Wealth is not built in a day, but it is built at the end of the day.
It takes time to build wealth. It doesn't just happen.
As an investor, you must pride yourself in the ability to wait, to be patient, to grow your wealth from your various asset classes in your portfolio, to a point where every stream bringing in inflows of your ROI becomes consolidated.
20 to 30% annual ROI on a particular investment isn't too small. Instead, have such investments coming in from various or multiple investment platforms - some non-traditional asset classes too - simultaneously. Sometimes we get lucky investing in areas where we enjoy Alpha returns or hit what one might call jackpot, but that doesn't happen too often as the principle of risk and return will always want to have its way.
This is why patience becomes key as an investor. I personally love to see investing from the lens of it being a career built overtime. It takes time to build. This is why I find money doubling schemes very hilarious. It's a phony strategy for building wealth. It's never sustainable.
Investing for wealth creation needs patience, consistency and discipline (to reinvest rather than expend).
Building wealth takes a great deal of intentionality.
There is a significant difference between having plenty money and building wealth. One can have access to so much money but is far from being wealthy. Wealth is derived from structured ROI.
Using a scenario approach, it's like wanting to build 20 mansions but all you have is every single resources (cement, rods, sand, chippings, etc.) in abundance to build them but you never build them. The resources to build 20 mansions are just stored up in a warehouse. Then you go everywhere claiming you have 20 mansions. Wealth is actually taking those resources and putting them together, block upon block and actually build each mansion per time till all 20 mansions are standing. At this point, you can truly claim you have 20 mansions. Then at a stage in your life, all you do is just live inside those mansions till your end of days. You must be intentional about building wealth.
Investment is tough and not for the faint hearted or short-spanned patient ones. Wealth is not built from your salary income or income from your jobs done, no matter how lucrative or large they are. Rather it is built from what those income regenerates for you. Saved-up funds in one's savings account isn't wealth creation. Infact, for every day that money remains there, it loses value especially in an unstable economy where inflation is on a high rise. I know of folks who barely have anything in their accounts but have massive investments everywhere. I also know of some who have so much in their accounts but lack a single investment and soon the funds fade away without proper accountability of what it was used for. Who then is wealthy from both scenarios?
How to Invest
If you wish to grow wealth, if you wish to build an investment portfolio, wish to have a financial plan to reach your financial goals in life, then brace up for a serious journey and get a good Financial or Investment Advisor to guide you through it. There are various asset classes one can invest in while building your portfolio.
1) There are the usual traditional asset classes such as investing in the stock market. Usually I would advise you spread your investment across companies in select industries. Don't put all your eggs in one basket. That way you hedge against potential risks. You could target dividend paying stocks or capital gains stocks. A caveat though, the stock market is highly volatile and unpredictable. Check your risk appetite level before engaging.
2) Another option is investing in mutual funds. We've got plenty of them being run by some of our foremost financial institutions. At least you could get monthly or quarterly dividends with those. Inquire from them.
3) Another could be fixed income investments like investing in Government bonds/Treasury bills. This has lower risks and you can be getting your quarterly coupons till date of maturity and still get your interest returns.
4) Another could be investing in real estate, specifically land banking. Buy lands in very viable areas and leave it to grow in value for some time. Then resell. A caveat though, ensure proper due diligence is done on the lands in question to ensure you get the proper root of title before purchase.
Others;
5) Another unpopular one is investing in government contracts. Some investors like to throw in their funds to fund contractors who win government jobs. Once payment comes, they get their returns as agreed by both parties.
6) Another unpopular one is investing in movie production. Currently Nollywood is a multi billion dollar industry and is not stepping on its breaks in it's growth trajectory anytime soon. Some investors are beginning to tap into this pool of a potential wealth creating industry.
7) Another could be investing in early stage startups as an Angel Investor. For this, you must do your proper due diligence on the founder. Most startups fail but the ones that get it right, get it right well and can lead you to your Alpha returns.
8) Another could be setting up viable businesses either in agriculture, consumables, hospitality, or whatever is needed in the market. Do your market research, feasibility study and ensure it's something the market wants or needs. Build it to a point where it becomes a known brand felt by your market.
Action Points for Building Your Investment Portfolio
* Hire the services of a Financial or Investment Advisor.
* Open a separate account for your returns on all your investments. This way, you can track your returns from each investment. Well, this is something your financial advisor or fund manager will ordinarily do for you. However, I still advise you in your own amateur manner, keep track of these things. Don't leave it all for them. Funds in such accounts are not for spending but for reinvesting to further build your wealth and achieve your overall financial goal.
* Always review your returns performance on all your investments with your advisor to ensure you are still on track with your financial plan and heading towards your financial goal. Don't hesitate to change strategies where you see what is engaged isn't giving the desired results or has made you veer off your financial plan map.
Conclusion
Anyone with determination and financial discipline can build wealth for themselves. I understand how economic situations can leave us with limited options or opportunities to build one's wealth. However, a little here, a little there, can eventually turn out in a short while to be just enough to start your investment journey for wealth creation. Remember, building wealth is a journey that takes process and time. But it will eventually be, if done right.
.jfif)
