The best decision you can make for yourself is to start investing your money. Investing ensures long-term financial security.
As someone who is new to investing, it is normal to feel overwhelmed. You will hear people talk about ways of investing that bring better returns. And others will often warn you about the risk of losing your money.
None of these things matter when you are starting out. The fact that you have started means that you are well on your way and on the right track.
Your early returns will not have much impact on how much you end up with in future. As the saying goes, it does not matter how you start, but how you finish.
As a new investor, you have done your research and have a solid understanding of the general concepts around investing. Now what can you do to ensure that your investments are a success?
1. Where to invest your money
Choosing the right investments can be tricky, especially if you do not know which ones are considered as the “right ones”. There are thousand of choices and information available to you but you want a specific investment.
It is important to know exactly what you are putting your money in. The most common option for investors is the stock market- where you buy a stock and own a small portion of the company you bought into. When the value of the company grows, your share price increases as well.
Invest in companies that you believe will grow in value over time.
2. Invest in what you know
“Investing is like shopping at a garage sale. You simply look for something you understand that is selling at a great price.”- Phil Town
In other words, invest in a company that you are familiar with and know that it has a potential to grow. Buy into a business that you understand i.e the company’s business model- how they make money. Knowing the business’s overall financial direction will help you make better decisions about your investment.
3. Have a game plan
Everyone has personal goals that they want to reach before a certain time. Investments work the same way as goals. Your investment is dependent on what goals you want to achieve in the process. Whether it is short term or long term, your investment strategy must include all your goals. The returns you need to achieve them, and the length of time you intend on investing for.
If you want to build your wealth, you have to start saving and investing your money to achieve your financial goals. Yes, there are risks and chances of losing your money, but if you invest wisely and take all the above factors into consideration, the potential to make good returns is high.
Start by investing small amounts of money, you will be surprised how quickly your investment can grow over time.
Take your first step towards financial fluency! Visit www.upriseafrica.com to invest.
A qualified journalism alumna from the University of Johannesburg who’s passionate about writing and story-telling. She believes in social change, shifting the narrative around social behaviours and relations such as stereotyping, racism, and to live in a society where we can all be free to exercise our human rights.
Busisiwe lives by this famous quote by the great Nelson Mandela “It always seems impossible until it’s done”.