There is a process to everything in life, and such processes must be duly followed to be able to get the adequate results needed.
When it comes to investing, there has been a lot of theories and philosophy tied around the subject, some of which have led to so many people making a huge profit and most of which is causing the downfall of so many people in this world today.
To be honest with you, there is nothing as complex as the subject of investment that yields profit, so many people invest in money-making assets and still lose money to the same scheme that made other people rich, then what might be wrong? In this article, I am going to be elaborate on the topic of investing wisely in a portfolio that can yield more money and for a longer period, even throughout a lifetime.
What Is an Investment ?.
An investment is a process or an act in which an individual allocates money to a certain venture to get back money in future.
How To Invest Wisely.
There are so many investment schemes that are all over the place now, most of them guarantee very huge ROI and promise to help you build and sustain your wealth, the fact remains that these schemes are real, but the downside is that most investors do not get to understand what they are about to invest in, and this always causes them to call something a scam when things seem not to be going their route.
To be more plain and understanding, one of the keys to any successful investment is the ability of the investor to understand properly how such an investment is designed to work, life is not a bed of roses, there are upside and downside to everything in life most especially when it comes to investing.
The problem is that most people do not like to weigh the two and see how they can marry them together to be able to gain a sustainable balance.
The Billion-dollar question now is, how do I invest wisely? , Here a few guidelines to help you choose your investment portfolio wisely.
1. Invest In Yourself.
For anyone that wants to build a money-making portfolio in life, the first place to start is yourself, any other investment out there is based on another man’s idealogy and most of which you may not properly understand.
There are so many young people today, seeking for quick-rich-scheme all over the place, they quickly jump at a money-doubling scheme that promises them to give them back ROI as quickly as possible, sadly most of the time, they succeed at such investment and later come back to where they started, because such an investment was not sustainable.
I am not saying that you should not jump at investment opportunities around that you feel is good, most of which comes in form of cryptocurrencies, real estate or whatever might have been pitched to you, but it’s better they come second in your investment portfolio.
When I talk about investing in yourself, most people would think I mean getting a college degree, well, that is not even it at all, whatever you will learn in college are outdated knowledge that has been passed from one generation to the other, some of which are obsolete and useless.
When I mean invest in yourself, I mean getting knowledge and skill of the future such as;
1. Software Development.
Software development is one of the major skills of the future, every business model you see now is getting digitalized so rapidly that any business that does not shift to the internet is becoming obsolete.
This sends a message across that in the next Millenium, software is going to be the major, and software developers would be largely sought after.
Software development is a very broad field that involves areas like Web development, game development, Artificial intelligence and data science, these fields as mentioned are ones that are untapped and would lead the future to come.
Here is an article I wrote to help you get started with software development.
2. Digital Marketing and sales
Another area that is slowly being revolutionalized is marketing, slowly as it might seem, the new marketing trend is shifting to the internet.
Tools like Facebook, Google and the likes were nowhere to be found, ten years ago, but they have become a very important marketing strategy for any business that wants to be successful.
Sales, on the other hand, is going to be a very tough subject without including digital marketing.
Here is an article I recommend you read to help you get started with digital marketing.
3. Public Speaking.
Public speaking is another personal development skills that you should consider investing and developing as a person, public speaking as skill allows you to be influential and also helps you to be able to sell whatever you desire.
There are so many careers that can be created out of public speaking alone, and if you think you don’t have an audience that wants to listen to you, then, social media gives you the perfect space to get started, and one of the very important social media platform to get started with is on YouTube.
Here is an article I recommend you read to help you get started as a YouTuber.
Photography is a great skill that has grown and hit a massive impact from inception since the pre-technological age to the digital era.
So many people cherish memories and can go any length to keep such memories.
Photography is one skill to invest your time and energy into
5. Video Editing and graphics design.
A few decades ago, the media was not as commercialized as this, Images and videos were so not as important as what it is now.
We have seen a multi-billion dollar industry built out of the combination of these two.
Video editing is one skill that would be sought after in this age.
2. Invest in What You Understand.
It is very common these days for people to invest in whatever they feel has a higher ROI, over the past few months from the time initially publishing this post, there has been so much news about cryptocurrencies that even people that do not even understand the background of this scheme are investing largely in it, all they simply know is that Bitcoin is largely appreciating and so other cryptocurrencies such as Etherum would also appreciate, they do not even have enough reasons to back their claims up, while this may be true, it would be best to understand that there are ups and down to every business and the best way to invest is to understand the good side and the bad side of a particular investment.
Don’t get me wrong, investing in cryptocurrencies is a very good business idea, and one that every present business owner should tap into, but the main question to ask yourself is, what do I understand about cryptocurrencies ?.
The same cryptocurrencies have been ventured into by many people and have made a huge profit from it is still the same that has made so many people broke today.
I have an article on how you can invest in cryptocurrencies and I recommend you read it if you are interested.
The bottom line is to invest in what you adequately understand as a person, take time to weigh the risk and benefits involved in any form of investment before venturing into such.
If the benefits outweigh the risk, then it a good investment even if you are getting very little in such an investment, it better than putting the whole of your money in a very risky investment that guarantees you very high benefits and eventually ends up sucking up all your funds.
Over the years I have learnt to invest in what I understand and it has helped me grow, a common saying goes thus; A little drop of water over a particular period makes an ocean.
This is the best form of investing, make sure your foundation is solid and firm in what you understand before actually investing.
3. Use Logic Rather Than Emotions.
Making use of your emotion to decide on an investment is a very bad idea, most investment opportunities usually appear on the bright side and in the end, they eventually crash
Amateur investors are very emotional and using this as a yardstick to decide on investment often leads to a bad idea.
For example, they will buy real estate property because they were convinced by their friends who has the same property in that area.
Some may even decide to invest such a huge sum of money in an investment opportunity that was pitched to them by a friend who showed them his paycheck, most of the time they don’t even bother to ask about the risk involved in such an investment opportunity, they just go ahead to invest and most times they lose out.
Making use of your emotion when you are trying to invest would lead to making bad decisions and this.
4. Follow This Simple Investment Rule.
Don’t worry about missing the opportunity of a lifetime. When it comes to investments, there is always another deal locking around the corner. Like I have always said, don’t be in a hurry to throw your money into any investment opportunity that comes your way.
Make sure to always invest in your area of expertise, and if you know you are not an expert in such field, make sure you take your time to study it very well just before investing.
5. Invest in Real Estate.
Real estate is called a hard asset. It is an investment that is hard to crumble no matter the financial crisis in a country, When I mean real estate, I don’t mean getting a property for personal use or luxury, such houses are quite difficult to sell off when I mean real estate, I mean investing for the sole purpose of rental income, that is where the money really is.
However, you should build your business first, and invest in your business first. Before you invest in real estate, build your scalable business.
Once you’re at a point where you have tons of cash coming in from your business and you have a high net worth, that’s a good time to invest in real estate.
If the cost of the property is 20% of your net worth, you’re in a good position to buy.
However, when it comes to investing in real estate, you must take the time to do your due diligence. If you don’t understand real estate, or if you haven’t done your research or don’t know where to start, that’s another sign you’re not ready. Instead, begin by investing in your business and investing in yourself.
Here is an article I recommend you read to help you get started with investing in real estate.
6. Invest in Cryptocurrencies.
Cryptocurrencies are the new form of making online, it has been around for over a decade and it seems like it not backing down.
Years ago when Bitcoin was initially launched, only a few people took advantage of that opportunity and now we can see the present rate at which it has skyrocketed.
A few decades ago, a bitcoin was sold for less than $5, but now that same Bitcoin is being reported to be sold for not less than $10,000 and that figure keeps increasing.
Bitcoin works like the gold and diamonds with increasing rate every day, all you need to know is how to acquire lots it and sell off at a very pleasing rate.
Cryptocurrencies come with its own risk, I highly recommend that it be a secondary investment, make sure you invest in yourself to develop a high-income skill that would eventually become a business before diving deep into cryptocurrencies, so many people have invested and lost huge money, I highly recommend you take your time, study the trends and invest wisely.
I wrote an article on this blog on cryptocurrencies and I recommend you read it.
5. Think Tech all the time.
When you think back to the beginning of the last decade, there was nothing like apps, social networks, Fintech, music and movie distribution.
The bottom line is that tech has disrupted a whole lot of industries and should be the next stop for investors.
Tech companies like Udemy, Instagram, Netflix, Itunes did not exist in the last decade, but now we can see that these companies have made billions in dollars in just very few years of operation.
I have started a very few points as to how to get started with tech, do you have an idea that can disrupt an entire industry? then, this might be the next step for you to become a billionaire.
So much has been said in this article, and this is more reason why I recommend you take some time to ponder all by yourself before taking the next move on investing.
You’re the best person to determine what to invest in because you want to invest in what you know. You also know best if you’re ready for a great investment or not.