Investing and Investment are the game-changers in life
Investing has been described as the process of taking money out of your disposable income and putting it in something that has the potential to earn money. When you invest, there is a very high probability that it will return money back to you.
From a financial perspective, it makes sense to put money into something that has an intrinsic value, that will return money such as stock market investments. As an investor, you are taking your cash and putting it in a place where you believe there is more potential for higher yields on your investment.
Does investing sometimes make you feel dumb?
Investing is an art, which means it involves some skill. Wrapping your head around the maze of investing can be discombobulating.
Investing is understood to be synonymous with what one calls money management but that isn’t exactly true. It is not just about putting money into financial instruments or stocks and bonds, nor does it simply mean having money sitting in a bank account, waiting for you to spend it.
The act of making an investment includes looking at all aspects of the investment including its risks and rewards.
There are certain inherent risks associated with investing such as loss of capital (losses), interest rates, inflation, taxes and financial shocks which make it risky.
Research, analysing and understanding how an investment works before you put your hard-earned money into it will help you ensure profitability in the long run.
Investing and Investment, are they the same thing?
Does building houses or a flat for rental income equate to investing or is that an investment?
The term ‘investing’ may seem synonymous with ‘investment’ but it isn’t always so.
If a person buys a car or a cosmetic product, they are investing in those things; they want their car in order to easily move around and possibly be more productive, and their cosmeceuticals to take care of their body or enhance their appearance.
But those two examples do not equate to investing. Those are just products that fill a beneficial need; they are investments.
Some People Excel at INVESTING And Some Don’t – Which One Are You?
The main intent of investing is to make more money. Investing has a wider connotation and includes buying stocks, bonds and mutual funds.
While building a house for rental income may be an investment, at the end of the day, it is just an activity that helps generate income for its owner.
Building a house for rental income is an investment in an asset, and does not necessarily equate to the colloquial meaning of investing.
By contrast, real investment is about making money for your future, it does not need to be just about ‘making enough money to survive.
Gambling as a means of Investing
Does betting equate to investing?
With the proliferation of the Fintech industry, betting worldwide has skyrocketed to unimaginable heights with the youths being its greatest consumer.
The betting industry has a worldwide market size of around 250 billion US dollars (around 30 trillion Kenya Shillings), with the betting industry in Kenya at around 170 billion Kenya Shillings (around 1.4 billion US dollars) as of the year 2022.
Many people view betting as a form of investing, but that cannot be further from reality. While gambling and betting are often referred to as investing in terms of how they give you an opportunity to make a profit, there is a significant difference between the two.
The actual reality of gambling
Gambling as a means of investing is like a man who wanted to remove a mountain by throwing stones at it.
Betting is a predisposition towards risk, is short term and is full of hope.
Investing, therefore, has less risk and long-term gains as compared to betting. Investing may not be as fast-paced or flashy but it does have a longer-lasting impact on your life.
Betting involves pure luck and hope which more often than not doesn’t help anyone in the long term. It is more of a form of entertainment and it has its very own downside; you will always wonder if your next bet will not be the winner.
Betting can in fact put your mental health at risk and lead to depression which is a leading cause of suicide. It is just a form of gambling and it should not be confused with investing.
Investing in your own skills has proven to deliver better investment than merely betting on an event. In order to make this work, you have to invest some time and effort, in improving your skill set.
Opening the gates for investing in your life
As humans, we do not always see ourselves or our potential, conversely, sometimes we need to see that potential for ourselves to become the success we want to be. As human beings, we have a tendency to look at people who have been successful and copy them.
Investing in oneself as well as starting a business or any other type of project can be seen as a form of investment. These projects create value for themselves and also give back to others by providing for the community or industry.
When one does not participate in this type of investing, it becomes a form of draining themselves away from what one could have performed for better results.
Believe in your investing skills but never stop improving.
Savings plans are considered to be the most popular, realistic and safest ways to invest. Other means of investment like stocks and shares have proven to be far too risky for the average individual. Real estate can be profitable but there are many risks involved with it. Mentioning Forex trading causes palpitations in some people.
Hence, investments should not be made overnight. It should be a calculated and well-thought-out process.
Many try to save their money and invest it in their own chosen business or property. Although this can be a great boost to the economy, many people are not aware of the different types of investment avenues that exist, how they work and how each one can be used to enhance income and wealth.
Where then should you invest your money?
Investing the samurai way
Different people have different investment objectives based on their specific needs.
What are you going to do with your money, is the question you should ask yourself first. Being able to answer that question is what will help you determine your investment strategy.
There are many ways of generating funds through investing, but some require more attention than others.
Investing in stocks, bonds and other financial instruments is a popular way to invest your money as well as generate a source of passive income. Despite the risky attribute of financial instruments, you can build a portfolio of assets that will grow over time in value.
Even though there are many companies offering shares, bonds and share options, understanding the basics of how they work can help you make a more informed decision regarding your investment decisions.
FOREX TRADING? It’s Easy If You Do It Smart
The Forex Market commonly referred to as Forex Trading, is also a fantastic opportunity to invest. However, it is riddled with more risks and heartache. Just like any other investment, there are risks and rewards.
The buzz around forex trading is that it has more potential than you can imagine.
One should vividly know; that the forex market is not a get-rich-quick scheme. But then again tell this to the many South Africans who have profited from trading forex.
The life of a trader on the forex market is very different from that of an ordinary person. A trader has to think about not only the act of trading but also, they have to invest their time, money and emotions in the process.
If you are looking for an investment with guaranteed returns, go for property or stocks and shares, but if you have no interest in real estate and still have cash burning holes in your pockets then take a look at the forex market, because it might just be the perfect way to invest and earn money.
How Will We Stimulate Your Neurons?
In modern society, financial freedom is something we all yearn for.
With more and more of us finding ourselves in debt and with little to no savings, the thought of achieving that freedom becomes all the more enticing.
Investing is, without doubt, a sure-fire way for you to achieve this goal. But investing in what? What are your options and what should you be aware of before jumping into the market? How can you start investing?
The first step is to segregate your Money. The goal here is to have a systematic way of saving money for the future; helping you attain financial independence and also profitable income from your investments.
Investing is very vital in emergency times. It can also make you earn some extra income in your off time. If you feel like you’re left out in the whole investing thing because you don’t have a lot of money, then I assure you that investing doesn’t take a lot of money to get started.
We shall cover investing and investments in depth, and discuss the various avenues to invest both locally and internationally, as well as the procedures on how to invest. We shall also talk about the risks involved and talk about real-life scenarios of the practice.
Be sure to Check out our Investing Category, as this is where these types of content will be discussed at length.
