Invest In Yourself

Trevor Crighton explains why investing should not be a foreign concept.

Investing sounds like something that people who own yachts do. But, it’s more than likely the reason they own the yacht in the first place! “There are many ways to invest, depending on your goals,” says Lesego Monareng of Old Mutual Private Wealth Management. “One of the most important things to consider is how much time you have to achieve them, which is an important step in deciding how to invest your money.” Before making any investment, speak to a certified financial planner for some advice. This decision depends on how much you have to invest, the risk you’re willing to take, and the amount of time you have to achieve your goals.

LIVE IN THE NOW 

“If your goals are short term, then something like a MoneyMarket account, offered by almost every bank, is a good option. Say you can invest for two years or want to achieve a certain realistic goal within that period,” Lesego says.

A savings or MoneyMarket account is an interest-bearing account with clear interest rates that guarantees a return. So, you’ll put away a certain amount and the magic of compound interest will see your capital grow at a set rate, without risking it.

The positives

a. Your money is easily accessible, either right away or via a short (typically 32 days) notice period.

b. It’s a low-risk option – there’s little or limited fluctuation in your capital balance.

c.It’s a cost-effective way to invest. In some instances, there are no fees attached to savings or MoneyMarket accounts by the financial institution.

The negatives

a. Interest on investments is taxable, in most instances. This means that the money you take out may be subject to tax.