Invest, invest, invest

By admin
07 September 2013

Don’t think it’s only wealthy people who have money to invest. You can start investing money the day you receive your first salary.

Here are tips for beginners.

Start immediately

Investments are a means of building up wealth over a long period.

“The sooner you start the greater the period during which you’ll be earning returns on your investment,” says Gusta Binikos, chief executive officer of FNB Share Investing.

Understand what you’re investing in

Investing is basically putting your money to work in various ways. One way is buying shares in a company listed on the stock exchange or in an exchange traded fund (ETF), an investment fund traded on the stock exchange.

“It’s important to have a basic understanding of the company you plan to invest in,” Binikos says. “If you’re not confident to choose a particular share, then an ETF is a good way of getting access to a number of diversified shares.”

Invest regularly

It’s important to save on an ongoing basis and the same principle applies to investing. Investing regularly will build your wealth as you buy more shares.

Don’t borrow to invest

“It is a big mistake to borrow money to use for investing,” Binikos says. “Nothing is certain and there’s a chance you can end up losing money and owing on your debt, leaving you in a very bad financial position.”

Don’t lose heart

Investments are long-term instruments. So don’t think you have to sell your shares whenever there’s a slump in the market.

“Holding out for the long term is the best investment you can make,” Binikos says. Investing for the long term will let you ride out the unavoidable ups and downs of the market.

Source: FNB

Photo credit: Image courtesy of Posterize at FreeDigitalPhotos.net

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