How To Invest With Common Sense 1

    Hello guys, Welcome to etimdaviesblog. Today we will covering a very vital topic in our financial lives. One we cannot overlook or over emphasized. Investing with Common Sense. Sorry I have not been up and doing lately, I have been dealing with some personal issues, but I am happy to be bringing you this very important topic today. 

        First off, What does Investment mean? 

      It is quite simple. We can look at farming as a valid example, the farmer plants seeds and harvests fully grown crops. Though, the crops don't just appear magically, we must put in the work to secure our investments. Just like watering the crops until harvest time and then, the farmer is full of laughter.

     Investing is a really broad topic, I will try as much as possible to summarize every points to the level where you still get to understand it fully. 

      As we have stated earlier, Investing is the process of investing money for profit. In layman's terms, it involves putting your money out there to go and work for you. Investing is your best bet if you are looking for financial freedom. If you don’t want to work all the days of your life and you want to make money while you sleep, Investing should be your main game. Like they say, “If you don’t find a way to earn while you sleep, you are going to work until you die”. I wouldn't want that for you, I therefore urge you to invest wisely. 

      Jumping into Investment isn't what you want. There is something called “Security” in investment. It simply something you have in place to make sure you invest without losing your capital. That is, if you invested $5 you should be sure of getting at least your $5 back. Security helps you to make sure you don’t fall into a huge mess in the form of DEBT. 

      Moving forward, you need to get conversant with the idea of investing. You need the basic knowledge on it and that is what I will be providing for you in this post. 

• Stocks and Shares
• Bonds 
• Mutual Funds 
• Precious metal 
• Assets 
• Liabilities 

 We will briefly look at the explanations of these terms. 

Stocks And Shares 

Stocks are simply indicators that you have part ownership in one or more companies. Shares on the other hand are indicators that you have ownership in a particular company. The sales of stocks and shares are done in the stock market. One can make massive profits from stocks when the worth of such stock has appreciated in value. For instance, I acquired a share in the Nigerian Breweries in 2009 for $10, and in 2018 the returns are over a thousand dollars. Amazing isn't it. Do note that it doesn't always happen that way. You might get lucky or you might not. 

Bonds

Bonds are simply an amount of money invested by someone that is lent to someone else and returned with interest. Simply put, bonds are owned by creditors and money lenders who gives loans to people with aim of making interests from it. 

Mutual Funds 

A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. As I mentioned above, securities are just to make sure you are not on the losing end. 

Precious Metal 

These includes Gold, Silver and bronze. There are people in the business of selling precious metals. It is a good way of investing because they are always appreciating.

Assets 

Another terminology to be conversant with when it comes to the topic of investments are ASSETS. Assets are usually belongings or properties that brings in monetary returns to you. Some examples includes: Arts, precious metals, Land and a most popular one is Real estates.

Liabilities 

Liabilities on the other hand, are unnecessary expenses on ones head. A liability is a debt owed from one company to a person or company that is not an owner of business. A typical example are Bills payable. It should be interesting to note that investing could include many different things. 



      It is not just limited to the things that are listed above. You could also invest in a startup company, one that you believe has what it takes to succeed. There is also the option of the Internet. It should be noted that as of April 2019, 56.1 percent of the world population has internet access. In 2018, 47.1 percent of the Nigerian population were internet users. I would therefore recommend the internet as a valuable asset to everybody because half of the world is a potential customer. There is also the option of agriculture and private education. 


     Basically, you need to have a foundational knowledge on what investing entails. After that is done, you can move on to begin preparations which includes you setting goals. Where do you hope to get in what time with the investment you are making. Those are the kinds of question to ask yourself. Make relevant research, try to gather as much information possible so that you can learn, then go ahead to invest. 

     When one is going into the world of investment, it is advisable to get an Advisor. Why Financial Advisors Are Important. Financial matters can be complicated and it is the work of a financial advisor to make it less complicating. You must be sure that your financial advisor must be very experienced for effectiveness. They are important because they help you protect your asset. If you are just starting, there is no need to think too much, you just have to do more work and more research in order to avoid being scammed or investing in the wrong thing, this can be costly. 

      You should take a general review to check and see what worked and what failed, make necessary corrections so as to make sure you get better, avoid the mistake in the future and invest again. Make sure to do this all the time, because we are always learning, from both our success and our failures. 

      Please stay tuned for the second part of this post. Coming very soon!



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