As an individual we all have targets and set goals in our finances, hence adequate information to the right investment is very important. Considering the fact that good investments help us to actualize our objectives in our education, career, capital projects, family needs, etc, then it’s imperative for us to understand these investments.
Presently, we are faced with the recovery of the economy after experiencing the global economic meltdown for more than two years of economic impasse. In most African countries, especially Nigeria do not seem to get on a good start as the government has limited funds to inject into the economy (Capital market) unlike other developed nations of the world are currently doing. Therefore, there’s a need for us to make the right decision at this trying period. There are different types of Investments available to us; Savings, Insurance, Bonds, Equities and Stocks, FOREX, Real Estates, Importation and Exportation, and what have you. These may sound interesting, but we must look before we make decisions in our chosen investments.
For most people, making the right investment decision can be a tough one. They assume that you need enough money to venture into a lucrative business. It is always a good idea to do some research before you can make a decision as to what you want to invest in. This is better achieved the most when you gather information on your type of investment because you want to make the right investments that would work best for you. It is financially wise for you to know the investment basics so that you will be in a position to have variety of choices. Is this where the use of funds comes in? It is advisable that you use your savings especially if you plan to invest in long term. Moreover, you do not need a lot to get into investing though; you can use your monthly savings and investing consistently. The Stocks and shares option is one of the most popular and profitable business.
Also investing in Insurance policy is another guaranteed way of investing without having fear for drop in market price. Unlike the stock market, Insurance is a sure way of getting your money back with a certain accumulated interest over a stipulated period of time that is if there have not been any occurrences before the maturity date. This however, would be discussed exclusively in my subsequent articles.The mutual fund investment option is yet another form of investing whereby organizations collect money from different individuals and use it to venture into suitable quoted company stock at the right time.This reduces your risk of losing money since you are not directly investing in the stock market. You should look out for all loop holes and engage the services of a financial expert to help you make suitable investment choices.
Before we delve into the various investments stated above properly, there is a need to highlight the basic Principles of Investments that would be our guide to a successful venture. I shall discuss 5 of these proven principles that would guide us through;
The first investment principle we must know is to get the foundation right of any investments plan and all the hiccups we envisaged or encountered would be checked. The problem most people have is that they try to solve their challenges from the surface. It is easy for one to quickly take a pain relieving tablets to stop his toothache problems without knowing the cause. Alright let’s look at our business transactions as an instance. A growing businessman borrows money from his fellow business men to build his business venture. By doing this overtime he became heavily indebted. But in order to be free from his indebtedness, he quickly pays his debts without ever considering the fact that his greatest weakness could be poor financial (money) management. In Nigeria today, an average 60 percent of the population are into entrepreneurship in one business or the other yet most of them have little idea of their venture which accounts for low returns in profit every quarter. This dismay performance could only be attributed to their poor knowledge of the said business, hence the business foundation is lacking. In addressing such situations, understanding the roots of these investments
would place us on the driver’s sit to know where and how to make great returns on our investments
The second principle simply tells us to set values in our investments’ plan and life goals generally as a yard stick to take us to our desired expectations. Values are internal anchors we set ahead of time to guide us in time of decisions making. It is also important to note that in our individual offices and business places, values we set for ourselves would determine the future and success of our careers and business ventures. According to Hamel, G. in “Rethinking the basis for Competition” in (Gibson, R (ed) Re-thinking The Future, Nicholas Brealey Publishing, London pp. 76-92 he says that “the big challenge in creating the future is not predicting the future. Instead, the goal is to try to imagine a future that is plausible – a future that you create based on values.” As matter of fact, we must place great values on our investments and businesses for it to grow beyond limits.