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Saving For a Rainy Day

Make a regular contribution to a retirement fund and an emergency fund to provide for the time when you are not working or need money for an unexpected crisis in your life.

Saving Regularly

Making regular savings a habit is one of the smartest things you can ever do. Imagine how much you would have in your savings account in ten years if you were to save 10% of your weekly or monthly income.

INVESTING/INVESTMENT

Investing Tips

· A person without money is a person without choices. To ensure that you have choices and money now and in the future, it is important that you start building a nest egg for yourself. You are the architect of your financial future. Design your future financial plan and start building.

· Go Shopping for Investments – legal that is and make sure you are able to lose your investment.

· Even if you do not have the money, Window Shop. This would give you a good perspective on the issues that could shape your financial goals. Drive around the country and look for sale signs. Ask questions. Schedule an appointment with a real estate agent. Visit your bank and local treasury department to find out what investments are available. Log on to the ECSE’s website: www.ecseonline.com.

· Never invest in businesses you cannot understand. It is not necessary to do extraordinary things to get extraordinary results.

· You must never make financial decisions on emotions or whims of fancy. Ask yourself, ‘what events can bring about a loss in these investments?” and “How high is the probability that these adverse events can or will occur?” This will provide you with the proper perspective in which to assess investment opportunities. When you focus on the potential losses as opposed to the gains, you are forced to analyse thoroughly what you are getting into.

· Research thoroughly each potential investment opportunity. A family member or friend’s recommendation is not enough, no matter what their past experiences have been or how close you are with that friend or family member. And, even though a thousand persons may have invested in a particular investment product, it does not mean that it is a must-have for you. Investing intelligently is not about following the crowd or being fashionable. It is about determining what financial plan is right for you and then selecting investments that fit into your individual plans, considering your investment objectives, risk tolerance and your performance aspirations.

· Seek information from multiple sources and question information that refers to risk-free investments, guaranteed high returns, or once in a lifetime opportunities. Anything that sounds out of the norm should cause you to pause. If mainstream investments are offering 4-5% per annum, and a similar investment is promising 3% per month (this translates into 36% per annum) mental red flags should be raised, warning you that something may not be right.

· Avoid putting the bulk of your investment in a single instrument, company or industry. In addition, it is also important that your investments are strategically spread across different investment instruments to support your investment objectives, risk tolerance and performance aspirations.

· Know your risk tolerance. If you cannot afford to lose a lot of money, it is vital that you stick to conservative investments. You may not make a lot but you are not likely to face financial ruin from a risky investment that goes bad.