Investing money can be a great way to maximise your wealth. Your money can grow exponentially and you can gain significant returns. In the past, most people associated investments with upper class people who were already wealthy. In recent years, this notion has changed, with financial institutions offering a wide array of easily accessible investment options.
First-time investors can find the entire process intimidating, but there are various tools available these days, making the process easier to understand.
“What is important is to read up on the various investment products in the market place and seek advice where necessary,” says Head of FNB Share investing Carin Meyer.
Some advice for first-time investors:
Make an overall assessment of your expenses to determine how much will be able to invest. You need to be clear about how much money you have so that you know exactly how much you have available to invest.
Decide what you want to accomplish from investing. Know what you want to achieve. This will guide your investment decisions.
Set a long term investment plan. Some of the best investment plans are for 5 years or longer.
Don’t be afraid of risk. You need to understand that investment involves risky decisions. To make the best returns, you often have to take the biggest risks. Understand risk. Take a considered approach to risk and reward.
Don’t procrastinate. Don’t delay and invest sooner rather than later. Professionals find it’s often better to invest regularly.
Don’t put all your eggs in one basket. This is some of the most common advice for first-time investors. Make sure that you diversify.
Invest, don’t speculate. You need to invest with your head and not with your heart.
Remember that you need to periodically review your investments, personal circumstances and risk tolerances.