It requires financial intelligence to be a good investor, when money comes to your hand; the first thing you should think of should be investing.  Don’t waste your resources; learn to prioritize your resources.  You have to know that money has the capacity to grow and it only grows based on what kind of soil it is invested into.

Money wears the attitude of the owner, it is a messenger, and it goes to wherever it is ordered to.  Money is power, when it gets to the hand of a man it makes him to look more powerful than he was before the money came.  Money will either make a man responsible or it will bring out the irresponsibility in him.  Money doesn’t corrupt a person; it only brings out the corruption in the person.  Nobody knows how corrupt he or she is until he is offered certain amount of money that meets his price.

So you will understand that money has the power to control a man who is not disciplined.  This will help you to know that without discipline there cannot be a proper investment.  Let’s look at some of the things you need to put in place before going into investing.

1.    Prioritize your money – Many people become confused the moment a huge sum of money is presented to them, because they never expected the money.  Some other people already know what they expect as their take home at the end of the month, but they still end up squandering it when it comes, because they don’t have priorities for the money, so they can buy whatever they want to and before the middle of the month they’ve gone broke and cannot account for what they used the money for.
Prioritizing helps and guides you in the way you should spend your money, it aids effective planning, it will make you to know what is important and what is urgent.  There is a saying that you don’t place the cart before the horse, that is what priority will do for you, it will help you to know that you have to take everything, one thing at a time, don’t be too much in a hurry to spend money when it comes to you, rather take time to divide it into different parts.

2.    Plan your money – Engage in financial planning, have your goals and what you want to achieve within a one, two or three year period and start allocating resources to them.  You need to have a plan on how much resources should come to the home, how much you will use in running other activities and how much will go into your investment account.

3.    Diversify your investment – Don’t put all your eggs in one basket, learn to invest your resources into different instruments.  The risk of putting your entire resources into one instrument is that when it crashes everything you’ve put in will go in for it, but if you invest wisely and diversify your investment, it will help you to minimize the risk of losing everything you’ve invested in one day.

When you diversify your investment, you are able to maximize profit at different levels, because they may not all at the same time yield profit, but they will definitely do within a long term perspective.