Know Yourself
Know Yourself First
Self-knowledge is essential to succeed in investing in any type of investment opportunity. To succeed in any venture at all, you must have this knowledge. Self-knowledge is the most deficient knowledge humans in-general fail to seek because of the illusion of knowing by just being alive. Just because you have been breathing in air for decades doesn’t automatically mean you know the composition of the gases that make up that air you breathe. if you don intentionally find out, your life will continue, oblivious to that knowledge.
Like the air you breath, just because you are alive does not necessarily guarantee you know yourself deeply. You may know some basic information like your name, where you live, what you like and don’t like.etc. but you may lack the insight into your own character, abilities, feelings or motivation.
Unlike the air you breathe, not knowing or having this self-knowledge that truly matters will limit you in life and in investment.
The first step into being a successful investor is to know yourself. Self-mastery is important because it can determine what type of investment vehicle will align with you which can also determine the return of investment.
For example: are you a risk taker or do you like to play safe?
Are you patient enough to prefer a long-term investment strategy or do you lack it and thus default to short term investment?
Are you bolding enough to stand on your decision even when it appears it is not favorable to you in the short run or are you easily persuaded to follow the crowd in doing what is popular?
How do you react to financial loss or unfavorable circumstances? Are you emotionally stable, resiliently resourceful, bouncing back, getting back up when you experience loss or do you breakdown emotionally, blame everything and everyone around you and want to give up?
Are you open minded, eager to learn and try new things even if there might be some risk involved or do you just want things the way they are or hate taking actions on things you can’t fully control?
Your psyche and understanding also plays a major part like do you think there is a quick way to make money or do you believe that making money is a process that takes time and corresponding effort? What do you think money is? Are you driven by it? Does it change your behavior when you have it or lack it? because understanding your metal state will control your actions which will correspond control where you invest, what you invest in, your investment strategies, your expectations, your satisfaction or the lack of it and the overall investment outcomes be it either short term or long.
This knowledge will really help you gain perspective and help us know what strategy we can use to guide you to achieve the best outcome for your investment’s goals.
Investing isn’t for everyone. Click here to see why
Frequently Asked Questions
Are you new to investing, or new to investing in Nigeria, you will find our Frequently Asked Questions a good starting point
Very important. Assets can potentially generate income, appreciate in value, or both. Examples include shares in businesses, bonds, investment funds, productive property and ownership interests in businesses. The distinction is important because consuming income and owning productive assets lead to very different long-term financial outcomes.
Yes. A high income can make wealth-building easier, but wealth can also be built through consistent saving, investing, business ownership, property, intellectual property and other productive assets. Time is also extremely important because compounding rewards consistency over long periods.
Inflation is a sustained increase in the general level of prices. If your money earns 3% but prices are rising by 10%, your purchasing power is falling even though your account balance increased. This is why investors often consider real returns, returns after taking inflation into account.
Wealth protection can involve: Diversification Adequate insurance Maintaining emergency reserves Avoiding excessive debt Proper legal and estate planning Protecting financial accounts Avoiding fraudulent investments Keeping appropriate liquidity Building wealth is only half the job; protecting it is the other half.
Primarily because of inflation. Inflation means that the general price level of goods and services increases over time. When prices rise, the same amount of money generally buys fewer things. For example, if something costs ₦10,000 today and inflation causes its price to rise substantially over several years, ₦10,000 in the future may not buy the same quantity. This is why simply holding cash for very long periods can reduce purchasing power.
Different money has different jobs. Money needed soon should generally be kept somewhere safe and accessible. Emergency funds should prioritize liquidity and preservation of capital rather than aggressive returns. Money intended for long-term goals may be invested in appropriately diversified assets. The key question is: When will I need this money, and how much risk can I afford to take with it?
There is no universal number. Financial security depends on your living costs, family responsibilities, debts, income stability, emergency savings, insurance, assets and future goals. Someone who needs ₦1 million every month requires a different financial cushion from someone who can comfortably live on ₦250,000.
There is no universal percentage that works for everyone. A common starting point is to aim for 10% or more, but your actual target should depend on your income, expenses, debt, emergency savings and financial goals. If 10% is impossible today, start with what you can afford and gradually increase it. The important thing is to develop the habit of consistently spending less than you earn.
Some of the biggest include: Excessive debt Concentrating too much money in one investment Fraud and investment scams Lifestyle inflation Poor financial planning Panic selling Speculative investments without understanding the risks Failing to insure against major risks Ignoring taxes and fees Using money needed for essential expenses to make risky investments
Because earning money and managing money are different skills. Someone can earn ₦5 million a month but spend ₦5.5 million. Another person might earn ₦500,000 and consistently save and invest part of it. A high income can improve your financial position, but it does not automatically create wealth. Your financial surplus—the amount left after your expenses—is what gives you the capacity to build wealth.
