Investment Principle

Opinion / Finance and Investing

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Investment Principle
Bernard Ansah-Koi, Member, Student (University), Ghana

Your investment is your future life

A man is worth what he is able to save today. You wealth in the future will only be what you have been able to save or invest now and not what you do have in your bank account. For this reason when you have $100 and you invest 10% of it in a financial instrument with a maturity period of three (3) years, then you will be $10 richer plus your interest on the investment.

The determinant of your future well-being and self-dependance is the investments you make now (today). A person's wealth is the monies unavailable to him to spend on household items like food, dress, paying of bills and for entertainment; thus the portfolio of investments ( the funds made available to financial institutions on the financial markets, deposited with the banks among other financial intruments).

The purpose of investing is to keep moving this world forward through capital formation for businesses and companies and secondly, to maintain the investment cycle. The later is to say that people could earn more for them to save enough when companies have access to huge funds and are able to carry out large projects which calls for high profits,employment and inturn, high incomes for employees and for that matter savings.

Huge profits for firms means more taxes for government and this cause for the expansion of the local economy.

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