Catching Up with Amanda Holden and Invested Development
This month we’re focusing on investing! In just two months, my team at Financial Gym will finally be able to start investing our client’s money. For the past ten years, we have coached clients to become first generational wealth holders and we want to continue on the journey with them and help them continue to grow and build that wealth.
Joining me today is Amanda Holden, founder of Invested Development to talk about common myths about investing. I always love how Amanda breaks down investing topics and I hope you will too.
What are we drinking?
Amanda - Waterloo Grape Sparkling Water
Shannon - Black Cherry Schweppes
Podcast Notes
Amanda’s Background
Amanda is an ex-finance bro, having worked in the industry for seven years. As an investment counselor, she spent a lot of time talking to old rich guys. She was 24 years old, but all her clients and coworkers were older men.
She was led to finance because her goal was a high-paying job. Amanda learned so much at her job, but she hated many aspects of it. She eventually hit a breaking point and decided she wanted to make a change.
She started saving as much money as possible to be able to walk away from her job and figure out what was next. That’s when @Dumpster.Doggy on Instagram was born.
She had knowledge about investing, was helping her friends, and realized her work in finance actually wasn’t over; it was just going to look different. Amanda started Invested Development to democratize investing and invite people traditionally left out of these conversations.
In the past decade, the investing landscape hasn’t changed much; it’s still predominantly older white men. Shannon and Amanda, however, have been called to approach the industry from a different perspective.
The Financial Gym has worked with over 14,000 clients as wealth builders. They will offer new wealth management services because clients at The Gym want it, and Shannon hasn’t found a firm she can wholeheartedly entrust her clients to.
Investing Myths
Myth #1: Investing is like gambling; you will lose money
This myth has been around forever. Some forms of investing are closer to gambling, but other methods have much better odds. Cryptocurrency is an example of a gamble, where an index fund is a much more predictable, stable option. The more broad your investing strategy, the less risky it becomes.
It’s important to understand your investing goals. Growth through investing does not happen in a perfectly straight line; it’s a roller coaster ride. Any time you look at your account, it is a snapshot of that moment. Your retirement accounts should look different than goals approaching sooner.
Myth #2: You must be good at math to be good at personal finance and investing
Investing is a much more emotional journey than a logistical math one. Learning personal finance is like learning a new language. It takes time and practice. There are many resources to help you learn. The best way to start investing is just to do it.
Find an accountability buddy to learn with you. You can attend a workshop together or read the same book and reflect. Learning with someone else has many benefits.
Myth #3: You need someone to invest for you
While you can hire someone to manage your money, you can do it yourself! If you hire someone, it’s still important to understand the basics so you know how to ask the right questions and stay engaged.
You don’t need to pay someone 1% to manage your money. If a hands-off approach is all you’re looking for, a RoboAdvisor can be a fine option.
Investing Can Be Simple
The most challenging part of investing is having the money to do it.
There is a learning curve, and navigating the websites can be tedious, but investing can be pretty simple once you get everything set up.
The goal should be a system with the least friction possible. You don’t want investing to be a stressful part of your finances.
A RoboAdvisor like Betterment or Wealthfront can be a great tool if manually investing does not work for you. There are fees, but taking away the friction can be worth it.
The most important variables for successful investing are the amount invested and the time in the market. How you invest isn’t as important, especially when you’re getting started. The most important part is to just do it.
Takeaway: My biggest takeaway is that the best way to dispel investing myths is to educate yourself and not be afraid to jump in and just do it.
Random Three Questions
If you weren’t doing this work, what would you be doing?
Do you love to travel? Where would you like to travel?
When was the last time you cried, and what was it about?
Connect with Amanda Holden
Website: Invested Development
Instagram: @dumpster.dogg
TikTok: @dumpster.doggy
Resources Mentioned:
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at shannon@fingyms.com, or join the private Martinis and Your Money Facebook Page, and let me know what you want to hear.
In addition to hosting this show, I’m the founder and CEO of The Financial Gym. We are celebrating 10 years of this journey, and now, more than ever, I see the importance of the work we do every day. Rising inflation, the return of student loan debt, high interest rates on mortgages, and volatile stock markets make it a time when you need a best financial friend to help you make the best choices.
At Financial Gym, you get paired with a Certified Financial Trainer, who we call your BFF. Our team has coached clients through every financial season, whether they were living paycheck to paycheck or headed into Financial Independence and retirement.