The first step to mastering your money in 2015 is to get the basics right. That means controlling your emotions, spreading your risk, and letting time make you rich.
Next, it's time to put your money to work. Choosing specific companies to invest in can be daunting with so many options and so much information to absorb, so here are four great ideas to get you started.
FlexiGroup Limited (ASX: FXL)
FlexiGroup provides consumer financing, leasing and 'interest free' loans, working with companies like Harvey Norman Holdings Limited (ASX: HVN) and M2 Group Ltd (ASX: MTU). The company has a strong history of growth, much of which has been driven by careful acquisitions and it is forecasting Net Profit After Tax (NPAT) growth of up to 7% in 2015.
FlexiGroup should benefit from falling oil prices which will put more money into consumers' pockets, while current low interest rates mean lower borrowing costs.
Yet, despite all this, shares in the company look cheap relative to its future earnings potential, trading at two-and-a-half-year lows and paying a huge fully franked dividend yield of 6.8%.
Woolworths Limited (ASX: WOW)
Woolworths is a business which is easy to understand; buying goods from suppliers, adding a margin and selling to customers. Woolworths does this in three main areas: grocery products, alcohol and building supplies.
Despite being a mature company, Woolworths continues to grow faster than inflation, which means an investment can protect the spending power of your money. In financial year 2014 (FY14) NPAT grew by 4.2%, whereas Consumer Price Index (CPI) inflation, reported by the Australian Bureau of Statistics, plodded along at 2.3% for the 12 months to September 2014.
The recent dip in Woolworths' share price has pushed the company's dividend yield up to 4.5% and it comes fully franked.
G8 Education Ltd (ASX: GEM)
Childhood education provider G8 Education is an umbrella for a number of brands, including Community Kids, Pelican Childcare and Little Einstein's, which you may recognise if you have children. The company has grown aggressively through acquisitions over the last few years and the growing cash flows have seen the company increase its quarterly dividend by 20%.
At its current share price G8 Education has a fully franked dividend of 6.2%.
Cover-More Group Ltd (ASX: CVO)
Travel insurance group Cover-More Group Ltd had a great year in 2014, beating prospectus earnings guidance and growing NPAT by 14.1% to $25.1 million.
The company continues to focus on avenues of growth and currently has its eye on the rapidly growing Chinese travel market. Cover-More also recently announced a new distribution agreement with Insurance Australia Group Ltd (ASX: IAG). The agreement is targeting IAG's insurance brands in New Zealand and the Kiwi travel market which will contribute to earnings growth.
