Investment is an action which requires discipline, patience, and maybe a bit of struggle.
Understandably, it sounds like a lot of work, so why should you invest? Well, the real question is why wouldn’t you invest?
Better Than Savings
Investment is a way to make your money work much harder for you than it does in savings. Identifying an investment that will give you higher returns than a savings account and with low risk is definitely a plus, and there are many investments that do so.
Spreading your investment portfolio is also advisable (don’t put your eggs in one basket). Having more than one source of passive income increases the rate at which your investment grows by minimizing the emergencies that could happen as there is security elsewhere. (spreads the risk)
Investing means you have a financial plan for future you. Whether structured or not, there is a plan for the goal (amount of passive income) you are aiming for, and more often than not, that plan is Financial Independence. Having money coming in every month that is more than enough to support your needs, wants, and desires.
The Power Of Compounding
Investments are meant to multiply in nature. Of course, that doesn’t mean that it’ll double immediately, but every month, the rental yield is included to your investment. The higher the amount, the higher the interest. The interest is should then be reinvested to generate higher interest levels. It’s a never-ending cycle of increment. Not bad, yes?
Return refers to the amount you earn from the asset you have invested in, or its increase in value. When looking at investment opportunities, look at the risk and return that each gives before making a decision. Real estate investment is one with extremely good returns, returns which get even better when the investment is spread out
So, What Happens Now?
You’ve seen how investment can help you, now, how can you start investing?
Take the first step. Make a call, book an appointment, research, find all means possible to find out about the investment you are interested in. Take time to fully understand where and what you are going to invest in. Remember the first rule of investing; never lose your money.
Look at general and company statistics. There’s nothing wrong with too much information. It’s better to go into the venture with your eyes wide open rather than wait for surprises.
Once you identify an opportunity you are sure of, jump right in. Calculated, well-informed risks are well worth the effort that goes into them.
An investment consultant would go a long way in advising you on what to go for and what to leave out. You can reach out to one of TSAVO’s investment consultants to better understand your unique investment needs.