DO INVESTMENT THE RIGHT WAY
By Samuel Asante, August 2, 2020
Investment is simply putting in something to yield good profit in the future. It can also mean gradually growing the money put aside for future purpose. Here, the future can be short term (1 year), medium term (3-5 years), and long term (10 years and above). One may also say, investment is putting money, wisdom, knowledge, strength, time and skills into something to produce profits in the future. Because, apart from money, all the other intangible items mentioned above are in-build resources one can invest to make good returns.
Noninvestment activities
- Keeping money in a current account for a long time without any yield.
- Savings that does not make any returns. e.g. the traditional susu system.
- Accumulating money in your room for future use.
- Borrowing at a higher rate and investing at a lower rate.
Reasons for investment
We invest as a hedge against unforeseen occurrences such as sicknesses, accident, loss of job or business, disasters, payment of school fees, building project, for old age, etc.
NOTE
Normally investments are not meant for immediate use. This is why we are admonished to work diligently to generate income to take care of our daily needs and spend wisely to save for investment.
Benefits of investment
- It serves as personal buffer against future contingencies.
- It helps one to be self-discipline and frugal in spending.
- It can be used as collateral for a loan whilst still earning interest.
- Due to its compounding nature, investment enables you to grow your wealth from little monies which would otherwise be considered as insignificant.
Who Must Do Investment?
Every individual or entrepreneur must try to do investment. Either one’s income or business is small or huge he or she can save. Don’t ask when, the time is NOW.