Let me first start by wishing you all HAPPY NEW MONTH 🎊AND ALSO HAPPY INDEPENDENCE DAY. Nigeria is 61 today. Has we have always hope for the betterment of our country so shall it be but only if we stand and support ourselves as one✊ for the growth of this country.
A scholar said;
"Most men can pass through adversaries, but a man's true character cannot be known unless he's given power and money!"_ (Abraham Lincoln)
Nigeria's issue is becoming generational, the older we get the worse it becomes around, what exactly is good with blacks?
Is this true independence?? Every Nigerian success can only be measured by what effort we've made individually and not the Nation's at large.
Nigeria will still be a better place, but in the meantime, don't give up on yourself...
Take time to develop yourself, do your best, be independent on the Nation itself, they've caused the youth and rising business enough harms.
Just don't give up on yourself, strive to be an independent person yourself.
Now back to the reason I'm writing this article is how to grow in financial intelligence, how to acquire financial freedom.
First what is financial freedom?
Financial freedom is the status of having enough income to pay one's living expenses for the rest of one's life without having to be employed or dependent on others. Income earned without having to work a job is commonly referred to as passive income.
And what is financial intelligence?
Financial intelligence is a type of business intelligence constituted of the knowledge and skills gained from understanding finance and accounting principles in the business world and understanding how money is being used.
These two grammatical words above are the potentials in financial stability.
The first step towards financial stability is investing, do you know what investing is? No I doubt it.
Investing: refers to putting money aside into a valuable asset with the intention of making profit to retain the value of the money.
Mind you, you might also want to know what an asset is. An asset is something that produces positive cashflow turnout into your pocket.
So now what is Saving too?
Saving refers to discounting a percentage of your money while spending in order to be able to buy/spend more money now and in the future moment.
So how does all this connect to cashflow, but first let us know what cashflow is;
Cashflow refers to positive and negative money coming from an asset. Investment, asset and savings are all connected to cashflow because cashflow determines the flow of your investment income, your asset too and also the result of your savings.
Do you even know that you can't just invest anyhow without following some protocols or methods if you want to see results in your investment!
So therefore there are some styles of investment that can yield positive result for you, they are;
Valuation investment:
This style of investment refers to the habit of setting money aside to invest solely with the purpose of exiting at a higher amount than what we previously invested. For instance is when you invest in a tech company like Amazon that pays zero dividends, the chances of your investment moving from 1 million to 100 million is high because money is reinvested aggressively in the company.
This kind of investment should be approached with caution because you can only win when you hold your position long term without getting anything until you sell your position to cash. This style is applicable with stock, crypto and equity investment.
Dividend investment:
This style of investment refers to the habit of setting money aside to invest in asset that generate regular positive cashflow. It can be daily, weekly, monthly, quarterly or yearly.
This style is suitable for an investor that is interested in increasing income without working or rather than investing and waiting for years before the cashout.
Dividend investment is applicable in businessess like food, service apartments, mall rental etc. The goal is to generate cashflow, not increasing the value of money.
In investing, defining your financial goal is extremely impressive.
"Do you want to turn 2million to 200million in 5years?[valuation] or you want to receive 100,000 of 2million every month for years[dividend]
Be clear. Clarity is all you need in investing.
Self-Made asset investment:
Self-made asset investment is one of the most powerful ways of building life long profitable asset with little to zero money on the creators end.
It is the style of investment where an investor set aside time to think about innovative assets and closes other investors in need of assets to invest in it.
This type of investment is what makes self made millionaires. You can hit your first $40,000(dollars) doing this exact thing.
In this type of investment, time, knowledge and people are invested in order to produce either or both valuation and dividend goals. It is often one of the hardest because you are starting from the scratch but in order to have a self-made asset like Jeff Bezos on Amazon, that's paying him for a lifetime, you need to be cautious about what you allow your brain to consume.
Tired of reading right? Yeah I understand but financial freedom does not come on a platter of gold, so if you really think this information is important to you then you will read to the last line of this article.
The next style of investment is,
Asset ownership class/asset producers:
Asset producers are set of investors that rather invest their vision, time, emotional intelligence and knowledge into an asset to become a major success.
This form of investment flies around the media. Jeff Bezos, Bernard Arnault are asset producers.
To be an asset producer you'd have to be sufficient in closing, emotional intelligence and sustaining a vision. As an asset producer you're rather in full control of your asset growth as well as your hired team. Other people invest in asset producers.
It is not ideal for asset producers to invest money in their start-ups because it's a risk that should rather involve people who are ready to risk their dollar to consume the asset producers offers. Assets producers make the list of one of the most successful investor in the world, moving from $0 to over $50million net worth.
MENTALITY OF A PROFITABLE INVESTOR
‼️ No Magic in investing. You will either lose or gain
‼️ Nobody/company is responsible for your investment loss. You start winning right from the day you decide your risk.
‼️ You understood how money is made on your investment rather than depending on hype and fear of missing out.
‼️ 10% of your income is a good start to investing.
‼️ You know your investment goal and choose opportunity that align with it.
‼️ You know when to exit, stay or enter an investment opportunity.
‼️ You rather invest in what's relevant to the future than depending on past performance.
Asset consumers:
Asset consumers are these class of liquid investors that have money to consume other asset that are relevant to the future, therefore the asset will grow in value.
As a consumer investor, zero percent of your time is required for your money to grow. Although there are procedures to consuming the right asset becomes in investing "past performance doesn't guarantee future growth"
What dictate growth is "RELEVANCE IN THE LONG TERM"
Consumer investors include Warren Buffet, Bill Gates, Elon Musk. These people consume existing asset.
Although along the way they played producer investor role in increasing valuation but they basically consumed.
! Whenever buying stocks, you're consuming. Whenever you're starting a business, you're producing
! You start a business with the aim of creating future relevance, it's beyond money.
BECOMING A SUCCESSFUL ASSET CONSUMER
Pick your investing goal. Either for valuation or dividends.
Pick a niche!
Identify long term relevance based on the world's activities. The longer the trends of relevance, the more money in the long term
Getting into undervalued asset increases your chances of bigger wins if your goal is to turn 5million to 500million, not necessarily buying just lands.
Don't invest in asset you don't understand. Rather seek for knowledge to understand what moves the asset before buying it!
In Niching if there are car's running on fuel in the streets, invest in electric car companies.
If there are human driving cars in the streets, hold self driving companies.
If everyone is eating at restaurants, hold restaurant companies with delivery service and personalization.
If there are cinemas, hold companies with free movies to watch at free for minimal costs.
Own asset while they are young!. When choosing a niche to Invest in apply these: you need to invest consciously and internationally. Do you want to become a billionaire? Then buying house or land won't do the job well.
Thanks for reading 🙂
Hope you all learn something....