Personal Finance Tips

Your net worth is the difference between your assets and your debt, it is the big picture number that can tell you where you stand financially. Keep an eye on it, and it can help keep you apprised of the progress you're making toward your financial goals-or warn you if you're backsliding.

I recommend the 22seven Budgeting and Investing App to keep track of your finances.

The bigger picture?

Finance can seem like an intimidating topic reserved for the JSE elite. However, the average investor can often outperform industry insiders by taking a common sense approach. There are three essential activities the average investor must master to implement an effective personal finance regimen:

1. Budgeting
2. Saving
3. Investing

Following is a brief investigation of each component as well as helpful tools to assist in developing your own program.

Budgeting

The first component of a common sense personal finance program is budgeting, which involves the identification of goals, income streams, and expenses.

An extremely helpful website that can assist you in developing a practical budget is Platinum Wealth.

I have created a budgeting spreadsheet that you can download and use in your computer (use the transactions sheet to update vallues) My Budget Sheet

Saving

After developing a budget which includes an emergency fund, it is important that you find a safe, accessible vehicle for your short term savings. Below are some semi-liquid products that you should consider using:

Investing

For longer term and retirement goals, it is critical that you diversify your investments. Based on your goals, you can select products to meet your desired levels of risk and return. Below are some vehicles you can use to meet your investment needs:

• Mutual funds
• ETFs
• Stocks
• Unit Trusts

A ton of great investing information can be found in the investment section of Platinum Wealth for example How to buy shares on the JSE or How to get started with your TFSA

Another great thread is Advice needed for starting out with ETFs as well as the Stock Watch Thread

Disclaimer

This information is purely educational - if you are unsure, seek help from a professional.

Investments in the stock market may fall as well as rise and are not appropriate for investing for the short term. You may get back less than you invested. All investment carries risk and it is important you fully understand these risks and are willing to accept them. Past performance should not be seen as an indicator for future performance.