Share your journey to becoming an investor

Good to know. Therefore for the Dozens invest product, the short-term focus is converting savers to investors, and mid to longer term focus is keeping the converted investors and attracting experienced investors who are currently investing on other platforms.

For the saver to investor part, I think it’s worth talking how did we start investing. I will start with my story first.

Naive Saver
I’ve always been a saver since I was a kid. When I started to work, my savings started to grow gradually, but honestly I didn’t have a clue about those savings products. I kept my savings in a big name bank’s easy-access savings account for years. Unknowing to me at that time, the savings account I had was only paying a pity amount of interest.

Informed Saver
It all came to light one day when I accidentally (can’t remember why) landed on the MoneySavingExpert website, and found that other banks were paying much higher interest than what I was getting. I started the interest rate chase since then, moving my savings from one place to another, year after year. At some point, I was no longer satisfied by the easy-access interest rates, and I knew that I won’t need access to a fairly large chunk of my savings any time soon. So I started to look at notice accounts and fixed rate accounts. I started to split my savings into easy-access, notice and fixed savings accounts.

An Adventure
That went on for a few more years, then I got tired with the best rate from fixed rate savings accounts. I started to read the section introducing P2P lending products on the MSE site’s savings product page. The section was always there, but I never paid much attention to it because it had a warning about risk. I knew P2P lending is risky, but it had a much higher expected interest rate than the normal boring savings accounts, so I dipped my toes in P2P lending, with a small amount I can afford to loss.

A Discovery
Because I started to “save” in P2P lending products, and the MSE website didn’t write too much about them, I went to the MSE forum trying to find out more about it. I ended up in the Savings and Investments board and reading a lots of posts about investments. That’s how I realized that P2P lending is an investment, and there’s many other investment products out there, some can produce an even better return than P2P if I could stay invested for many years.

First Step
I thought, well, I took the risk of P2P, and it worked fairly well for me, and investments sounds even better than P2P, why don’t I try it? So I did a bit of research, and opened an investment account and bought the Vanguard LifeStrategy 60 fund. I started with a few hundreds, but gradually increased it to a couple of thousands.

The rest perhaps isn’t relevant to this topic any more, but I switched to riskier investments overtime, and educated myself along that journey. I learnt macro economy, portfolio theory, etc. on my own, and I went all the way to investing in (trading?) financial derivatives. But honestly I really don’t think many investors will go as far as me. Most will probably stop at some point between the multi-asset fund and individual company stocks.

Now, it’s your turn to share your stories.