Invest

Being able to Invest for Your Future

At some stage most people will either have some money they want to invest or think that maybe they should try to put a bit of money aside for investment purposes.

There are different ways of investing money, some are quite small investments that return smaller dividends, there are high risk investments that promise quick high returns, there are the medium ones that are slow, steady and relatively safe and there are larger investments that over time can produce good returns.

Shares can provide higher returns on your money than any other form of investment and can considerably improve your lifestyle. This is because of compound interest, that is, letting the earnings on the investment grow instead of withdrawing the money and spending it. You end up receiving interest on your interest. Investing in shares means buying a small interest in a large business that is listed on the stock exchange. The word “stock “ originated from loans made to merchants whose ships were bring “stocks’ of goods such as cotton, tea spices and metals from foreign countries.

Today, you don’t have to be wealthy to invest in the share market and unlike real estate where you need a large sum to get started you can start of with as little as a few thousand dollars and make regular smaller monthly investments.

Another slower and larger type investment is property. You do need more money to start with, there are usually outgoings along the way, but the property is yours, providing you make the mortgage repayments, no one can take it away. With investment properties you would normally rent the property and the money you receive from the rent would pay your mortgage. There are other outgoings such as rates and the up keep of the property. Sometimes, if you have bought well, the rental money can cover this as well.

There will always be a debate about how to invest. Property verses shares. Both have their advantages. Although the property is always there, barring natural disasters, some areas can “go out of favor” and the value may drop. If you need to sell you may not get as much as you were expecting. If you need money at any time, with property, there are two options, you remortgage, if you have enough equity. This means you are up for larger mortgage repayments or have extra time added to the term of the mortgage or you sell the property completely.

With shares, if you need money you can sell only what you need to thus keeping some of your invest earning you money. You can also move your shares around easily. You can sell x amount of shares in one company to buy y amount of share in another. This is a great way for people who are just starting out to get used to the market. Which ever you want to invest, as a beginner it is best to enlist the help of a professional.

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