November 2019 is a special month. It marks the fifths anniversary of the Moneygrower site. I wanted to thank all of you who follow my humble site. I didn’t really expect that I will still be going strong for 4 years in a row. I also never expected that this site will become so popular, with 12,000 – 15,000 monthly views. I also get countless thoughtful emails for which I am grateful for.
When I started the site, I had no real knowledge of personal finance. Yes I did a masters in finance degree and worked in both a bank and an accountancy firm. One might think that personal finance comes naturally for a person with my background but that is certainly not the case. I knew a lot about how the economy worked but very little about how I could become financially independent. Strange what we are taught isn’t it?
I thus started to read more around personal finance and soon learnt that it is not that hard to build wealth. I started this site as a way to put my thoughts into writing. I have talked about ways on how to earn, save and invest money. I have looked at specific case studies of different secret stock market millionaires and once a month I publish a list of articles and posts from across the web that I have found interesting. I have also talked about taxes along the way. But by far the most read section and the one I focus the most on is the one titled ‘my journey‘.
Whilst devouring everything I could on personal finance, I came across a movement known as Financial Independence Retire Early (FIRE) . This was basically a community of like minded people whose aim it is to create a passive income stream for themselves that could cover all their expenses. By doing so, they no longer needed to go to work to get a paycheque and instead could retire in their 30s and 40s. They could choose to do whatever they so wished with their time as money was longer an issue.
The idea of becoming financially independent and retirement early resonated with me. As soon as I read about it and learnt the possibilities and benefits, I wanted in. After exploring the different ways on creating a sustainable and growing passive income stream I decided on dividend growth investing.
The my journey section of this site is a real time account of my path towards financial freedom. I document the stock purchases I have made as well as the reasoning behind them (though they are a handful of stocks I have bought that I haven’t mentioned on the site as they are contained in my Stock Lists together with Target prices). I also update my dividend income figures on a quarterly basis. This section also gives me the most pleasure as I can see the progress I am making in real time.
Over the past few months, I have also started a new project which breaks down stock market investing into its basic components. It is a stock market guide so to speak. I have currently published 4 lessons, and a number of other lessons are currently in the pipeline. Hopefully this project will help those that have always wanted to invest but didn’t know how or where to start.
As for the last 5 years, I have learnt many lessons in relation to personal finance. Below are 5 lessons I have learnt over the last 5 years.
- You can actually buy more money. Are you broke and in need of more money? Then simply buy it. This is all investing is; putting aside some money today in order to have more in the future. This is what all the secret millionaires did. Get your hands on cash generating assets.
- Free money exists if you look in the right places. Mention the word pensions and people begin to yawn immediately. But pensions are truly a magic money box . Free money does exist. You just need to be patient and look in the right places to get your hands on it.
- The stock market becomes easier when you think of actual businesses. Most people look at the stock market and are scared away by the random movements of ticker symbols. They think the stock market is akin to a casino. But when you break it down, the ticker symbols represent actual real life businesses. Study those businesses. And if that business is successful over time, so will its stock price.
- When you start off, your saving rate is way more important than your rate of return on investments. Concentrate on saving more. It is not that hard. People just lack motivation. You’ve got to delay gratification.
- You don’t need to be a millionaire to start investing. The biggest misconception people have is that they think they have to start with an entire Napoleon-like army. They suffer from the “not enough” mentality; namely that if they aren’t making £1,000 or £5,000 investments at a time, they will never become rich. What these people don’t realise is that entire armies are built one soldier at a time; so too is their financial arsenal. All it takes is £70 a week to become a millionaire. The key is to get started.
I just want to say a huge thank you for all those that follow and read my site. The past 5 years has absolutely flown by. In that time I have published close to 550 posts. Here’s hoping the next 5 years are as good!