Learning Resources
Hot Search | VI Learning Resources | VI
Hot Search

16 Jul 2021

Investing is also for parents | Pauline Teo

Investing for Parents | Pauline Teo
(c) Sadie Xiao

“Hey, Pauline! I want to invest, I really do, but I don’t have the time!”

There is no class that I don’t hear this concern from parents in my audience. Every time, they raise being busy with their jobs and as parents as a hindrance for their taking action to invest. Every time, I tell them quite frankly: “Never use busyness as an excuse for your financial irresponsibility.”

I know it’s harsh. But harsh realities need to be told, especially when it boils down to securing our own and our children’s future. Wouldn’t you want enough money to send your children to university? Wouldn’t you want to have enough retirement funds so you can do all things you want to do without being a burden to your kids?

So, let’s correct this thought from hereon. Time is not and should not be a limitation in investing.

I am a parent to two kids and I have a full-time job. Yet, I still invest. When I was just starting to invest eleven years ago, I was in the same situation. At the time, my kids were still very young and needed my full attention. Plus, I didn’t have a helper with me. My point is if you’re really determined to start, you’ll find the means to do so.

See also: I’m Pauline Teo, and this is my story

What we need to strive for as parents is a means to generate passive income. When we say passive income, it means the money we earn which does not require a lot of our time or effort. I get my passive income from stock investing, specifically from value investing. There are, of course, several other investment options for you but I personally prefer the stock market.

You’ll probably ask why you should invest when you can just save your money in the bank. “At least it’s just there and I don’t need to do anything,” you’ll probably tell me. That is exactly the problem! When you just put your money in the bank, it’ll just stay there – idle and unmoving. The interest you’ll get will be less than 1%, which is not even enough to be a hedge against inflation.

Don’t get me wrong. You should, of course, save money in the bank. I’m saying you can invest some of your it so it can grow over time. And you should start as early as possible because time is crucial in investing. We’re looking at what we call a compound return, which Albert Einstein even describes as “the most powerful force in the universe.”

But before you start, you have to know there are risks in investing – whichever investment option you choose. Even when you just decide to put your money in the bank, there are still risks. What I can recommend is for you to have a diverse portfolio so you can brace yourself against any downturns.

Time, once again, enters the equation. Investing earlier will afford you to take more risks because you’ll still have enough time to rebound whenever an investment dives. But as you delay investing, you’ll have fewer opportunities than when you’re younger.

I would also recommend investing in stocks that pay dividends which are usually paid monthly or quarterly. This way, you’ll get consistent passive income while you hustle with your day job and your parenting tasks.

See also: Guide to Becoming a Confident Investor in Singapore (2021)

Through all these, you need to seek proper guidance. It’s not recommended to do investing alone. You should do it with someone who can teach you to succeed. Find a community that extends support to parent-investors like yourself.

And I hope one day I’ll see you at one of my classes and proudly tell me, “Hey, Pauline, I’m a parent with a full-time job and I am an investor!”

Join me in my investing masterclass on creating passive income for families and my masterclass on ETFs! Hope to see you there!

~ Pauline Teo


No income guarantee or promises of any type are being made in this article. Know that your results will vary due to circumstances that are outside of our control. The author and the company do not warrant, guarantee, or make any representations about the use or results of the use of the products, programmes, services, and resources mentioned in this article. The reader, thus, agrees that the author and the company are not responsible for the success or failure of readers’ investment and business decisions relating to any information provided herewith.