Looking for the best way to create wealth and monetary value over time? The best option is to invest.
Investment is the dedication of an asset to attain an increase in value over a period of time.
An investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is to generate a return from the invested asset.
Investment is the goal. By investing, you commit money with the expectation of getting an additional profit or gain. Investments put money to work rather than just saving it in a bank account with little interest.
A profitable and worthwhile investment is real estate. Real estate investment is a strategy involving the purchase, management, ownership, sales, or rentals of property for profit.
The properties may include an already completed building, an event center, or a landed property. These sets of properties grow in value over time. Let’s say, for instance, you buy land worth 3.5 million Naira in 2019, and the resale price the following year or two to three years after will most likely increase to about 5 million or more, which means you have made extra value for your money.
Investing in real estate can be short-term or long-term depending on how much profit you want to make and your needs in the long run.
The short term refers to the purchase and reselling of properties quickly; by this, you don’t keep them for months or years, while the long-term purchasing of properties could be for renting purposes over a long period. It is not sold out immediately.
This type of real estate is common in the world today. It entails purchasing or building a property to rent it out to occupants or tenants. It can be a residential building or an event center.
This investment method provides some people with monthly and yearly income.
This is a long-term investment, as long as the property exists and is getting occupants you continue to earn. And with the economic situation, the prices of renting can rise over time.
This involves buying land at a low price and selling it at a higher price without much delay. The best way to do this is by purchasing land in a developing area with growth potential and selling it out in months or years. You can make 50% or more turnover.
It is worth of note that, unlike other properties, the value of land appreciates over time. When compared to a building that requires maintenance, the land property requires less money to maintain.
One of the ways to be successful in land flipping is by identifying and purchasing land in a high-potential area. This is because it will be sought after in a few years when the area develops.
Be sure to carry out proper research before purchasing a land property. Also, buy land from the rightful source and carry out effective marketing at the point of selling it out.
With land flipping, you do not necessarily need to start with a large plot of land. Instead, you can start with a small plot of land and grow with time.
Investing in stocks entails purchasing stock in a publicly traded company with the hope that the company grows and makes a profit over time.
Shares are traded on the stock market. All companies trading stocks are all publicly traded companies, which means that you have a claim to the company’s assets and profit.
As the company makes a profit, you also make a profit. Also, as an investor, you will have the power to vote on decisions taken by the company.
Before you invest, you will have to decide how much you want to invest in stocks and which company you want to buy shares from.
One major advantage of investing in the stock market is that you make more money over time. Because the stock market fluctuates in value, it is critical to invest in a stable and profitable company.
Stock purchases can be made online on apps like Fidelity Investment, through a financial counselor, or by a broker.
It is not difficult to open an account and begin trading.
E-commerce investment is an additional investment choice. As mentioned above, you can choose to purchase shares from an existing company, or you can start your online store.
In order to do this, you will need to choose a certain market to operate in and find profitable and in-demand goods nearby. You purchase this item at a discount and then resell it for a profit. An e-commerce company that is successful has profitable growth over time.
Save in Dollars
It is an act of saving your money in dollar currency.
The reason why you should save in dollars is because of the present inflation rate and the depreciation of the naira. When you save in dollars and the value of the naira depreciates, the worth of the dollars you saved stays unaffected.
You can save in dollars by using a domiciliary account, a bank account used to save in foreign currency, or by using a fintech savings app like piggyvest.
Investing remains one of the fastest ways to create value with money because it generates higher returns than saving or spending.
Rather than just spending or saving, invest instead. It will yield more with time.