IN 2025 TAKE ONLY CALCULATED RISKS

 In 2023 there was a company that closed and vanished off with several peoples' hard earned money. The scenes on media channels of this bad experience require an article to warn the public that investment is risky and requires due diligence. To worsen the matter some of these people used their retirement benefits to invest in this company. That shows us the complexity of investment. It is a risky venture. In 2008 there was a financial crisis that was caused by the mortgage crisis in the United States. The experienced bankers took precaution out of the window and started lending recklessly. In the end it affected the whole world negatively. If this could happen in a developed country like the United States then as Ugandans we need to be cautious as we invest.

As a financial literacy trainer I have experienced it first hand the hate that some people have towards investing due to the previous negative experiences. Many people especially in rural areas have been conned of their hard earned money and they are very afraid of any investment scheme that comes up. It is true that many people have lost money in the past and that should not be a reason to avoid investing. The key issue is to be humble enough to learn about investment. Most of us rush to invest in ventures that promise huge returns in a short time. While it is good to desire quick returns caution should not be thrown out of the window. Not every investment is worth our time and we should know our investment personality.

The youths tend to be more risk takers than adults. And indeed if we are to make a research the youths tend to invest in get rich schemes more than adults. This is because they lack the experience to discern such ventures. This explains why financial literacy is very important to safe guard the public. The get rich schemes are on the increase in the rea of digital transformation. Just a few years back there was an online investment club that duped several women of their hard earned money. It was a pitiful and painful story.

HOW TO MAKE CAUTIOUS INVESTMENTS

1.Have clear financial vision

2.Research before you invest

3.Build your savings reserve

4. Seek advice from experienced finance professionals.

Investment is risky. The media is full of stories of people who have lost their hard earned money to conmen. It is not a very nice situation to be in . As discussed above we can make better investment decisions in 2025.

Phillip Kiryowa

Personal Finance Coach 

Advanced Empowerment Link

+256752615916

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