Make Your Money Work For You

PICTURE: moneysavingexpert.com

Making the decision to invest your money, especially when you are still young, is difficult.  Not only because of the possible losses and how we want to make a great profit but because as young people we often find the need to conform to our generations norm of living a lavish lifestyle without having something to fall back on. We do not save and invest at all.

Did you know that the same food you buy at Woolies is available at Shoprite? That other shops have suits, just like those at Bogart? That cell phone contract that you took in 2017 when the iPhone X got released, is cheaper now than it was at the time you took the contract?

These questions are not to make you favour one store or brand over the other but to make you realise that we actually spend more on stuff when we could actually be saving and using the money you ‘saved’ on something you could get returns on. Let’s get into the habit of letting our money work for us.

We all know that our financial markets have been on a rollercoaster ride and the risks continue to fluctuate, this means that less people are going make investments. But this fact does not mean that there aren’t any investments that you can make.

You need to make investments and the good news is that you have a huge investing advantage over those of the previous generation, because you have time and your retirement might be four decades away. This will mean that you have more time to invest and save, without worrying about what might happen within the markets next month or even next year.

Start-off by educating yourself is a basic principle. There are plenty of people websites and internet videos that simplify investment language, always make sure that you are familiar with them.- familiarise yourself with them. Experts caution against investing without proper understanding of the investment you are making.

Invest in consistent income streams. There are always companies who will continue to produce reliable income irrespective of the slow-down in global markets, the volatility of exchange rate and interest rates declining.

Risk is a great element of investments, however some don’t have a clear understanding. When we hear about the returns we do not take the time to read the fine print, and just sign. This is the biggest mistake one can ever make.

The fine print disclaimers at the bottom of all investment documents and websites of all brokers are of utmost importance for buyers and sellers. And although experts emphasis the reading of these disclaimers, they are left unread.

Save and invest to have something to fall back on.