Starting A Business Soon? 5 Things You Need To Consider Before Investing

We all want to succeed and become wealthy. Live a comfortable life and not have to worry about money or your income. Sadly this is rarely going to happen with your salary alone. That is why people are starting businesses and taking part time jobs to supplement their income. The economy is bad and everyone wants to make an extra buck.

So how else can you supplement your income, well you can try investing your money into companies and stocks. This is something very few Kenyans know or want to engage in yet it is where people make good money.

What is investing? This is whereby you use your money to buy, shares, stocks, bonds, land, real estate etc. anything you think will increase its value down the line.

So what are some of the things you need to consider before investing?

1. What are your goals?

What are you looking for? Is it a regular source of income? Either quarterly or monthly, or maybe you want something that will give you more money in the long run say 5 years. What you want is very important and it determines what sort of investment you want.

For example if you want to make quick cash in let’s say 3 months, then buying land might not be for you. This is because although land is a good investment it will also take some time for the value to go up.

2. How much risk are you willing to take?

Are you a risk taker or are you scared of taking risks. Investment can be risky because you could make a bad decision and end up losing.

People might say that the higher the risk the greater the reward then, if you can take the risk you should go for the high risk high return investment, however, if you are not one of these people then going the safe route when investing might be better.

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3. How will you go about investing?

If you have a large sum of money, you need to consider whether you want to invest it all in one place or you want to diversify. Do you want to play it safe and invest in many different things or do you want to invest a lot of money in one thing and get more return in case of success?

This is something you need to know before making any investment in order to avoid regrets later on.

4. How much money do you want/ have to invest?

This is a huge determinant of what sort of investment you get into. First you need to figure out how much money you will be investing. This will then guide you in determining what investments to take up.

5. How legitimate is the investment opportunity?

We live in a country where sadly, there are a lot of scams. Very many people have been duped by pyramid schemes. Before you take on any investment it is important that you check that it is legitimate. Do not be deceived and end up losing all your money to strangers and crooks.

Keep in mind that this is risky and there is always a chance you could lose your money but you could also become a big winner. Ultimately the choice is up to you and if you do decide to go for it, remember to choose wisely and be smart about it.

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