Here's how you too could bank fast gains of R5,190, R2,517 or even R1,141 from the smallest market movements -
up or down
How you can benefit from investing even small amounts RIGHT NOW
The key to building wealth is developing good habits—like regularly putting money away every month. Swap out the barista-made cappuccinos for coffee at home and you could already be saving more than R500 a month.
Once you have a little money to play with, you can start to invest in shares.
If you buy shares you own a part of a company. You get the benefit of the profits it makes in the form of dividends and share price growth.
In the past it was impossible to invest if you didn’t have large sums of money. But these days, with discount online brokerages you can start investing with as little as R500. You can even invest in companies monthly with small debit order payments.
Three ways you can start investing with only R500 a month
Low capital investment #1 – Make use of your tax free savings account
Whether it is through a bank or an asset manager you can open a Tax Free Savings Account (TFSA).
I bank with FNB, they offer a TFSA with a minimum R300 monthly investment in shares or a R1,000 once off lump sum. You are limited to R36,000 contributions per year and R500,000 contributions in your lifetime.
Then all your gains are free of tax.
Admin fees come in at 0.5% per year, or a R20 minimum per month.
Asset managers like Allan Gray, or Easy Equities
offer the same TFSA’s with different minimums and costs.
Low capital investment #2 – Invest in ETFs each month
An exchange traded fund (ETF) is a fund that holds a basket of shares in an index like the JSE Top 40 shares or the MSCI World Index (shares from hundreds of companies around the world).
Through a platform like ETFSA you can invest in ETFs monthly using a debit order of as little as R150 a month or R1,000 lump sums.
You can invest in more than 100 different ETFs representing local and international shares, commodities, currencies and bonds.
Low capital investment #3 – Buy individual shares using the Easy Equities platform
is a local online investment platform that allows you to invest in any shares on the JSE. What makes it different from most brokers is that it does not have a minimum deposit – you can put in as little as R100 to start out with.
What’s more, brokerage fees are only 0.25% and there’s no minimum brokerage.
So you can honestly start investing with R100 a month.
Start by making small investments today
As you can see, there are several ways to start investing, even if you don’t have a ton of money in the bank.
Investing can be risky. People are scared of that risk, but isn’t it a risk to not invest?
The fact of the matter is that investment markets are cheaper today than they were a year ago – because of the Covid-19 pandemic. Many shares are at 10-year lows, even though their businesses haven’t even been interrupted.
That’s why you need to start investing today, even if it is with small amounts, it will allow you to take advantage of the kind of opportunity that only presents itself once in a decade!
If you’d like two free books to explain investing to you – simply subscribe to my Red Hot Penny Shares
newsletter and I will send you “How to make big money in the exciting world of Penny Shares”
and “The Investors Toolkit: All you’ll ever need to know about the stock market”
Here’s to unleashing real value,
Editor, Red Hot Penny Shares
If you looking for 3 recovery stocks to invest in now, then check out my colleague, Josh Benton’s latest report here