"Jim remember when I told you I bought some coins three months ago?"
"Yea, I can't remember their names; what coins did you buy?"
"I bought some VFX and some other coins."
"So what happened to the coins?"
"I have made 4x the amount I put into it."
"Ooh, wow, how much did you put into it?"
"About hundred and fifty thousand naira, I should withdraw some tonight and invest in other options."
"Mike!!! Where did you get hundred and fifty thousand naira?"
"Remember I told you about saving? I saved specifically to invest, it took me more than a year to save up that amount, and I was saving aggressively."
"Mike, you are patient; ooh, I trust myself, I'll have spent some of the money."
"Can you see how my patience is paying off?"
"I can. Essentially in savings, I have to play the long game, right?"
"Exactly."
Investing
Now that you have savings(link) covered, what do you do with the money you pay yourself.
a. Take yourself on a fun trip.
b. Buy yourself a lovely gift.
c. Make your money work for you.
d. Do giveaways and charity for the needy.
The reason you are saving will determine what you direct your savings to. If you save for procuring a particular item, then go for it, that is the purpose of that savings plan. If you save to have to use opportunities when they come, then investing your money is your best bet.
Investing is essentially having your money work for you. It involves putting your money into sectors you know will yield an increase over a period.
Categories of investment.
There are various investment categories, but I'll be looking at investments on how risky they are.- Low risk - low-risk investments are investments where your profit is almost always sure, or the chances you lose your capital is minimal. Often, these investment options yield low rewards too. Examples include Treasury Bills, Bonds, Dividend-paying stocks.
- High risk - High-risk investments are the opposite of low-risk investments. They involve much risky investment options that could yield high rewards. Examples include Cryptocurrencies, investing in options, investing in the forex market, and currency trading.
One thing that is advised when investing in any asset or sector is for you to know that asset and sector very well. Never invest in something you do not fully understand. You should also know your risk appetite before entering into any investment.
Some common sectors people invest in.
- Land
- Cryptocurrency
- Stocks
- Transportation
What to do.
You might not have enough to invest in bigger platforms yet; what you can do in the meantime is to educate yourself. Learn about the various asset classes. Knowledge is power.
"Jim, can you believe it? Thank God I withdrew from my coins yesterday."
"What happened?
"I woke up this morning, and all I saw was red!"
