What is the #6MonthsRiskChallenge
The #6MonthsRiskChallenge is a financial literacy challenge that introduces participants to the world of investing; through saving, and wise spending in order to start investing - keep in mind that anything that promises you unrealistic returns, is most likely a scam.
Investments don’t have guaranteed returns but can be rewarding, if it all works out.
But that’s the same with spending and saving, right?
With spending, you can spend money on something and not like it.
Save money in hopes that you’ll afford it in the near future, then inflation hits; leaving the money in your savings with less value.
The only difference with this challenge is that you are taking risks with financial assets at a price less than R5/$5. These assets appreciate and depreciate in value over time -as these values change in value, you wont lose anything unless you choose to sell at a lower value.
What does this means?
If you bought shares of a specific company, the share price may change from time to time.
With every investment, loss is limited to 100% but growth can be limitless
When investing in the stock market, NO company can disappear. Instead, processes such as suspensions/halt of trade, take place to protect investors, followed by the company buying the shares from you at a lower or higher value than what you initially purchased them for.
The value of how much the company will buy the shares from you is determined by auditors. So you don’t have to worry about being “CHEATED”.
Unless other offers are put on the table.
Traditionally, penny stocks were those valued at less than one rand/one dollar, hence the term “penny”, which is the British equivalent of a cent. But because of the volatility equivalency between shares between R0.01 - R5 / $0.01 - $5, shares below R5 and $5 fall under the challenge. Penny stocks are often seen as the most neglected on many stock markets.
This challenge will force us to focus on stocks priced between R0,01 and R5 / $0.01 and $5, which we, as retail investors, can commit to for the next six months.
The #6MonthsRiskChallenge will contribute thousands of rands/dollars (maybe even tens of thousands) in funding for the companies, This will too, be beneficial to us as investors.
Don’t see the good in these small “cheap stocks”?
To give you a better idea, small “cheap stocks” mostly very volatile. They have potential for outrageous growth over time, so this means R100 alone can get you sometimes thousands of shares, at the price of cents. Always remember, the cheaper the stock the more of a shift you can expected at the slightest change price.
Say a share costs 0.02 cents. If it rises to 20 cents, that’s already a 1 000% return. So your R100 will now be worth R1 000! If, over the years, your share hits the R1 or R2 mark… just imagine! That’s when you know your R100 investment risk was worth it.
Remember, this a PERSONAL financial challenge that will challenge you to save, invest and spend wisely.
And like companies in the stock market starting/ending their fiscal years in different periods;
with this financial challenge YOU choose when you want to start, and when YOU want to stop.
What's your six months risk challenge?
For the next 6 months, lets see how you going to challenge yourself financially 🔥
Consistency - 6 Months
Budgetting to stay constant in your monthly investments
Investing from as little as R100/$10 per month, in any company selling its shares for less than R5 or $5 for 6 months.
Monthly investment should be constant for six months.
Tailor made - 6 Months
1-for-2 Money Rule
Investing double of what you spend on wants within a month for 6 months.
Monthly Investment is dependent on the value spent on WANTS for six months.
Think its worth challenging your friends and family?
What is the 1-for-2 Money Rule?
Spending is part of our everyday life. But what are you doing to have financial discipline?
When it comes to things that are not a necessity, are you able to tell yourself “I can’t afford this” , and look for something cheaper at the same time invest?
With the 1-for-2 Money Rule - "Only spend what you willing to invest double of.”
Take for example you want to buy something that's not a necessity, for R20; it means you’ll have to invest R40. If you don’t have R60 to do both then look into buying something cheaper or wait till you can afford it. After all, it’s a WANT right?
(Example in ZAR (South African Rand))This is ONLY applicable to WANTS not NEEDS.
Money with no rules.
Save, Invest and Spend wisely.
In everything we do to "invest for our future” - there are risks involved, and the best way to always mitigate the risks would be to do some research.
Investing in shares? Look into small companies YOU believe may be worth the investment in the next coming years...
All the best with your investment journey.
What do I use to invest? EasyEquities
This talk was given at a TEDx event using the TED conference format but independently organized by a local community. Learn more at https://www.ted.com/tedx.
YOUNG LEADERS in different African countries doing phenomenal work in their fields of expertise, share their wisdom on the topic YOUTH IN INVESTING.
Investment education, in particular, will move the African continent forward and create a better life for all.
This is why I am in support of the six months risk challenge. It is time we start embracing this zeitgeist of change towards total economic freedom.
This six-month challenge, for young people, will help them understand how they can live their dreams by taking decisive decisions, calculated risk, and prudent spending.
I challenge you to join this six months challenge as we learn together in order to live your desired dreams in life.
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Savings can be an important buffer for times of financial emergency, but most young people are not saving enough to protect themselves during these periods. Thus, steps need to be taken to improve young people's financial resilience and ensure that there is a safety net for those on the very lowest incomes; this will require a shift in attitudes towards saving.
Some of the actions include, Financial providers (particularly banks), money advice organizations and voluntary bodies, should take a more proactive approach to promoting saving.
The six month Challenge would not have come at a more opportune time, especially today, where Africa is presented with unprecedented crossing cutting debt(s) perpetrated by corruption, and poor spending from national governments trickling down to family institutions. Being aware of money management, income, saving, and debt can equip our young AFRICAN. People with immeasurable knowledge identifying nonstrategic and unsustainable committing of public and personal resources.
With little education on financial literacy, this challenge
is the first and meaningful step towards providing a nexus between financial
literacy and sustainable development through offering comprehensive financial
education on this platform.
Information provided on this site is for educational purposes to encourage ordinary citizens to start investing, saving and spending wisely. Everything provided on this page does not constitute as financial advice. Views expressed on this site are not associated with any company or organization unless stated otherwise.