Ricochet News

How to invest your money in South Africa

By Stephen Davies - Dec 3, 2018
How to invest your money in South Africa

We all envision the big retirement with a big house and lovely nest egg build up over time, but this is a lot easier said than done and sadly this dream stays just that for so many- a dream.

With so many ups and downs in the financial industry and general uncertainty within the country it may be hard to decide how to save, and equally importantly, invest your hard earned cash.

Well simply put, there’s not golden rule or short cut to accumulate wealth, but there are some tried and tested methods which can offer great returns over time and can put you and your loved ones in a secure financial position, with a little hard work and patience.

Collated below are a few points for consideration before you rush off into any savings or investment plans.

  • Find Options that Suit You

Each household has unique needs, desires and priorities and similarly their savings and investments should reflect this. There are a host of great options available out there, but one size does not fit all. When, how and where you choose to invest should firstly suit your pocket and should similarly reflect how much risk you are willing to take doing so.

Also you should take into consideration the type of access you require to your investment, as equity investment may be liquidised within a few minutes while the same for property investments could take some time.

  • Start Saving Immediately

Many people seem to think that getting the actual money to invest is best left for that ‘big payday’, but the simple truth is that regular saving proves vastly more effective, even if it’s just a few hundred rand every month. Not only will you be able to increase your monthly savings amount over time (more advice on this available here), when invested these small amounts also accrue interest which is how you eventually start making the big bucks.

There are several great options for regular savings in smaller amounts such as a tax-free fixed savings account or even a retirement annuity. Once again the option should suit your specific needs and goals.

  • Give Your Investment Some Time

The only get rich quick schemes are the not exactly legal kind. Good asset and money management takes time to yield rewards. The best thing to do is to realistically set your goals and the time frames in which you would like to achieve them. Then decide on the best option for you and once invested you have to be patient, some investments takes years to really bear their fruits and so you should prepare yourself for this process and time. As one investor put it, instead of trying to time the market, rather invest time in the market.

  • Don’t Put All Your Eggs in One Basket

This saying is perhaps as old as it is true. Sometimes you are presented with ‘golden opportunities’, where you could stand to make a killing, but this is not strictly peaking savvy investment. As no-one can really predict the future; the uncertainty is best offset by choosing a few good options to invest in. Admittedly some of them may perform extremely well, while others less so- the idea is really to balance risk and reward.

Some of you may be keen to just into property, forex markets, equity or even fixed interest savings and all may be great options. However it may be beneficial to first have all the facts and even speak to a trained professional as nothing is sadder than losing your hard earned savings.

Image: https://stocksnap.io/photo/ASEQPBZMMX

Follow more RNEWS articles, subscribe to our YouTube channel and for breaking news LIKE us on Facebook.