I keep getting questions like: "must I bother myself to learn how to invest? Shouldn’t I rather focus on just managing my monthly income?" My answer to such questions is simple, you definitely have to learn how to invest for a number of reasons. Below are just three (3) of them:
Reason 1: If you don’t, other people will use your money to enrich themselves and pay you nothing for it (in fact, they will even charge you for “keeping” it for you). Don’t get me wrong, I have absolutely nothing against the banking industry. In fact, I have a number of cherished friends who are bankers however the truth is that I do not advise keeping “excess money” in a bank account. I sure do have bank accounts but, I just keep emergency funds there. Any idle funds I get, goes straight into an investment account. Why will I watch the banks enrich themselves by trading with my money and not do the same for myself?
Reason 2: If you don’t invest, inflation will “eat up” your money! It is an uncontestable fact that the prices of goods and services are always on an upward march. An amount of GHC100.00 today will most certainly buy less than it could have bought 12 months ago. The lesson: Prices generally keep going up so, you also have to “grow” your money or watch it dwindle in value.
Reason 3: For those who are Christians, Jesus advised that we should invest. In one of the most interesting stories in the Bible found in Matthew 25:14-30, Jesus establish the principle that seeking interest on your money should be a way of life. He said, “…you should have put my money on deposit with the bankers, so that when I return, I would have received it back with interest.” This shows that God endorses investment as a legitimate means of making money.
By: M.D. Avor