Simran Kaur is the founder of the popular investing podcast and company Friends That Invest. This podcast has reached over 12 million downloads globally. It focuses on sharing practical knowledge and information with women and other groups who often miss out, improving financial literacy and guiding them along an investing pathway. In this book, Simran shares her experience of, at the age of nine, being told that investing is not something girls do. She discusses the barriers and taboos that surround money, particularly for women.
In the first section, she introduces readers to financial jargon, explaining and simplifying the language of investment and creates familiarity with the processes and systems of investment. Readers walk away with a foundation of knowledge of investing to build on. Section two helps readers to understand different types of investing and to identify the type of investor they want to be. She helps you figure out if you are someone who should invest in more bonds or stocks, if you are a risk taker or like to play it safe, and much more. Simran completes her instruction with a step-by-step guide for developing a plan that gives readers the confidence to start investing tomorrow.
Simran’s guide to financial independence through shares and stocks cuts through the complex words, numbers and systems that put investing in a false veil of secrecy — often out of the reach of women. She uses everyday relatable examples to help make sense of the complex investing ‘slang’. An example of this was her comparison of Blended Funds being the ‘forgotten Jonas brother’ of the stock market. Her advice and simple language approach take the fear out of finance. She also shares investor profiles to bring different investors and styles of investing to life. By connecting you with the real-life experiences of others, she creates hope and enables you to imagine yourself stepping into the shoes of a successful investor.
Simran’s relatable examples and ‘how-to’ approach gave me the confidence to start investing. Let me share three key takeaways that will help me set off on my journey of investing.
A common misconception about investing is that it’s only for people who have strong knowledge about it and so people put off asking. It is also common for people to think they need to wait until stocks are cheap, but I learned that there is no better time than to start now.
“Thinking that investing is too hard is a popular myth that holds most of us back from getting started.”
Investing requires patience as investments need to be able to grow for long periods of time. She used an example of the crash from COVID-19 and discussed how many people panicked and sold their investments. The people who didn’t sell have now seen the rewards as everything has bounced back.
“There’s a popular phrase in the world of investing called ‘buy and hold’, and it’s popular for a reason.”
Financial situations are different for everyone, so it is important not to base your investment decisions on what other people are doing. People tend to follow other people because of FOMO (fear of missing out). But it’s important to stick to what you believe in, such as investing in ethical companies. Some people are more open to risk, and others would prefer to take safe options. Everyone needs to see what situation suits them best.
“Female investors are less likely to succumb to peer pressure in investing and are more likely to hold on to their investing strategy.”
Prior to reading this book, I felt as if investing was too complex, but I wanted to learn more before taking it off my radar. Immediately on completing this book, I felt inspired to make a start on my investing journey. I feel confident to take the first step and use my new knowledge of the difference between bonds and stocks to build the cornerstone of an investing portfolio. Simran has a simple age-based formula to calculate the ratio of stocks and bonds that I should look into purchasing (minus the decade of your age from 100 to determine your stocks to bond recipe). I also made good use of Simran’s questionnaire to work out that I am best suited to be a balanced investor who is open to some risk but not too much!
Although there were great explanations of the complex investor jargon at the start of the book, I think it would have been useful to have reminders throughout the book. For example, lots of the long words were condensed down into abbreviations such as IPO and ETF. I would sometimes lose track of what each of these meant as I got deeper into the book and as it got more complex.
Overall, I recommend this read. It makes you feel like you can start investing as well and that it is never too late to start! This book definitely targets beginner investors who want help to get started. More specifically, it’s a great read and guide to inspire women to give investing a go.
Book cover used in banner image from Paper Plus.
Eliza is PocketSmith’s new marketing intern and is currently studying a Bachelor of Commerce in Marketing and Management. Eliza is an active saver to achieve her goal of having no student loan at the end of her degree. Eliza’s interest involves going on long walks with her friends and family, and she is passionate about photography.
