All you need to know about making personal investments

 

All you need to know about making personal investments

Are you in 30’s? This is the most perfect age to start reshaping your life. At this age, most people have already secured their first jobs or are in their first businesses. Either way, you only have 10 years to begin your life, as they say. Straight to the point, most young people are in dilemma on what kind of investments to prioritize and which to execute in their later years.

Before we look at the available investment options, let’s first look at the don’ts:

1.     Don’t put your money on long-term projects when your cash flow is not stable.

2.     Don’t expect quick returns from your investment, as a matter of fact, avoid dealing with investments promising quick returns.

3.     Don’t execute more than one investment concurrently. Deal with one investment to its entirety before starting another one.

4.     Research well before putting your money on any investment or investments schemes. Clearly analyze the cost benefit for any of such options before proceeding.

Having looked at the above 4 don’ts, what are some of the best investment options to make?

1.     If employed, think of creating another source of income:

There is no better age to create multiple sources of income than when you are in your 30’s. At this age, you are probably more experienced and if you are a good saver, you have adequate capital to start a business. As you grow, responsibilities also grow. This is when you start welcoming new members of the family and you actively participate in community activities that require you to have resources.

2.     If self-employed, think of expansion:

This is not the right time to think of starting multiple businesses especially if your business is doing well. Yes, you got that right! Think of expanding it. Relocate to a more spacious shop or open another branch in the nearby town. With expansion, you are assured of an increase in your cash flow. Cash is king! When you have enough, you can venture into a series of multiple businesses. Do not strangle the existing business by starting another different business.

3.     Avoid long-term projects:

Long term projects consume a lot of your savings and investments. Return on Investment may also take too long. Concentrate on short-term projects that will actually grow your income and cash in the shortest time possible. Do not venture into real estate or buy bonds whose maturity is more than 5 years. Cash circulation means development of working capital and disposable income!

4.     Savings

Most often than not, ‘investments’ and ‘savings’ are used interchangeably. Savings forms the basis for investments. For you to invest, you must first start with your savings. As your investment starts bearing fruits, you may now start sourcing for additional capital from friends, families and/or financial institutions. Never start an investment from proceeds of a bank facility unless it is your second or subsequent investments and the first investment is doing pretty well and stable.

5.     Join investment groups

“If you want to go fast, go alone. If you want to go far, go together.” This old adage is also very true in the world of investments. There are investments you can do individually but there are those which will do better if you join an investment group. Some of these include: real estate, acquisition of property and assets among others of the same caliber.

You don’t need to obtain a college degree for you to invest. It is an easy, fun and motivating process. Always remember to focus on cash creation. You can engage in various investment opportunities as long as you have a stable and long-lasting cash flow. Do not wait to do it tomorrow, do it now!