Why I decided to invest and why you should too
We are at different stages of life. Each one of us has a background that shaped who we are today. I was born relatively poor. I have tasted poverty and I know how it feels not to have what you want or to have other kids in school have what you can only dream of. I do not want that for my children!
For a long time, Africa and Africans have been subjected to poverty and inequality. This may still be going on in most countries of this continent. This has to change. It is not too late for Africa to be set free from the chains of poverty. I am not political, so please bear with me.
I think one of the ways we can do this (transition from poverty and inequality) is by sharing information and encouraging each other to have multiple sources of income and start saving and investing instead of competing on looking good and taking credit to try and look good among our peers.
Let me tell you why I started saving and investing.
You can trade (short term) and invest (long term) because that is more profitable and rewarding than keeping your money in a savings account. Trading carries more risk so much that you can lose your entire capital. So, if you are starting, stay away from it, please!
One of my first experiment trades gave me a return of 23% after a few weeks. To be honest, no bank would have given me this kind of return if I kept this money in their savings or cheque account. I might have walked away with less due to unexplained fees. Some banks even charge you an upfront fee to put your money in a fixed money market account. Madness!
Now before you get excited, I must warn you that you can also lose in this game. Maybe we will talk about it later in this series and I will show you why I lost on the first few experiment (keyword here is “experiment, Okay?”) trades I made.
Investing is much more fulfilling. Like I said earlier, it is a long game. It is more fulfilling than when you look at your money market or current account statement at the end of a few years. You can get more rewards via investing than you can through a money market account or a savings account. I am assuming that you pick a good asset with good returns. We will talk about picking up a good investment later on in this series, so hold on tight.
I hope you will agree with me on my next reason.
The first world has plundered resources from Africa. We have very little to show for it. For this reason, I have started investing in the US markets just so that I can “take back” some of these plundered resources back through capital appreciation and dividends. The returns on that market can be huge. There is no better way to get back what belongs to me via this route, investing offshore. Hopefully, you and I will continue to pick good companies that will not result in us losing money.
Lastly, I welcome the challenge, and through education, consistency & persistence, a specific trading or investment plan, a proper mindset and the right tools, I will overcome the challenges and succeed and prosper in this financial arena. I think you can too.
I do not know your circumstances, but for me, the desire to break the chains of poverty (or call it middle class) was the main driving force. If you are not in poverty, maybe your reason will be to create and grow more wealth.
I would like to retire comfortably and be able to live my life not worrying about income because I have assets that are generating income for me even in my retirement.
I must add, I am not scared of dying, but I am scared of dying poor and leaving no legacy or inheritance for my children.
I do not know what your reasons may be. But, whatever your reasons are, make that dream a reality! Start learning about investing today! Start investing today!
Next week we will talk about K.I.D.S. What is KIDS? Join me next week to find out!