By Thato Masalesa
In December people spent their money recklessly, only a select few actually saved up for rainy days or even tough months such as this difficult time in South Africa, especially with the coronavirus.
South Africa’s economy is quite uncertain, we get major investments today and tomorrow people are getting retrenched, many South Africans seek financial freedom and thus has created a large window of opportunity for investment firms and banks also not forgetting criminal elements. There is an endless list of things to do and not to do when investing your money but let’s summarise a few starting off by quick disclaimers I live by.
- Easy come Easy go – money you know came very easily perhaps you invested in a get rich scheme which actually paid you your money or you just gambled, money that is not hard earned tends not to stick around very long, so don’t look for quick get rich schemes but rather solid investment plans with reputable track records.
Now on to the do’s and don’t when you start investing
- Do not put all your eggs in one basket – don’t invest all your money into one place because companies tend to go under our investments tend to fall through so only invest in large amounts if returns are guaranteed.
- Don’t think short – investments accumulate returns over a long-term period, so don’t expect your returns to be present the week after you have invested.
- Don’t trust anybody – money is very important so don’t just trust anybody with it, make sure the companies you are investing in are registered and accredited.
- Get help – obtain financial literature so you may better learn about the value of money and investment.
- Think carefully – What is it you want your returns for, how long will you invest for? Is it essential for you to invest at that time?
- Paper trail – keep a record of every single transaction that takes place in and around your investment to make sure you are not getting robbed when you least expect it.
Saving money is always better than spending it but investing is even better.