Guidance?

[Gazed416]

Hi, I am a young male that would like to invest money, or start a company, or just something.

The main issue is that I do not know where to go from here. Some friends told me to register a company and then to become a supplier when tendering. I don't know if it's a totally solid idea but they seem excited about it (?).

Others would say that I should buy shares and then keep them for years, or put my money into a savings account for it to gain interest.

Ideally I'd like a short-term plan AND a long-term plan. Perhaps someone will comment below by saying that there's no get-rich-scheme, but I'd like really like to talk to someone that can explain things clearly to me as I am so uneducated when it comes to the financial world.

Additionally, If you'd be welcome to the idea of sending me a private message, I'd really appreciate that too.

 

[xodosman123]

Get rid of debt 1st...if any.

 

[Greg C]

Hi, I am a young male that would like to invest money, or start a company, or just something.

The main issue is that I do not know where to go from here. Some friends told me to register a company and then to become a supplier when tendering. I don't know if it's a totally solid idea but they seem excited about it (?).

Others would say that I should buy shares and then keep them for years, or put my money into a savings account for it to gain interest.

Ideally I'd like a short-term plan AND a long-term plan. Perhaps someone will comment below by saying that there's no get-rich-scheme, but I'd like really like to talk to someone that can explain things clearly to me as I am so uneducated when it comes to the financial world.

Additionally, If you'd be welcome to the idea of sending me a private message, I'd really appreciate that too.

So youre welcome to message me. Registered CFP. Im in banking, so not a broker or selling of any products. If anything theres advice fee. But its hard to go on anything with the info you provided.

Would need to discuss what your goals are, potential budget. Your preferences basically do a very simple needs analysis and match something.

I think start with the basics

How old you are
Budget: Lump sum of x or a monthly amount you want to put away
Goal: I want to save for x. Do you want access to the money.
Long and short term only fits with goals and investment horisons.

An investment and starting a business are two very seperate and non related issues.
If you are asking what should I invest in for a goal with a purpose for an end goal great. If youre asking should you start a business thats a different set of financial questions, abilities, and necessities completely to having free funds

 

[airborne]

What's a Cfp?

 

[Crowley]

What's a Cfp?

Certified Financial Planner?

 

[airborne]

Certified Financial Planner?

What's the difference between that and a FA/financial advisor?

 

[namzsteve]

Get rid of debt 1st...if any.

This guy is the smartest financial planner, you didn't even have to pay OP

 

[Greg C]

Certified Financial Planner?

Yup. Registered board exams blablabla. Anyone can be a financial advisor which I am greatful in this world I am not. I am in banking so no need for commissions etc

 

[Greg C]

This guy is the smartest financial planner, you didn't even have to pay OP

Ill walk away then
You have this under control

 

[airborne]

Yup. Registered board exams blablabla. Anyone can be a financial advisor which I am greatful in this world I am not. I am in banking so no need for commissions etc

What's the difference between a CFP and a certified FA?

 

[bchip]

It all comes down to investing in something that brings returns, but no-one can tell you what that is
because no-one here knows you and your skills.

Your options are (like said above) get rid of debt first
Then invest in something you enjoy, (we dont know what this could be)
It could be fixing cars, training IT skills, selling drones, writing websites in your spare time etc.
What job do you do? Maybe invest in more degrees/courses in your career [More skills will definitely lead to greater returns]

Then theres the option of financial literacy as well, you can pay for books and do courses on that as well.
Even spending the money on travelling could be a great investment, albeit sounding counter-intuitive.

In summary, you need to find and industry that you really enjoy working in and learn all about it.
Luckily though most of the options have a "free version" with them as well, so save your money until you know what you want to do.
Spend your time (rather than money) trying out different activities.
Save your money in the mean time until you have a better idea or rather spend it on learning,
considering how many free clubs there are and how low costs of Udemy courses can be theres no reason to rush to spend a lot.

 

[bchip]

The main issue is that I do not know where to go from here. Some friends told me to register a company and then to become a supplier when tendering. I don't know if it's a totally solid idea but they seem excited about it (?).

What I can tell you about this is that with any industry there are hundreds of competitors,
most people run into these things believing its going to be easy money.

With every industry there are nuances that you need to learn about before it becomes profitable,
so thats why its better to start with which activities/industries do I enjoy reading about.
You will most likely spend 5 years learning about it before really seeing any gains.

 

[Gazed416]

What I can tell you about this is that with any industry there are hundreds of competitors,
most people run into these things believing its going to be easy money.

With every industry there are nuances that you need to learn about before it becomes profitable,
so thats why its better to start with which activities/industries do I enjoy reading about.
You will most likely spend 5 years learning about it before really seeing any gains.

Thanks for the good advice. Another question, do you know anything about buying shares?

 

[bchip]

Thanks for the good advice. Another question, do you know anything about buying shares?

Ive been in the markets for quite some time

Whats the question?

 

[Gazed416]

Ive been in the markets for quite some time

Whats the question?

I was thinking in buying some Telkom shares. Should I? I don't know what 'yield' is and it's just.. confusing

 

[Papsak]

Spend a few hours listening to the guys at justonelap.com.

But starting young is the best thing you could do - but you might as well do it right the first time.

 

[bchip]

I was thinking in buying some Telkom shares. Should I? I don't know what 'yield' is and it's just.. confusing

To answer the question i wouldnt.
Many reasons but the most relevant one for you is that you dont have a strategy in place. The market is a bit of a chess game if you come with no strategy then you will struggle. Unfortunately there are times when the market fools a lot of people into believing its all easy, so thats why you get so many people that believe they are experts...

I wouldnt rush into buying anything at the moment, theres really very little reason to buy anything at the moment.
Start rather by buying books like the "effective investor" by franco buscetti(?). Then figure out if you are a fundamental person or technical, and then finally research some strategies in that group.

That would be a good starting point. If all of that becomes tedious then its best to try and find a good financial advisor or otherwise you can try your luck with passive funds (which are somewhat safer than individual stocks)

 

[bchip]

To those who kept telling me to buy no matter what, here are all the losses
I managed to miss [12month high to close - 31 May 2018]

 

[phiber]

My recommendation is to try pay off any debt that you have. Once done, take a look at some unit trusts or mutual funds and understand what your risk profile is. Personally I use Allan Gray, really easy to setup and once setup you can view and change you investments online. I like this control. They are very transparent about their fees etc. I recommend you start here:

https://online.allangray.co.za/CreateInvestment/Introduction.aspx?SubMenuItem=

I'd also recommend staying away from single stocks. I've had some really good returns, but some really bad experiences. You need to do some proper company analysis, and even then you can really miss things like Steinhoff. The funds do really well to spread the risk.

 

[Barbarian Conan]

I say rather just pay off the "bad" debt as soon as possible. Home loans are OK to have, and a car maybe as well, depending on the interest rate.
Get rid of everything else.

If you can get in on the tendertrepeneur gravy train, why not? I would have if I qualified and had the contacts to get a foot in the door.
Also, don't buy individual shares unless you know what you are doing, or have some extra gambling money. Rather just put money into an ETF and leave it for 5+ years. These won't make you rich over night, but over 10 - 20 years it will make your life a bit more comfortable.

For a rainy day fund (short term) I like to stash the money in my access bond, or a 24hour / 32 day notice account.