Rules for Investing Wisely in 2018 it’s not too late even though 2018 is well and truly in full swing now, it’s still new enough that many of us are still making those start of year checks we all tend to do. And often those checks include reviewing our financial health.
Doing so is an excellent idea, but it should go further than simply checking over your budget. You need to take a long, hard look at everything, including just how you are investing your money to save for retirement (you are doing that aren’t you?)
With this in mind, here are some of the things you should be doing – and questions you should be asking yourself – to determine if you really are investing wisely in 2018. And if you’re not, what you can do about it.
Rules for Investing Wisely in 2018
Complete Your Emergency Fund
Do you have an emergency fund? That little stack of cash that all of the experts say you should have in the bank in case of a short-term financial emergency? If you answered no then you are not alone, as more than 37% of South African adults admit they don’t. But you should not be in that 37% in 2018, as the longer you negotiate life without that safety net, the more you put your finances at risk.
The reason that most people don’t have that emergency fund they need is that they can’t see how they can possibly create one, they are practically living paycheque to paycheque as it is. But, it can be done.
Examine your budget and expenditures carefully and find those places where day to day savings can be made. Can you get a lower premium on your auto insurance? Maybe a better rate on a medical aid? Can you swap buying name brand groceries at the supermarket for buying store brands instead?
Even if you only put 500 ZAR into the bank every paycheque its better than nothing and if that’s an interest-bearing account it will grow faster than you think.
Rules for Investing Wisely in 2018
Get a Tax-Advantaged Retirement Plan
Even if you haven’t reached your 30th birthday yet you should still be saving for retirement. But those savings should not go into the same kind of account as your rainy-day fund.
Because the government is concerned about the number of South Africans who are not properly prepared for retirement over the past few years they have made it possible for South Africans at all income levels and of all ages to take advantage of some great tax-advantaged retirement plans that can help them prepare for that day when they leave the office for the very last time.
If you are not taking advantage of these opportunities, then now is the time to act. Talk to a financial advisor, have them help you determine what kind of plan is best for you. it may only take up an hour or so of your time but the ROI on that time will prove to be immense.
Rules for Investing Wisely in 2018
Stop Shying Away from Stocks
If you do have a little cash to invest, but you have never considered putting some of it in the stock market then 2018 should be the year that you, at the very least, look into just what doing so has to offer.
Gone are the days when the world of stocks was reserved for the very wealthy or for those James Bond jet set playboy types. Yes, stocks are somewhat riskier than bonds and traditional retirement savings plans but they also offer a much higher potential return, one that could leave you ‘sitting pretty’ when you retire instead of just ‘getting by’.
Again, the best advice we can offer is to make an appointment to speak with a financial advisor these professionals lay down the ground plan for investing wisely in 2018. Once you have his or her recommendations, do some research of your own too. Once you are educated you’ll likely see that stock investments are not quite as scary as they seem, and they may be an excellent financial ‘project’ to undertake in 2018 after all.
Make 2018 Financially Great