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Cape Town - July marks Savings Month and according to Nico Coetzee, Executive: Business Development at PPS Investments, it is the perfect opportunity to take a fresh look at your investments and to consider boosting your savings.
The easiest way to do so is to consider a new debit order investment or an increase to an existing debit order amount.
In both instances you will be adding to your portfolio on a sustained and regular basis, which could result in the accumulation of a significant investment amount over time.
He gives three reasons to consider debit order investments:
You are taking charge.
A debit order takes care of the temptation to spend what you should be saving on something else, or to tweak your savings goal if your budget starts tightening before payday.
While you’ll be saving with discipline, a unit trust based product also gives you the flexibility to adjust your debit order premium if your personal circumstances change.
The power of compounding.
Compounding occurs when investment returns are added to your original investment and these returns then start earning returns as well.
Effectively, this allows you to generate returns on additional amounts that haven’t come out of your pocket.
Market fluctuations smooth over time.
Your debit order will buy a fixed rand amount of the unit trusts you have chosen to invest in every month. This means that when the market has risen and units are more expensive, your monthly investment amount will buy less.
Similarly, when the market has fallen and units are less expensive, you will receive more units for the same rand amount.
- Fin24
The easiest way to do so is to consider a new debit order investment or an increase to an existing debit order amount.
In both instances you will be adding to your portfolio on a sustained and regular basis, which could result in the accumulation of a significant investment amount over time.
He gives three reasons to consider debit order investments:
You are taking charge.
A debit order takes care of the temptation to spend what you should be saving on something else, or to tweak your savings goal if your budget starts tightening before payday.
While you’ll be saving with discipline, a unit trust based product also gives you the flexibility to adjust your debit order premium if your personal circumstances change.
The power of compounding.
Compounding occurs when investment returns are added to your original investment and these returns then start earning returns as well.
Effectively, this allows you to generate returns on additional amounts that haven’t come out of your pocket.
Market fluctuations smooth over time.
Your debit order will buy a fixed rand amount of the unit trusts you have chosen to invest in every month. This means that when the market has risen and units are more expensive, your monthly investment amount will buy less.
Similarly, when the market has fallen and units are less expensive, you will receive more units for the same rand amount.
- Fin24
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