What all young investors should know about their money

Considering that most of South Africa’s young aspirants spend their money on six things – entertainment, fashion, education, travel, accommodation and cellphone data, it’s, therefore, not surprising that short- or long-term investing is as far removed from today’s status update.

For Ayanda Majola and Kagiso Tloubatla, co-founders of South African investment group, SV Capital, it doesn’t need to be so complicated. According to the team, investing for the future has earned itself a rap among youth for being too boring, too risky, too adult, or quite simply inaccessible. It’s all a myth.

5 things you ‘outta’ know:

• Know your money
  Know how to spend money, know how to make money and know how to lose money. This takes some practice and strategy. Ultimately, your relationship with your investments should never yield resentment – bad move. Investing is first and foremost an energy thing. You will gain and you will lose – but there is a win in every loss when you learn to look for opportunities to re-energise your investments at the right time, for the right reasons.
• Don’t wait for ‘perfect’

If you are waiting for the conditions to be perfect, you may wait forever. The best day to start investing is today. Get out of the bathtub – even if it’s cold outside. Whatever you invest today, is already growing tomorrow. Incidentally, the worst periods can also sometimes be the best times to put money away, since the curve must come up ultimately. And it will.

• Don’t confuse ‘Alternative’ with ‘Get Rich Schemes’
  It’s easy to confuse ‘Get Rich Quick Schemes’ with ‘Alternative Investments’. Don’t. These are most definitely not the same – although there are many hustlers out there that will shade a scheme with an alternative portfolio. Be warned. Play smart. Ask the right questions. Ensure your broker is regulated and has the certification to prove so.
•  Save and invest – and know the difference
  Your savings are more about your every day, any-day access funds – for things such as last-minute tyre purchases, an unexpected flight to London, a medical bill, or a first date you want to impress at the Four Seasons. Your savings are more like an emergency fund – your investment needs to run its course. Both are important.
• Don’t expect everything at once
  When it comes to growing your wealth, you can have everything you want, but not all at the same time. Remember, it’s not the bath tap you’re after, it’s the hose. choose the hosepipe over the bath tap. Stay focused, stay patient. Slow and steady wins this race, friends.

Related article: Mom’s influence on child’s relationship with money