If you have never been exposed to the world of investments before, deciding on taking one can be scary. The different unit trusts, shares and portfolios could confuse you and you can easily invest in something that doesn’t suit your current situation, which’ll lead you to losing money instead of making it. To guide you through this process we chatted to Carin Mayer, Head of FNB Share Investing and she had this advice on what to consider before taking that leap:
1.Decide on how much money you want to invest
Consider all your debts and monthly costs before determining an amount to invest. You should be clear on how much you’ll be able set aside each month for your investment. Even if the amount is small, it will make a difference in the long-term.
2. Know what you want to achieve with your investment
Knowing what you want to accomplish will help you determine what will work better for you.
3. Set time frames and stick to them
It’s better to think long term, ideally 5 years or more if you want to get the most out of your investment. Don’t be discouraged by fluctuating interest rates.
4. Investing comes with risk
Some investments come with more risk than others. Depending on which one you take, for example shares are more unpredictable than cash investments. However, this does not mean that they should be avoided because the market constantly changes hence a good return can only be made when you’re in it for the long-term.
