The exposure available in our world today has made the word ‘investment’ familiar. So you do not need to have a degree in Business or Accounting to know that buying shares, treasury bills, or saving your money in a fixed deposit account are investment options that ensures that you enjoy interests, while keeping your capital intact.
However, despite having at least a basic knowledge of investment, the numbers of people who actually invest their savings are low. This can be due to lack of enough education on investment, or a non-chalant attitude. But where money is concerned, we cannot afford to be ignorant and dismissive, because we all need money to improve and maintain the quality of our lives.
Making your money work for you simply means that you let your money produce even more money for you without directly managing it. Does this sound like French to you? If yes, read on.
One of the biggest differences between the wealthy and the less wealthy is that wealthy people earn interest while everyone else pays interest. And if you keep being with the latter group, financial independence will always be a dream, and you will work for money till you are old and grey. That obviously is not a nice picture, so we recommend the following –
- Get Out of Debts – We cannot have this conversation if you still have baggages. To start your journey into financial freedom you first need to get out of debts. So, instead of spending your earnings on glamour and other priviledges, why not cut down and live lean for a while, so that you will not only get out of debts, but also have emergency funds of up to six months in cash.
- Increase your Savings – You are making a sacrifice for your future. So even though, it feels like you are losing out on some fun now, you have to save adequately, so that when you want to start your investment journey, you will have a lot of disposable cash to use, without touching your emergency funds or getting broke.
- Research – It is no news that a lot of people have lost money while investing. Yes, investing can make you rich, but it can also make you go broke. So you must not become a victim of get rich quick scams disguised in the name of investments. You must study tried and trusted methods of investing your money to get desirable returns.
- Investment – Now, it’s time to take your disposable savings and try your hand on investing. Be ready to take baby steps. There is no point rushing and throwing all your money in. Try different markets till you know what works, and then gradually build on it. Before you know it, your interest is building and you are getting matured in your investment game. And your money will begin to work for you.
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