Wise Up!

Investing in shares isn't much of a priority when you're young. But, while we tell ourselves we still have loads of time, the earlier we invest our hard-earned cash, the more we'll benefit in the future. 'Many believe that investing in shares is something you do in your middle age,' says Noelle Conway, head of marketing at FNB Share Investing, 'but if you start investing at a younger age it will be very beneficial to you.' Conway suggests taking a 'financial snapshot' of your goals and objectives to make the investment process a little bit easier. 'Knowing why, the how to's and the purpose of investing in shares is an important decision-making process for everyone.'

'IT'S MY FIRST TIME…'
'Everyone, at every age, should take control of their financial future,' says Conway. 'You are responsible for making wise financial choices so that you can become financially secure and independent.'

Before you start investing, Conway recommends doing some research on shares; finding out what the risks and benefits are to holding and owning shares, how the economy affects the Stock Exchange and the costs associated with buying and selling your shares. 'Seek the lowest costs of share ownership by checking brokerage fees, share account fees and commissions,' she warns. 'Minimising your fees is one way to gain higher returns.'

It's important that you speak to a reliable service provider who will be able to help you trade shares, says Conway. There are many options out there and it's worthwhile to shop around and do some research, she adds.

REMEMBER, REMEMBER
Conway has set out 10 top tips for you to consult when you start your investing process.
1. Start Investing Now - Don't wait. The sooner you start to invest, the better. Time is an investor's best friend, as it gives compounding a chance to work its magic. The earlier you start, the less you have to invest to reach your goal.
2. Invest Regularly - Investing is not a once-off thing, but something that you continue doing throughout your life.
3. Don't Borrow To Invest - This should be logical, but many people fall into this trap. Also remember only to invest what you can afford to lose.
4. You're Buying a Company, Not Just Shares - A share performance is dependent on the company which, in turn, is dependent on the environment in which it operates. This includes its industry, the general economy, politics and its customers.
5. Buy Shares In a Company Making a Profit - If you buy a share in a company not making a profit, you are not investing and you are running a risk.
6. Diversify Your Share Portfolio - Spread your investment across different companies and over different sectors. The biggest risk in investing is putting all your eggs in one basket. The easiest and cheapest way to diversify share investments is through Exchange Traded Funds (ETFs).
7. Don't Buy On Hot Tips - Do not buy into companies unless you have done your homework first.
8. Don't Try To Predict Market Moves - Trying to predict the direction of the market is difficult, if not impossible. Even experts are not always accurate.
9. Buy and Hold For the Long-Term - Continue to monitor your shares during this period, but consider selling your shares if general economics have changed or if the value of your shares is not appreciating.
10. Be Patient! - Investing for the long-term will let you ride out the unavoidable ups and downs of the market.

Go forth and invest, girls! See - it's not that difficult.

Author: Lindi Brownell