On several instances I have briefly coined the importance of considering investing your money if you either save up significant amounts of money or when you stumble across unexpected windfalls. Inter-generational wealth has long been deemed, for the most part, as a portion for the white people – a narrative that has to be changed. Most locals are caught up in the loop of just eking out a living and aren’t concerned at all with wealth generation. The current economic doldrums are always mentioned as the problem, understandably so. However, we need to inculcate a culture of making investments by all means. So herein I shall take you along a journey that will invoke in you the burning urge to start making financial investments as a means to create wealth.
What Is Financial Investment
Financial investment involves buying assets or injecting capital into initiatives that will earn you more income or yield for you profit gains, usually in the long run. There is a wide array of things one can do that will constitute a financial investment.
Importance of Wealth
It is of importance for Zimbabweans to have a paradigm shift from obsessing over being rich and start endeavouring to be wealthy. There is a marked difference; riches mostly tend to be liabilities that depreciate in value and often don’t generate anymore income or profit. Wealth, however, is inter-generational, can appreciate value & often times reproduces further income or profit. Over the years the recurring assertion across the world has been that the greatest form of wealth is REAL ESTATE. Even the late iconic Dr Myles Munroe repeatedly echoed this and even said that it’s no wonder it’s called “real” because it’s the real deal.
Some Types Or Forms Of Investment
Buying Shares In Companies
Shares are synonymously referred to as stocks or equity. There are basically two types of shares namely, the common type and the preferred type. Once you purchase the former type of shares, you’ll be entitled to having a voice in key decision-making for that company on top of the obvious dividends that you get. The latter type simply affords you the basic benefit of receiving periodic dividends from the company. The common type involves buying quite a significant number of shares that can even earn you a seat on the board of the company. Buying shares in a company guarantees you a long haul and regular return on investment for as long as the company is operational and performing well.
Starting A Business
Owning a business is the most common means of investment that has & is generating wealth for many people the world over. A well-thought out business idea which is properly executed can grow & diversify into a major business entity. Strive Masiyiwa, who owns the diversified Econet Wireless Group is now a billionaire because of his vast business empire. Even the richest people in the world such as Jeff Bezos & Bill Gates are owners of huge businesses. Earlier on I mentioned that investments will generate income & profit in the long run. Thus, you must be cognizant of the fact that it takes patience, dedication & tenacity to generate wealth by owning & running a business. For those examples I have cited to get where they are, it took them many years; despite the hurdles, they dared to soldier on and never hung up their boots.
Earlier I alluded to how real estate is the real deal. All throughout history, even to this day, battles and wars have been fought because of one main thing – assuming control of land. Land is tremendously valuable. Anything ever done that generates income or profit is directly or indirectly premised on land. Therefore it’s wise to purchase land and develop it to have buildings or initiatives that generate income. Of course, farming or mining are worthy investment avenues too. Accommodation & business buildings, especially in urban areas are domains that can generate astounding wealth for you. With the increase in the number of tertiary institutions, constructing student accommodation can put you over. Business activity is also booming and your construction of facilities for rent by businesses can earn you lots; not forgetting the need for basic accommodation which still remains in high demand.
Investing In Quality Education For Yourself
You’re probably wondering huh? Your education is a huge investment that can generate wealth for you in the long run. Being educated ultimately can put you at a position where you become a brand, yes, your level education can make you a brand. There are numerous opportunities that can present themselves simply because of your level of education. You can get appointed to executive board of companies or specialized envoys or committees. You can end up being a high-value paid keynote speaker at national, regional or global platforms. You can even become an accomplished best-selling author; all of which will rake in huge amounts of financial or material wealth for you, simply because of your education.
Being A Venture Capitalist
This entails providing capital to people starting or expanding businesses with the aim of getting a return on the capital invested. In some cases, if the business succeeds, one can end up opting to get the return in the form of shares in the company.
I cannot end this article without mentioning the global billionaire Warren Buffet (Chairman & CEO of Berkshire Hathaway). He is the most successful & authoritative voice on investing in the world. He endears people to work with facts (figures, numbers & statistics), not emotions or opinions), when looking to invest. When investing in businesses, he says it’s prudent to invest in businesses whose nature & dynamics you understand. Simply put – it’s advisable to invest only in initiatives that you are familiar with, fully understand or that are in line with your area(s) of expertise. Things might not always go as planned, but don’t be reactionary – be proactive.