The Best 10 Money Tips Ever!
Take this advice to heart and you have a solid foundation for the future financial well-being.
1. Save 10 cents of every R1 you earn. If you put away at least 10 percent of your income as part of a long-term savings plan, there is a good chance that you will have financial security and the future be able achieve your financial goals.
2. Put 10 percent of any increase in wages in particular to the long-term savings, such as economies of a pension plan. If you are employed and belong to a retirement fund, your contributions will increase automatically in proportion to your salary increases. This will ensure that you stay well ahead of inflation.
3. Can I use the sleep judgement when making investments. An investment is too risky if you are going to lie awake at night worrying about it.
4. Diversify your investments. Never invest more than five percent of your assets in a narrow investment for example, a specialist unit trust funds such as the new company in one or an unregulated investment . Diversifying your investments so that you can not lose any investment if one of the bombs. Many people who invested all their assets in major scams such as Masterbond lost everything and the same thing can happen in the regulated market if you put all your money in one area ... Just consider how the information technology bubble burst in 2000.
5. Use extreme caution if the promised returns to an investment exceed what is generally available. If they seem too good to be true, they probably are. This usually means the investment is too ambitious in its claims too risky or simply a scam.
6. Know the difference between effective and nominal interest rates. Normally, banks will quote you a nominal interest rate of loans when money, but an effective interest rate higher when you invest money. The nominal interest rate is the simple rate. The effective rate is calculated by compounding the interest earned or charged.
7. Check whether interest is paid will be credited monthly quarterly or annually. Say you invest R10 000 for 10 years. If you receive an interest of 10 per cent annually to the credit, you get a total return of R25 937. While it is credited monthly, you will receive R27 070.
8. How do you decide whether you should invest directly in equities? Simple. If you have had time to learn about the stock markets, to follow the progress of companies or monitor your portfolio rather invest in funds of funds or life assurance and endowment policies that have as their underlying investments.
9. If you do invest directly in equities of your two most important factors to be sure that you have a good choice of shares through the stock market sectors to reduce the risks and regularly rebalancing your portfolio. When a share rises in price, you should consider selling some of these shares, so that you make a profit, but your overall portfolio remains proportionally the same as it was when you started. By proceeding in this order, you may be able to take greater advantage if the share price is rising.
10. If an investment product is too complicated to understand, avoid it. It does not mean that you are stupid. It simply means that the supplier of products and financial advisor or try to baffle you.
1. Save 10 cents of every R1 you earn. If you put away at least 10 percent of your income as part of a long-term savings plan, there is a good chance that you will have financial security and the future be able achieve your financial goals.
2. Put 10 percent of any increase in wages in particular to the long-term savings, such as economies of a pension plan. If you are employed and belong to a retirement fund, your contributions will increase automatically in proportion to your salary increases. This will ensure that you stay well ahead of inflation.
3. Can I use the sleep judgement when making investments. An investment is too risky if you are going to lie awake at night worrying about it.
4. Diversify your investments. Never invest more than five percent of your assets in a narrow investment for example, a specialist unit trust funds such as the new company in one or an unregulated investment . Diversifying your investments so that you can not lose any investment if one of the bombs. Many people who invested all their assets in major scams such as Masterbond lost everything and the same thing can happen in the regulated market if you put all your money in one area ... Just consider how the information technology bubble burst in 2000.
5. Use extreme caution if the promised returns to an investment exceed what is generally available. If they seem too good to be true, they probably are. This usually means the investment is too ambitious in its claims too risky or simply a scam.
6. Know the difference between effective and nominal interest rates. Normally, banks will quote you a nominal interest rate of loans when money, but an effective interest rate higher when you invest money. The nominal interest rate is the simple rate. The effective rate is calculated by compounding the interest earned or charged.
7. Check whether interest is paid will be credited monthly quarterly or annually. Say you invest R10 000 for 10 years. If you receive an interest of 10 per cent annually to the credit, you get a total return of R25 937. While it is credited monthly, you will receive R27 070.
8. How do you decide whether you should invest directly in equities? Simple. If you have had time to learn about the stock markets, to follow the progress of companies or monitor your portfolio rather invest in funds of funds or life assurance and endowment policies that have as their underlying investments.
9. If you do invest directly in equities of your two most important factors to be sure that you have a good choice of shares through the stock market sectors to reduce the risks and regularly rebalancing your portfolio. When a share rises in price, you should consider selling some of these shares, so that you make a profit, but your overall portfolio remains proportionally the same as it was when you started. By proceeding in this order, you may be able to take greater advantage if the share price is rising.
10. If an investment product is too complicated to understand, avoid it. It does not mean that you are stupid. It simply means that the supplier of products and financial advisor or try to baffle you.
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