5 Inevitable Principles That Work With Investing

5 Inevitable Principles That Work With Investing


Desire is what separates winners from losers. Having understood why you need to invest and the benefits of investing, you need to develop a strong desire towards investing your resources. I don’t think anybody just invests for investment sake. To profit from your investing, it has to be something you are passionate about, something you want, something you strongly long after. Your desire, more or less, determines your destination.

2. Financial Plan

If I ask you now, how much do you want to earn in the next 12 months, what would your reply be? How much do you want to be worth in the next five years? What ways can you increase your income in the next 12 months? When you have or put a financial plan in place, it helps you know correctly what you want, and then it forces you to think on the options to adopt to get there.

This is very crucial. Sit down right now and bring out a clean sheet of paper, write down how much you want to earn in the next 12 months, stretch it to 5 years, then to 20 years. Then pick another sheet and write on it ways/options you need to generate to achieve that plan. Research has found out that when you write down your goals, they’re 50% accomplished. You can send a copy of your financial plan to the address at the end of this book, with the strategies for a scrutiny from us. At NEAII, we want you to succeed.

3. Savings Culture

This principle is very powerful. Now understand that every income you earn has seed and bread in it. The bread is for your consumption and the seed is for your multiplication. When you consume your seed, you deny yourself a future harvest. Any farmer who consumes his seeds because the harvest was bountiful has eaten his  future harvest. When you spend all you earn, you’re  cutting short the possibility of experiencing another

harvest. There are two types of seed. (1) Tithe: this is the  seed that gives back to God in appreciation for all his kindness towards you. It is what Christians call tithes, and our Northern folks have a benevolent giving which is called Sadaqar. Even if you do not belong to any of these faiths, give your money to charity. That is, 10% of all you earn.

Your tithe protects your other 90% from the ravages of physical and spiritual devourers and makes every of your effort towards investing, spending or saving the money a fruitful exercise. In short, your tithe saves you from a tight financial situation. In fact, some people express their love for God by giving offerings, sacrifices, gifts to the poor, orphans and widows, and other monies directed at promoting God’s kingdom on the earth. This is the reason some people can never be poor!

(II) The second seed is the one you save. Developing a savings culture will set you apart from the crowd of consumers. Some financial experts advise that you make it 10% of all you earn. But for those who want to achieve financial freedom on time, you can make it more than that and keep doing it consistently for a long time. As an entrepreneur/investor, it is only what you save and invest that gives you bountiful harvest.

We have a formula that we have designed for you in this book and for all NEAII alumni to help them save to invest. You can try it out; it is very powerful! Now stick to this plan. This plan becomes useless if you fail to stick to it. Initially, you’ll discover it may be a little difficult, but as time goes on, you will find out you’re getting used to it. It’s great  o pay yourself first, and when you develop a savings culture you’re paying yourself first. (Before South Korea could get out of its economic problems, it mandated its citizens to save 60% of their income. If you don’t save, you are not safe financially!

4. Delayed Gratification

One other principle that will help you save and invest instead of spend all you earn is when you delay your gratification. Take for an example, if you want to buy a car now as an Executive, by delaying it and putting the money in an investment that can yield 20% to 50% per annum, at the end of 12 months, you can afford to buy the car and still will be left with some change up to half the initial amount. Isn’t that a smart move? But you have to delay gratifying the desire of getting that car immediately.

By the time you build a solid personal financial asset base, the incomes it produces can meet your diverse needs. This is important. Ask some successful investors, and they’ll tell you at some point in their lives they spent their earnings investing and by the time their investment was solid, it provided them enough income to meet other needs.

5. Financial Literacy

How many financial books have you read? How many seminars have you attended that addressed the issues of investment and financial education? This is very important. Your earning ability is tied to your capacity. You can’t earn above what you have learnt. workers? Simple! It is the difference in learning. Set aside some money every month to buy financial, investment and business books. Take your destiny in your hands. Don’t wait for the government or the society or your parents. Those who wait, waste. Build your own library where relevant texts on investment entrepreneurship and financial literacy can be found.

These 5 principles are powerful as you go about your investing  They will arm you adequately and save you from quacks and charlatans out there looking for people to swindle.

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