on July 15, 2020

Who wants to be a gazillionaire? (Ah, ah, so much money) Yes, please People often tell you that to get rich, you should invest Investing is putting your money in something that you think will go up in value so you get a profit That's called a return

But investments also come with the risk you won't get a return or you might even lose money When and how you invest depends on your goals Lilia wants to backpack around Europe after uni, so she's working part time and saving If she puts her wages in a high interest savings account,

At the end of her degree, she will have what she has earned plus a little bit of interest It's low risk, but not a big return Lilia's brother suggested she buy some shares with her savings Shares are tiny pieces of a company's value that a traded for money on the Stock Exchange Shares can go up and down in value very quickly and that's very risky If the value of her shares is down when she graduates,

She may have less money than if she had put it in the bank So why would you ever take risks with your money? Well, people mostly expect higher returns when they take more risk Let's say, Lilia's goal was to get enough money to start her dream lipstick business by the time she's 30 She decides to invest in shares that have shown long-term growth She makes a calculated risk

She knows she can ride out the ups and downs in the share market Because of this, she might get a much higher return over time Thank goodness she didn't invest in her mate Jeff's dating app for pets, which promised quick high returns, but went bankrupt! My five cents is, this investment stuff can be risky business,

But anyone can do it if they have a clear plan in place

Related Videos

And that girl's drumming. That girl's in a wheelchair. Yeah, that girl's in a wheelchair. ELIZA: I have a disability known as Charcot-Marie-Tooth, w...
Well, I’d always loved wrapping gifts for my friends and family and people would ask me to wrap gifts. And when I left full-time corporate life, I decided to pr...
Happy Lunar New Year! This time of year is all about good wishes but did you know that many of these good wishes are edible? Here are eight lucky New Year foods...
So we did a whole bunch of ringing around and none of the chemists in this area had any female condoms, but there was one place and it's here and they have ...
Remember the diaphragm? 90s sitcoms had this weird obsession with them even though barely anyone used them. Whatever happened to the diaphragm? I'm Edwina f...
We’re at the Ramadan night markets, or as I like to call it the Lakemba bazaar. There are people with stalls from different parts of the world. They’re offering...
We’re having our insemination today Yeah we feel pretty- I feel pretty nervous. Ah so hopefully this is the conception of a baby. Today’s day is about today but...
So exercise is, like, legitimately the bane of my existence. Exercise in general? Yeah! Just generally exercise. What do you mean by exercise, Moataz? You know,...
So I’m about to do something I’ve never done before. Basically have a really intimate conversation with a stranger. Although it’s even stranger because I actual...
I don't even know how to get into this... I mean, I heard poo is supposed to float. Is that true or false? Well, it depends on what you've been eating. ...
I'm Bjorn Stewart. I'm an actor, comedian and filmmaker. I'm gonna be meeting with a complete stranger Zohab, who's a poet. I've only ever b...
What is clear is that today there are a lot more conversations that we need to have than ever before. Because so many things that used to be dictated by rules a...
(cheerful upbeat music) Hi, my name's Michelle Law and I'm a writer. Today I'm at The Imperial Hotel where I'm going to be meeting Felicia Foxx ...
My name is Hanada and I've been set up on this blind friendship date with someone called Molly. Right now, I'm on my way to meet someone I've never ...
Making money can be super rewarding, but as you make some, you might have to start paying tax. Nooo! Income tax is money the government takes from everyone&#39...
A gaming console or a new phone? Hmmm. New trainers or a big night out? Hmmm. Choosing between things you really want is hard. If you've created a budget t...
Who wants to be a gazillionaire? (Ah, ah, so much money). Yes, please. People often tell you that to get rich, you should invest. Investing is putting your mon...
You're broke. Why?! But you still have to live. What about using a credit card, just to tide you over? Credit can be handy, but when you borrow money, you c...
Saving for the future. Everyone tells you to start now, but the future is ages away, so why? I'll give you one good reason. Compound interest. It works lik...
I always come to playgroup, yeah I like it. I like that interaction with mums and bubs. Oh they’re lovely, they really are, they’re lovely, little fat things yo...