How to start saving from your first pay cheque

How to start saving from your first pay cheque

Mar 16 2018

Cape Town – Investing when you are young sounds like an expensive and daunting task, especially when you have just started your first job, says Lance Solms, managing director at Itransact. He says the best time to start is with your first pay cheque.

“There are plenty of investment options available that don’t require you to have millions. How much you save depends on what you want and what your goals look like, there are investment and savings options that require even as little as R300 per month,” said Solms.

He shares some tips on how to get started:

Start early
Keep in mind, savings accumulate and the interest compounds without taxes, as long as the money is not withdrawn. So, it’s wise to establish an investment vehicle early in your working life.

“Another reason to start saving early is that, usually the younger you are, the less likely you are to have burdensome financial obligations, for example a spouse, children and mortgage. That means you can allocate a small portion of your investment portfolio to higher risk investments, which may return higher yields.” says Solms.
“When you start investing while young, before your financial commitments start piling up, you’ll probably also have more cash available for investing and a longer time horizon before retirement. With more money to invest for many years to come, you’ll have a bigger nest egg.”

Read more https://www.fin24.com/Money/Investments/how-to-start-saving-from-your-first-pay-cheque-20180316

2018-03-27T09:00:41+02:00 Mar 27th, 2018|Finance, Recources, Syllabus Topics|