Right from his early days, Jide has always wanted to be wealthy and successful. He once tried selling paper planes in primary school but that didn’t work out quite well. Now a young man with a decent paying job, he decided to venture into the investing world.
Like everybody else new to investing, he feared. There were too many stories of people losing their money and sinking into penury. He didn’t want that for himself. From his salary, he had managed to save some thousands of Naira but was wary of putting it to work. If he was going to do this thing, it had to be the smart way.
One fateful day while walking towards the bus stop to get a ride home, Jide saw a book vendor by the roadside and decided to browse through his collection. Then his eyes caught the cover of a small book titled “The 15 Commandments of Investing”. The pages were a little over a hundred and he wondered what knowledge he might glean from such a small book. Out of curiosity, he paid for it and left.
The moment he settled on a bus, he opened the book and started reading. As the title suggested, there were indeed 15 commandments carefully laid out in 15 chapters in simple terms anyone could understand. It felt almost like reading the famous 10 commandments. At that moment, he realized he had found the foundational guidelines for his journey into the investment world!
Excited and hungry for knowledge, he dived in and read the book from page to page till he was done. Traffic was unusually heavy that day but he was unbothered. While the other passengers were hissing, hawing and cursing, he kept reading with rapt attention, determined to memorize all the 15 commandments before the end of the trip.
By the time he alighted, he knew everything so well, he could even sing it. As soon as he got into his apartment, Jide dashed for his diary to write out all the commandments. It read thus:
I — Thou shalt verify that an investment company is licensed.
II — Thou shalt carefully study a product before investing.
III — Thou shalt consider the impact of fees when choosing an investment.
IV — Thou shalt understand that risk exists in all investments.
V — Thou shalt not fall for “get rich quick” and “can’t lose” schemes.
VI — Thou shalt know the power of compound interest and use it wisely.
VII — Thou shalt know the importance of diversification and use it wisely.
VIII — Thou shalt plan for and invest according to thy future needs and goals.
IX — Thou shalt know the benefit of long-term, regular and diversified investment.
X — Thou shalt plan for life’s unexpected challenges and investing in uncertain times.
XI — Thou shalt understand the risks that are associated with initial coin offerings and crypto-assets.
XII. Thou shalt not forsake due diligence when considering investments.
XIII. Thou shalt pay attention to the warning signs of online investment fraud.
XIV. Thou shalt never invest based solely on a celebrity endorsement.
XV. Thou shalt understand the methods in which legitimate firms receive money for investments.
Armed with his newfound knowledge, Jide was confident enough to split his savings across different investment vehicles. Slowly and steadily, he has continued to grow his portfolio ever since that day, and his dream of building wealth has become more vivid than ever.
Whether you’re just getting started like Jide or you’ve already built up a substantial portfolio, boosting your investment knowledge will help you to make better financial decisions. Smart investors will reach financial goals faster than most because they have learnt the basics.
Ready to make your financial dreams come true like Jide? Speak to a financial adviser on +234 (1) 270 1680 to pick a portfolio that works for you.