Do you have an email address? Have you ever used Google or YouTube for search; Facebook, LinkedIn or Whatsapp to connect? Used any apps on your smartphone?
Now think about how much you know about the technology that drives these services we take for granted every day of our lives. What exactly is the meaning of terms like SEO, HTML, JAVA etc.?
Unless you are working in the field or are a geek, or are a member of their respective families, you probably don’t know, and really, you don’t even care…just like the rest of us
We don’t need to know all the technicalities that go into making the internet happen, for us to enjoy it; we are consumers after all!
Investing is no different. When you invest, you are a consumer, just like you are when you use the internet
Terms like alpha, beta, stop-loss, repo rate, CRR, etc. are technicalities you don’t have to understand.
You do need to know some basic stuff to invest, just like you do to get online…
- dos & don’ts,
- how to get started, and
- a few new concepts…things like compounding, risk management, asset classes, NAV, mutual funds and so on…sort of like the terms download speeds, Wi-Fi, viruses, etc.
Beyond these, your expertise can be as simple or as nuanced as you want it to be.
Using the internet is about entertainment, knowledge, inspiration and staying connected. Investing well is about making your money work for you so that sometime in the future you don’t have to work for the money anymore.
And just like you don’t need to be an engineer or a geek to enjoy the Internet, you don’t need to be great with numbers or know all the investment jargon to experience the joys of wealth creation. Learn the basics, and then start investing.