Investment tips anyone? We all know the truth. Adulthood is a scam! You wake up in the morning and instead of a romantic text from your dream husband, you see debit alert, you go out side to receive small breeze and you’ll be hearing; “current or savings sir?”
We have been hounding the world to save and invest more but how do you even know which investment to go into? What should you look out for when you decide to finally make this money and take peng summer pictures? Or start that business and start giving motivational speeches and investment tips on how to succeed?
Here are some investment tips if done right, will sure set you on the right path.
Step 1
Know your Investment personality type!!!
I cannot emphasize this enough. Its like knowing your dress size or shoe size before going shopping. Knowing your investment personality type will make your life easier by way of providing you with the weapon and armor to go into the world of investment. This will help you realize your investment goals and how much you are willing to risk. figure out the type of investment you want to go into and which will bear fruit.
Step 2
Know your investment end game!
Investing is a way to set aside money while you are busy with life and have that money work for you so that you can fully reap the rewards of your labor in the future. Investing is a means to a happier ending. What I mean by end game is; what exactly is your goal for saving or investing? It can be the simplest if things like going on a vacation outside the country or getting the latest iPhone 11 or getting ready for retirement or a baby. You have to note the goal behind the grind, that is what fuels the energy and consistency.
Step 3
Research and investment evaluation
Alright, I know what you might be thinking. I won’t spit grammar or be motivational about what is good for you but these steps have 5 additional steps in it. Putting your money somewhere is a risk, not having enough information about what or where it is an even bigger risk.
Step 4:
Impact Vs Value metrics
After researching and toiling to find the right investment for your personality, the next step or the next question you need to ask is “How much money is this thing gonna make me??” What percentage of returns are we dealing with here?
I was having a conversation with my colleague. She was telling me about how she was gifted half a milli. 😊 your guess is as good as mine. Where is the money? How is it working to make you more money? She told me it was in a bank for a while and then she invested in treasury bills because she heard about it and it sounded like a safe place to put your money (With the government). She was correct, fixed income is a safe place to put your money. It has zero to no risk involved, with just 11% return on investment, sounds good right? errr well, if I were to pick, I wouldn’t go for that. There’s no risk but the percentage is still little as hell! With 500,000 I can do a lot with so much more return on investment.
In your search for the best investment for you, it is important you seriously consider the return on investment. The higher the percentage, the better. The shorter the time to maturity, the best. The metrics in terms of ROI and the impact in terms of number of months. Most investment take one year to mature, except for Agro-investment, Treasury bills etc. Mutual funds, money market, and the likes take 1 year and other fixed income such as bonds take 5- 10 years to mature. Seek professional support and make the right investment decisions that suit your desired goals.
Step 5
Go with the flow, diversification is important
Trust me you want to be with something that has value and can produce more value. Like I always say, investing or investment always takes time. You need to be patient and keep your hopes alive. The idea of picking a credible stockbroker and investment is not so you can put all your eggs in that basket. It is advisable to find other investments with good or even better return on investment to put your other eggs. A diversified portfolio pays better than investing in just equities or fixed income or money market.
Spice things up and make this shmoneayy!
About The Writer
Benedicta Omoruyi is a professional security and investment officer (CIS), marketer and technical evangelist. She is a fierce writer, content creator, investment enthusiast and advocate, and an all round creative female. She writes weekly for Glazia on the column, Money Talk.