How to begin Investing

Investing whether for family, future or now is as old as man himself and is the evidence of his desire to make, acquire & amass wealth. It is an area of financial education that requires deep understanding and expertise of Investments. Investing can be done through various means but every investment starts from the buying, building or creation of an asset. What is an asset you ask - it is something you own or you have a stake in that increases your Income statement rather than reduce it. A car can be an asset if you begin to use it for transporting people at a rate, but it can also be a liability if all it does is reduce your income statement. Be rest assured all expert investors started out the same way as beginners, uncertain of what they were doing or what the results would be. 

Three things come to mind when you get struck with the Idea of investment and it includes: 

What is investment- investment knowledge?

-How to invest- investment approach?

-Where to invest- investment source?

The 'what' is a rather tricky aspect that needs to be cleared out before you begin to push your money out carelessly. Investment is the laying out of money with an expectation of getting more money back in the future after accounting for time, inflation, and adjusting for risk, resulting in a steady flow of periodical income rate with the corresponding growth rate.

How to invest: Investment approach

There are a series of available options on investments. Most of these options are available once you have decided on where you want to invest. Most importantly anyone who would invest must possess a healthy saving habit or lifestyle. To begin any investment, capital source funding is a major requirement and this is made easier by catching an early start on saving. approaches to investment include: 

+The personal approach: As an investor, you may choose to manage the Othermoney/investment yourself. This is only advised if you have a full grasp of the pros and cons of the investment type you have chosen, As Investor and manager, you will need to keep abreast of stock news.

+Investment by proxy:  This involves the employment of advisors and brokers to run and oversee your Investment choices. Managed investment accounts usually carry high fees, and handing off investment decisions to an advisor is not the right approach for many people. You can turn to a full-service brokerage and have an investment advisor manage your money.

+ Investment by bots: This type of investment is done with a roboadvisor, which means an algorithm picks diversified investments for you based on a provided risk profile and investment targets and goals. 

Where to Invest- investment source?

Earlier mentioned is the basic idea around which investing is made- Assets. The first thing you need to do is to determine which types of Assets you want to acquire or build. This determines the rate at which your investment will return its yields. There are a lot of assets options to choose from to begin the journey to financial freedom but from this article, the three most common categories will be discussed and they include:(i) Real Estate.    (ii)Stock.     (iii) Bonds


The real estate investment trail is capital dependent, time-consuming, risky and energy reliant in some cases but eventually pays off investors with corresponding yield and interest. The various forms of enterprise in the real estate business may require large capital, mortgage plans(borrowing money from financial institutions to pay for a property with a payback plan at interest rate) or the use of fund reserves(retirees, investment bankers, etc). 

You may go into the Real Estate business as a Personal Investor, or through Real Estate Investment Groups(REIGs) or Real Estate Investment Trusts (REITs).

In personal Investment the investor is responsible for sale or rent of property units he has bought or built. Building units for rent tends to pay off in the long run as income generated from the rents goes into capital for another investment. Buying a property for rent is also a steady form of investment.

 REIGs are Ideal for people who want to own rental real estate without the hassles of running it. They give slots within company or group operations for partnership through investment. Usually, they buy out a property and sell units to investors while taking responsibility for the administration and maintenance of the property. Thedownside to investing with such groups is that they decide the percentage of dividend that is released to their investors(referred to as shareholders).

REITs are a solid investment for stock market investors who desire regular income. They are essentially dividend-paying stocks(bought and sold on the exchange market) where the leverage associated with traditional rental real estate does not apply because stocks core holdings involve commercial real estate properties with long-term, cash producing lease. REITs avoid paying corporate income tax and are of two categories:

- Equity REITs: This corporations/company are more traditional, in that they represent ownership in real estate that own buildings while

-Mortgage REITs: provide financing for real estate and dabble in mortgage-backed securities (MBS). This also offers views and insight into REI by focusing on the income from mortgage financing of real estate.


 Stock investment usually involves investing in common stock, they are new and improved methods of owning other businesses. It describes business ownership or business ra where the investor has purchased a certain amount of the company's shares. Owning equity in a business earns you the right to the share of the profit or losses generated by the business or company's operations.

For investors seeking to build wealth over time without using large amounts of leverage, equities are the most rewarding asset class. Stocks can be traded in either Privately held companies or in publicly traded companies. 

a. Privately-held company: At the beginning of these companies they are packed full with-risks and also show a high promise of profits for the entrepreneur. You can start one of such company and grow it into a self-sustaining brand. These companies have no public market for their shares although in a legal process known as IPO it could be branded as publicly traded.

b. Publicly traded company: In the IPO i.e an Initial Public Offering, private companies, and businesses sometimes sell part of themselves to outside investors allowing the company's share to become available for market and any buyer could become an owner. Publicly traded stocks are available in two forms 

 i- Bluechip Stocks: These refer to the shares of a stable high-profit company.

ii- Bad companies stock: These refer to stocks of tipping/risky companies where any little increase in profitability could trigger an unequal huge leap in the market price of the stock. This is usually advised for experts.

Investing in Bonds

Bonds are fixed-Income Securities and most reassuring means of investing. It is mostly useful for retirement plans. With bonds, you are lending at an agreed income interest rate to the bond issuer. There are a myriad of ways you can do it, from buying certificates of deposit and money markets to investing in corporate bonds, tax-free municipal bonds, and U.S. savings bonds. Bonds are purchased through a brokerage account with a discount or full-service model option on selection of a broker.


Investing is a big deal that has to do with your time, money and future. What ever your reasons for wealth creation may be, no matter what you earn, retired or not investment is the sowing of little seeds for the morrow's greatness. Whichever investment you intend to embark on we believe if you follow these simple steps you are on your way to a wealthy future. With a corresponding source of capital, knowledge of local investing markets, a team of experts opinion, report or results, creativity coupled with simplicity and elegance any of these investing option is a possibility for you. Happy investing!!


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