Investment can simply be refers to the action or process of investing money for profit. Investment can either be in a long term or short term.
Long term investment: is simply an investment for a very long term. It is an account kept for at least a year such as bonds, stocks, real estate e.t.c.
Short term investment: is simply an investment that last for a very short period of term. It is also refers to as a temporary investment which normal is within 3 – 12 month.
In 21st century investing is a factor that cannot be overemphasis, and anyone who want to easily grow is money/finance must be ready to invest.
Investing in businesses is simply an act of picking, chosen or selecting a business out of many that is in its early stage and growth focus that you think and believe have the potential to grow. You invest money in them in exchange for a portion of their equity, meaning that you buy shares in their business. Investing is a good habit to have. When you invest, you’re able to grow your money. You’re making it work for you. And if you do it long enough, you’ll become rich.
Investing at an earlier stage of life is very much important as its helps you in the following ways;
Spending habits
You learn good spending habits. It’s hard to set aside money for investments if you don’t know how to save. That’s why when you start investing, you become more conscious of how you spend your money.
You become educated on different investment products
I don’t recommend investing in something that you don’t understand. That’s why financial education comes first. It’s essential so you can make good investing decisions. While it can be confusing at first, you’ll get the hang of it after a while. Eventually, your friends will notice how much you know about the stock market, mutual funds, and other investments; and they’ll start asking you for advice.
Easy access to finance in the day of emergencies
Financial emergencies can arise when you least expect it. You can lose your job or become terribly sick. Your house can burn down or a typhoon can ravage your town. Life is unpredictable. But because you invest, it won’t be as stressful when it happens as compared to having no savings and no investments. You can focus on improving your situation and worry less about the money.
Risk management
You learn how to manage risks. There’s no such thing as a risk-free investment. Even the money in your savings account is subject to the risk of inflation. As an investor, you need to calculate and decide how much risk you can afford. Eventually, you begin to apply the risk management skills you learned from investing in other aspects of your life. In the end, you become better at, and more confident in making important life decisions.
Patient and disciplined
Investment helps one patient either long term investment or short term investment. I cannot forget my first investment on coin, I bought little of Bitcoin, Ethereum, Litecoin and Ripple all in total was about N 15,000, as little this may sound to you I kept checking time to time to see whether its grow or not but a time I stop and left it, then after sometime the next time I check I was amaze what I saw. Your biggest ally in investing is time. You need to let your money sleep and grow for many years so you can reap the benefits of compounding. And that’s why most successful investors are patient and disciplined.
Conclusion
Investing into businesses wisely is a very good habit that everyone who want to live a balance life financially most do. Invest long enough and you’ll acquire excellent money management skills.
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