Building wealth is one thing. Managing and multiplying your wealth is another. You should be just as involved in preserving, managing and multiplying your wealth, as you are in creating it in the first place.
Smart individuals and businesses follow certain practices when it comes to wealth management and preservation. Here are 5 of those practices.
1. Long-term investment: The benefits of long-term investments include lower risks, capital gains, compounding interests and tax cuts. Smart investors usually invest for years and even decades.
2. Invest in businesses you understand: It is not a smart move to invest in businesses you do not understand. Doing so will be detrimental to your long-term goal since you may learn albeit through expensive mistakes and also leave you no room for insightful decision-making on investment basket with the experts.
3. Diversify your investments: Do not just invest in one business or one industry. Diversify your portfolio. Even the good book says “Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.”
4. Do not follow the crowd: Why? Because they are usually impulsive and could be wrong when it comes to profitable investment. Do your due diligence and findings before making any investment. Speak with advisors and get as much information as you can on your intended investment.
5. Build multiple streams of income: Having just one stream of income is like sitting on a chair with one leg. It is sometimes unstable. Find ways to establish multiple streams of income that will constantly bring in money for you and your family.
For in-depth investment advice, register to attend The Wealth Forum by Zela.
Date: April 27, 2017 Venue: The Civic Center, Victoria Island, Lagos. Time: 09:00 AM – 01:00 PM
Phyllis Okeke is the Managing Director of Zela Ventures Int’l Limited, and also the convener of the Wealth Forum.