Investing For Beginners

If You’re Thinking About Starting An Investment Fund But Not Sure Where To Start, Read On…

- Taryn Das Neves

If you have no head for figures and the mere idea of investing (‘Oh, you mean watching the squiggly lines go up and down the graphs on the JSE index?’) leaves small sweat beads running down the sides of your temple because you ‘just don’t get it!’, don’t stress – it really isn’t that complicated!

Whatever your age, the current economic climate is concerning. Is your money working for you, and will you have enough to sustain you for retirement? Or what about an emergency fund for those awful situations where the geyser bursts, your car’s gearbox needs replacing, and the tumble dryer has given up on life? Or perhaps you’re thinking of sending your kids overseas to university? Money is always in demand.

Jenny Albrecht, a chartered financial analyst and portfolio manager at Satrix, says having a savings account doesn’t really cut it anymore if creating wealth is an aspiration. ‘Inflation is money’s biggest enemy,’ she explains. ‘Inflation destroys your purchasing power. So if something cost you R100 this year, it will cost more next year. If your R100 saving hasn’t at least kept up with inflation, then you’re actually not getting ahead financially, even though in essence you believe you are saving.’

So what about investing? I’m sure you’ve had numerous calls from personal finance experts, hoping to meet with you to look at your bank balances and see where they can make you some more money. It usually involves time and commitment, paperwork and a gamble, but in the long run it can be extremely beneficial.