Wealth Creation Strategies for South Africans
April 20, 2016
While the 21st century is full of fantastic opportunities to achieve any dream you have, you have to keep your eyes and ears opens and seize new opportunities as they become available. But is important too to have wealth creation strategies in place.
There are even amazing opportunities for people who have left school and who haven’t gone into any tertiary education. Those who are older and want to study further, can continue working and get educated conveniently from the comfort of their home.
Having Internet access has opened up a wealth of opportunities for everyone to earn money. Everyone wants to be financially independent and to never have to worry about money, and in South Africa you can work for yourself, work for a boss or build some kind of an investment system that works for you. Whatever you choose, you want strategies that generate income on an ongoing basis and which also work on your behalf.
Basic Wealth Creation Strategies
Start off by learning to live below your means and get off the spending treadmill. Daunting though it may be, launch a savings- and investment plan. South Africans have many opportunities, and some awesome wealth creation strategies include –
1. Diversify your portfolios – when it comes to investing, you have to cast your net far and wide – to have all your eggs in just one basket doesn’t work with investing. Certainly diversification reduces risk and while most investment experts will tell you that diversification doesn’t guarantee against loss, it is an important aspect for reaching long-range investment goals. Because of its large capital nature, property may well be vulnerable to insecurity but many people buy to let, making sure that the rent covers the mortgage. Do research on regional rental rates and letting seasons and keep this in mind for the future of the property.
2. Customise your wealth creation strategies – know the asset types which are important for ensuring financial security. Allocate your investments among different asset classes such as cash, stocks and bonds, because the right asset mix can certainly help you achieve financial success. Investment assets for instance are important as they are what you will rely on in retirement.
3. Build a portfolio that guarantees cash every month – stocks with high dividend yields are a wise choice, and there are some 73 Johannesburg Stock Exchange stocks with dividend yields greater than 4%. Do your research and invest in some of South Africa’s top companies with good track records.
4. Plan so that you reduce risk – have a system in place to tell you when to buy and sell so that you avoid panicking and then bailing out at the worst time. Emotions don’t belong with investing as they get in the way of knowing when to buy and when to sell. When you see notifications that the JSE is breaking new highs, its time to invest.
If You Succumb to Fear, You’ll never see the Opportunities
South Africa’s economic climate is uncertain, the Rand is weak against the dollar as well as other currencies, food prices are expected to increase and we can expect higher electricity and water.Times are tough for South Africans and everyone has to find ways to better control their finances to avoid falling onto even harder times. Make a budget and stick to it, try and pay off debts and try and set out clear long-term goals so that you can look forward to a brighter financial future.
The time to start instituting wealth creation strategies is now, no matter how little you earn or how precarious your situation is. Sign up here to train and trade binary options immediately.
All info was correct at time of publishing