Learning to invest
Headline: Starting a savings plan
First two paragraphs:
Starting a savings plan
Published February 5, 2014 | By Maya Fisher-French
"You always say that every cent is important so I want to start a savings plan. My pocket money is R400 a month and I want to save R200 to invest for the future. I want to know how I should invest my money," writes Amogelang who is 22 years old and currently studying.
Keabetswe is a second-year university student who also wants to start investing. "I would like to know where I should invest my money, the bank or buy shares in a company? Which one will give me a higher return after 5 to 10 years?"
Maya replies: Some people believe that you need to have lots of money to start investing, but just investing R200 a month can add up to a significant lump sum. Around nine years ago I started saving R200 a month for my son in Satrix 40 which simply tracks the performance of the 40 largest South African companies. Today that investment is worth R55 000!