How To Avoid Losing Life Savings

Posted by: lukwago J in Life style October 9, 2020

It is common that after a period of working especially under formal sector, be it in government or in the private sector, after a certain period one has to retire and under normal circumstances, he /she will be paid retirement package. If wise enough, this will help them maintain a life savings.

A certain gentleman contacted me and said my son, after I received my retirement package, I returned to my home town and tried to established a business but unfortunately, things didn’t work out.

He gradually lost all the money until he remained with nothing just in a period of 3 years. All life savings went down the drain while he was try to establish a business.

In our conversation I was asking more questions so that we could establish where he went wrong. I wanted to know the type of business that he ventured into, what his model was and when he realized he was losing money and what he did about it before it was too late.

It was a disaster; the gentleman started a business where he didn’t have experience. He opened a supermarket. He started to realize that he was losing money when he couldn’t restock and he kept doing the same thing hoping for a change.

This is the situation many of us find ourselves in. You raise some funds and decide to start a business. You started well with let’s say $1000.00. Along the way you see you have left with only $500.00. You try to figure out where could be the other $500 gone. Or you just find yourself bankrupt with no life savings at all.

What happens in business is a game of investing your money in anything that you believe is profitable and you should get your money back with a profit. This is how business must operate. But when you see yourself put your money in a project but return missing some figures, then just know that you are doing it the wrong way.

Before you invest in any business, you should understand the time frame where you are going to wait before you see profit. You also need to understand the risks involved in the type of business that you want to venture into.

Business is a game of calculation and playing with numbers. Business is not a game of luck like many people think. Starting a business hoping that one day I will be lucky and make huge profits. It doesn’t work that way.

By M. Marambire

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