THE POWER OF INVESTMENT
Matt. 25: 14-27
To invest is to give your money to a company, bank or group of people with the major aim of making profits. Every entrepreneur wants to trade and make money.
Investing is buying something in order to sell it again when the value increases, in order to make profits. If there is no value in something, as an investor, you do not invest in that thing.
TYPES OF INVESTMENTS
UPWARD SPIRAL INVESTMENTS increase in value; examples are houses, lands, human capacities/skills. These investments are assets.
DOWNWARD SPIRAL INVESTMENTS are liabilities. They decrease in value; examples are cars, clothes, phones etc.
If your liabilities are more than your assets, you are going down. Your assets must outweigh your liabilities – compare the price of your assets with your liabilities.
WAYS TO INVEST
- By Leveraging: A leverage is an asset you borrow to increase your operational base. II Kings 4: 3 – in this scripture verse, the prophet instructed the woman to go and borrow vessels. This borrowing was done to increase her asset base not her liabilities – if you borrow to gather liabilities, it is foolishness.
Leverage can be capital, tools, equipment, knowledge, time, skills, credits, human resources etc.
HOWEVER, BEFORE YOU BORROW:
- Ask yourself why you are borrowing.
- Borrow at the level you can manage.
- Do not miss or ignore the payment terms. Don’t be in a hurry to sign the papers, involve a lawyer.
- Mind the interest.
- Investment in Commodities: Commodities are elements of economic wealth that can be bought or sold. They can be hard or soft. But understand the laws and tariffs guiding them before investing.
- Stock and Shares: These are equity investment floated by owners of the company in stock exchange market.
Things to note about acquiring stocks and shares:
- The prices of shares change constantly
- It gives you opportunity to buy into the company, even though you are not working there.
- It is an opportunity to increase wealth, unlike Ponzi and get-rich-quick schemes!
- Mutual Trust Funds: These are groups of people committing their money to a portfolio manager to buy and sell stocks for them.
- It allows for professional handling.
- Real Investment: It is investing in properties such as lands, houses, estates and so on.
Why You Should Invest in Real Estate
- It helps you to redeem time
- Real estate investment increases with minimum efforts
- The increase is exponential
- It can be transferred to generations
- It can be both long term or short term
BEFORE YOU INVEST:
- Commit it to God
- Investigate before you invest
BENEFITS OF INVESTING
- Good years pay for bad years, and the years of strength make up for the years of weakness.
- Your money works for you while you focus on other businesses.
- It helps to multiply money without stress.
- It helps to leave inheritance for the coming generation.
God bless you for reading!
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