Understanding Investing
#EpisodeOne
We will be sharing a few thoughts on the recent happenings with investments platforms in Nigeria.
It is a known fact that some investments do go wrong for cogent reasons just as businesses face setbacks, humans fall sick, machines break down, etc.
My thoughts are not on the above context, but on cases of deliberate and strategic attempts to swindle people and in few cases, plain ignorance.
I have been having conversations with people who have lost monies to certain investment platforms and I realised there are some gaps in the understanding of investment that need to be bridged and that is our focus here.
In very simple and non-technical terms, the first step to becoming a smart investor is not to focus on how to grow your money rapidly within a short time frame.
The first step is how to preserve the value of your money for as long as possible (obviously, this implies you must first gather money - saving if you like).
If you had 1million naira in October 2020 and it could buy you a piece of land, will that same 1million naira buy you that same piece of land by October 2022?
The answer is most likely a no.
That means although you still had 1million, that 1million has lost value over the period of one year.
Note that you saved the 1million all the while. So then, saving money is not enough (if your goal is to grow wealth).
The question from an investment mindset is, how can you save money without losing much value?
Leaving the money in the bank or in a private vault is definitely not the way.
That is why you invest...
In ventures that give a yield to cover up for the value you would have lost if you merely saved.
Once that is taken care of...I mean once that question is answered...
You then begin to think of ventures that will not only preserve your money from losing value but would also add value to it...
The farther you move away from that point of losing value for your money, the more preserved your money becomes plus it also grows beyond the original value...
Remember, the focus at this point is not rapid growth of your money. In fact, wealth never grows rapidly. Think of wealth as you growing an orange plantation. Think of quick money as a maize plantation. Many of us want to attain an orange plantation through the maize route.
Your 100k cannot become one million in three months, don't let any investment platform deceive.
Watch out for Episode Two. Should it drop today or tomorrow? If today, comment YAY. If tomorrow, comment NAY.
Tip: Understanding money/investment goes together with having a sharp business acumen.
#EpisodeOne
We will be sharing a few thoughts on the recent happenings with investments platforms in Nigeria.
It is a known fact that some investments do go wrong for cogent reasons just as businesses face setbacks, humans fall sick, machines break down, etc.
My thoughts are not on the above context, but on cases of deliberate and strategic attempts to swindle people and in few cases, plain ignorance.
I have been having conversations with people who have lost monies to certain investment platforms and I realised there are some gaps in the understanding of investment that need to be bridged and that is our focus here.
In very simple and non-technical terms, the first step to becoming a smart investor is not to focus on how to grow your money rapidly within a short time frame.
The first step is how to preserve the value of your money for as long as possible (obviously, this implies you must first gather money - saving if you like).
If you had 1million naira in October 2020 and it could buy you a piece of land, will that same 1million naira buy you that same piece of land by October 2022?
The answer is most likely a no.
That means although you still had 1million, that 1million has lost value over the period of one year.
Note that you saved the 1million all the while. So then, saving money is not enough (if your goal is to grow wealth).
The question from an investment mindset is, how can you save money without losing much value?
Leaving the money in the bank or in a private vault is definitely not the way.
That is why you invest...
In ventures that give a yield to cover up for the value you would have lost if you merely saved.
Once that is taken care of...I mean once that question is answered...
You then begin to think of ventures that will not only preserve your money from losing value but would also add value to it...
The farther you move away from that point of losing value for your money, the more preserved your money becomes plus it also grows beyond the original value...
Remember, the focus at this point is not rapid growth of your money. In fact, wealth never grows rapidly. Think of wealth as you growing an orange plantation. Think of quick money as a maize plantation. Many of us want to attain an orange plantation through the maize route.
Your 100k cannot become one million in three months, don't let any investment platform deceive.
Watch out for Episode Two. Should it drop today or tomorrow? If today, comment YAY. If tomorrow, comment NAY.
Tip: Understanding money/investment goes together with having a sharp business acumen.
Understanding Investing 1
#EpisodeOne
We will be sharing a few thoughts on the recent happenings with investment platforms in Nigeria.
It is a known fact that some investments do go wrong for cogent reasons just as businesses face setbacks, humans fall sick, machines break down, etc.
These series are not in the above context but on cases of deliberate and strategic attempts to swindle people and in few cases, plain ignorance.
We have been having conversations with people who have lost monies to certain investment platforms and we've realised there are some gaps in the understanding of investment that need to be bridged and that is our focus here.
In very simple and non-technical terms, the first step to becoming a smart investor is not to focus on how to grow your money rapidly within a short time frame.
The first step is how to preserve the value of your money for as long as possible (obviously, this implies you must first gather money - saving if you like).
If you had 1 million naira in October 2020 and it could buy you a piece of land, will that same 1 million naira buy you that same piece of land by October 2022?
The answer is most likely a no.
That means although you still had 1 million, that 1 million has lost value over the period of one year.
Note that you saved the 1 million all the while. So then, saving money is not enough (if your goal is to grow wealth).
The question from an investment mindset is, how can you save money without losing much value?
Leaving the money in the bank or in a private vault is definitely not the way.
That is why you invest...
In ventures that give a yield to cover up for the value you would have lost if you merely saved.
Once that question is answered, You then begin to think of ventures that will not only preserve your money from losing value but would also add value to it...
The farther you move away from that point of losing value for your money, the more preserved your money becomes plus it also grows beyond the original value...
Remember, the focus at this point is not rapid growth of your money. In fact, wealth never grows rapidly. Think of wealth as you growing an orange plantation. Think of quick money as a maize plantation. Many of us want to attain an orange plantation through the maize route.
Your 100k cannot become one million in three months, don't let any investment platform deceive you.
Watch out for Episode Two. Should it drop today or tomorrow? If today, comment YAY. If tomorrow, comment NAY.
Tip: Understanding money/investment goes together with having a sharp business acumen.
#EpisodeOne
We will be sharing a few thoughts on the recent happenings with investment platforms in Nigeria.
It is a known fact that some investments do go wrong for cogent reasons just as businesses face setbacks, humans fall sick, machines break down, etc.
These series are not in the above context but on cases of deliberate and strategic attempts to swindle people and in few cases, plain ignorance.
We have been having conversations with people who have lost monies to certain investment platforms and we've realised there are some gaps in the understanding of investment that need to be bridged and that is our focus here.
In very simple and non-technical terms, the first step to becoming a smart investor is not to focus on how to grow your money rapidly within a short time frame.
The first step is how to preserve the value of your money for as long as possible (obviously, this implies you must first gather money - saving if you like).
If you had 1 million naira in October 2020 and it could buy you a piece of land, will that same 1 million naira buy you that same piece of land by October 2022?
The answer is most likely a no.
That means although you still had 1 million, that 1 million has lost value over the period of one year.
Note that you saved the 1 million all the while. So then, saving money is not enough (if your goal is to grow wealth).
The question from an investment mindset is, how can you save money without losing much value?
Leaving the money in the bank or in a private vault is definitely not the way.
That is why you invest...
In ventures that give a yield to cover up for the value you would have lost if you merely saved.
Once that question is answered, You then begin to think of ventures that will not only preserve your money from losing value but would also add value to it...
The farther you move away from that point of losing value for your money, the more preserved your money becomes plus it also grows beyond the original value...
Remember, the focus at this point is not rapid growth of your money. In fact, wealth never grows rapidly. Think of wealth as you growing an orange plantation. Think of quick money as a maize plantation. Many of us want to attain an orange plantation through the maize route.
Your 100k cannot become one million in three months, don't let any investment platform deceive you.
Watch out for Episode Two. Should it drop today or tomorrow? If today, comment YAY. If tomorrow, comment NAY.
Tip: Understanding money/investment goes together with having a sharp business acumen.