INVESTMENT PRIORITIES

INVESTMENT PRIORITIES

The term "investment" is one of the few words that are better understood by describing than by definition. This is key because, your investment is as good as you describe it.

A general definition of investing would be ; allocation of resources now in expectation of benefit tomorrow. You can invest in anything you mind as your business. Your time, education, spirituality, health, property, stocks etc. Since your definition is limited to elements of time and return, your description essentially is your strategy.
A wrong description will eventually rob you of the little you accumulate.

Below are three main investment priorities I believe will inform you strategy in wealth creation.

1.  INVESTING IN EGO
This is simply accumulating assets that are nice to have. They improve or add meaning to your life.   You know you are investing in ego when, you have an obsession with possession.
Such assets they are liabilities in disguise ,they draw cash from your pocket as you utilize them. They include your own house, fashion, your car and  TV.
Sooner or later, the marketing lustre of these assets vanishes, and they depreciate to junk. (you won't use them).                                                     
2. INVESTING IN MAGIC
Ever heard that hope is not a strategy? Or wishes are not horses?
Well, that's what I take gambling for. When you allocate resources to deals that are too good to be true, you are investing in magic. The jackpot is an amazing carrot, but here is a warning : before you bite once, think twice. This calls for one to do his homework thoroughly before allocating resources. Many in hopes have been swindled in pyramid schemes for their belief that their hard earned money can turn into a magic wand for more easy money.

3. ECONOMIC FREEDOM INVESTING
The Above two investment priorities are at best kin to digging a hole and coming to withdraw the money after a span of  time.
Unless those assets return an interest above the inflation rate, then wealth creation remains elusive. It is imperative that you have assets that pay you more than the drought of inflation that you survive. This is the only strategy to economic freedom.

If you don't have assets that pay you first, you are more likely to travail in heaping up without joy. It thus pays to learn a thing or two about owning a business, derivatives, annuities, endowment plans, options, bonds and stocks.

Wishing you well as you invest in 2018. [designing life, selling dreams]

This article appears on http://fongere.blogspot.co.ke