Most young people in first-world countries want to do something new. It is normal to be an entrepreneur there. But most of the young people in Bangladesh want to get a job. Not everyone thinks of themselves as entrepreneurs.
This is due to some conventional social ideas, and some lack of enthusiasm of the youth. Traditionally we think Jobs are better than business, respectable. And if you do business, you have to run after investments. That’s why we have to declare to be an entrepreneur. However, this does not mean that it is bad to have a job. Some will work, some will be entrepreneurs. There is no conflict between the two.
We do not try to understand that the entrepreneurs will lead Bangladesh. But you have to have the vision to be an entrepreneur. A dream, concentrated pursuit, and passion are needed. Moreover, you must have to be stubborn. And we especially need the knowledge-based thinking of today’s age. So, how can you invest to create wealth at a young age? Read on to know the ways.
Why should the youths think about Wealth Creation?
About 22 lakh youths enter the job market in the country every year. Even after being sent abroad, with government-private jobs and being involved in various informal activities, about 1 million boys and girls cannot afford a decent job for themselves every year. Needless to say, if even 10 percent of these 22-lakh youth can be turned into entrepreneurs, then they will be able to provide employment to the rest.
According to a World Economic Forum report, the invention of new technologies has created more new jobs in the market. That will still be the case. But the preparation for that must be revolutionary!
Apart from studying, you should also focus on problem-solving, core skills, public management skills, and communication. All these together will help a student to become an entrepreneur, at the same time make themselves ready for the job market too.
Nevertheless, Bangladeshi jobs are saturated, and getting a job is becoming harder day by day. Moreover, getting qualified candidates is even harder. So, the youth should think of alternative ways to build their career and focus on wealth creation from a young age. This is because the Bangladeshi economy is growing. As per the recent report by HSBC Global, “Bangladesh is likely to be the biggest mover in the global gross domestic product rankings in 2030, becoming the 26th largest economy in the world from 42nd now.”
Furthermore, the per capita income was also raised. Despite these favorable conditions, people are still wary of investing. The young generation should focus more on building their empire using all the favorable economic conditions. Because wealth cannot be built overnight. Therefore, starting from a young age is the prime time. It is because an early start gives the opportunity to have more time, and eventually, time leads to building wealth.
Furthermore, at a young age, people tend to take more risks and the risk tolerance level is also high. At a young age, you can cope up with a failure and can start over again. On the other hand, it is not possible in the older age or even in middle age.
As you get older, you will have more financial responsibilities on your shoulders. Besides, with the growing responsibilities, your risk-taking character diminishes. But these things don’t matter if you are young. At a young age, you can start with a small investment. Over the period, the small investment will generate substantial wealth if you act right.
Thinking about Investing
You might not have enough money to invest or you might have some savings to invest. In both cases, a proper plan can get you the gem. Furthermore, a mindset is also an important element before investing. It can increase your earnings. However, if you spend your earnings without a plan, you will find difficulties keeping track.
If you want to be rich and successful in life, you don’t just have to spend wisely. You will also need to work hard. What else you might need?
Let’s find them out.
It is very important that you have a deep attachment to the work you are doing. You have to have a love for your work, you have to enjoy your work as well as work hard.
There are always different types of people around you, many of whom are people who have no purpose in life. It is better to stay away from people of this nature. Stay In touch with those who set their own goals, those who are constantly working to reach success. You will also have the desire to achieve success. This is one of the best ways to achieve success quickly.
However, you can also find an investor if you have a profitable business plan. In this case, just as you have to have a clear idea about your business model, the general issues like income expenditure, profit-loss should be at your fingertips. Usually, investors try to find out the real situation by asking questions about various aspects of the business. Business capital can be matched if you can satisfy the investor with the requirements.
When you think about investing in anything, keep in mind that investments come with risk too. In fact, you should be prepared for the loss too.
Beginners guide for investment
Where Can You Invest?
Usually, people do not spend the whole of what they earn. Leave some for the future. This money is kept as savings or investments in various organizations. There are investment opportunities in banks, insurance, stock market, government savings certificates, bonds, post offices in the country.
Startup
The startup has become a recent culture. A lot of young entrepreneurs are investing and managing investors to form a startup. If you have a great idea with a perfect business model, startups can make you a huge wealth. However, a solid business plan is the ultimate requirement of a startup. Now, let’s see some traditional ways to invest in Bangladesh.
Prize Bond
As before, price bonds are still a popular savings tool. In 1974, a price bond of Tk 10 was issued. In 1985, a price bond of Tk. 50 was released. In 1995, the draw of the 10 taka prize bond was stopped. In the same year, a prize bond of Tk. 100 was introduced. At present, there is only a prize bond of Rs 100. It has 43 series. No profit is paid against the price bond. However, draws are held every three months.
Sanchaypatra
Even investing in the public sector Sanchaypatra yields good returns at the end of the term. There are currently four types of Sanchaypatra. These are 11.28 percent profit rate on five-year term Bangladesh Sanchaypatra, 11.52 percent profit rate on a five-year term Family Sanchaypatra, 11.04 percent profit on three-year term Sanchaypatra and 11.76 percent profit on Pensioner Sanchaypatra.
Mutual Funds
Generally speaking, in a mutual fund structure an asset manager or asset management organization forms a large fund by collecting small savings from different types of investors. From that fund, the asset manager uses his skills and experience to invest in shares of various companies listed on the stock market, various products or services in the financial market, government and corporate bonds. The purpose of the fund is to make a profit by investing money in different places.
Bond
There are currently a total of four-term bonds on the market. These are 5 years, 10 years, 15 years, and 20 years term bonds. Each of the treasury bonds has a face value of Tk. 1 lakh. These bonds can be purchased from the auction of Bangladesh Bank through the capital market or commercial bank. By investing in these bonds, you can get profit at the rate of 7 to 12 percent per annum.
Bank
Commercial banks have different types of term accounts for depositors. By investing in these, 6 to 7 percent profit is obtained annually.
Share Market
If you have a little more money and want to take a comparative risk, the stock market is open. You just need a Beneficiary Owner account. You can buy shares by looking at good companies. You can also invest in primary shares.
As there is a possibility of making more profit here, there is also a risk of loss. However, other investment opportunities we have mentioned are safe to invest in other sectors. Apart from this, there are also opportunities for savings in various types of cooperative societies and NGOs. However, saving in these is very risky.
Final Words
There is little risk in everything in life. No one can think of a risk-free life. However, it is very important to check the details at the beginning of the investment. In particular, if another person is involved in the investment, your investment will be at risk if that person lacks integrity and dedication. So keep your investment safe without falling into the trap of temptation.
