Use investment clubs for long term finances
HOW do you manage your long term finances? While there are several options, the trick is how to choose the right option that will work for you. You have probably read stories about how empowered people have become through group dynamics of collection of money.
Wallet Talk
HOW do you manage your long term finances? While there are several options, the trick is how to choose the right option that will work for you. You have probably read stories about how empowered people have become through group dynamics of collection of money.
Investment groups or clubs are an important avenue of saving and investing money.
Investment clubs not only pool resources, advice but also emotional support to members. Different sources of income can be pooled together and grow if well managed. Taking risks also becomes easier when it’s done in a group.
However, before you form or join investment clubs there are a couple of things that need to be followed.
Choose friends carefully for you wouldn’t want to risk losing a portion of your savings to unscrupulous people.
Ensure that the group or club is registered. This should follow drafting a constitution that clearly spells out the roles of each member and terms of office bearers.
Decide on the amount of monthly contributions from members. You should also decide whether it should be a merry go round or whether contributions should be banked on a savings account.
Set long-term investment goals that give a clear picture how you expect the group to have achieved in the short, medium and long-term.
You should also have an agreement before making an investment decision and be prepared to bear the consequences if the investment falls short of expectations.
Invite financial experts with knowledge in financing and investing to give advice regarding the available investment options.
However, there are a couple of things that you ought not to do if you are to manage a successful investment club:
Do not expect an investment advisor to take responsibility for your payments.
Do not invest in areas where you and your members lack knowledge.
Never allow group members to skip on their contribution.
HOW do you manage your long term finances? While there are several options, the trick is how to choose the right option that will work for you. You have probably read stories about how empowered people have become through group dynamics of collection of money.
Investment groups or clubs are an important avenue of saving and investing money.
Investment clubs not only pool resources, advice but also emotional support to members. Different sources of income can be pooled together and grow if well managed. Taking risks also becomes easier when it’s done in a group.
However, before you form or join investment clubs there are a couple of things that need to be followed.
However, there are a couple of things that you ought not to do if you are to manage a successful investment club: