EducationFive Evergreen Financial Principles - OBIN Wealth Management3

Whether you’re new to the investing game or a proficient trader, everyone needs to know the 5 evergreen financial principles that keep investors on course!

1. Review your budget, revise and stay positive!

Compiling a budget is the starting point of any individual’s financial planning process. Essentially, this principle involves reviewing income and expenses, and considering options to earn more and spend less (then actually doing it!). Investors should consider how they spend their money and improve their financial decisions when possible. Just a few simple steps could make a big difference!

2. Don’t waste time or energy on predictions

Even the experts don’t consistently get these calls right. Investors should rather go back to the basics. Predictions about where the rand is heading or whether local shares will outperform offshore markets are, in many regards, a futile exercise. Instead of spending time on predictions, start by reviewing your asset allocation.

3. Stick to your plan

Inevitably, markets will be volatile and conditions uncertain. But it is important to remember the investment goals and to stick to the plan. IIt’s human nature to become nervous in these situations and want to change course, but it is important to consider your investment goals and to stick to the plan!

4. Understand and manage fees

Understanding investment fees is important. Ultimately the investor wants the best after-fee return over time. Investors should consider asset management and advice fees within the context of the growth and service they receive. Therefore the fee should be considered in the context of the actual return.

5. Diversify

Not keeping all your eggs in one basket is important to diversify risk between investments, asset classes and companies. Active and passive investing strategies are two different approaches an investor can take when diversifying. It could be a smart move to include both strategies in an investment portfolio!

Contact OBIN Wealth Management today to help you manage your investments. OBIN Wealth Management is an authorised financial services provider (FSP 49230)