Publish Date: 07/03/2019
Investing money is less complicated than you think
If you know you need to learn how to invest money, but the topic of investing scares you, you are not alone. This is an area of personal finance many people find daunting. As a result, many shy away from it to the detriment of their financial security in the future.
When it comes to things like the best ways to grow your money, investment calculations and the importance of interest rates, for example, not everyone is an expert. This is where a financial advisor comes in.
Often, all it takes to successfully start building wealth for your future is some clear guidance on what is out there and which options are best for you – and, of course, a commitment from you to invest.
Did you know that American business magnate and investor Warren Buffett bought his first stock at age 11 and first filed taxes at age 13? Buffett runs Berkshire Hathaway, which owns 60 companies. He has served as an inspiration to thousands and continues to offer some of the best investing advice to beginners.
What we find interesting among his gems of wisdom is that Buffett believes you must invest in yourself first.
So, what does that really mean? It is simple actually.
"The best investment you can make is in your own abilities. Anything you can do to develop your own abilities or business is likely to be more productive," says Buffett.
You could perhaps already be doing this. Think about it.
Your career is what is going to really make you money in life, more than what a small investment here and there will. Growing a nest egg is important, but growing yourself and your business or career is what will provide you with the money to invest properly and secure your future.
Another piece of advice from the renowned businessman is that diversification is not always a good idea and that you must understand what you are putting your money into.
In South Africa, there are many ways to generate a passive income – property, the stock exchange, unit trusts, Kruger Rands, retirement funds and investment banking. You can even use your home loan as a vehicle for growing your money.
This is what African Bank offers its customers and all these options offer excellent returns for anyone starting to invest:
Whichever way you choose to grow your money, always be wary of ways to invest which seem too good to be true. Make sure the institution you are dealing with is regulated by the Financial Services Board (which African Bank is).
These are the 5 biggest considerations when deciding how to invest money:
Remember, what you put in today is what you will reap tomorrow. Find out how you can start investing on your budget in this African Bank informative blog.
About African Bank
Our mission is to be a successful Retail Bank offering a wide range of products and services to the consumers of South Africa. The people who work for African Bank represent the diverse population of South Africa; therefore we are a reflection of you, of all South Africans. We seek to provide value - more than our consumers expect of us. We promise to live our purpose 'humanity through banking' in all that we do and we are confident that we can, because 'We are You'.