I have developed a keen interest in investment and savings. Maybe because I’ve been broke too many times, or simply because I have finally come to a place in my life that offers me enough sanity to make smart financial decisions.
My thoughts regarding this are best expressed in a quote by Will Rogers, who said:
“The quickest way to double your money is to fold it over and put it back in your pocket"
This quote shows that if there is no clear way to invest properly, put it back in your pocket.
This reminds me of the TV show ‘American Greed’, which tells a story that highlights some of the things people do to get more money. Some folks looking for quick cash, invest their money with crooks and scammers, only to lose their money in the end.
Many times a lot of these problems can be avoided if you just keep your money back in your pocket or kept it in the bank when uncertain as to what to do with the money. Instead of jumping at every given opportunity or need that presents itself in form of an ‘ attractive’ investment.
If nothing ‘gives you sense’ in making smart financial decisions, a lot of ‘hunger’ will. If you’ve been as hungry as I have been, you will know exactly what I mean. Now, I don’t imagine that you have too much money just lying around to waste, do as you please. Even if you did, what is the guarantee that after buying that expensive bag or shoe, you will have satisfied that material itch enough to still have a regular income. Your wants or needs will never end, but your money will. Now, I am probably making sense to you, and you are beginning to think investments are not a bad idea after all.
Bear in mind, some investment ideas are just too good to be true. And you can easily spot these kinds out by how quick the opportunities for returns seem, or by how eager the investment advisor appears.
We have come from a period of ‘bogus’ network marketing schemes, and the notoriously famous ‘MMM’ scheme - which left a lot of Nigerians bankrupt, and crying foul of the failed bubble.
You see, while certain investors see risks levels as indicators of success - which might be true for well - tested and well - researched investment opportunities, this size may not fit all.
So, when in doubt, keep your money, until you find better use for it. Otherwise, put it in a fixed deposit account, buy treasury bills, government bonds, or simply ask a trusted investment banker for advice.