June 26, 2024
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Investing made simple – 5 tips
In my workshops and speaking events, women always ask me: “how do I invest”, “which investment should I pursue”, “which has the highest return” etc. There is no one size fits all type of investment. However, there a few principles that make investing less intimidating.
Below are 5 of my favourite principles that make navigating the investment landscape easier:
Doing anything without a goal is like running a marathon without the finish line. To achieve anything, one must have a goal. Circumstances and environment may change but the goal should never do. So start with your WHY. Why do you want to invest? If you invest without a goal, you are more likely to stick it out through the good and bad times. You will not make withdrawals on a whim as an when you please.
Goals instil in us the discipline to achieve what we set out to achieve. START WITH AN INVESTMENT GOALS.
Legitimate investing is not a get rich quick scheme. As I have mentioned above, you need to start with a goal in mind and realistically think how long it might take. If you are investing for your 2 year old child’s university education for example, your investment time horizon is more than 10 years, this is long-term and you therefore will not want to stress yourself too much about market volatility. On the other hand, if you are saving for a deposit on a house you want to purchase in one or two years’ time, you will invest in a more risk averse instrument. Something more liquid and easily accessible.
I have seen too many people invested in what does not serve their goals. They merely have a financial product but do not know what its purpose is. Scrutinise all costs that come with your investment, negotiate if you have to, to bring the cost down. Remember, costs eat away at your investment.
I cannot stress this enough: educate yourself, educate yourself. DO NOT leave your financial wellbeing to a financial advisor, partner or financial institution. You have to spend some time educating yourself on different investment options so when you do make a decision to invest, you know the basic principles. Go to wwww.womanandfinance.co.za/blog to read more of our articles on personal finance, our articles are for education’s sake only, they are unbiased and product free to ensure you get the best information. Invest in something you can explain easily to your friend/ aunt/ mom!
I know a lot of women forget this last but very important stage of the investment circle. Review your investments at least once a year to assess if you are on track to meet your objectives and to check if you need to make any changes.
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