In a world where investment is one of the quickest ways to attain financial freedom, it is no surprise that there are still folks who never invest. It doesn’t matter the type of investment, whether stocks, bonds, real estate, forex and what have you, they will not get involved.
In 2019, Forbes ranked finance and investments as the industry with the most billionaires, with 306 people. Warren Buffet, the chairman and the chief executive officer of investment firm Berkshire Hathaway, is the third richest man in the world. Other big men/women have been recorded to make their money off investment.
So why do we still have folks who don’t give it a thought?
1. Lack of understanding
If a person doesn’t understand how it works, convincing him will be hard. Most times, the process might serve as a professional jargon which is difficult to comprehend by the lay-man. It will be smart to explain in the simplest form.
2. I don’t have money
This could be true. But has any effort been made to raise an amount? Also, there are lots of investments that allow you to start with as little as N5, 000 and work your way up. If you don’t have that either, there’s such a thing as savings, borrowing or OPM (other people’s money).
3. ROI is low
Treasury bills, bonds and the likes, though safe, most times don’t offer much on ROI (Return on Investment). You could put in 100k for the year and all you get is 12% on the money. That doesn’t look like you’re getting rich in the next five years. But it is a way of allowing your money to work for you instead of sitting in the bank, collecting dust. The good thing also, is that your bank can provide you with investment options and help put your money into good use.
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4. Fear of losing it all
While there are safe investments with small returns, there are risky investments with huge returns. These are the likes of shares, company stocks and forex. Getting all of your money back isn’t guaranteed and you either have to have an eagle eye to watch the stock market or hire a guru. For reasons like this, you are advised to diversify. Do not put all your eggs in one basket.
5. Unable to tell what is credible and what is not
Take MMM, for example, many people either recognized it for what it was (A Ponzi scheme) or were completely ignorant and saw it as a lucrative investment. Get double your money within a short period of time? Come on, that was exciting. But it wasn’t credible. Even a well-designed website can be misleading. Which is why you should research and seek advice from top financial experts who know what they are doing.
6. Big spender
Nothing remains. The moment the money lands in their account,[ Nothing remains the same the moment money gets credited to their account], they have already spent it. Order here, order there. Latest iPhone, or Prada bag. They truly believe they can’t set aside any money for saving and investment, until their pay increases. The problem here is that once the income increases, so will the standard of living.
7. The timing is never right
There is always a pending project. A family matter. House rent and other things that matter. But the truth is, there will always be other things. You just have to make that sacrifice and prioritise. Once, you can adjust your budgeting, you will be able to start your investments.
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