Sharp Daily
No Result
View All Result
Saturday, July 19, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

The art of growing wealth: A beginner’s guide to smart investing

Editor SharpDaily by Editor SharpDaily
October 11, 2023
in Investments
Reading Time: 2 mins read

The path to building wealth and achieving financial freedom long has been associated with the idea of saving, but this belief can be somewhat misleading. While saving undoubtedly plays a crucial role in your financial journey, it is the act of making intelligent investments that truly propels you toward your wealth goals.

The fear of financial loss often prevents many from venturing into the world of investments. It is understandable; after all, who wants to risk their hard-earned money? As a result, people often opt to stash their funds in insured bank accounts. However, here is the catch: The money parked in these accounts almost is guaranteed to lose its value over time. The low interest rates offered by savings accounts rarely keep pace with inflation, resulting in a gradual erosion of your money’s purchasing power.

But here is the good news: By making informed investment decisions and choosing the right avenues, you can mitigate risks, increase rewards, and generate substantial returns without feeling like you are gambling your savings away in Las Vegas.

As you embark on your investment journey, here are some key questions to consider:

RELATEDPOSTS

The importance of Investment Policy Statements (IPS) for pension schemes in Kenya

July 4, 2025

Why small investments are a power move

June 20, 2025

Why Should You Invest?

Investing not only is a complementary component to saving but also a necessity for wealth building. While saving provides the capital needed for investment, investing offers the potential for returns that can outpace inflation. Over the long term, this can lead to the powerful effect of compounding interest, where your gains earn additional gains.

How Much Should You Save vs. Invest?

There is no one-size-fits-all answer to this question, as it largely depends on your unique financial situation. However, as a general guideline, starting by saving 20% of your income is a good rule of thumb. Initially, allocate these savings toward building an emergency fund equivalent to three to six months’ worth of living expenses. Once you’ve secured your emergency fund, consider investing any additional funds that are not earmarked for short-term expenses.

How Do Investments Work?

To enter the world of investments, you will need to open an investment account, such as a brokerage account. This is where you will fund your investments with cash, enabling you to purchase assets like stocks and bonds. These assets are bought and sold on the market, with stock prices reflecting the value of the respective companies. Bonds, on the other hand, represent debt issued by companies and essentially are loans that investors provide to these firms.

Other Types of Investments

Beyond stocks and bonds, there is a wide array of investment options available, including commodities, precious metals, investment real estate, and more. Diversifying your portfolio across different asset classes can help manage risk and potentially yield positive returns even when certain sectors face challenges.

Are You Building Lasting Wealth?

Building wealth is a long-term endeavor, and it often involves taking calculated risks. While larger returns typically come with greater risks, it’s essential to focus on three key investment principles:

– Establish an emergency fund to safeguard against unexpected expenses.

– Make saving automatic to ensure consistent contributions to your investments.

– Diversify your portfolio to manage risk effectively and improve your chances of financial success.

While investing may seem intimidating, it is a vital component of wealth creation. By following these guidelines and making informed investment choices, you can set yourself on a path to financial independence and secure a better financial future. Remember, the key to successful investing lies in patience, discipline, and a well-thought-out strategy.

Previous Post

Teen pregnancies reach alarming levels in Kilifi County

Next Post

Kenya considers conservation fees for foreign visitors

Editor SharpDaily

Editor SharpDaily

The latest in business, real estate, education, investments, tech and entrepreneurship, brought to you daily. Reach us through thesharpdaily@gmail.com

Related Posts

Investments

Invest in stability: introducing the Cytonn USD money market fund

July 18, 2025
Analysis

Park your money where it grows: Why more Kenyans are turning to Cytonn Money Market Fund

July 16, 2025
Analysis

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025
Analysis

Lessons from the Kuramo-TransCentury fallout

July 3, 2025
Analysis

Kenya’s CIS market: Q1′ 2025 shows a surge, setting the stage for future expansion.

June 26, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025

LATEST STORIES

Invest in stability: introducing the Cytonn USD money market fund

July 18, 2025

The Importance of Asset Diversification on Kenyan Pension Funds

July 18, 2025

Park your money where it grows: Why more Kenyans are turning to Cytonn Money Market Fund

July 16, 2025

Strategies to boost alcohol and tobacco tax revenues

July 16, 2025

Kenya’s reactive monetary policy

July 16, 2025

Why Employers Should Prioritize Pensions Over One-Time Gratuity Payments

July 10, 2025
Business and Finance Concept - Coin, Currency, Financial Item, Graph,

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024