Before venturing into any business investment, it is essential to invest in yourself. This means dedicating resources to improve your financial education and gain insights into the world of money, investments, personal finance, and business intelligence. By doing so, you acquire the necessary expertise to make informed decisions. In Nigerian terms, this enables you to “shine your eyes” and be vigilant in your endeavors.
Investing without understanding is risky. Professionals in gambling and investing know the game, manage risks, and make wise choices to protect themselves.
Gaining financial literacy is not an overnight achievement. It requires dedicated study and extensive reading on the subject matter. If you are unsure of where to begin, “Rich Dad Poor Dad” by Robert Kiyosaki is a recommended starting point. However, the learning process doesn’t stop there. It is crucial to seek guidance from a mentor, attend seminars, and most importantly, put your knowledge to the test by starting something on a small scale. Practical experience is irreplaceable and invaluable. It is important to understand that the mindset of an entrepreneur is fundamentally different from that of an employee. Approaching business with an employee mindset is a recipe for failure. Likewise, investing with an employee mindset will yield the same unfavorable outcome.
The real estate market in Nigeria is currently attracting a lot of attention from investors. Many individuals, who have suffered losses in the stock market, are now turning to real estate as a safer investment option. However, it is important to have a comprehensive understanding of the real estate industry before getting involved. Contrary to popular belief, real estate prices do not always go up. The long-standing trend of continuous price increases in Nigeria’s real estate market has come to an end.
The country will eventually have to face global economic realities. There is no certainty that you will profit from selling a property. I had a conversation with a saleswoman who tried to convince me to purchase land in an expanding area of Lekki Lagos. She claimed that buying a plot for N10M would allow me to sell it for N12M within a year, resulting in a 20% profit. When I requested a written guarantee that her company would cover a N3M shortfall if the plot’s value dropped to N9M, she quickly left.
Nobody in the world can give you a written guarantee when it comes to investment. The main reason is that what salesmen bandy around as facts turn out to be opinions. You can win, lose, or if you are lucky get your money back.
That is why it is critical to know what you are doing. Nobody can tell you where to put your money in. Even if they do, when the chips are down, you get to gather the pieces yourself. Invest in yourself. Change your mindset, from an employee mindset to an entrepreneur’s mindset. Learn how to recognize and analyze opportunities. Learn how to make the call to either bite, walk away or run for dear life. Do not depend on anyone to do the thinking for you.
It remains essential for you to have a financial adviser. The caliber of your financial adviser is determined by your level of financial expertise. If you lack knowledge in financial matters, you may easily fall for anyone who claims to be a financial adviser. It takes someone with a solid understanding of finance to effectively evaluate and hire a competent financial adviser. Additionally, it requires good financial intelligence to discern whether the advice received is valuable or worthless. The quality of answers you receive is directly influenced by the quality of questions you ask. The level of your financial intelligence determines the quality of questions you pose to your financial adviser. Your financial adviser will recognize your competence and will not risk their reputation by providing you with foolish answers that the majority would unquestioningly accept.
As is the case with everything in life, the outcome is determined by the initial input. The process commences with investing in oneself. Instead of hastily seeking external investments, direct your attention towards self-investment.