HOW TO STAY FINANCIALLY RESPONSIBLE, PART 2: BY @kelvincole

Good day Everyone, great to be back on this wonderful platform to write on How to Stay Financially Responsible ,Part 2. In my first write up on how to stay financially responsible, i emphasized extensively on Savings, but this write up, which is a follow up, will center on investing your Money.

HOW TO INVEST WISELY

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To invest, simply means to allocate Money with the expectation of a positive or profitable reward/ benefit in the future. Investing also mean, owing an asset or an item, with the goal of generating income from the investment. Investing is a conscious effort and decision, and it certainly requires a sacrifice of some present asset that you may own today, which may be your time, money or effort. You must definitely be willing or prepared to sacrifice a lot of frivolities, that is to say, you must curtain your taste by prioritizing your preferences. For example, you must not be in every "aso ebi", neither is it mandatory for you to wear every expensive designer dress you see or use certain luxuries, while you are still in your building/formative stage in life.

When investing,invest more in assets that are not affected by inflation and appreciates over time, such as Land and Gold etc. You may chose to save up and buy a piece of land in a low cost housing area, and give it time to appreciate, and within the next 10 years, you will be counting in Millions. Many people who are financially irresponsible, live their latter years in regrets of how they squandered money that would have made them Landlords.

PRINCIPLES TO NOTE BEFORE INVESTING

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It is pertinent to note that there are some basic principles we need to understand, if we want to invest right.

• Investing in Gambling or Ponzing Scheme: Ponzing scheme and Gambling are not investment. It involves taking risk without sufficient knowledge, and as such, you only end up being scammed. Make deliberate effort to run away from "make it quick" and "too good to be true" offers that are unrealistic, as Greed will make you fall into financial traps, which will render you losing your money,rather than making it. Here, you end up losing precious money, thinking you are investing, as no organization or entity, operates as a "Father Christmas" that gives free gifts. Always place honesty and integrity ahead of you.

• Saving Money in the Bank: For many people, money is a stand- in for security. In other words,there is this natural confidence you have, when you have a substantial amount of money in your bank account. However, saving money in the Bank, should be the least you should do, as it only attracts little interest. While saving money in the Bank has lower financial risk,and sits safely, it loses value over time due to inflation. However, investing such money would improve your net worth and most likely beat inflation over time.

• Risk of investing in a Single Asset: Don't accept some risk to plunge all your Money into one investment for perceived expectation of a higher returns. rather, chose to diversify your investment, as diversifying your investment, statistically help to reduce overall risk. Always try to invest wisely in multiple asset that you are well knowledgeable about and endeavour to monitor its trajectory.

In conclusion,your profit objective determines the investment strategy you chose to implement. You can start a trade that will constantly yield profit, by buying goods directly from the producer at the "farm-gate" price, when they are super abundant and cheaper, and repacked to sell at a higher price when in high demand or out of stock to customers or consumers.

Thank You.

Cc: @xkool24