• Holly Nardi

Nuthin' but a P thang: Tips for investing like a G

Updated: Nov 29, 2020

WTF is this blog about!?

  • Nuthin' but a P thang is my new blog series where I cover everything you need to know about investing.

  • Here's my top 10 tips to help you invest like an absolute G.

1. Think long term

If you're looking for a get rich quick scheme, keep looking. The cold hard truth is, no one knows what's going to happen to markets tomorrow, next week or next year (not even the clever people like me 🤓) but what we do know is that historically, over the long-term, markets have always gone up.

So whilst in the short term the market will fluctuate (and I can pretty much guarantee that you will lose money at some point along your investing journey) as long as you're committed to investing for the long term (5yrs+) you should have enough time to ride out any market falls.

2. Start ASAP

I totally get it - the jargon, the million different providers and the contradicting advice about what to invest in can be super overwhelming. But the fact is, the longer you put it off, the harder it'll be to make some decent money 🤷🏻.

Starting your investment journey ASAP means your money has more time to grow (and to benefit from compound interest) #winning 🤑.⁠

3. Don't try to time it

Did you know that if you had invested $10k in the market (S&P 500 index) 20 years ago and kept it invested for the whole time, you would have a whopping c.$32k today! But, if you had tried to time the market and missed out on the best-performing 30 days, you would only have c.$7k!⁠

With markets constantly going up and down, it can be super tempting to jump in and out to try and avoid any losses! But, like I said in Tip #2, no one knows what's going to happen to markets in the short-term, so trying to time it is risky af!⁠

That's why it's crucial to stay invested, because if you take your money out when the market is falling but fail to get back in at the right time, you risk losing out on the ⁠


4. Stop being so emosh!

Investing can be scary - I get it! But what’s even scarier is that people let their emotions take over, panic selling their investments right after a crash (which, FYI, is literally the worst possible time to sell!) and locking in those losses.

With apps like Nutmeg* it can be super tempting to check your investments on the regs but remember, your investments aren’t Facebook, so you don’t need a daily update on how the stock market’s feeling about Trump’s latest tweet.

Of course it’s important to check on your investments every so often, but try to limit this as much as possible to avoid making any emotional decisions!

5. Diversify, diversify, diversify

This tip is so super important that I’ve written a whole separate blog on it. Diversification basically means don’t put all of your eggs in one basket. In general, the more diversified your portfolio, the less risky it is - because if one of your investments performs badly, you have other ones to fall back on.

But, NEWSFLASH, splitting your money across Facebook, Amazon, Netflix and Google isn’t enough diversification! In order to be truly diversified, you need to split your investments across different assets (like equities, bonds and property), across different industries (like tech, financial services and healthcare) and across different geographies (like the UK, the US and emerging markets).

This sounds super complicated, but the trick is to invest via funds - these are basically a pick n mix bag of assets (note that if you invest via a robo-advisor like Nutmeg*, this will be done for you).

6. Watch out for fees

It’s super duper important to keep an eye on how much your investments are costing you because fees can soon add up and start eating into your savings - and no one wants to see that!

Check out my IGTV where I explain what the main costs of investing are with the help of a good old pizza analogy.

7. Know your limits

When you see a positive return on your investments it can be SUPERR tempting to bump up that risk number in order to boost those gainzz 🤑. ⁠

I'm like the least risky person ever and even I found myself loitering around in my Nutmeg* app last week debating upping my target risk level (that £4.33 profit had really gone to my head).

But, do me a favour and cast your mind back to BC (#beforecorona), remember all of those boozy nights when we were allowed to go out out!? We've all done the old: 'oh go on, just one more' and before you know it you're laying on your mates sofa, mascara smudged across your face with the hangover from hell.⁠

We've all learnt to know our limits when it comes to alcohol (some of us the hard way) and it's important we do the same with our investments! Because although increasing the investment risk you're running will typically lead to a better outcome when markets are high, when markets are low - you stand to make a far greater loss!⁠

8. Do it on the regs

When it comes to investing, they key is to drip feed your cash into the market.⁠

⁠Say you've got a nice amount of dosh saved up in a bank account and you stick it into your Stocks & Shares ISA all at once - the return you make on your investment will be super dependent on what the price was when you entered the market.

This means that if you pick a bad day, like right before a market crash (which is easily done because who tf knows what's going to happen to the stock market tomorrow!?), - you're going to suffer those losses on your entire investment.

But, what if rather than sticking all of your money in at once, you split it into little chunks and use this to top-up your Stocks & Shares ISA once a month? You would still lose money if you invested right before a market crash, but then when you top your account up the following month, you'll be able to buy the stocks that are now 'on sale' #bargain.

⁠Investing little and often means that you'll enter the market on good days, iytee days, and bad days - but it doesn't matter because it'll all even out in the end.

The best way to do this is to set up a direct debit that goes straight into your ISA on #paydaybaeday.⁠⁠

9. Stick to what you know

Sorry to cramp your style if you're planning to be some fancy forex day trader but when it comes to investing, it's crucial to understand where your money is going!⁠

I'm obviously not expecting you to have a PhD in economics, but you should be comfortable with where you're stashing your hard earned cash!

Remember that time when everyone was raving about becoming an overnight millionaire by investing in Bitcoin!? And then a week later the entire cryptocurrency market crashed and people were losing their family homes and life savings?

I'm not gonna lie, no matter how many articles I read and documentaries I watch about Bitcoin, I just can't get my head around it! And so I'll continue to socially distance from that investment long after lockdown - no matter how many people I hear trying to convince me otherwise!

Check out my IGTV for a low down on the two most basic types of investments available - equities and bonds.

10. Maximise free cash

Did you know that you have to pay tax on your savings and investments!? I know, it sucks! But there's a legal way of avoiding this:

By investing via pensions and Stocks & Shares ISAs you can minimise the tax you have to pay to maximise those gainzz! So make sure you're making the most of this free cash on offer.

So what?

Investing can be scary and complicated, but by following my top 10 tips, you should be investing like a G in no time.

If you're new to investing and all this info is freaking you tf out - don't panic! The best place to start is by opening up a Stocks & Shares ISA with a robo-advisor like Nutmeg*, who will take care of the complicated stuff like diversification for you. Set-up a direct debit that goes straight to your ISA on #paydaybaeday and ride that investment journey all the way to financial freedom, baby.

If you found this blog useful, please share with your family, mates and Tinder dates! And go give me a follow on Insta for more banging content.

*By using this link to open a Nutmeg ISA you won't have to pay any management fees for 6-months (I'll also get a small reward, so it's a win-win!) 💃.

Now for the serious part: my blogs are for educational purposes only; they do not constitute financial advice. Please consult with an independent financial advisor for advice on your specific circumstances. 

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 This blog does not constitute financial advice. 

Based in London.

 Want to get in touch? HMU @ getwokenotbroke@gmail.com