Why Invest anyway?

People always talk about either investing and becoming wealthy, or striking gold all of a sudden and becoming rich, while there are many others who have been scammed and swindled of their legacies, inheritances or their hard earned incomes. So why would you invest if you've been burned before ? Or why should you invest if you're already doing well and amassing wealth ?

First off, investment requires some positive return upon maturity, which means that like setting goals, it requires value to be added to whatever funds have been committed to the project. 🥴 Someone's weary of the term 'project'? Well really, deciding to rent an apartment to live is as much a project as deciding to rent a space to run your Enterprise or business. So whatever you choose to purchase for a purpose can be considered a project, but when you expect a certain minimum level of positive returns on your purchase - we can definitely say - it is an investment.

Yes, when you buy a basket of black and blueberries with dark chocolate and red wine because you want to serve your health a heck of a treat? That's an investment in your health! Place the emphasis on positive returns. Likewise, if you decide to dedicate an amount of funds for a five to ten year period so that you can send that child to college while (allowing a viable business borrow the funds for a bit to also add value to your community); do you feel the double relish!?

Really, investment examples can vary as much as the colors in our entire world, but whether you'd be willing to admit it or not (we can talk about it in the comments section below 😊😎). The point of this whole post is to let you know that as long as you seek to add value to your life, your family or community, your business or your funds; you are making investment choices every now and again.

I think you should choose with the aid of proven tools and analysis or maybe just discuss first over a cup of coffee or tea. Strike a smart investment chat today, so that your tomorrow can have added value.

Yours truly,
A Value added lnvestor

IDM - Investment Decision making

Investments are commitments (usually of funds) with the expectation of certain positive yield or returns. Any decision to invest must have some expectations of what you the investor wants to get in return. Otherwise, you might as well keep the funds in a savings account.
(Trick question in the last paragraph for my visitors).

So when does it really get interesting? Thats when the expectations of my investors are like fifty pages long with constraints of what can or cannot happen with their investment. So IDM complexity is because of the dynamics of constraints the investor is working with: that's real life! But you know the good thing about math and science is the way it is able to isolate one problem at a time and solve for optimisation.
As a financial analyst in the making, I am faced with several investment choices and the option to choose what works best or suits the (me) decision maker best. You can picture where an investor's primary constraint is not financial but say a constraint of technical expertise to execute the project option. That would be relatively easy compared to a situation where you have about six to seven people as primary decision makers and they all want different things and prioritize constraints differently. Who's house of chaos is this ? I can relate to both situations and quite frankly there is a broad spectrum of decision making complexities which is what I love about analysing such projects and whipping them all up by techniques, so everyone can see if there's actually cream to be skimmed off of it or not. The point to IDM is essentially to ensure best match of risk to returns as you don't want to walk blindly into dead or irrecoverable exposure. But that aside, you don't even want to lose out on what could have been a better choice had you considered.

So typically as an investor, here are some of the things you should know before speaking to an expert.

1. You should know how much you want invest with and how much exposure/risk you're willing to take on.
2. You should know in the very least what serves as an attractive rate of return or sum of value added in your interest. If you're expecting to get served what seems best in the advisor's mind; you're already working a hot potpourri you may never really be confident nor at ease with.
3. You should know how long it can take to get the desired results. Sometimes people assume the big bang happens to a novice every day or every week and although you may experience the bang, it may not be beneficial. Investment projects take time to grow and yield, so don't be in an absolute rush to make an uninformed decision~ A good chicken marinade never hurt nobody ✓

Question of the day.
Would you consider a savings account an investment?
Please enter your thoughts in the comment section 🏦