What’s the best way of investing your money to make it really start working for you? Speaking plainly, you just have to start.
Whether it’s saving for your first laptop, or a car, getting your next tattoo or even looking forward to saving for a house one day, at one time or another you’re going to have to start stashing your cash.
The sooner you start, the more time your money has to work for you, and when you weed through all the information out there, money and time are what the investment game is all about.
Starting early gives you the time for your money to grow. Starting early also gives you lots of time to fine-tune your saving and spending habits. Learning when to say no to that cool pair of sneaks in favour of putting the money away for something bigger and better will put you further down the road to wealth than just blowing your cash on the coolest new fashion fad.
Plus, your 60-year old self will thank you for it. Starting early guarantees you a better quality of life in the future and also allows you the time to really learn about investing in a way that suits your personal style; because as we know, not everyone is the same and what works for me might not necessarily work for you.
Choosing the right personal investment strategy is very important because you want to make sure that you are going to stick it out for the long term. Think of it as a financial diet: if you don’t like the taste of what’s on the menu you are never going to stick with it – so make sure you choose something that suits your appetite and that you can really sink your teeth into.
There are lots of options available to you in terms of what to choose: you’ve probably considered shares, bonds, money market accounts or property but have you considered precious metals?
Precious metals, like Gold, Silver and Platinum are a good choice for people who want to invest in something today, but also want to turn it back into cash at a moment’s notice. Like the day that perfect car deal comes along, and you need to get your hands on your cash quickly, without waiting months for your funds to be available to you.
Gold makes an excellent investment choice because it is valued in US dollars and isn’t linked to the local economy. So, that means, the weaker the Rand, the more valuable your Gold becomes, making it a sound investment for all young South Africans.
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Gold tends to perform better than inflation, which improves your purchasing power in tough economic times. It also performs well during any financial crisis because it is viewed by investors as a good way of protecting your portfolio owing to its extreme stability and long-lasting value.
Did you know that Krugerrands have doubled in value every five years since inception? And did you know that they come in a variety of denominations to suit your budget and they are easy to buy and sell? You can buy a one-tenth of an ounce Krugerrand for as little as *R2,100.
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So, for a couple of thousand Rands, you could start investing your money with your next pay check. Krugerrands are also available in a quarter-ounce, a half-ounce and a full ounce and the price increases as the weight of the Gold increases.
Other precious metals are sold in the form of Bullion Bars which are even more friendly on your pocket. You can buy a 100g Silver cast bar for under *R1,000. When it comes to being the boss of your own investments, options are essential – so start by checking precious metal pricing.
Gold and other precious metals can be traded without getting involved with banks, so you don’t have to sign up for an account or sift through all the legal jargon to start investing. Also, you can sell it quickly and have the cash you need on the same day! Working through a reputable Bullion Dealer is important though to ensure you get the best price for your sale.
Of course, you should try to buy back your Gold when you are in a better position to, but the road to future wealth can often be bumpy and the option to cash in your investments is a major pro for young investors.
Considering all its benefits, Precious Metals and in particular Gold in the form of Krugerrands, makes a good investment choice for new buyers who want to grow their investment over the next 5 years or so.
Visit your nearest reputable Gold Bullion specialist and start the conversation to choose the best metal, the best size and the best purchasing plan for you.
Arno Egen, owner of Mr Kruger, a Bullion Specialist company which deals in Krugerrands and offers the expert evaluation of Gold, Silver and other precious metals: www.mrkruger.co.za