If you have no idea what to invest in? Let your investment plan do the work for you...
So you've decided to start investing. You're excited but the problem is you have no idea where to start.
Well, the thing is, you'll never know what shares to buy or what investment instrument to use if you don't have an investment plan. That's why today I'm going to show you how to set up your investment plan in three simple steps.
Step 1: Understand your finances
No investment comes without risk. That’s why it is important that you only invest with money that you can afford to lose. Now I know this sounds crazy, but it’s important to understand your risk appetite if you want to invest for maximum success.
If you’re willing to risk it all, then you could consider investing in penny shares
. These shares offer you massive growth because they all cost less than R10. The thing is though, it’s a volatile part of the investment market. The chances of you losing all your money are just as great as you doubling your money.
Step 2: What are your long-term goals?
Why did you decide to invest your money? Is t because you want to buy a house in the next five to ten years? Or do you need to prepare for retirement?
If you’re looking to protect your money, you need to take a long-term investment angle. Buy shares that promise to deliver profits over a five to ten year
period. That way you get a level of protection and profit
for your money.
Step 3: Find an investment mentor
Before you throw your cash at the market, find someone that you can trust to help you make the right investment decisions. There are so many ways to invest your money so make sure that you have someone on your side that can help you make the right investment decisions.
Remember, this is your money. Don’t let brokers bully you into making investment decisions that you’re not comfortable with. Keep yourself informed so that you don’t lose your money to the markets.