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Revealed: How to get your investing off to a successful start

by , 13 August 2013

To get your investing off to a successful start, it's vital you start with some financial planning. If you take the time to set some financial goals before you start, you'll be financially more successful over time. Read on to find out what you should do…

Before you put a cent in the stock market, you need to make sure that you do these two things first…
  1. Pay off any short-term debt
  2. Have enough money in your emergency fund to pay at least three months’ worth of living expenses

If you do this, you know how much you have available to put aside each month, as John Stepek explains in MoneyWeek.

Now you need to write down your financial and investment goals.

By writing down your goals you increase your chance of achieving them

Top of the list is this one: “One day I want to stop working and still have enough money to live the lifestyle I desire.” That’s your investment fund for your retirement.

Then you have your shorter term goals. The nice thing about shorter term goals is that they are easier to quantify.

If you need a R100,000 deposit to buy a house, for example, you can work out how long it will take you to save that amount, at any given interest rate.

There are plenty of savings calculators available online.

You can give yourself a certain amount of give here. You don’t need to save the same proportion of your income into your investment fund every month.

But if your short-term savings goals leave you with nothing left over to invest for the long run, or are unachievable on your current income, then you either need to find a way to earn more money, or consider other ways to reach your goals.

Now all you have to do is find the best home for your savings and investment cash.



Revealed: How to get your investing off to a successful start
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