Parameters Surrounding Investment.

in LeoFinance9 months ago (edited)

image (31).webp
anomadsoul's free visual support

Hello friends, I'm assured everyone is really fine, in this article, I extensively expounded on the concept of Investment with its benefits and possible time to invest as I believe we'll be paid in full after a careful perusal.

Introduction.

What is investment? Most Economists has established that this is simply the use up of already existing asset or capital which is quite an incredible definition to the concept.

There are varieties of factors that would determine the kind of investment one could engage in, although this is specifically on a personal bases but in compendium, ones disposable income could determine he's level and nature of investment.

To unriddle things further, your disposable income is simply the money left on you after every other expenditure like tax has been deducted. Consequently, other factors like borrowing, acquired or inherited wealth could also contribute to whether one should invest or not.

Time factor is also another variable that would determine how successful one could be in investing into a particular opportunity since nothing is meant to king forever. For instance, we do hear and see people hold shares of different companies but now, the web3 rostrum has a given us a better opportunity than what is obtainable in those institutions which is actually what I meant by nothing or no one is meant to king forever.

Why People Do Not Invest.

Investment has three main faucet; one's preparedness to invest based on his active demand, ones disposal to investment opportunities and finally his readiness to take risk that is not minding what may be the outcome of the investment.

I believe that my deductions above are factual and valid. No one goes in for Investment without money. You must have what it takes to invest into a project before venturing into it and when you hadn't what it takes to invest, you have simply lost it.

On the other hand, people must have the knowledge of something before they could be able to invest. This may be from friends or anyone set to disclose such opportunity to them and when there is deficiency in information relating to investment, people may not ba able to invest into credible projects.

Investment opportunities isn't without risk. When people are not set to take risk, they may not be able to invest. I know many of my friends whom I may not be disclosing here. I have to persuade most of them with all level of wisdom before they joined this ecosystem. Though I never did it for any personal benefit but rather, it was all for their good as most of them who took it serious are enjoying the benefits in the system.

Finally, people are scared of investing into projects that no one related to them are in because they need evidence and wouldn't also want to risk their hard earned money.

image (18).webp
anomadsoul's free visual support

Best Time to Invest.

I have tried to know through observations in different investors lives and I came with the conclusion that there is no better period for Investment as all time is right to invest.

Most people have argued that it is best to invest when you're young and then rip when you've grown old, and I ask what if you don't have what it takes to start early, would one take his life in such instances? No! So this validates the saying that

It is morning for a kid whenever he wakes up.

But in a more affirmative manner, I strongly believe that the best time to invest is at young age based on your income. For instance data from pew research center showed that young people at the ages of 18 to 29 invested into NFT. This sample estimate was carried out US in 2022 and further observation shows that the greater percentage of them which is 6% of them falls within the range above while 5% of them falls within 30-49 years and finally, only 1% of them fall within 50 years and above.

This research shows that it is more advantageous to invest in a younger age because you're prune to greater opportunities. Although a better analysis should be that people from age 18-49 are more vibrant and hence should be classified as young people.

A final and generalized inference proves that young people from 18 to 49 in the US are more apt to investment than elderly ones at age 50 and above, this is using Investment in NFT as study case.
In conclusion, we should maintain that it is better to invest at a young age than in old age.

Demerits for not investing.

I strongly concede to the deduction that it is a big risk not to take any risk. Hence, there are too many disadvantages for not Investing especially at a young age. Let's take it from age 18 to 49 because one may not be so strong to scout for information and better opportunities after this age although it's not a general or established hypothesis.

We all learnt about Laszlo Hanyecz who traded 10,000 BTC for just 2 pizza in 22nd of May 2010, according to a publication by George Kaloudis on Coindesk, if Laszlo had the vision that BTC would later turn to what is is today, I believe he wouldn't have done that.
Consequently, people lose their future worth and opportunities when they refuse to invest.

When people refuse to invest, they have accepted to go into debt by default and probably turn their generation into beggers. People who refuses to invest are liable to turn debtors easily than people who have invested something. Although most wealth are inherited but if no one fought for it, most people wouldn't have been wealthy as we see today.

We can also attest to the leader of our community @khal who said he spent about 4 years investing into crypto, if he hadn't invested, there wouldn't have been any community as leofinance, this is unequivocal.

analytics-3291738_1280.jpg

Pixabay

Benefits for Making Investment.

There are colossus of benefits accrueable from engaging into profitable investments, although I'll only be taking two out of the thousands of them.

Nonetheless, investing gives us the opportunity to stay ahead of events. If one invests, he has the privilege of perfectly queing into any future opportunity without much distortion.

It helps one not to go into debt. Most people have turn beggers because no one invested for them and they aren't also ready to invest for themselves as they squander everything that comes their ways.

Conclusion.

Investment is one of the opportunities one should avail himself, and despite the minimal returns it's yielding at the moment, it's better than not having having something in returns for not Investing.

If we can invest at least 20% of our respective incomes, the probability is high that we can't go into debt given to returns that accrues from our investments. For instance, you're earning $200 in a month, 20% of it is $40, and in a year you've invested $480, in 5 years, you've had a capital investment of $2400. Assuming you've be saving this money in your HBD savings, you would've made a few returns but going by this as a Capita Investment, you'll be making a stresless returns of $1.31 every day.
Let's calculate using the 20% APY
20/100=0.2
0.2 x 2400=480
480/365days = $1.31 per day.
In 30 days, you've made a stresless $39.3 and $471.6 going by a year's calculation from just your 20% monthly savings. So this' to show the need for Investment.

There is the need for one to invest, especially to mitigate against the rainy days. One cannot be at the top forever so time will come when there wouldn't be strength to stress and to mitigate against this, one needs to invest.

I sincerely wish to draw the curtain at this point as I believe you learnt something. Thanks for going through, hope to see you in my next publication on Monday. Do enjoy your weekend bye.

References:

LeoGlosary

pew research center

Coindesk

Posted Using LeoFinance Alpha

Sort:  

https://leofinance.io/threads/davchi2/re-leothreads-e8eypyr4
The rewards earned on this comment will go directly to the people ( davchi2 ) sharing the post on LeoThreads,LikeTu,dBuzz.

I guess you are an economist, your wording and analysis speaks for you, thanks for this exposure brotherly

You're welcome Bro, we have a lot to offer but then, we have to start from the point we saw ourselves. Thanks for the pretty regards 🙋🏻

investment in as much as it is good , one must be very careful about it