The best route to financial freedom and wealth is by saving and investing your funds. With the rising inflation rate in the country, money saved in the bank is useless and would depreciate with time. The best thing to do as a smart person is to invest your money and sleep while your money works for you. Investment entails more than just knowing about the stock market and investing, it involves having a healthy investing habit. It takes a lot of study and growth to imbibe these habits. Keep reading for tips on how to improve your investing habit and make more money.
Keep at it
A good investor doesn’t start today and stop tomorrow. You have to be consistent with your investment plan and learn not to eat all your returns. Reinvest your interest and keep investing till your last breath, that is how you make more money. When Albert Einstein was asked what man’s greatest invention was, he said ‘compound interest’. According to him, “compound interest is the eighth wonder of the world, he who understands it, earns it; he who doesn’t pay it.” Imbibe the art of reinvesting today and keep at it.
Have a plan
‘A goal without a plan is a wish.’ Having defined your financial goals, you should come up with a plan on how to achieve your goals. Gone are the days when you just invest blindly. To improve your investing habits, learn to plan ahead. Decide what to invest in, look out for the risks involved in your investment, calculate your interest rates and see if it would benefit you, and track your investment.
Spend more time on research
“It has long been the prevalent view that the art of successful investment lies first in the choice of those industries that are most likely to grow in the future and then in identifying the most promising companies in these industries”
An excerpt from the book, “The Intelligent Investor; The Definitive Book on Value Investing” by Benjamin Graham, updated by Jason Zweig.
The importance of research cannot be overemphasized. As a smart investor, you should do thorough research on the industries that have great potential and would give you better results. You should also do in-depth research on the risks involved in investing in specific industries. Arm yourself with enough data before investing.
Learn from your mistakes
There is no successful investor that has not made a financial mistake or lost money due to some sloppiness. However, what makes you a better investor is the ability to learn from your mistakes and move on. This rule applies to all facet of life so it shouldn’t be new to you. If you make an error in your numbers or make some huge mistakes, pick yourself up and try again.
Wait on it
You can not be an investor and not know how to be patient, disciplined and eager to learn. One of the habits of successful investors is patience. You have to learn how to let go of your funds and let it come back to you when it is ready. Also, the market won’t always be proposing huge returns or favourable investment plans; your patience will go a long way in helping you survive situations like this.
Be a copycat but also think for yourself
Do research on successful investors, find the ones that have the philosophy that aligns with you and follow their steps. You cannot know it all. You should also learn from their mistakes along the line; that is the key to becoming better than them. You must also be able to harness your emotions and think for yourself as an investor. Don’t underestimate the power of your intuition.
In addition to the tips listed above, below is the Buffet approach to investment, extracted from “The Warren Buffet Way: Investment Strategies of the World’s Greatest Investors” by Robert G. Hagstrom.
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- Never follow the day to day fluctuations of the stock market.
- Don’t try and analyze or worry about the general economy.
- Buy a business, not its stock.
- Manage a portfolio of businesses: Intelligent investing means having the priorities of a business owner (focused on long-term value) rather than a stock trader (focused on short-term gains and losses).
We wish you well on your investing journey.
What to consider as you budget for college
Managing the college budget squeeze is very important, and this article contains information that would help you do it.
College has become a non-negotiable level of education for this generation. Although it is possible to make a career without a college degree, however, those with a college degree have the edge over those who don’t. In most cases, a college degree is required for some top positions. Going to college is fun; who wouldn’t love to? But the fees are not affordable for many. Managing the college budget squeeze is very important, and this article contains information that would help you do it.
The fact is that college is expensive, and it keeps getting more expensive due to inadequate funding and economic situations. So many colleges or universities are already out of the reach of the common man. This is why you need to have a plan to go through, get your finances right from day one, and it would be easier for you than those who nosedived ignorantly.
Why should I budget for college?
It is generally known that the person who counts his costs before embarking on an expense is wise. You and your finance provider must answer important questions like: how much would it cost? Can we afford it? What’s our income compared to the expected expenditure? It is these questions that play a significant role in choosing a blend of the best and most affordable institution for you.
Although there are many reasons why people drop out of college, a majority is down to financial collapse. It can be more accurately captured as poor budgeting because it might not have led to dropping out if they thought the process through. However, there remain some exceptions.
What are the important factors to consider in choosing a college?
There are numerous factors to be considered when choosing a college. However, we have narrowed the list to the most important ones. They are:
- The academic courses or majors available: The college you eventually settle for must have your course of study. This is pretty straight forward and non-negotiable. It would help if you chose from the available colleges with your course of study, and not let the college select your course. This is a very vital stage of your life, and should not be joked with.
- Affordability: After your course, this is the most crucial factor to consider. There are even instances where the importance of affordability supersedes individual preferences regarding the choice of study. If you cannot afford it or get a scholarship to pay for it, do not go for it. Most times, it leads to dropping out after piling up debts.
- Quality of education and campus facilities: For colleges, always go for the best that your money can afford. The quality of education of the college is paramount, and should not be looked over. It could give you an edge over individuals from colleges with lower standards.
- Location: Proximity from your home is also a factor to consider. How far is it? Do I always have to travel? And if yes, for how long? Schooling around your home is more convenient and less financially demanding because you can cut certain costs. These include campus rents, transportation, feeding, and more.
How do I budget for college?
After choosing the right and most affordable college for you, here are some of the ways you can cut on some more expenses:
- Draw up your budget: Although this might sound generic, it is probably the most critical part of saving while in college. Always have a budget that is very realistic and guides you. Do this by creating a list of all your expenses on things that you would need in school. It would drive your spending and ensure that it is intentional and not a reckless spree.
- Cut out unnecessary expenses: The things that consume money the most are those which we do not need. Every single penny is important, and you have to cut down on the things that you do not need. Doing this could be difficult for students because of the number of attractions in college; however, you should learn to stay focused.
- Differentiate your needs from wants: This is actually what helps you in cutting down unnecessary expenses. Knowing what you need and what you want gives a sense of direction and makes you more aware of your spending.
- Always save: We know that the money is never enough, and there is an urge to fulfil that fetish desire at every moment. However, it is not a good reason not to save. Always ensure you save up some of your income for the rainy days. These days always come at one point or the other.
Going through college without enough fund requires the right amount of will and discipline. Many have done it before and would still do it. You are not the only one born without a silver spoon, but this doesn’t stop you from receiving a proper education. Stay committed, and in no time, your college days would be over.
How to make more money solving problems
If you want to become more financially successful, you must figure out how to solve problems for other people.
One of the reasons anyone in the world who is not your father, mother, or siblings will give you money is this; your ability to solve a problem that is important to them.
That is how all the wealth in the world is created. The Rich Make Money by solving problems for other people. They solve problems in exchange for money. And if you want to become more financially successful this is what you must do regardless of where you are or who you are.
But before I show you how to make more money by solving financial problems, let me first tell you what it means to solve a problem satisfactorily. You solve a problem when you remove pain, obstacles, or challenges from people’s lives. And when you help them reach their desired end or destination.
So there must be two elements in every problem-solving equation. The First is the pain a person is trying to escape from, navigate, or change. And the Second is the pleasure a person is trying to gain or achieve. So now that you know what solving a problem means what are the kinds of problems to solve if you want to be wealthy?
The Kinds of Problems to solve if you want to be Rich
There are many kinds of problems you can solve in the world but since you want to make more money let’s focus on the type of problem that can give you the most money. There is only one problem in the world that carries the most potential for wealth. This problem is the Financial Problem.
Financial problems carry the most potential for wealth because they are universal in nature, everyone has them, and they cut across different countries, tribes, and nations. So if you want to make more money fast in your life focus on solving financial problems. To solve financial problems there are four people you must focus on.
The Four People to Focus on if you want to make more money.
The first is you. The second is other people. The third is Businesses and the fourth is the Government. When you solve your own financial problems you do not make much money because money only comes from helping other people. But the benefit of solving your own financial problem is this. It gives you the knowledge, skill, and experience you need to help other people.
When you gain this experience you become a valuable resource to other people. So make sure never to waste any financial mistakes or decisions you have made in the past. Reflect on them to know what worked, what didn’t work, and what you would do next time. This is critical for refining your problem-solving skills and for helping other people.
If you want to make the most money in the world you must focus on helping other people solve their problems. Part of the other people you must help is business owners. Business owners like individuals have financial problems and they are looking for people to help them grow their business revenue.
The beautiful thing about helping a successful business owner is that they are the richest people in the world and have the most capacity to pay you. But to succeed with business owners you must solve problems that are dear to their heart. This, keeping their businesses alive through the constant flow of cash is one of the most important things in the world to them.
The last set of people you should strive to help if you can is the government. The government also needs financial help like individuals and businesses. But their kind of help requires a certain level of expertise and global application to reap a high reward. The more difficult the problems you solve the higher your chances of reaping a high reward. And the more financially related the problem is, the higher income you will earn.
So now that you know the kinds of problems you should solve and who to focus on to earn the most money. Let’s now see some of the factors that determine how much you earn when you solve a problem?
Factors that determine financial success when you solve a problem
There are three factors that will determine how much money you earn when you solve a problem.
The first factor is the type of problem you solve. The second factor is the Number of people you solve this problem for and the Third factor is the financial capacity of the person paying you. Let me explain these three points in more detail.
First the kind of problem you solve. Not all problems are created equal. Certain problems command high income while others command low income. A small or big problem is determined by two factors. First is the level of importance a person places on that problem and second is how that problem is related to making money, saving money, or saving time.
Problems that are pain-related, connected to making money or saving money, and also urgent in nature will command more money than problems that are preventive, future-oriented, or pleasure-seeking in nature. This is because most people are short-term in their thinking and will be open to help when they feel the heat. So focus on urgent problems that have a clear relationship with making money, saving money, or saving time for an individual, business, or Government.
Second is the number of people you solve a problem for. Solving a problem for just one person is the fastest way to end up in financial struggles. One of anything limits your opportunities and this is why employees struggle financially. They can only serve one employer at a time. The key rule for making more money is this. Find ways to solve a problem for more than one person.
If you solve a problem for one person you get paid by one person and the amount you get paid is dependent on how close your value is to the bottom line. If you solve a problem for some people you get paid more money from a few people. And if you solve a problem for a lot of people you get paid a lot of money by a lot of people. The ability to help a lot of people at the same time is the advantage that business owners have over employees. So if you want to earn more money you must find ways to help a lot of people.
The third factor is who pays you. Who pays you determines to a great extent how much you earn. This is because people can only pay you according to their financial capacity. For example, when you solve a problem for a peer you get paid income at a peer level no matter the amount of value you provide. But when you solve a problem for a business owner you get paid at a business owner level depending on the success of the business owner.
Business owners are the richest people in the world and they have the highest capacity to pay you. All you need to do is ensure you solve a problem for more than one business owner at a time. And the only way to do this is to help a few business owners generate more revenue through sales.
So now that you know the factors that can determine how rich you can get let’s look at the fastest way to make more money through problem-solving.
The Fastest way to make more money through Problem-Solving.
The fastest way to make more money through problem-solving is to do two things. The first is to choose to focus on financial problems, which is the most critical pain for many people. And the second is to focus on helping business owners who are the people with the most capacity to pay you for solving their problems.
Business Owners spend a tones of money advertising and marketing their products. They are tired of the high marketing cost that produces a low financial reward. Most business owners are willing to share a part of their profit with you if you will help them sell their products through word of mouth and referrals.
And many of them pay up to a 6-figure commission on such sales. If you can help them connect to a new buyer, you can earn a juicy financial reward for it. Thankfully, everyone can help at least one or two people connect with products or services that can help them. The goal here is to only recommend products and services that you are passionate about.
Preferably Products and Services that you trust, have tried, and or tested. This is important because you do not want to jeopardize your important relationships on the grounds of making money. You must truly want to help people and not just sell products to make money. When you do this correctly there is no limit to how much money you can earn.
The Skills You Need to Solve Financial Problems
To successfully solve the revenue problems of business owners and help other people you need three skills.
The first skill is creative skills. You need the ability to come up with creative ideas that will help you sell a product.
Second, you need networking skills. Remember the only way to make money is by helping other people so you need many more people in your network who like you and trust you. This means that you must be a leader and an influencer within your circle. And be able to serve as the connecting bridge between the people who need help and the companies that can help them.
Third, you need sales and marketing skills. That is the ability to educate, convince, inspire, or influence people that a product or service can help them solve their problems. Developing these three skills is the fastest way to make more money in your life and without the added stress of additional workload.
So If you are looking to make more money in your life and want to become a high-demand problem solver reaping 6-7 figure financial rewards we can help you. To learn more send an email to [email protected]
Your financial success is hidden in the problems you can solve for other people.
Grace Agada is The Senior Financial Happiness Director @ Create Solid Wealth. She is an Author, and Column Contributor in Six National Newspaper. She is a contributor at BellaNaija, Nairametrics and Proshare and she is on a mission to help working-class professionals and CEOs become more financially successful. To learn more about Grace and how she can help you send an email to [email protected]
The five hidden secrets for investing success
These are the five main differences between making money, saving money, and investing money.
One of the popular questions I get asked all the time is this; how do I invest for financial success or how do I make wise investment decisions. Today I will show you how to invest for long-term financial success. There is the right way to invest and there is also a wrong way to invest. The right way leads to financial success and the wrong way leads to financial failure. This means that the same investment vehicle can make you rich and it can also make you poor. I know this because there is virtually no person that I know today who has not lost money in investing before.
To achieve financial success you must know how to invest without losing money and you must also master the three abilities necessary for investing success. The first ability is the ability to make more money and earn high incomes. The second ability is the ability to save big portions. And the third ability is the ability to invest your savings without losing it. These are the three secret formula for investing success. Unfortunately, only a few people know this formula or even thrive in all three areas. Many people are good at making money. They make a lot of money and save little or nothing. Some are good with savings. They save a lot of money but then lose it all through investing. And others are good at investing. They invest well but have little savings to make any significant progress. If you want to achieve financial success, you must thrive in all three areas. You must also know the key differences between them. There are five main differences between making money, saving money, and investing money. And these five are the hidden secrets for investing success. Let look at each of these five components in detail.
Secret No 1. Money making, saving money and investing money are different
Making money is a money-producing activity. Saving money is a money preservation activity. And Investing money is a money growing activity. To make money you need to solve a problem for other people and earn money for the problem you solve. To save money you need the discipline to live below your means and the self-love to pay yourself first. And to invest money you need some money and the right investment vehicle. Making money thus requires problem-solving skills, saving money requires the right attitude, and investing money requires money. So why you can make money from scratch with your skills. You cannot save from scratch or invest from scratch. To invest you need to save. To save you need money, and to get the money you need money-making skills.
Secret No 2. Investing Cannot Make you Rich
Investing does not have the power to make you rich neither does your savings. The only way to be rich is to solve the problem of many people. The richest people in the world are all problem solvers. They solve problems by creating products and services that meet a need. And their wealth is the reward for the problem they solve. There is no single person in the world today who made their money solely through investing or saving. The fastest way to create wealth is to solve problems for many people.
Secret No 3. Investing is a poor money maker but a rich wealth creator
Investing and investment vehicles are poor money-makers but rich wealth creators. While they can make you wealthy and increase your Net-worth they are poor income producers. Many people in the bid to make up for their lack of money-making ability try to force the responsibility of making money on their investments. They become aggressive, take unsafe risks, and put pressure on their investment to produce high returns. They are lured by “get rich quick schemes” and make erratic investment decisions. They do this in the hope that their investments will produce the income they need to be rich. But this is a recipe for failure. The purpose of investing is to grow your savings and produce passive income and not to make you Rich. Your job is to refine your skills, build rich relationships, learn about sales and marketing so you can make multiple streams of income. As you produce more income and invest more money your passive income begins to build up to the point where it can carry the weight of your bills. This is the point where you can begin to relax a bit. Until then, keep refining your ability to earn multiple streams of income.
Secret No 4. Investing can do five things for you
Investment vehicles have five capabilities and can do five things for you. The first capability is protection. Certain Investment vehicles can protect you from risks and emergencies. The second capability is passive income. Certain investment vehicles can produce passive income for you. The third capability is principal appreciation. Certain investment vehicles can grow your invested capital. The fourth capability is gambling. You can gamble with certain investments and lose all your money. And the fifth is sales income. You can get back your money with interests when you sell a profitable investment.
Secret No 5. Investing is easier than making money and saving money
Investing is easier than making more money and saving money. When you want to invest all you need is a clear understanding of where you are going, how to be safe on your way, and how to get there. It is like a car, you don’t need to know all the component parts in your car bonnet. But you need to know the fundamentals of driving a car, how to be safe inside a car, what to do to get to your desired destination, and who to call when your car has a problem. With this critical information, you can successfully drive a car. Similarly, you can invest successfully by just knowing the fundamentals of investing and collaborating with advisors and investment experts who know the tiny little details about investing. Only a few wealthy people in the world are investment gurus. They simply know the basics and surround themselves with experts that can help them. This is what you must-do if you want to achieve investing success. But when it comes to making more money and saving money the story is different. While you can learn how to make money and save money from other people. No one will make money or save money for you, you have to do this by yourself. Also, nobody’s skill or expertise will work for you. You have to develop your own skills and expertise to make more money and save more money. This makes making more money and saving money more difficult than investing. Nevertheless for you to be successful you must focus your energy and attention on making more money and saving money. You can always get help with investing and succeed in investing without being an investment guru.
Investing for financial success is the dream of most people. However, there is the right way and the wrong way to invest. The key to success with investing is to recognize the difference and understand the five secrets we have discussed in this article. The truth is your salary will never be enough to achieve all your goals. Your Investments will also not make you rich. You need to increase your ability to earn more income and save a major part of that income to thrive.
If you want to learn more about how to invest with total financial confidence or how to make more money and save more money we can help you. To learn more send an email to [email protected]
Great investing success is not about the amount of time you put in it but the knowledge and principles that govern your investing.
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Grace Agada is The Senior Financial Happiness Director @ Create Solid Wealth. She is an Author,and Column Contributor in Six National Newspaper. She is a contributor at BellaNaija, Nairametrics and Proshare and she is on a mission to help working-class professionals and CEOs become more financially successful. To learn more about Grace and how she can help you send an email [email protected]