Way back here, I explained how this blog is used as my way of recording our journey together as a family, to share my thoughts on motherhood and stepmotherhood, and to leave some advice/info for my kids in the event that I am not around when they actually start caring about certain things, or they just prefer to read rather than hear me go on and on and on and on.

So, I had started to write a bit about Money.

Just the basic stuff. Money interests me, and as I have said in previous posts, I want my kids to be familiar with money stuff.

The other day, Gabe asked me a questions which led to a little discussion on money. Investments in particular. And stocks even more specifically.

I shared with him something that I have been learning over the years, and how Rob and I have started to manage our oodles and oodles of money (I joke of course).

Now many will disagree with this idea. That’s OK. Many agree with it and that is where I got it from!

Most importantly, it is simple and it makes sense to me.

If you are going to invest in stocks (and we can have a whole discussion about whether you should invest in stocks), then invest in: ones that pay dividends and ones for products and services that you will always use and need.

What does that mean? Well, go read about dividends. Basically, it’s a portion of a company’s profit that they pay out to shareholders (people who own stocks in the company). When you are a shareholder, you can collect a little dividend per share you own. (Other tip: always reinvest those shares). You can also do some research about which companies have a good history of paying good dividends.

But here’s the main point : Invest in things that people will always use and need! Think about it, if there is a huge recession, people will still brush their teeth, still heat their houses, still use soap, still drink coke (yup), still wash their clothes etc.

So invest in the companies that have been making these products for years if you want to diversify with a few stocks in your investments.

Stay away from trendy things, or things like airlines and cars, or new and unproven things. Of course you can invest in these things (and make a killing), but they aren’t as safe. So, just beware:)

Start with a couple of your favourite products and services that you always use and invest!

(Just be careful about investing in the company that you work for… if you lose your job because they go under, guess what will happen to those stocks too…best not to put all your eggs in one basket).

Happy Investing!