If you want to grow your income then you need to make some smart decisions on where to invest money. Simply storing it away in a bank won’t help it grow enough for you to live comfortably in your retirement. But there are so many investment options available and they may seem completely overwhelming. How do you know where to invest and when? Which will give you high returns and which is the best currency to invest in? If words like shares, inflation, unit trusts and emerging markets send you running for the hills, then hopefully this article will clarify things for you.

There are many people and businesses around that can help you to make smart decisions on where to invest money. Before you approach them, it is useful to be aware of the terminology they may use. Shares are the unit of account for financial markets (if you like, they are the currency that is exchanged). They are used in the exchange of stocks and investments. Inflation is the measurement used to describe how much more expensive goods and stocks have become over a particular period of time in a particular economy. If milk has gone from R6 to R12 per litre in one year, we can say that there was 100% inflation. Unit trusts are something that you can invest in and are part of a collective investment. What this basically means is that you invest money into a big pot, and you are then entitled to particular units. When the pot earns interest and makes money, you are paid out according to the number of units you own. Finally, emerging markets are those which are experiencing rapid levels of growth and industrialisation. They are normally considered good investments.

When you invest you want to put your cash in something that is going to give you high returns so that you can sit back and relax in your retirement. The safest way to ensure this is to approach your bank or a stock broking firm about how to make smart decisions on where to invest money.