The Blueprints to Become Rich by Michael Frempong

Author:Michael Frempong
Language: eng
Format: epub
Publisher: Clink Street Publishing
Published: 2020-03-15T00:00:00+00:00

Chapter 6

Investing for the future

Most people have opened savings account but there is no money in the account, the money that is usually saved doesn’t last long in the account because of our spending habits. We always want to buy that bag, those shoes or that car. We should always set aside some amount of money that should only be saved with the intention of investing. The money should therefore be saved for a short period of time and then invest.

Saving for a short time and investing the money for a long time is the key to become rich.

There are different ways of saving, a few people save in piggy banks and invest the money yearly, others save money in an ISA account, some people team up, contribute money and give it to one person, this is rotated amongst them until all the members of that group have had their turn, by so doing each member receives a lump sum of money when it gets to their turn-this is popularly known as ‘susu’.

Those who work in the public sector mostly contribute specific amount of money each month to their pension. Some people rather pay certain amount of money each month into an investment account either with a bank or other financial institutions who provide platforms for investing in shares, mutual funds, etc. Imagine you save £1 a day in a piggy bank every day at the age of 18, you will be able to save £365 every year to invest. Would this work for most people? the answer is no, however, those who can do it could go ahead and save for investment using this method. Since there is no harm in trying, it is advisable to try at least one of the aforementioned savings method to invest for your future or any saving method that works for you.

Investing in stocks, mutual funds or trading in the stock market is one way of becoming rich. Stock represents a claim on the company’s assets and earnings, it is worth noting that a share of the stock represents owning a fraction of the corporation in proportion to the total number of shares available. Investing in stocks is just like owing a fraction of a company.

There are different types of stocks, different stocks have different level of risk. The type of stock I will recommend especially for people who want to start investing or those who are beginners in investment are ‘Blue-Chip’ stocks. Blue-Chip stocks are stocks of the biggest companies in the country. These are usually high-quality companies with years of strong profits and steady dividend payments. They are the most safest stocks to invest in. Investing in Blue-Chip companies is like investing in the most safest companies that have been around for decades, some twenty years, fifty years, etc. Examples of Blue-Chip stocks are MacDonald’s, Coca-Cola, etc. Investing in such companies over a long period of time will enable you to accumulate wealth to make you rich.

Some companies pay higher dividends

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