HOW TO INVEST MONEY
WHY INVEST MONEY?
To prepare for a healthy future, investing is required for most people. As the coronavirus pandemic has taught us all, a stable economy and income could easily become a thing of the past, leaving those who are unprepared, helpless. But those who were wise and fortunate enough to invest faced less financial difficulty during the national lockdown.
But with some investments asking for absurd startup amounts, many are discouraged from the act and ignore the benefits completely. Learning how to invest money might seem scary, but it’s easier than you think, and you can start no matter how much you have saved.
If you have recently come into some extra funds (eg. life insurance payout) and do not need this money for current expenses or to pay off debt, investing it is the smartest option. Rather than spending it on short-term pleasures or keeping it in a bank account that bears no interest, investing promises a reward for your patience.
INVEST MONEY IN 5 STEPS
– Firstly, decide whether you need the help of a professional or if you would prefer doing it on your own
– Set out your financial goals and set aside some savings for unforeseen financial circumstances
– Pick the type of account that will be linked to your investment
– Open the account
– Decide on what investment suits your financial profile (property, stocks, bonds, mutual funds).
To this day, property investment remains the best and safest way to invest money. Investing in a real estate property comes with numerous advantages that set it apart from other types of investments. All you need to do is partner with the best investment company in South Africa.
A simple way to grow wealth. For long-term investors, stocks are a good investment even during periods of market volatility. A stock market downturn simply means that many stocks are on sale.
This investment opportunity helps reduce the amount of income tax you pay on earnings for the year. It produces earnings on earnings, creating a compounding effect not available in a regular savings account.
Shares have shown high returns in the long term, outstripping other assets such as bank deposits. This investment gives you a good chance of beating inflation.
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