BANZA January 2016 Issue | Page 53

INVESTING; the HOW demystified Mohamed Bouya Maalainine After demystifying the topic on investment in our first issue, let’s dive deeper. How do you invest? Before investing your money, prepare yourself. 1-Protect yourself 2-Define your investment goals An investment guru, Warren Buffet advised, “Don't save what is left after spending; spend what is left after saving.” It is cool to invest to make money. But it is mandatory that you set a specific goal. Are you making that money to fund your studies? Are you interested in buying a (new) home? Are you trying to have a different source of income? The goal defines where to and how to invest and how risky the investments can be. If you are willing to pay your college fees, you will probably play it safe while investing. In the real world, even the safest investments are not that safe. To avoid regretting the consequences of a bad investment, start by having an emergency fund. As the name suggests, this fund will be used in case of emergencies such as losing a job, physical injury and bankruptcy.