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Solutions To Financial Struggles

What Is Investing And Why Is It So Important?

Investing is putting in something in order to get result later, normally investing is used in the business sector whereby it refers to put (money) into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

Investing does not necessarily end there it also refers to “devote (one’s time, effort, or energy) to a particular undertaking with the expectation of a worthwhile result.”

Normally we misunderstand investing only for money yet it also refers to investing in yourself by taking time to 1st understand what do you love, what makes you happy, what makes you sad, how to control your emotions and what are you really passionate about. We always find it easy to put in money in things we don’t really understand to the core just because we have been promised to make money quickly and that is the biggest mistake we make hence in the end, we end up crying when things don’t go as expected coz investing is risky by its nature so you have to learn how to manage the risk but you cannot manage risk if you don’t understand what you are investing in, in the 1st place.

Why Is Investing So Important?

It is important coz the future is forever changing so having invested in education, skill or financial instruments that increases your chances of you having a better future than someone who did not, remember investing in simple terms it is doing something now in order to use it the in future. Importance of investing has helped you to be able to read this post coz you invested in buying that smartphone or that laptop. Let us make an example of that will make it clear why investing is so important. Most people don’t value investing especially the employed ones they believe their jobs are permanent, so what happens they get relaxed over the years and then comes a time a company is facing challenges, needs to retrench, you find yourself in the list of those to be retrenched, at that time while you had money you never bothered learning about how to invest in shares or property so that should it happened you lose your job then your property or shares will be able to sustain you somehow coz the shares would have grown in value. Once you lose your job you become desperate and trust anyone who promises you quick cash, then invest in them, then end up even losing the last money you had and start stressing, the next thing you are sick or even end up in a hospital bed.

What To Do?

As you move forward with your life understand that the number 1 investment you must do is on you before you throw away your money on something without a calculated risk. Before you invest in anything, investigate then make a decision and when it comes to financial investments, never use the money you are afraid of losing coz no investment is risk-free, it is entirely your job to manage your money by reducing the risk you may expose yourself to.

What Types Of Investments Do We Have?

  1. Personal Investment – Investing in you by buying books, search the internet to get the knowledge of what you want to invest in before you put your money.
  2. Paper Assets – Shares, Forex and cryptocurrencies
  3. Real Estate – Commercial properties, residential properties, etc.
  4. Commodities – Gold, Oil, Silver, etc.
  5. Business – Starting your own business or buying other people’s businesses.

 

All the above-mentioned types of investments need your time coz to know yourself better you need time understanding yourself. In conclusion, I will repeat that before you invest, investigate and never use the money you are afraid of losing. All financial investment possess a certain level of risk. This post was just to enlighten about what is an investment and why it is so important to invest, the types of investment mentioned to know them more then you will do your own investigation.

 

To learn about one of the investments available on this blog as part of your investigation please click HERE.

 

 

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