By Ayeromara PeterÂ
When most people think of investing, they feel it is all about just putting their money, either in their Savings or Retirement Account, and carry on with a life of hard work. They think that in those accounts, their money is working for them .
When inflation, which is one of our greatest economic challenges in this part of the globe, comes it renders their money worthless. A man in this country told me that he had three hundred thousand naira (N300, 000) in his Savings Account in 1980. He kept the money there till late 90â€™s, thinking his money was working for him. He later realised that his money had been rendered worthless by those saddled with the formulation of the nationâ€™s economic policies. According to him, nobody came to tell him about equity investment then. I made him realise that he should not expect anybody to tell him about shares. Everybody should be his/her own driver when it comes to the vital issue of investment. This is the reason why we must seek information like a hungry lion. Information is powerful. If the man had gotten information about shares then, with three hundred thousand naira (N300, 000) invested in penny stocks like First Bank, Nigerian Brewery etc., he would have become super rich by now. First Bank and Nigerian Brewery were selling below N5 per shares then. Besides, his units of shares would have increased tremendously to the extent that he would be competing to be nominated into the board of these Blue Chip companies by now.
The question many people do ask me is: â€œHow can they raise money to buy shares?â€ If you look carefully at these people or probing further at their profession, you will discover that majority of them are civil servants or in paid employments, artisans etc. What I am trying to drive home here is that quite a number of these people are working. Most of them collect car loans, loans to purchase Household equipments, loans to celebrate the demise of their aged relatives and the rest. Most of the artisans, too, belong to one co-operative society or the other where they have access to loans with very low interest rates. When they collect this money, they throw parties all over the place and engage in various money â€“draining projects. They purchase cars, household equipments which the financial experts refer to as downward investment. To this category of people, asking the question, my answer is: use the same way you raised money for those items for shares too. We should not joke with our future at all.
We should sit down and plan what becomes of our future. We should look at a time when money will keep on coming in forms off residual income when we are no longer working. We should work out how we would have financial freedom. Anybody can retire rich at a certain period, irrespective of your financial status now. It is simply a matter of adequate planning. If you want to retire rich, you will need to work harder and faster now and allow your money to do the same throughout your life time. The most important thing is to keep your money moving. Robert Kiyosaki described this as â€˜Velocity of moneyâ€™. According to him, â€œIf you want to retire young and rich, it is very important that your money be like a bird dog, going out everyday and bringing home more and more assetsâ€.
Due to the consolidations in the Banking Industry now, most of these Banks have what they call â€œShare Acquisition Schemeâ€. It is a product where you can borrow money from them to buy shares and the re-payment is spread for at least 12 months. It is a very good product and I advise our readers to embrace this product instead of borrowing money to acquire downward assets. There are many offers still coming and some are still in the market now. Donâ€™t complain that the prices are high. Buy them and watch your investment move. Meet me and other financial experts at NUJ PRESS CENTRE, IWO/IBADAN ROAD , OSOGBO. On 18th AUGUST 2007 .