Investing your money is just as important as earning money. If you are not investing, you are missing out on a lot of opportunities. Now, the question is what is making an investment all about? Investment is an act of allocating your money with the expectation of getting a profit in return. This can be done in many different ways which include but are not limited to; purchasing stocks, assets, or by getting involved in a business. The main objective of the investment is to generate additional income, safeguard against losses, and prepare for future spending.
Types of Investment
Investing your money in the right thing can allow it to grow. Investing in the right options in Zimbabwe can help you to secure your financial future. There are many investment options that have been used for ages, while there are newer options that have gained popularity in recent years.
Mentioned below are some of the common investment options that are available in Zimbabwe:
Stocks
These are can be considered as a short or long-term investment. When you buy stock from a company, it means you become a shareholder in that company. The more stocks you own the more of the company you own. These can be bought and sold on the stock exchange. The Zimbabwe Stock Exchange currently has 63 listed companies.
For more information on this visit https://www.zse.co.zw.
Property
An investment property is real estate property purchased with the intention of earning a return on the investment either through rental income, the future resale of the property, or both. The property may be held by an individual, a group of investors, or a company. An investment property can be a long-term endeavor or a short-term investment depending on the timing of the investment as well as the area invested in. With the latter, investors will often engage in flipping, where real estate is bought, renovated, and sold at a profit within a short time frame.
Cattle
In Zimbabwe cattle are viewed as a symbol of wealth. The emphasis of cattle being an asset is shown by law enforcement mechanisms put into place when someone steals a cow. Stealing a cow can result in a minimum of a one-year jail sentence up to a maximum of 10 years. Cattle are a good investment as they foster multiple income growing streams such as the provision of milk, meat, and labour when considering subsistence farming. Because Zimbabwe in a largely agrarian economy having cattle is a good investment that can further foster other streams of income.
Why should you invest your Money?
If you invest your money today, it will likely increase in the future. The financial assets offer returns on the money over time. While an investment can be extremely beneficial it is important to always be aware of the accompanying risks. If you are working, you can dedicate a portion of your earnings to put towards an investment while managing the level of risk associated with each form of investment.
In a nutshell, the basic rule to make a smart investment is to get a complete understanding of different types of investment options. It is wise to invest in investment options that can suit your requirements. Always remember no investment is insignificant.We all need to start somewhere and investing in shares always allows you to start small if the idea of investment is scary for you and you want to minimise your losses. If you have more disposable income, going for property investment is a great idea.
Book recommendations Rich Dad’s Guide to Investing by Robert T. Kiyosaki with Sharon L. Lechter, C.P.A.
by Ratidzo Makombe
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