We see people in the past which have an excess amount of money in their banks then we see they have nothing. The reason why this happened is that they did not invest that money in new projects. They have money but they put it in banks and did not invest it. So what happened when their source of money generation went down they don’t know how to get out of that and spend their savings on their daily life expenses and not invest them in other projects. So by doing so they get in trouble and end up having nothing in hand.
So what is the investment it is a whole science which you have to get mastered before going for it because if you don’t do that you end up having nothing in your hands? Before playing any game you must learn the rule of that game so you play it well otherwise you ends up creating a mess. Investment is also like a game if you do not know its rules you mess up badly. If we see the definition of investment it will give us two ingredients of investment. One is valuable and other is generating money.
This means that we have to invest only in those projects and products which will have some value in the market don’t invest in such projects which are present in the market but have zero value that there is no future for that projects. If you invest in that project it is same as your money is saved in a bank but it may be sunk.
The other point is to invest your money in those projects who generate cash flow on regular intervals don’t invest your money in those projects which generate profits once in a year because it will provide you less profit and you have to wait for it. it may provide a lot of profit in end but it cannot meet that project which produces a profit at regular intervals.
How to invest money:
So when you know about the meaning of investment then the problem came up where to invest your money. For that, you have to do extensive market research but some people do not have time for this research so they can use the services of consultant companies like Blue Ocean Group these companies provide you best plan for investment.
These companies came up with 2 to 3 different investment plan which fulfills the requirement of your cash flow goals. These companies always invest your money in multiple products. Because they know all investment projects will not perform the same throughout the period. If sometime a project will perform less the other project will manage it in cash flow. So if you will invest only a single project there are huge chances that you end up having nothing in hand or everything in hand but it includes a lot of risks. Because if the project does well you can generate a lot of money but if it will do badly your whole investment can sunk wit that single project.