How to Invest your Money Wisely in Nigeria
Often times, I get emails and messages from followers, readers and friends asking these questions;
How do I invest my money wisely in Nigeria with limited risk?
How do I build my wealth?
What is the best investment product with the highest return on investment in Nigeria?
What type of business is viable for young entrepreneurs in Nigeria?
I have N200, 000, what do you recommend I invest it on that can be fetching steady cash?
And so many others I can’t remember.
Sometimes, I answer these questions directly by replying the fellow, other times, if I am short of ideas; I push the question to my Facebook Page and ask for my fans suggestion and advice.
While studying on the best ways to invest once money in Nigeria for the year 2016, I came across an interesting post on how to invest money wisely.
There are lots of investment platforms/products you can invest your money into. You can invest in real estate, gold, silver, commodities, businesses, agriculture, etc. Some experienced guys also make money through short term buying and selling of stocks. But I want to state that there’s more to investing than meets the eye.
Most people are obsessed with the investment product and procedure without having the right plan in place. I want to thank Robert Kiyosaki for expanding my insights on this topic. He made me understand that more important than an investment product is a plan.
If you fail to plan, you are only planning to fail
Just as starting a business requires a business plan; so also does investing requires a plan. If you have no written plan on how to invest your money; forget about investing. You can discuss with your financial adviser on the best possible plan for you.
Now before you rush into investing your money in any business opportunity, I think it’s worthwhile you read the following tips on the best investment product to invest your money in.
Here are some tips from the post and I think it can answer the question on how to invest your money wisely in Nigeria.
1. Invest in something you understand
There’s a strong inter-relationship between business and investing. Just as it’s advisable you start a business with a thorough understanding of the industry you are going into; the same is applicable to investing. Sometimes I find it funny that people actually start a business or buy an investment based on the recommendation of a friend or their financial adviser. Others invest in an investment product just because someone succeeded with that same product.
Sincerely speaking, I believe this approach is wrong. Understanding is vital to any endeavor you find yourself in life including investing. Don’t jump into any investment; be it stocks or real estate without first understanding the intricacies of such investment. Lack of understanding is the primary reason why investors panic in an economic downturn. With understanding, you will be able to maximize your profit; manage risk and minimize your loss in any investment.
2. Invest in something you are passionate about
Do you know why Warren Buffett emerged the world’s richest investor? Or Donald Trump the biggest real estate developer in New York City? The answer is that they are both passionate about their chosen investment field. You have to be passionate about investing to get the best out of it; you must love the game regardless of whether you win or lose. Never invest in something you are not passionate about; you will only end up with heartache.
Related: How to Start Investing Today
3. Invest in something you are willing to learn through
Life is a teacher; the more we live, the more we learn. The only thing constant in life is change and in the world of investing; such change occur very rapidly. Now how do you stay in control when the tidal wave of change comes? How can your investment strategy stay relevant in times of change? The answer lies in continuous learning. Investing is like a rapidly flowing river and to stay on course; you have to be on the edge, ever ready to learn.
Never invest in something you hate learning about; no matter how lucrative it may be. If you find reading annual reports boring; or you hate charts, math, calculations and all the jargons associated with technical analysis. Then stay away from stocks. If you hate fixing toilets; then stay away from real estate or better still, partner with someone who loves fixing toilets. The lesson I am trying to emphasize here is this: never invest in something you are not willing to learn through; period.
4. Invest in something you are willing to stick with
For everything there is a season. Business and investing has its good time and bad time; highs and lows. If you are not persistent enough, you will give up. So before you commit your money to any business idea or investment; be sure you are prepared to follow it through to the end, which might lead you to either losing your money or making some profit. Never invest in something you are not willing to stick your neck with.
5. Invest in something you have control over
Lastly, control is one of the most important criteria every successful investor looks out for in an investment. Never lose control of your investment because control is essential to risk management. The reason I chose building a business as my best investment opportunity is because I have absolute control over it. I can increase my sales, control my cash flow, adjust my liquidity ratio, and sell the business or hold. I equally know the necessary buttons to press to increase the value of my business if ever I decide to sell. That’s the power of control. I know a lot of investors who have conceded their power of control to stockbrokers, fund managers, financial advisers and analysts. Don’t do the same.
To add as a bonus to this piece, I’ll say, INVEST IN YOURSELF. That’s my number one rule on investment. Buy books on investment and learn the nitty-gritty involved.
In conclusion, never fall in love with an investment opportunity without first considering and understanding the fundamentals to sound investing and wealth building.
Wishing you the best in your quest to being a better investor.
By Francis Nwokike
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