I was listening to a talk show this morning on the radio, and the host asked the listeners a question: "What are the benefits of investing?" A lot of people called in to give their responses, and the majority didn't see why they should invest their money with what is going on in the country (Nigeria), while some gave reasons why people need to invest now.
I could relate to some of them who were against investing. There are a lot of risks associated with investing. I live in the middle belt of Nigeria, and last year I got two hectares of land to farm beans (as agriculture is one of my long-time goals), but I got nothing from the land. Those of us from Nigeria have heard how herdsmen enter people's farmlands with their animals and eat up everything. I was sad and heartbroken because I had invested a lot of money in the land, even though I knew that everything in life comes with risk. And this situation isn't going to change my mind about investment, even with its risks, because I know there are also advantages.
Growth: Investing your money in assets like real estate, buy and storing of grains, will grant you the opportunity to grow your money. We all know that inflation does not change the price of things in Nigeria; anything whose price has gone up does not come down.
Building wealth: This is an opportunity to build a long-term financial goal. The risk is dependent on the kind of investment, and if proper care is not taken, people tend to lose everything they have.
Passive income: Investing your money in rentals, logistics, sound setup, and the like can generate steady income. The risk with this is that most of these things are time-based, so they tend to tie up your money.
Though investing has a lot of benefits, it also has its own risks.
It is very important that before one ventures into any kind of investment, they consider their risk factors, financial goals, and timing. It's important to seek counsel from a financial advisor before making any kind of investment decision.
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