25 Mar Apprenticeship Blog – Week Three
Well we’re at week three, that’s a hat-trick! It’s been interesting from the off here at pentins and this week has been more off the same (in a more educational sense then previous weeks). I can happily say that I have scared no-one in the kitchen this week, which is always a plus. As well as that achievement I also haven’t used any more of Sam’s coffee, which I’m sure she is very happy about. I’m surprised how quickly I’m picking all of this office lark up! I have even learnt some more key office skills this week, after I came to the realisation that my brain (in particular my memory) isn’t as brilliant as I once thought. Although being slightly forgetful (very) is not ideal I am coping thanks to my personal favourite resource in the office, post it notes! It means I don’t have to rely on my brain all the time and can stick them pretty much wherever on my desk. I had to take them off for the photos we had taken this week though, it’s not the most professional look having them stuck all over your desk. I am, however, beginning to fear that my constant use of them will result in Sam needing a loan to keep up with my stationary addiction.
What I’ve learnt
After spending some time this week looking at various investment portfolios I was very intrigued by how quickly you can lose or gain money. I knew that the possibility to gain or lose money was a clear discussion point for anyone thinking about investing, but it surprised me just how quickly the tables can turn on an investment. I know that the investments I was dealing with were mostly long term, this was an important factor in why my thinking towards the results had surprised me. It seemed fairly logical to me that when an investment was performing very well you would think about taking the money out and taking the profits, which isn’t necessarily the right thing to do with some investments. Like in this case for example, as they are, after all, long term investments. It made me think that maybe I was looking it in the wrong way. Investments are not always necessarily there to make a quick profit and leave, like you would with some other types of money making investments, like a car dealer for example. It is important that with investments like this you allow the investment to grow over time, or with the market in the examples I saw. This way you are leaving the money to grow over time without constantly picking off the profits, as I highly doubt this way of dealing with investments would result in as much money saved at the end. That cheeky grand profit would be spend on the first flight you could get to anywhere hot….and with alcohol. But back to the point. I have found that in some of the investments I’ve seen their main purpose is more to be saving money than just making it. Obviously both these points are the goal for most investments but it is important to see that saving is also a crucial point, especially when the money will be used for retirement like in a pension.
After looking at some of the rises/falls in different investments through the week, I thought I would have a look at the biggest rises and dips in the UK market (FTSE 100). The biggest rise in one day being 8.84% and the biggest fall being 12.22%! That would mean if you had £100,000 invested you would lose £12,220! That’s like….. A lot of money!
Office Politics – Office Politics – Save your money in cash? Or invest it?
It’s an interesting question. There is obviously a few things you would need to ask yourself before jumping in to either, like how much money is available? Or do you have any money in savings or investments already? These are obviously questions that are different to each person. However, I feel that at my young age especially, but also in general, investing has a lot of pros. You allow yourself to not be outdone by inflation, so the money you make isn’t representative of a value from however long ago you invested. This way you can keep up with inflation and hopefully have a chance to reap the benefits of any money you possibly make. You are also going to have a higher chance of making more profit from investing then using a savings account. Although cash also has its pros. It is a very secure method to save money and you don’t have to worry about maintaining a portfolio, or keeping an eye on how it’s doing. It just sits there, and you can decide what you want to do with it having a lot more certainty on what the outcome will be. Especially with savings that are fixed interest. But doing this does close a lot of doors in my eyes, as investing allows for unlimited growth when invested in the market (and loss), meaning it can grow at its own pace and not at a set amount in each given period. Although this may be what you want if you were older or approaching retirement, you may need the money soon and not want to be risky. But don’t take any of this thinking too seriously, I am just the apprentice after all.