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PERSONAL FINANCE

Creating wealth: A Guide to Investing

Becoming wealthy is the dream of many or should I say everyone, but the reality is, very few of us actually achieve this lifelong dream. We begin searching for the answer from the time we are young yet by the time we retire, most of us would still struggle financially.

SO THE BIG QUESTION IS

HOW DO MOST OF US GET IT ALL WRONG?

Well the simple answer we can come up with is instead of creating wealth (Investing), all we do is wishing for it to magically happen. But truthfully, it never does. We waste our youthful stage by using all the available resources (Our time, Knowledge, Money and many other ones) in ways that do not have the potentials of future earnings. We turn to spend our hard earn money on things that make us feel better NOW refusing to delay gratification. Which is the only way we can save enough to invest for a better future.

So What’s Investing:  Investing is the committing of resources into some endeavor or thing in an expectation of a positive return. For instance, you putting in some time to learn about ways you can make better financial decisions is an investment. But for the purpose of this being a financial education we will talk about financial investment.

financial investment: It is an item or asset that is purchased with the expectation that it will generate income or will appreciate in the future. The goal of investing is to put your money in one or more investment vehicles with the hope of growing your money overtime. The Iconic investor Warren Buffet said, investing is the process of laying out money now to receive more money in the future.

There are many investment vehicles that you can commit your money to, including investing in the Stock Market, Bonds, ETFs, Mutual Funds, Real Estate, (and many others). And even Starting your own business.

All of these come with their own risks and it is advisable to understand the risk you are taking before putting your money in any form of investment. No matter how safe or rewarding they might seem to be, remember every investment carries a risk and mostly the higher the potential reward, the higher the risk.

 

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