S11 Ep3 Good with Money: Investing

In the third episode of this ‘Good with Money’ season, Simon and Bex talk about when and why ‘Investing’ may be worth considering in the context of our personal finances.

Some key points of interest covered in this episode include the following:

• Simon starts off by explaining the two core elements of investing: to counteract the effects of inflation [04:48]; and to achieve an expected return, very often for a specific purpose. [06:14]
• Simon talks about the different kinds of ‘bonds’ (including premium bonds, bank bonds and corporate bonds) that can be used for investing. [08:23]
• In response to a question from Bex, Simon explains that activities such as acquiring gold, buying currency and day trading do not have an expected return and should not therefore be classified as ‘investing’ in the pure sense of the term. [11:05]
• Simon uses a story about the respective business needs of a farmer and a baker to illustrate how hedge fund traders can attempt to take advantage of the commodities market. [14:24]
• Property is another interesting area – unlike many other investments, it is generally not a passive income stream; instead, it requires active management and involvement from those wishing to make a profit from investing in that area. [16:06]
• Simon then goes on to address the issue of whether investing should be regarded as a form of gambling, with the key point being the presence, or not, of an expected return. [17:18]
• Quoting from Luke 12.16-21, Mark 10.17-21 and 1 Timothy 6.10, Bex and Simon highlight the importance of resisting the temptation to make money a goal in its own right when engaged in investing activities. [19:40]
• For anyone interested in exploring how we can adopt a heavenly perspective and have pure motivation when working and earning money, Bex would recommend ‘The Garden City’ by John Mark Comer. [23:34]
• Concluding his comments, Simon emphasises the importance of investing in order to achieve a specific and appropriate purpose. [24:01]
• Next week’s episode will focus on the related topic of ‘Pensions’. [25:20]

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