Thanks to the disruption of low cost-investing, the answer to this question is really up to you. It is now possible to invest with as little as R5 on EasyEquities – yes we’re serious – but each person will have their own considerations for an amount that is comfortable for them to invest with. The good news is, you have options!
Waiting has a price too
Getting stuck on the idea that you need to have a certain amount of money or lump sum before you start investing, could be doing you a disservice. Instead of waiting for your ship to come in, why not captain your own right now. If you can start investing straight away with small amounts you’re giving yourself the opportunity to learn as you go and build your confidence, without large amounts of money at stake. You’ll also reap the benefits of any returns you make on those small investment amounts, which add up (because: Compound Interest). There are no minimums if you invest using EasyEquities. Zilch!
But some shares are hella expensive. Do I need to save up to invest in those?
Nope. Not even.
Sure, some shares are more expensive than others. In fact shares with hefty share prices are often appealing shares to own. We’re looking at you Naspers and Capitec! But just because you don’t have the amount needed to invest one whole share, that doesn’t mean you can’t invest in it at all. EasyEquities allows you to invest in a portion of a share, while still getting the benefits of being a shareholder. This is called Fractional Share Investing and we’re the only one’s who offer it in South Africa. Even though a share’s price might be, say R1000, you’re able to invest in and own R100 of that share.
Lump sums or monthly bits
Some people reckon investing 10% of your take home salary each month is winning, but even if you can get to 5%, that’s really good going too. Other people prefer to invest chunks of money as they get them – like when you get a tax rebate, or some birthday moolah. So what is the best investment strategy of them all? It’s the one that is going to work for you as a lifestyle and a behavior you can maintain. If substituting what you would normally spend on one cappuccino each week with money that you invest instead is what works for you, do that. Even if it is just R100 a month to begin with. But if you’d prefer to wait for that December bonus so that you can put R5000 in all at once, power to you!