Things To Avoid When Investing
A few weeks back, a friend of mine shared his experience with me. Someone brought an investment idea to him and the idea looked too good. He had already calculated his proposed gains from the investment, so he grabbed the idea. A few days after sinking in his money into the investment, the platform crashed and his hard-earned money went down the drain. From his experience, I drew out some lessons and I will like to share with you, maybe it will help someone.
First of all, you should not take someone's investment ideas on face value. Research yourself. A few days of research might save you from years of regrets. As part of your research, if it is an offline project that you want to invest in, pay visit to the place yourself, check out if it is worth the investment. A popular quote in this part of Nigeria says that:
If someone promises to give you a dress, you have to check the one that he is wearing to have an idea of the kind of dress he will give you.
For a project promising you millions on returns of investment, you have to check if they are worth it in the first place or they just need your money. If it is an online investment, you have to research too. Visit their website, read whitepapers, etc. If your instincts disagree with any part of it, then you need to take a break because most times, our instincts are true.
Note this: If it is too good to be true, then there are chances that it may not be true. Imagine an investment platform promising to give you 100% return on investment after two months, they only want to prey on your greed. I mean, how easy will it be to have such an amount of ROI in such small timeframe?
You also need to separate your emotions from investment. The person bringing the idea may be your friend or even a family member but this should not becloud your sense of reasoning. They may want to work on your emotions to make you do what you normally would not have done, so you should learn when to separate your emotions.
If you are unsure of the investment, you can confer with a third-party that is knowledgeable in that aspect to help you with their expertise. Do not hastily rush into investing without adequate information. Take your time. The truth is, any investment opportunity that will be pressuring you to act fast may have some have shady deals.
Remember, one wrong investment can crash what you have worked so long for, so try as much as you can to research well before letting in your money.
Thanks for reading