14/05/2025
Most Young People Don't Know This👇 —And This is Why They Go Broke After Investing.
There are TWO types of investments:
And loosing the balance of this types of Investment can get you into a very bad financial state or even bad debt. I am telling you, you can be an investor and still be broke. (I have been there before, so I know what I am saying)
Take less than a minute to read this post and learn the DIFFERENCE now! Save yourself from being a broke investor.
We have:
1. Cash Flow Investments
2. Capital Gain Investment
Let me tell you how this will influence your financial decisions and in turn your financial life.
1. Capital Flow Investment :
This type of investments put money into your pocket consistently. This allows you to take care of your immediate needs.
Examples are: Your side hustle , products you are selling or even day-to-day business, rental properties (you earn monthly rent), Farmlands leased to farmers or investing in Agro-real estate. If you have interest in investing in Lonims Farms - Contact us: [email protected]
Here is how you can use this system:
To cater for your day to day need, save money from it to reinvest in the same business or thing. When you get to this stage, you are financially independent and can take care of your basic needs.
2. Capital Gain Investments
The second investment type don’t pay you everyday or month—but you only make your money when the price goes up and you sell.
Examples include: Real Estate (and selling when price increases), Buying stocks and holding till the value skyrocket, Flipping properties, Investing in crypto or art
You see, this type of investment is for people that have already gain balance. If you cannot afford to cater for your daily needs, I will not advice you to go for this kind of investment.
You know why?
Because, you will have to do a long wait before your investment appreciates, and during the time of your waiting, your daily needs like: food, shelter, clothings, transport is there. And you will wait for long before getting your Return On Investment -ROI even when it is huge.
Most people who make this financial mistake of investing hugely in Capital Gain Investment when they do not have cash flow investment, are the ones who always think of selling their immediate properties when they are in need of small money.
You see them selling their phones, laptops, TV, Cars, houses because they are in tight corners.
Here’s the Smart Way:
Don’t put all your eggs in one basket. Mix both types wisely based on your goals and current income.
And please—understand what you’re investing in before you commit.
If you found this helpful, drop a comment or share with someone who needs to stop guessing with their money.
Real Estate, Business & Investment Consultant
Lonims Business Consultancy
