Entrepreneurship

Smart Ways To Invest And Grow Your Money

If you have an aspiration of becoming a wealthy person, you will need to do more than simply earning  money.

You may be thinking to yourself – this is not the time to talk about investing, how much am I making, I’m not even employed yet, I’m still a student. 😃, take a sit and read through this eye-opening article.

 

There’s NO GOOD time to talk about investing. Ultimately, you have to be disciplined enough to hold onto the money you earn – to then take the next step in learning how to make your money grow.

And the best way to grow your money is by learning how to invest, even before the money arrives.

Note: don’t spend money that you are yet to receive, it’s a bad financial advice and it often leads to debt and financial imbalance but there’s no crime in planning ahead of a fund that’s on the way.

It’s as simple as that.

When you become an investor, you’ll be using your money to acquire things that offer the potential for profitable returns through one or more of the following:

  • Interest and dividends from savings or dividends from a friend’s business
  • Cash flow from businesses or real estate
  • Appreciation of value from a stock portfolio (cryptocurrency), real estate, or other assets

As you learn to become an investor, you will begin to devote your limited resources to the things with the largest potential for returns. It may be paying down debt, going back to school, acquiring a skill or getting a certificate, buying cryptocurrency, buying lands, and so on.

Of course, it may also mean investing in a friend’s business or meeting with consultants and investment experts that collect funds and give you back the funds with cool and meaningful ROI in a specific time.

Investing allows you to significantly grow your money over time. Thanks to the power of Akeula Consults, we have been helping people to manage their funds and our investors are cutely smiling at their phone every months, you too can join them, reach out to (@akeulaConsults) on Twitter.

The field of investing is a large one, and there’s virtually an infinite amount of things to learn about investments. The best, most successful investors will tell you that they are continually learning and continually honing and expanding their skills at making money in the financial markets.

You can’t learn everything there is to know about investing, or even just investing for beginners, in one day, but fortunately, you don’t need to do that in order to begin a career as a successful, profitable investor, you can start with giving your funds to experts with reasonable ROI to do the jobs for you while you get your ROI, but this is very risky. However it is more thrilling, you don’t have to do much work.

If you want to give your funds to people, there are a lot of research and questions you will have to ask because scammers are everywhere, infact you need to be very smart and grounded about investment generally before considering this. From doing your background checks, to asking people about the person/business, to deeply thinking  about the offer he/she brings (if it’s too juicy, it is likely fake), ask to know about what he/she is investing the money on.

I know this is not related but one of the most glaring holes in our educational system is the lack of even basic education in the areas of personal finance and investing. One of the most successful traders in history once remarked, “If I’d only been taught in high school what I later managed to learn on my own about investing, I likely could have retired wealthy by age 35.”

Perhaps that’s a somewhat “optimistic-in-hindsight” estimate of investing success, but there’s no doubt that anyone can potentially reap massive financial benefits from simply taking the time to learn the basics about investing as early as possible in life.

There are two truths I’d like to stress to you at this point: One is the fact that taking the time to acquire even a very rudimentary knowledge of investing, whether at sixteen or sixty, will put you well ahead of your peers in terms of financial literacy, and ultimately, in terms of financial success.

The second truth comes from one of the richest commodity futures traders. This wise, older man confided an important “secret” about investing and wealth – “You can make a lot more money a lot faster by sending your money to work for you every day, rather than just sending yourself to work every day”.

And that’s all investing is: Putting your money to work for you making more money.

 

Basic Types of Investing/smart ways to get your money working for you

There’s an endless list of specific investments you can make, but nearly all investments fall into one or the other of a handful of categories commonly referred to as “asset classes”.

 

Asset Classes

The asset classes that most people are familiar with are as follows:

1) Stocks
2) Fixed Income investments/Bonds
3) Cash or cash equivalents, such as money market funds

There are several other asset classes you may wish to explore investing in at some point, which including the following:

1) Commodities and futures, such as oil or gold
2) Alternative investments, which include real estate, foreign exchange (forex), and collectibles

NOTE: Generally speaking, alternative investments tend to be less liquid than more traditional asset classes. Stocks, for example, are an extremely liquid asset, whereas a private equity investment may require tying up your investment capital for a minimum period of five to seven years. SO CHOOSE WISELY. Are you investing for the short time or the long run.

Equity Investing

Equity investing, the buying and selling of stocks in publicly traded companies, is what most people probably think of when they hear the word “investing” and is a popular investment for beginners.

Equity investing is not about investing in popular companies alone, when you see that your friend has a business that is doing fine and you notice that your friend is a trustworthy and a straightforward person, you can always consider investing in his business, thus has a skill too. You don’t just invest in the business if the business owner is not willing to expand or maybe the business is not due for expansion yet, which might be due to its slim clientele base, you must not be lazy when it comes to doing your background checks and doing follow up on the business.

A lot of people do adverts online that you should give them money and they promise you 20% ROI and some even promise more, most of these juicy offers are mostly scams, and yes, this is a form of equity investment. Don’t invest in a business that you know little or nothing about, or barely have a direct contact with the owner. Before considering giving money to consultants and investment experts, be sure of hat they are into, ask questions and be sure the business is a scalable business and also make research about the industry, you see? It goes beyond confirming the personality of the person.

 

Let me round up with this — One of the basic principles of investing for beginners is this – risk and opportunity go hand in hand. They increase or decrease in conjunction with each other. Investments that offer higher potential profit carry correspondingly higher levels of risk. Likewise, investments that offer a lower potential return on investment (ROI) typically offer greater security and less risk.

For example, if you invest with Akeula consults, we offers a low, but guaranteed, rate of return. Such investments are appropriate for individuals with a very low-risk tolerance, who are more concerned with protecting their investment capital.

Because of the correlation between risk and potential return, you as an investor need to carefully consider your risk tolerance when selecting investments – how much risk you’re willing to accept in return for the opportunity to realize “X” amount of profit.

It’s also important to think about your personal investment goals – the reason for your investment choices. An investor who is looking to generate a second income through investing, or amass a large enough fortune to retire on, will make much different investment choices than an investor who is merely seeking to earn a little interest to help offset inflation and protect his or her purchasing power.

 

Thanks for reading. Kindly share this with your friends and family.

Leave a Reply

Your email address will not be published. Required fields are marked *