Investing in the stock market may seem daunting to newcomers, but it is a journey that can lead to achieving your financial dreams, whether that is financial security, freedom, or simply a prosperous future. But, how do you get your partner interested in investing as well?
I had the same challenge of getting my partner interested in investing. When building a future together it is important to be on the same page financially. In the following I want to share some key points that you can use to help get your partner on the same page as you.
1. Highlight the end goal
Before going into the details of how-to invest and how much money you can make, focus on painting a clear picture of what the end goal looks like. A good investor is not simply trading stocks but is building a future.
To get your partner interested in investing focus on the destination, and that the stock market is a means to reach that destination together. Whatever financial goals you might have the stock market can help achieve those goals. It is much easier to be in it together as a couple than going at it alone, with your partner on the sideline.
For example, depending on your goals, you can talk about the following:
- Building wealth to enjoy more of life together
- The potential for financial freedom, where living paycheck to paycheck is a thing of the past.
- Explain how investing can provide a safety net, giving both of you peace of mind in case of unexpected life events.
- Open the doors to early retirement, enabling more time to enjoy life’s pleasures together.
How to achieve your financial goals by creating an investment strategy.
2. Set common financial goals
Having a common goal can be a powerful motivator. Maybe it is saving for a dream vacation, a house, or planning for early retirement. Set a goal together and discuss how investing in the stock market can help achieve it faster. Clear and tangible rewards will make the process far more appealing.
3. Involve them in your investment decisions
The best way to learn is often by doing. Next time you’re making an investment decision, involve your partner. And for the love of God listen to them – do not dismiss their input!
Walk them through your thought process. Why are you choosing this particular stock? What makes it a good investment? This will give them firsthand experience of the decision-making process involved in investing.
This is one of the key aspects to get your partner interested in investing as it will help break down barriers of uncertainty about the process.
Share this beginner’s guide to investing with your partner to help inspire them to get started.
4. Connect it to personal interests
By tying investing to your partner’s personal interests, it can become much more relatable and exciting. Here are a couple of examples:
- If your partner has a passion for sustainability, for example, explain how investing can be a way to support various types of energy companies.
- If they are tech enthusiasts, highlight how they can own a piece of their favorite tech firms through stock investing.
- You can also invest in pharmaceutical companies that help people living with various conditions, such as diabetes.
There are endless opportunities for different types of investments in the stock market, and there is bound to be one in your partner’s field of interest.
5. Discuss wealth creation
The stock market is not just about numbers going up and down; it is about creating wealth over the long term. This is your engine to reach your financial dreams.
Stocks have historically outperformed other types of investments, making them a critical component of wealth creation. Explain that investing in the stock market is about growing your wealth. Share examples of companies like Amazon and Tesla, where early investors have seen their wealth multiply many times over.
Learn more about the history of the stock market.
6. Share Success Stories
Let’s face it, we all love a good success story. To spark interest, share stories of individuals who have built their wealth through smart investing.
For example, consider the story of Grace Groner, who turned a modest investment in Abbott Laboratories into millions by simply holding onto her stocks for decades. You can also use more popular examples such as Warren Buffet, Peter Lynch, or John Bogle.
Real-life examples provide inspiration and can make the prospect of investing less intimidating.
7. Demystify the strange jargon
Nothing sends a newcomer running away faster than a barrage of financial jargon.
Try to use plain language wherever possible. Instead of diving straight into P/E ratios, IPOs, and ETFs, start with more relatable terms. Compare stocks to owning a piece of a company, and dividends to a form of profit-sharing. Once they are comfortable, gradually introduce more technical terms.
8. Emphasize the power of starting early
One key aspect to discuss with your partner is the power of starting early in investing, due to the almost magical concept known as compound interest. Albert Einstein reportedly called compound interest the “eighth wonder of the world,” and for good reason.
You can explain compound interest as “earning interest on your interest.” If you invest $1000 and earn a 5% return, you’ll have $1050 at the end of the year. If you leave your investment, including returns, the same in the second year, you’re not just earning 5% on your initial $1000, but also on the $50 gain from the first year. Over a period of 10 years your initial $1000 investment will have turned into $1,629, and this effect becomes even more pronounced the longer the investment duration.
This point can serve as a powerful motivation to get started in investing sooner rather than later. And the prospect of building significant wealth together can be an attractive proposition for any partner.
Learn more about compounding interest and how it can propel your wealth.
9. Make use of investment apps and online platforms
Technology has made investing more accessible than ever. There are numerous investment apps available that offer user-friendly interfaces, educational resources, and even practice accounts with virtual money. Apps like Robinhood, Stash, and Acorns can help simplify the process, and may be less daunting for a beginner than traditional brokerage accounts.
10. Be patient and encourage questions
Remember, the world of investing can be overwhelming for newcomers. Patience and understanding are crucial. Encourage questions, no matter how basic they may seem.
The more your partner understands, the more interested they are likely to become.
In conclusion: How to get your partner interested in investing
Investing is not just about navigating stock charts and financial news. It is about carving a path to your dreams and a more secure future. By focusing on the potential benefits and linking investing to personal interests and goals, you can inspire your partner to join you on this rewarding journey.
Happy investing!
