Why you should consider invest in the upcoming year
For someone who is already trying to manage a budget or pay down debt, you might wonder why you have to add another financial task to your to-do list. But this one might be the most important of all. Investing is essential to good money management because it ensures both present and future financial security. Not only do you end up with more money in the bank, you end up with another income stream. Investing is the only way to achieve both growing wealth and passive income in the upcoming year.
You have likely heard the saying “A penny saved is a penny earned.” These words relate to saving money. Saving money allows you to store it away and use for a later purpose. Many parents save money to pay for educational expenses for their children or save for a vacation. You can save for new cars, seasonal sports tickets or to make improvements or repairs in your home. Saving for any of these reasons can help you achieve your desired outcome. The difference is that you will be saving money to spend it. Your saved money will not be growing your wealth.
Investing put simply means using your money to make more money. When you keep your life savings in your back pocket or under a mattress, instead of investing, the money doesn’t work for you and you’ll never have more than what you save or receive through inheritance. Thus, you generate more money by earning interest on what you set aside or by buying assets that increase in value. Investing the money that you save allows your money to grow to a larger sum. Investing your money into shares, unit trusts, bonds, ETFs and many more instruments helps in building wealth slowly over the course of time.
Investing ensures present and future long-term financial security. The money generated from your investments can provide financial security and income. One of the ways investments like shares provides income is by way of a dividend. This is an amount paid to shareholders simply for holding the investment. Thus, if you want to retire or become financially independent, investing in shares can be an option you may need to consider.
Making smart investment decisions early in life can pay off big time. Regardless of your current age, it is never too late to begin investing money to be able to fund your lifestyle and plan for financial hardships. There is no way to determine today what will happen tomorrow. Accidents or impairments may eliminate your ability to earn money by traditional means.
Before deciding in any form of investment you need to consider the pros and cons of any time of investment. Technically, anything that generates a return is an “investment”. This means even a savings account generating 1% interest is an “investment”. However, when there is talk about investing, reference is being made to higher return investments like shares and mutual funds.
In order to start investing in shares you need to open a C-TRADE account. This can be done from anywhere at anytime for free. C- TRADE allows investors to access, trade and get relevant information on companies listed on the Zimbabwe Stock Exchange (ZSE) and Financial Securities Exchange (FINSEC) with enhanced efficiency through various platforms. Shares are a very liquid asset as they are convertible to cash within a short period of time. C-TRADE provides investors with a convenient 24/7 mechanism to exit their investments should they wish to exit.
The C-TRADE platform is convenient in that it allows investors to choose from two marketplaces; the Zimbabwe Stock Exchange and the Financial Securities Exchange with each market catering to the varying preferences of investors.
To start investing on the ZSE and FINSEC listed counters on the go, simply download the C-TRADE mobile app or dial *727# across all mobile networks. Alternatively visit ctrade.co.zw to register.
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