Smart Investment Choices for Women

Nice things nicely settled and well away towards financial freedom. These are the prospects we as ladies have from the bright and early age of twenty-one, maybe even younger.


But as the title of Lisa Serwin’s book “So many shoes, so little money” suggest saving and investing is easier said than done. In her book she addressed finical issues women have and what it takes to make good and intelligent investments.

“The key to saving for the future is to capitalise on the compound interests that accumulate over long periods of time” in other words:

The sooner the better

There’s no time like the present. It might not seem like it now, your living comfortably and you’re happy with your life – but fast forward to house loans kids, health plans etc. and the future might end up not so bright. Which is why it’s better to invest right now.

So let’s talk numbers:

At 21 years old you put away a R100 p/m as an investment plan. This very moment that R100 might not seem like much but it will, trust me. At 5% interests and fast forward about 30 years your R100 will have turned into R80 000. Kick up the interests by 10% and you’ll be left with R201 000


  • Get your debt under Control

It’s better to spend money you have earned than to spend money you still have to earn.

  • Don’t dip out of your savings account (stay strong)
  • Set goals!

Remember to think ahead – always ahead. Interests rates change over years, figure out how much you need to save NOW in order for you to achieve your goals THEN.

The Old Mutual Savings & Investment Monitor is a bi-annual study of financial savings trends in South Africa  

The company has written portfolios on spending, saving and investment habits of South Africans. The cost of living is shocking and it won’t get any better in future.

Rian le Roux, chief economist at Old Mutual Investment Group South Africa, says two things drive savings: your ability to save and your willingness to save.


Understand the structure you’re using

Whether you’re looking at investing in a company, opening a savings plan or simply putting money away for your retirement fund, it’s essential that you compare and understand what you’re getting yourself into comparing company profits or banking rates.

Le Roux says that “You must fully consider all the risks you face – and do not fool yourself by being conservative. You should ask a financial adviser to help you to assess how much you need to save”

Think of it this way:  two very successful companies with bright prospects, one in Europe the other in South Africa, it would be logical to invest in the company in Europe when you’re living a South African lifestyle, where the cost of living is not as expensive as in Europe but the investments are greater.

Again – time is your friend!

For instance if you if you would have invested R250 a month in the Old Mutual Investors’ Fund (a unit trust) (per say) from the year 1990, you would have R469 000 today, yet in total you only actually contributed a total of R68 000. “This shows the power of compounded returns over time.”


Compound interests

The longer and the more you save, the more you will earn in interests and investment returns. More capital and less stress.

There are financial advisors who help women make smart investment choices or even draw up financial plans for future goals. The main thing to remember is to stay focussed, compare plans and pick the best outcome and to start as soon as possible with a keen eye on your future goal. Happy investing ladies.

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