Times like these can really show us the importance of having long and short-term investment plan. However, finding the right investment can be intimidating - where do you start? Here are a few tips to help you.
Choose your method
There are many ways to invest your money, and they differ in terms of risk, reward and how long you have to wait before you’re able to be paid out. For example, if you invest your savings into a cash investment at a bank with a fixed interest rate for about 60 months, you’ll need to wait for that period of time before you can withdraw your money (and incurred interest). On the other hand, if you invest your savings in stocks - which may fluctuate in value - you can generally pull out your money at any time (unless you lose all of it).
A few key things to consider when choosing how to invest are your desired time frame, how much risk you’re willing to tolerate and whether or not you’ll be able to monitor your investment often. It’s vital to learn about the different forms of investing, and choose the method (or combination of methods) for your needs and goals. For more information on the different types of investments, check this out.
Learn the basics
Once you’ve chosen your method of investement, you’ll need to get clued up on all the details. The investment world is full of terms you may not be familiar with, but with a little bit of dedication you can learn them in no time. Thankfully, the internet has tons of free resources where you can learn the basics for free. Here’s a handy list of investment terms (specifically for South African investors), which you can refer back to at any time.
Apart from terms, it’s also useful for you to know how investing actually works. This is particularly important if you’re looking into trading stocks. You can start by checking this page out for free info and resources.
Consult an advisor
Financial advisors often have very valuable advice and can point you in the right direction when it comes to investing. You can find one at your bank, or at an independent financial institution. Just remember that anyone who’s looking to sell you their product is probably more interested in making a sale rather than helping you make a smart financial decision, so do your own research as well. Don’t be afraid to shop around, and contact different financial advisors and banks before you decide on where you’d like to invest.
Investing your money is one of the key ways in which you’ll be able to build wealth over time, and secure a better future for yourself. Don’t be afraid to take the leap - the best time to start is now. Good luck!