The recent downturn in global investment markets has understandably made many aspiring investors a little nervous about putting their money into the share market.
However, despite the regular ups and downs that all markets go through, the consistency of investing is still one of the most effective ways of building up your personal wealth. The younger you are when you start investing, the longer you have to invest and ride out the volatility in the market – which means you have an opportunity to significantly grow your money and beat inflation.
Nicole Smit, product manager at FNB Money Management, said: “As part of diversifying the extra money left in your monthly budget, your short or long-term investments need to be part of your overall money management. This means that you shouldn’t just dive into the share market until you have put all the other pieces of your personal money management puzzle in place.”
He offers the following advice to help aspiring young investors to get their investment journeys off on the right foot.Diversification is one of the most valuable keys to investment success. “Full diversification can take time to achieve, but if you are able to build up a well-diversified portfolio over time, you will protect your overall investment value from large volatility swings which can take time to recover.”
“So, just because you love watching a particular streaming channel, doesn’t automatically mean it is a good place to put your money.”