Intrinsic Investor

Most people are intimidated by making investments.

It could be because they don’t understand how investments work.

I am not a financial advisor, I only share what has worked for me, my friends and family.

Being an investor means allocating capital with the likes of real estates, stocks & bonds, currencies and commodities with the expectation of future financial returns.

Investing = Your Money working for you.

This is another way in which you can position yourself as a #SOPIE. 

Read more about SOPIE on this blog post.

And if you missed the previous #SOPIE challenges find them here;

Challenge #1 Being a Savvy Saver

Challenge #2 Being an Organised Owner

Challenge #3 Being a Proud Producer

And this is Challenge number 4: Be an Intrinsic Investor  

Investing doesn’t have to be scary and it is not only for the Elite.

You can also be an Investor.

Starting your investment journey doesn’t have to be expensive, you don’t always need a large amount of money to invest. Start small and build your investment portfolio.

Let’s look at this scenario.

You start a new job where you earn R5000 a month.

Before your salary is eaten up by your consumption, you invest R2500 in a vacuum cleaner which you rent out to your friend who owns a cash wash for R300 per weekend (R2500/R300=8.33) you can possibly pay back the vacuum cleaner in 8 weeks (about 2 months). After paying off your asset, you get to keep the additional R1200 that you make a month.

Boom !!! you have increased your income to R6200 just by making a clever investment right from the start.

Scenario 2

You save R500 a month for 6 months, that will give you R6000. You then invest it in an income generating asset or an asset that has a potential to grow in value in the future.

Investing is all about changing your mindset, and I believe it is one of the best ways to attain financial and time freedom.

If you used a part of your hard-earned wages/salary to invest in a number of income generating assets for about 5 – 10 years of your working life, you could easily have your assets pay for your basic needs.

I wish I knew this when I started working!

There are 2 types of investors, Passive investors and Active Investors.

Passive investors put their money in a fund that tracks the S&P500 index, the portfolio is managed by the fund. This is more long-term investments.

Active investors are hands on, they control their own portfolios according to the market performance. You need to acquire some investment knowledge. This type of investment can be for long or short-term investments.

My investment interests are in the following;

  • Myself – I read a minimum of 1book a month and I invest in courses and seminars to improve my skills and knowledge.
  • Property – My portfolio currently has 2 rental properties that are self-sustaining.
  • Cryptocurrencies – Cryptocurrencies are the future technology and I believe we are still going to see a rise in their value. I buy and mine crypto.
  • Paintings – I am an artist and I love to buy valuable paintings, it is also a great way to put your money in an asset that will grow in value over time.
  • Businesses – Investing in potential upcoming businesses is a great way to have your money work for you.
  • Index fund tracker – with these types of funds you are buying a unit or small part of the fund from the company that looks after the fund. This one is a new venture for me, I will write about it in details soon. How ever you can look at fund supermarkets in your country, for SA you can check out sites like Coronation and Old Mutual for more info.
  • Future technologies – I invest in future green technologies such as Solar, where you buy solar cells and lease them to schools and businesses in the sunniest places on Earth. Mainly Africa.
  • Gold – Ok, so I haven’t invested in Gold yet. But it is certainly a goal of mine to do so.
  • Livestock i.e. Cattle – I plan to start investing in livestock soon.

Activities for challenge #4

  1. Set aside an amount for investments monthly, this is you paying yourself – preferably an automatic debit order.
  2. Be clear on the reasons why you want to invest, for a specific goal, retirement, earn high returns or to start or expand a business.  
  3. Make a list of investments that you would be interested in?
  4. Find a mentor who invests in the type of investment you are interested in.
  5. Invest in your chosen asset or investment fund and sit back and enjoy your money working for you.

Great investments either need work or patience. Don’t make the mistake of confusing a real investment with a get rich quick scheme.

You will be disappointed.

Comment below or connect with me so we can share more ideas and tips on being an Intrinsic Investor.

#SOPIE

#Default2Design  

#DoYou

Quote

“Building wealth is a marathon, not a sprint. Discipline is the key ingredient.’’