what you need to know about investing

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Investing

Investing is putting money into a financial scheme,shares,or any business venture with the expectations of making profit.

To invest is to allocate money with hope of positive benefit or return within a stipulated time,investing is a deliberate decision with futuristic purpose. He takes more risk than a lender to the company ,To be an investor is the most valuable asset u can be ,it helps you constantly maintain a cash flow.

Rules to know when investing

1 . Never lose your money when investing
2 . Never forget the first rule

You cannot just invest your money anywhere without been sure of the company or business you are dealing with.

When do u invest?

1 . when you do not have a need for the money for like 4_10years
2 . when you have some cash left incase of emergency
3 . when u have cleared off all debts

The reason for this is not to make you go for the money you invested hastily because it needs time to yeild returns.

you can invest in both small and big companies but do that when,

1 . You understand how the company works
2 . The company has a record of success
3 . The company makes attractive profit
4 . The company are not into much debts
5 . The company have the tendency to last forever.

Investment is not ponzi scheme that gives you return in the next 24 hours ,it takes a gradual progress and even long period of time of about 5 to 10 years as the case may be to get large profit,remember the company needs growing to do ,the company have expenses to make in terms of salaries for manpower, and purchase and maintenance of machines and work equipment .All these and many more have to be considered even before venturing to invest in any business or company.

Always remember,

it is risk not taking risk .