Before You Invest Again, Know Your SGAR

Sola Adesakin

February 10, 2026

One of the most common money mistakes people make is investing without context. A friend shares a success story. Social media flashes screenshots of returns. A colleague says, “Just try it.” And suddenly, you’re putting money into something you barely understand, hoping it works out.

Personal finance does not work that way. What builds wealth for one person can quietly destroy peace for another. Before you invest, there are four critical things you must understand about yourself. I call them SGAR: Situation, Goals, Age, and Risk. Miss any one of them, and even a “good” investment can become a bad decision.

S — Situation: Know Where You Are

Your financial situation is the foundation of every money decision. It includes your income stability, existing savings, debts, responsibilities, health, and even emotional state. Someone earning a steady salary with no dependents is in a very different position from someone running a volatile business, paying school fees, and supporting extended family. Yet, both often invest the same way. If you have no emergency fund, irregular income, or outstanding high-interest debt, your priority may not be aggressive investing. It may be stabilising cash flow, building savings, or cleaning up liabilities. Investing without acknowledging your situation is like building a house without checking the soil. The structure may look fine, but it will not stand pressure. Personal finance is deeply personal. One size does not fit all, no matter how attractive the returns look.

G — Goals: Know Why You Are Investing

Every investment should answer one simple question: What is this money for?

Are you investing for short-term needs like rent, school fees, or relocation? Medium-term goals like buying property or funding a business? Or long-term goals such as retirement and legacy planning?

Many people invest without goals and then panic when markets fluctuate. If your goal is five years away, short-term volatility matters less. If your goal is twelve months away, riskier assets may not be appropriate.

Clarity brings calm. When you know your goal, you choose investments that serve it. Without goals, money moves randomly, and random money decisions rarely build wealth.

A — Age: Respect Time and Season

Age is not about how young or old you feel; it is about time horizon. A 25-year-old investor has time to recover from market downturns. A 50-year-old investor has less room for error, especially if retirement is approaching.

This does not mean older people cannot take risks or younger people should be reckless. It means your age should influence your asset mix and strategy.

Younger investors can afford to focus more on growth-oriented assets because time is on their side. Older investors may prioritise capital preservation and steady income. Ignoring age often leads to unnecessary anxiety or irreversible losses.

Time is one of the greatest assets in investing. Use it wisely.

R — Risk: Know Your Temperament

Risk is not just about numbers; it is emotional. Can you watch your investment drop by 20 percent and still sleep well at night? Or will it give you high blood pressure and daily panic?

Different asset classes carry different risk profiles. Stocks fluctuate. Real estate can be illiquid. Business investments can fail. Even so-called “safe” investments carry risks if misunderstood.

Your risk tolerance must match your personality, not someone else’s confidence. An investment that causes constant stress is not building wealth; it is stealing peace.

There is no reward for suffering through investments you do not understand or cannot emotionally handle.

Successful investing is not about chasing the highest returns. It is about alignment. When your situation, goals, age, and risk tolerance are in sync, your money works with you, not against you.

Two people can invest in the same asset and have completely different outcomes because their SGARs are different. One will stay calm and consistent. The other will panic and exit at the wrong time.

Before you invest, pause. Ask yourself:

Where am I right now?

Why am I investing?

How much time do I have?

What level of risk can I truly handle?

Wealth is not built by copying others. It is built by making informed, intentional decisions that fit your life. Know your SGAR, and you will invest with clarity, confidence, and peace.

Sola Adesakin is a highly respected wealth coach and chartered accountant with over two decades of transformative impact in the finance industry. As the visionary founder of Smart Stewards Financial Advisory Limited and Smart Stewards Advisory LLC, she has revolutionized the financial wellbeing of countless individuals and businesses across 40 countries. Her methodical approach to ‘make-manage-multiply’ money principles has elevated many from financial stress to prosperity, and mediocrity to exceptional achievement.