The major reason of investing or engaging in any form of business is to draw in some profits. In view of this, you do not just invest because everyone else is investing or because it appeals to your senses, but there are things to be particular about. Here, we will take a quick look at some of them so that the investment will not become futile.
The "what" question should be addressed first before you invest. That is; what you will be investing in, the investments that will suit both you, your potential customers and your environment, and not based on mere emotions. A friend or family member may bring up an investment opportunity and because of their relationship with you, they may try to appeal to your emotions.
You have to know when to limit your emotions and know how to separate them from business. Otherwise your finances might get burnt. When looking at what to invest in, you should also be keen at research. The responsibility to conduct your own research lies entirely on your shoulders. Going through the minor stress of undergoing a thorough research will prevent future regrets.
When you have found out what to invest in, then the next step is to find out the location, that is the "where". There are investments that are bound by location and will not thrive well if run on other locations. A business may be very viable with good prospects but a wrong location can affect it negatively. Take this instance, in a place that is known to be very cold (like the polar caps), if you want to invest, you will not think of air conditioner but maybe heaters.
Before you invest (particularly in offline businesses), you have to take feasibility studies of the location. Know what the people will be interested in, know what will thrive well there. Remember, your profiting is primarily as a result of the market you create for your business.
After you have been able to answer the "what" and the "where" question, the next question is to answer "when". Timing is a very crucial aspect of investment. There are some investments that are time-bound, which you need to take advantage of a particular time. For example, during the peak period of the pandemic, people that invested into prevention of the pandemic (like face masks, sanitizers, IR thermometers) made some serious profits.
In that period also, there are some business that were sidelined because of wrong timing. When investing, you should put into consideration the timing. This also happens in the crypto space: there is an entry time and exit time. Missing out on any of these timings may affect your investment negatively.
Thanks for reading
These are some really great points! I think for the majority of people the important thing is just making it a habit. If you can get in the habit of saving, then you will be better off. I know there are some people who like to micro manage every aspect of their investments. I prefer just to continually put the money aside so that it just become second nature and I don't even miss it each paycheck.
Posted Using LeoFinance Beta
I agree with you, saving money should be cultivated as a habit because it will come in handy when the need arises someday.
Thanks for coming around buddy. Cheers
No problem! Thanks for the great post!
Posted Using LeoFinance Beta
Hi @samminator
Investment, as long as it is seen to generate profits, is an operation that must be studied as you point out in your publication.
You have mentioned three fundamental points for decision making when investing: what, where and when; these three being vital for the results we want to obtain.
However, I would add "how much", obviously this point is purely personal, it will depend on each person and what they consider they can invest and risk.
Great read, thanks for sharing.
Have a great day!
Thanks a lot for adding the fourth point; "how much". I believe this is also a fundamental point to consider when going into investment, so as not to wreck the pocket.
Have a blessed day @janettyanez
@tipu curate 2
Upvoted 👌 (Mana: 0/112) Liquid rewards.