Entretainership Sessions: ‘Investment’- A wise Man’s Choice

We have been raised with a mindset to believe that things will always be better. Your income level will always be on the increase, your business will always generate more money and as such life will always get better.  But in reality, this is not so, as we have a prime time of productivity.  No business is ever able to sustain its super profit as this profit alone is what is needed to attract other people into the business.  No artist or sportsman is able to sustain his performance for ever, likewise in any chosen career; you get to your peak age where it becomes difficult to get a new job.  It is against this background that we are introducing this session.

Sustaining a stable life style and expenditure pattern is usually a function of how you are prepared for a rainy day (the evening of your life). This preparation is summarized in one word ‘Investment’.

What is ‘Investment’?

This is transaction or contract entered into that will have the capacity to generate income on its own without you getting involved fully in the operation.  There are two types of investment that you can look out for and they are: ‘Certainty’ and ‘Uncertainty’.

A.   Investment with certainty

This is a transaction that its income is predetermined before getting and the certainty that this obligation will be fulfilled is almost. A few examples of such investments are: rental property, government bond and fixed deposit. Most times, these kinds of transactions do not yield high returns as compared with other types of investments. They are usually controlled by government regulation and in case of default; a legal action can be instituted.

B.   Uncertainty Investment

This is the one that you cannot generate the rate of returns, you often will have to depend on experience on the issue or the help of a professional. There is always a tendency that you will get more from this type of investment but also, you can lose both your investment sum and expected profit.

Haven familiarized you with the two types of investment; it is wise for you to put aside part of whatever income you are making now, as it will in turn become your most reliable pension for your future.  This is most important if your nature of business has a short shelf life e.g. sportsman, show biz etc. You must remember that the next 5 years may be all you need to take care of your future.

Let us start by imbibing the culture of not spending all that’s coming in and start saving. Also, moving from savings into allowing savings work for us so our future can be guaranteed.

Do pick up your phone now and start calling, as 1000 naira is enough to start fixing up your future.

Idowu Okungbowa is the Managing Consultant of ‘Fredericks International’, a Human Capital Development and Marketing Consulting Firm. He is a public speaker and he has a great interest in youth development and entertainment. Email: idowuokungbowa@yahoo.com.