Investing Principles Lagos Nigeria - Principles of Investing. Practical Advice And And Free Tips From A Business Consultant

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Investing principles Lagos Nigeria - The governing principles of investing are the same everywhere irrespective of whether you live in Lagos Nigeria, Abuja, Ekiti state, Anambra state, or anywhere else in Nigeria or even anywhere in the world. The concepts may be presented differently but the underlying ideas are the same.

The basic investing principles discussed here are presented from a practical point of view. Therefore, this is not an academic exercise. It is practical advice you can put to use right away.

The purpose of this section is to share with you simple life lessons . . . common sense principles of investing that make the difference between being rich or being poor, between being fulfilled and having a sense of satisfaction or being dissatisfied and unhappy.

So, what are these basic investing principles?

I present them below.

Principles of Investing - Common Sense Principles

The principles of investing discussed here may be different from the ones you're familiar with. But since they are derived from actual human experiences, you should take them seriously.

Basic Investing principles 1:

The future is just as important as today and it comes faster than we expect.

Since this is the case, you should not delay when it comes to investing. You should explore available options and start investing right away, as your finances dictate.

How fast can the future come?

Faster than you think.

To illustrate the value of this investing principle, I will share with you the story of my friend's father.

Some decades back (in the early '80's), this friend called Julius, was told by Jack (another friend) that his father had just bought a piece of land in Ogudu GRA, a new estate in Lagos Nigeria at the time. Jack then suggested to Julius that he should tell his father to come and buy a plot in the same location so they can be close by.

Julius told his father of what Jack's father had done. And asked his father to do the same. But since Julius was just a boy, his father didn't take him seriously.

Besides, Julius father said Ogudu GRA was "far off and out of town" because at the time they lived in Palmgroove, the 'groovy' part of town.

By the late '90's when Julius father was ready to by a plot of land in the now fully developed Ogudu GRA, he found he could no longer afford it. So he shelved it.

Later, Julius' father was invited by a friend to buy a land in Ogba Lagos Nigeria. At the time Ogba was a developing area, bushy, and scantily populated.

Julius father replied, "I can't live in that bush!"

Again he missed the opportunity to invest.

By the time Julius father realized it, Julius was a full grown man and so were his siblings. And his financial commitments had more than doubled as all the kids were geared for University education.

Did you get the point?

Julius father figured that his kids were still small and that he would take his time to save and save until he could buy his dream house in his dream location. But right under his nose, his kids grew up faster than he expected. And that dream house in the dream location never became a reality.

Yes, he did build a house later. But it was in the interior of Ayobo, a suburb of Lagos. Both places where he initially had the opportunity to invest but that he shoved aside are now expensive neighbourhoods.

I hope the point is loud and clear. I hope this investing principles make sense to you.

Remember . . .

The future is more important than today and it comes quickly.

So, act NOW!

Basic Investing principles 2: The future is unpredictable.

This principle of investing means that there is no guarantee that your fat paying job will always be there. It also means that if you're a business person, there is no guarantee that your prosperous business will always be prosperous.

Since life is unpredictable, what should you do?

Simple. Ensure you do not put all your eggs in one basket. Diversify.

For example, don't be content with just being a good business person. Invest in business and other juicy opportunities that cross your path.

Basic Investing Principles 3: Live at least 25 percent below your income

Where will your investment capital come from?

Part of it will come from your savings.

Why is your savings a great way to generate initial investment capital?

It's because when you start with your savings, you won't be under pressure to pay back the capital plus the interest on the capital to some financial institution because you didn't start your business with a loan.

So, how do you generate this initial capital?

By living at least 25 percent below your income.

In practice, this means that you should save at least 25 percent of your earnings every month.

How is this possible?

There are one of two practical steps you can take to make this happen regularly, every month.

The first practical step is to open a separate savings account and write out a cheque to yourself every month, that is if you operate a savings account that accepts cheque.

If you don't have a savings account that accepts cheque, then sign up for online banking and do online funds transfer from your salary or business account to your savings account on the first day of every month.

How do you make sure this always happens?

By making your wife your conscience . . . the person that nags and nags until you actually do it.

The second practical way to make this happen is to join a cooperative society.

When you open a savings account with a cooperative society, you give yourself an opportunity to qualify to get higher amounts from the society if you save monthly, consistently.

Usually the lure of being able to collect an amount about double what you put in is enough motivation that compels cooperators to save regular. It can similarly motivate you if you become a member.

Basic Investing principle 4: Take advantage of investment loans

Investment loans enable you to double or triple you investment capability.

For example, if you have savings of 3 million Naira, you can qualify to take a mortgage loan as high as 10 million Naira.

The 3 million Naira you put forward, which is 30 percent of the mortgage loan requested, is called your equity contribution.

But if you have not been saving, you won't have anything to contribute. So, you likely won't qualify for the mortgage loan.

Get the point?

You need money to generate more money to invest. And invest you must if you want to live a self-sustaining life.

So, if your continued happiness and that of your family is important to you, save, save save.

I sincerely hope that this page, as well as this entire Lagos Nigeria real estate investing website, will help you look at strategic investing differently. So much so that you will live your life different and invest in things that matter the most.

P.S: Have some investing principles you will love to share? Use the simple form below.

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Investing For Income ::: Investing For Retirement

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