Growing skills
27 October 2020
[10/29, 10:25] Praise Him: 🌻Start Investing Young🌻
We are going to start learning about making mone in life through investing on Stocks Exchanges and Money Markets.
There are 4 ways of making money in life:
These are
1. Working for a company
2. Running a business
3. Working on your own projects
4. Investing the money that you already have in institutions which pay interest. You don't have to work there. You just send your money there to work.
We are going to focus on No. 4
How Investing Works
In Zimbabwe, there are 4 avenues/ ways/ routes in which you can invest money to make more money.
🛣️
These are :
1. Zimbabwe Stock Exchange
Raising share capital
Victoria Falls Stock Exchange. (You invest foreign currency only)
2. Money markets
3. Bonds Market
4. Mikando
Why you should start investing now
1. There is plenty of money changing hands in Zimbabwe everyday.
2. If you know what to do the next time a few of those 👆 dollars come into your hands, you will grow moneyful.
3. If you start learning to invest now, and start doing the investing, by the time you reach 40 years old, you will be far richer than you think now.
4. You better start pestering your parents to help you learn how to invest now.
🌻 *How will these avenues bring you money?*
Never forget this:
💪Fact No. 1
There is plenty of money changing hands everyday.
However, there is shortage of money needed by companies to buy raw materials so that they continue to produce goods and services.**
So how they get the money?
Lets use Ok Supermarket as an example to show how this works.
OK Supermarket needs money to open another branch. Currently, the money that it has now, may not be enough to buy the land, build the complex and buy the goods in order to start operating.
But OK Supermarket has done its research and seen that people want a big supermarket in their area and OK is sure that it will make profit.
It does not have enough money to complete the project.
What will it do?
It has 5 avenues to follow in order to get to the money.
That is where it will buy the money.
Yes you heard me right. It will buy the money.
........ and this is where you come in.
1. *Stock Exchange*
a) OK Supermarket will join the stock exchange where you will meet to give them your money by buying small parts of the company called *shares* .
After receiving your money** , OK Supermarket will then go and set up its complex and start operating the new branch.
After a year or so, it will pay you a profit(dividend) according to the number of shares which you bought.
*You have made money.*
b) Also, if you invested $100,00 in January, by the time you reach December, your $100,00 may have grown to $120 or $150 because money attracts money! **
2. *Money Market*
(Musika weMari)
There are companies and banks which lend money to those companies looking for cash to expand their businesses.
These companies are called financial institutions. If OK Supermarket wants to buy more goods (stock) to prepare for more sales during the Christmas or Easter holidays, it can approach a bank and borrow money to buy the stock.
Where do you think banks get the money to give OK Supermarket?
*From you!!!*
So, let's say you have $100 and you deposit it into a bank, the bank will give it OK Supermarket which will use it for a specific period of time.
OK Supermarket will then pay back the money to the bank, with a profit called *interest*
The bank will then pay you your portion of profit.
*You have made money*
3. *Bonds Market*
Banks and financial institutions are the ones who manage this avenue (investment vehicle)
Let's say you have large sums of cash and you want it to earn you more money . You want your money back after 2, 3 or 5 years. You can choose to put your money there.**
*You can preserve your money*
4. *Raising Capital through Shares*
You can make money when you buy shares on the stock exchange for a company that is issuing more shares to raise money for expanding.
Let's say OK Supermarket which is already on the Stock Exchange, does not want to borrow money on the money market but wants to expand its business, it can come to the meeting place - the stock exchange - and offer more parts of its company (shares) to the public.
When you buy those shares (add them to your portfolio)** , *you are on your way to making money*
Why?
Because the price of a share of a company increases and decreases because of several reasons.
*Over time, it increases.*
As the share price increases, your initial amount increases!!
If you bought shares worth $100 and each share was costing $1,00 it means you bought 100 shares, right?
After 10 years the price of each share may have gone to $5.
What does that mean for you?
100 shares X $5,00 = $500,00
*You have made money.*
🌻🌻🌻
To get
♾️ a clear picture of the financial structure of investments in Zimbabwe
♾️further clarity on how investing works
♾️How you can start investing now
♾️ Support that keeps you investing through thick and thin
```WhatsApp 0772 433 215```
[10/29, 12:49] Praise Him: By the time you are ready to start investing your seed
You would have mastered the following 4 financial cornerstones of money making.
1. 4 seed gathering ways
2. 5 investment avenues
3. 3 necessities for investing
4. 4 motion pictures on how you will be making money (using the OK Supermarket as an example)
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