Investing: a reader's advice

MyFin24 is a user-generated section of Fin24.com. The stories here come from users.

Fin24 user Rudi de Coning posted the following comment on Facebook:

AS A recent graduate, my salary is not the biggest, but it’s certainly bigger than what I’m used to. Going from pocket money to an annual cost to company is much better.

A big lesson still to be learned is how to invest my money, and not to spend it all on the latest tech, fashion or cars (not yet at least).

Investments seem beyond your reach when experts broadcast their knowledgeable opinions and use impressive words like arbitrage. Investments are far less intimidating when you stand back and look at it from a clean slate.

Approach investments as you would approach any task in your daily life. Get it done! Write down your financial goals and compare each investment option to your objectives. It is fairly easy to look up any investment term.

Increase your financial knowledge and take on smart hotshots who try to impress or intimidate you into an investment. Trusting your money with another party is a big deal and you should do your homework before investing.

Allowing time to pass while not sorting out your daily chores is never a good idea; like never fixing the roof could cause your house to flood, not balancing your budget could send you spiralling into debt.

If you are not sure where so start investing, Google any big investment firm and contact their client relationship team. A good place to start is unit trusts, the application forms are straightforward and are free from queues or frustration.

Unit trusts cater for a wide range of individual investor profiles, from the risk-averse cash cows to the risk seeking young guns. Smaller lump sum investments (R2 000) are also available for new entrants.

Unit trusts also acts as a programmed piggy bank with monthly debit orders adding units to your portfolio. Browse a large variety of unit trusts online from PSG's Equinox.

Get into it and start investing; "real" investment returns takes time, and compound interest always trumps the get-rich-quick fortune tellers.

- Fin24

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