Here and there, we hear people chanting “Invest! Invest!! Invest!!!”. However, the number one question should be “Why should I invest?” or rather, “Why am I investing?”. Your investment should be goal-based. You shouldn’t be investing if you don’t have a goal in view. An understanding of why we are investing will enable us know the best investment plan to choose. Likewise, you shouldn’t be investing in a particular scheme because someone else is investing in that scheme. You two may have different investment goals.
Let me break it down, there are different investment goals which includes to build a business, buy a car, build/buy a house, to create a side business, to generate passive income, for a wedding etc. A clarification of your investment goal will help you decide the best investment plan that can take you to your investment goal.
- For example, there is Mr. A who has an ultimate goal of investing in real-estate and because it is capital intensive decides to set aside a percentage of his monthly income and keep investing it in a scheme till enough capital has been generated to fund his real estate investment. There is also Ms B who has her wedding coming up and decides to also set aside a percentage of her income and also wants to invest it in preparation of her wedding. These two people have different goals and the liquidity requirement of both investments differ. Therefore, they will need to each choose an investment option that will aid their goals.
For better understanding of Investment options that will match your investment goal and your risk personality, you can visit any fund management firm or commercial bank near you. You will get more enlightenement, however, do well to clarify your investment goal first.
Be intentional about your investment!
We believe in you!
To your financial independence and freedom