The Go Hustle Work & Play Location Guide is all about making it easier for you to play where you work. This week we’re heading to Barrydale…
Investing is a way to set aside money while you’re busy with life – and have that money work for you, in the background, so you can reap the rewards of your labour in the future. When it comes to doing the best you can with your money, the power really is in your hands.
No matter what your investment goals are, here are five things you can do to give yourself the best chance of success. Naledi Makiwane, an investment specialist at Coronation Fund Managers, has got the deets. Psst: It’s actually much simpler than you think…
1/ Prioritise your future
Our world revolves around spending money on experiences and things that bring instant gratification. But one of the key ingredients for investment success is limiting how much you spend now so that you can save for more medium to long-term goals. Think: furthering your own education, or securing a comfy retirement. Learn to pay yourself first by committing a portion of your salary to your future needs before taking care of other non-essential expenses wherever possible.
2/ Just start!
We know, getting started on your investment journey can seem daunting – until you actually do it. First, identify how much you’re able to invest on a regular basis through working out your budget. You can start from as little as R500 a month and build up from there.
3/ Choose the right investment fund for you
To decide on the most appropriate investment fund to meet your future goals, consider how long you want to invest for and how much volatility you’re willing to take. (Tip: The longer you have to invest, the more volatility you can handle.) Do your research, select the right fund for you… and stay the course.
4/ Diversify your portfolio
Diversifying means investing across different asset classes and geographies so that you’re not exposed to the potential volatility of just one asset class or market. If you choose a well-diversified balanced fund, your investment journey will be far less bumpy, making it more likely for you to stick it out.
5/ Commit to investing for the long term
Thinking long term means staying with the investment fund you choose for as long as it’s still relevant to your circumstances, not just when it’s doing well. Chopping and changing your investment options interferes with the compounding of returns over the long term, which is the real benefit of staying invested.
Following these investment basics can set you on the right path to investment success. If you feel overwhelmed and in need of advice, consider talking to a licensed financial adviser.
Just like people see a medical doctor for their physical health, consulting a trusted financial adviser is good for your financial health, especially when your financial situation is complex. A good financial adviser will help you work out how much you need to save to meet your investment goals and help you set up a plan to achieve them.