MONEY TALK

What Young Investors Should Know About Their Money

Entertainment, fashion, education, travel, accommodation and cell phone data… Did you know that South Africa’s young people spend their money mainly on these six things?

Among South Africa’s youth, investing for the future is a concept that has earned itself a reputation as being boring, too risky, too ‘adult’ or simply inaccessible. Ayanda Majola and Kagiso Tloubatla, co-founders of SV Capital, say it doesn’t have to be complicated.

Keeping It Real

The two experts are taking a stand for startup investments, trumping the traditional portfolios with alternative investment suites. Of course, investors still want to see real growth, real value and real-world returns.

“Like investing in delivery bikes,” Tloubatla says. “It’s a real South African thing and it’s a real investment that can yield great returns.” According to SV Capital, investing in cattle works in a similar way.

They’ve dubbed it the ‘hosepipe effect’ and say that by investing your money this way, you invest wealth into a slow and steady stream that winds its way seamlessly, filling the bathtub in due course. The hosepipe is a flexible vehicle of movement in this case, which you can twist and turn as you like, ultimately managing the flow.

When it comes to investment, it helps to get real with your money and to choose investment products or portfolios that are easy to understand and manage, while also still being big on returns.

TIPS FOR YOUNG INVESTORS

Know your money

You need to know how to spend money, make money and lose money. It takes practice and strategy, but make sure that your relationship with your investments never yields resentment.

It’s not all perfect

If you’re waiting for the perfect time to invest, you may never do it. The best time to start investing, is now.

Go for alternative investments

Alternative investments like cattle and delivery bikes mean that you’re working with real world assets. You also get access to local sectors you would normally not have had.

Play smart

Alternative investments aren’t a way for you to get rich quickly. Be sure to ask the right questions and ensure that your broker is regulated and has the right certification.

Clever investments

Look at the real world and then decide what you will be investing in. Agriculture was the economy’s Covid-19 survivor; the backbone of the South African economy. Delivery bikes have also seen a return of 19.22% over an 18-month period.

Diversify

Never keep your wealth in one bathtub. Diversified portfolios will put control back in your hands – when one is losing, the other one is gaining.