Hello fellow entrepreneurs here, thank you for always coming here for positive business tips that will enhance your business and career. I will like to share something very important with you today as you enjoy the weekend with your love ones. Have this at the back of your mind that one of your major goals is to add value to your future.
To start with, it will gladden my heart that every entrepreneur to have an investment mentality while trying to building their businesses/career. The underlying benefits of investment to every entrepreneur cannot be overemphasized as we have seen some entrepreneurs after they have built fame, suffers shame in future… It’s time to start investing in your future!
The Term INVESTMENT
The term investment can be said to be an asset or item that is purchased with the hope that it will generate income or appreciate in the future. Mr. Adeyemi Adeniyi, a reator said something in one of Stephen Akintayo’s trainings at Oriental Hotel, Lekki: “When investing in real estate don’t wait to but buy to wait…” This means that you don’t need to wait time to invest in what will add value to you in future; but invest and wait for the investment to yield result…
In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth while in finance, it is said to be a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. It is obvious that investment as to do with the future in the above definitions. Here are some pointers and sensible investing strategies that will assist you in achieving your investment goals.
- Investment Goals – It is important to identify your goals clearly and decide which are most important. In drawing up a list of goals, you should look for things that will help you feel financially secure, happy and fulfilled. Your lists should include items such as:
(i) college fund,
(ii) house fund,
(iii) emergency fund,
(iv) retirement fund
The key is to start investing early, even if you start small. Remember my popular quote: you don’t grow big to manage well; you manage well to grow big!
- Invest regularly – When you put money into an investment, you earn returns in the form of interest, dividends and capital gains. The value of your investment compounds when these returns themselves start to earn returns. Over time, this compounding will be the most important ingredient to building your fortune.
- Controlling Debt – Another major pillar in building a successful financial life is using personal debt wisely. When you consider borrowing money, you should ask yourself will what I am doing with the money either enhance my ability to earn income or will what I am purchasing be worth more in the future. Borrowing for a home or college usually makes good sense. Ensure you don’t borrow more than you can afford to pay back, and shop around for the best rates.
- Pay yourself First – This system is an effective way of ensuring that individuals continue to make their chosen savings contributions month after month. Simply set up a standing order whereby monthly or quarterly contributions are automatically deducted from your bank account. It removes the temptation to skip a given month’s contribution and the risk that funds will be spent before the savings contribution has been made.
- Don’t Put All Your Eggs In One Basket – By spreading your investments or diversifying, you reduce your overall risk and potential for total loss. This diversification could be achieved through investments such as Republic Bank Mutual Funds as well as by investing across various asset classes such as equities, bonds and real estate. For example, at Gtext Media & Investment: we have an estate that is selling presently, you can buy into it. SAPPHIRE ESTATE is a good way to invest into the future…. This take us to the next point.
- Estate Planning – No matter your net worth, it’s important to have a basic estate plan in place. Such a plan ensures that your family and financial goals are met after you die. Dying without a will can be costly to your heirs and leaves you no say over who gets your assets. Make sure to keep your will up to date.
- Budget – Individually our financial plans and investment needs are different and continue to change over our life cycle. You need to consider what stage you are at in your lifecycle, what your risk tolerance level is, as well as, what are your current needs and objectives ensuring that sufficient cash reserves (emergency funds) are accessible for unforeseen situations.
In order, for the abovementioned to work for you, you need a structured plan to keep you on course. This is where a budget comes in. It helps you plan your work and work your plan – a key ingredient in your financial progress and success! I hope these will help you readjust your spending and invest rightly. Once again, thank you for stopping by.
BBM PIN: 55856866
Linked: Adu Stella Prolificstella