Is there a right way to lose money? Or should we ask whether there is a right reason to lose money? Both questions get a big fat YES! They are right ways and reasons to lose money. Provided you are aware of the wrong ways and reasons too. Let’s face it, there are countless challenges that come with being a millennial and money is at the top of this list. Before we delve into how to lose money in the right ways and for the right reasons.

Let’s look at a few key-points from the economic review of our beloved country:

• According to the recent World Economic Outlook (WEO) by the International Monetary Fund (IMF) South Africa is now the third-largest economy on the African continent. Surrendering its second place to Egypt and Nigeria remains in the number one spot.
• The rand weakened from an average of R8.20/$ during 2012 to an average of R12.74/$ in 2015. On Tuesday, 17 May 2016 at 13:03 the rand was trading at R15.68 to the dollar.
• The rand remains below successive support levels suggesting a continuation in the rand’s depreciation.
• In a Bloomberg survey 12 out of 13 economists expect Standard & Poor’s (S&P) credit rating agency to cut SA’s sovereign debt rating to sub-investment grade (junk status) by the end of the year.
• Despite the recent price rally Brent crude’s break below the key $30 support level in February suggests a continuation of the weakening long-term trend to a downside $25 target.
• Gold has broken its recent downtrend by rising decisively above the $1 100 resistance level. An extended break above $1 250 is needed to confirm the end of gold’s bear market.
• The JSE All Share index is up +12% from its lows in early January and appears dramatically over-priced on a price-earnings (PE) multiple of 21.2x around 40% above its 14.8x long-term average.
  View/download the full Overberg Market Report - http://www.overberg.biz/pdf/Overberg%20Market%20Report%2010th%20May%202016.pdf

South Africa is facing continuous food, fuel and electricity price hikes that make the cost of living higher each month. So, ask yourself will you and your loved ones be financially secure if the economy continues to depreciate? Or worse, if we were to hit a recession? If your answer is no or maybe and not a definite yes, then you have your answer.

You need to get the best financial education immediately on what’s available out there for you to take advantage of; whilst there’s still time. The National Treasury introduced Tax Free Savings Accounts a year ago. If you are unaware of this visit your nearest bank or life insurance company for more info.

If this is not the route you would like to take. Take the stock market investment route. Do some comparative research on various funds especially looking at fund performances before you choose one that aligns with your financial goals, needs and pocket.           

The Overberg Market report is an indicator of the economic times we live in. Economic times which urge millennials to look into their personal finances and start saving from as early as possible. Millennials need to get into the habit of losing money in the form of savings plans and investment portfolios. Now is the time to be proactive.