So you are a young lady/guy between the ages of 20-35. You just got your first job, or you are changing jobs, or about to start a business, about to get married etc. even though the economy is bad, you kinda still have extra cash in your bank account which will somehow disappear before you say jack Robinson but.. right now as you are reading this, the money is in your account. just staring at you…
What to do? what to do? you might just slap someone if they mention “start a business or buy stocks” … You want a practical thing to do in plain English.
Am I the only one that enters panic mode when I start hearing things like money market, stocks, capitalists etc? Not only me abi?
if you are like me, you are in the right place.
Before I start, I am not a financial analyst or finance anything. This is not my core competency, I did not go to school for this, neither am I in the sector. I am just an Ijebu girl who likes to ask a lot of questions and read a lot.
Just like I wrote in my piggybank post, I have been very careless with money in the past. Things had to change so I had to start educating myself on how to manage finances and these are some of my suggestions based on your budget below:
If your extra cash is between any of these, thresholds, and in NAIRA, you could do these:
- Between 10- 50k: Aunty/Uncle your money is quite small but it’s still your money and no one can tell you nothing. Here I am assuming its not a one-off, maybe you have 10k of extra change every month after your expenses, so Pls don’t go near any Nigerian mall or a club. My recommendation is to go and look for “AJO” or “Esusu” or in plain English, Thrift collection to do You could also deposit this money in PiggyBank and just keep adding to it gradually. Just drop your money and forget it there till you can collect in bulk. Then you can move to the next stage with pride.
- 50k-100k: Now you are joining the ballers small-small, you haven’t joined them o.. but you are close: Here I advise that
- 100k-250k: spare change of 250k? you are quite a big boy my dear: but you are not yet on the high table. You can buy some gold that can be hidden somewhere, wait for another 3 months, take it to your Mallam and you might just be smiling. Another thing you can do is to buy forex (USD) and keep but I don’t know how that sector is doing at the time you are reading this post but Forex is never a bad idea.
- 250k-500k: Baller lo mo…. if you have 400k of spare change then you are quite comfortable. Don’t let your village people know abeg. I advise that you invest in Agritech projects, entry-level mutual funds etc. you can easily make 50k back after a while depending on the prevailing interest rate
- 500k- 900,000 Naira: not yet up to 1 million: see ehn, you are now a big MAN: buy Treasury Bills or invest in mutual funds account and start getting some financial education.
- 1 million on the dot: Congratulations sir, you are now a millionaire .. let’s go and pop some champagne. lol.. Please don’t.. we are here to invest.
- 1.something million Naira: with this amount, you can make down payment on land somewhere in Ajah or ikorodu and pay the rest off gradually. Please note that Land is a long term investment.
- Above 2 million and balling: if you have spare change of 2 million naira, you are Dangote offspring and I don’t know what you are doing here. Please go and start building house.
and if you have no spare change at all and you need to join the group of people up there… Your focus shouldn’t be investing yet, what you should be doing is finding ways to earn more money so that you can start having extra cash to save. Because I am a nice person, ill give you some ideas below.. 🙂
- If you have a car you drive to work: Sign up for Uber or Taxify and make extra cash during your free time.
- Upskill: learn a skill for free online and start doing dome work on fiver or some other freelance websites. use your internet data for something reasonable.
- Look for a job that pays you better than what you currently earn.. Career Life is a great resource for this.
- Save your peanuts with piggyback… Trust me, saving grow when you are consistent.
- Start networking and be a middleman: you know those contractors that are importers and exporters of everything in this world, ehnehn.. you can join them
- Recycle: recycling companies like wecyclers and saocorp pay you in cash or kind if you bring stuff they need.
if all of these fail please go and see your pastor, I cant help you.
when investing in land, please get professional advice and ask about all the extra cost like survey, family forms etc. Don’t be a learner.
If your spare cash band falls in the middle of any of these, just buy 2 of the lower or save up some more.
Like I said, before, If you have tried any of these and they have worked or even failed or you have some extra ideas that do not involve getting outta bed, please share the love and wisdom in the comment section below or join my mailing list to get more ideas