Crafting Financial Stability: Investing for Artists

22.11.2024 0 Like 0 kommenttia

A little guide to start investing.

Disclaimer: I am an art student, not a financial expert. The insights I share here are drawn from my personal experiences and are not professional financial advice.

This blog is published in series with these other blogs:

• Guide to Finding a Great Job
• Bud­get­ing Tips for Art Stu­dents
• How to open a bank account in Finland?

And this podcast episode (coming soon).

Imagine a garden where each seed you plant grows into a big tree, branching out and blossoming in time, promising shade and fruit long into the future. Investing, much like gardening, begins with a single seed—a euro, a stock, a bond—planted today to promise a lush tomorrow. 

My grandma was a wise investor, a gardener and an amazing woman. I aspire to be like her in many ways. This year I set myself the goal of understanding our economy enough to create my investment portfolio. In this blog, I will share with you what I have learnt. Investing can be quite akin to the creative process—both require vision, patience, and a bit of risk-taking. Let’s explore steps to cultivate your financial garden with the same care and creativity that guides an artist’s hand.

1. Research

Start by understanding different investment options just as you’d choose the right materials for an art project. Stocks, bonds, mutual funds, and real estate each offer unique textures and potential returns. Decide when and how you will research. I took one hour every Tuesday evening to follow an online course for three months. Choose your note-taking system and take your time to research. 

2. Sketch Your Goals 

Set clear, actionable financial goals. Ask yourself: How much capital do I need in X years, and what for? My dream is to move to the countryside in Norway and drive an electric car. Define your dreams to shape your investment path. 

3. Creative Risk Management/Diversify your portfolio 

Balance is key in managing investment risks. Mix stable investments with riskier options to maintain financial and creative freedom. Aim for a diverse portfolio of 6-8 solid investments to withstand economic fluctuations.

4. Stay Inspired/Track your portfolio

Continuously enrich your investment knowledge. Select sources that inspire without overwhelming—be it blogs, podcasts, or books. Tailor your learning to your interests and investment goals. 

5. Showcase Your Portfolio: 

Just like a portfolio review, periodically assess your investments to ensure they still align with your goals and adjust as necessary. After you have created your portfolio, decide how often you will check it. For example, I plan to reassess mine every 4 months, and it is written in my calendar. Wait to sell if stocks go down. 

Investing, much like art, is personal and evolves over time. Embrace the learning curve and let your financial portfolio become yet another expression of your creativity! In short, research, plan, take action, track. 

Other tips: 

• Save 10% of your income. This really adds up. Although you can save more (20%) or less (1%). 
• Talk with your bank. Every bank has some kind of investment option. I found my bank, Danske, very helpful. I wrote questions on the phone app and had an in-person appointment. 
• Investing can be very unethical, especially in the whole system of capitalism and colonialism. Consider your position and what ethical options there are. 
• Follow your intuition. 
• When you buy there are fees involved, so it is worth it to invest bigger sums at a time. 
• You can invest bit by bit, and invest as your savings add up. 
• Stay calm, always.  
• Investing protects from inflation. 
• When you sell investments taxes become involved. Research taxes and do them properly. 
• For long-term investments, aim to keep them for 10-15 years before selling. 

For a final thought, retirement…???