The reason why you need to dive into investing and saving at this period is because it will help protect you in the event of a financial emergency. It will also help you pay for large purchases, avoid debt, reduce your financial stress, leave a financial legacy, and provide you with a greater sense of financial freedom.
Therefore, you don’t have to be nervous. Investing and saving is really the best way to go.
This blog post will provide investing and saving tips to many of us, but before we go into details, it’s important that we talk about the current COVID-19 Pandemic. The current COVID-19 pandemic has really affected the world economy including Nigeria. Due to this, Nigerian households are expected to spend less for several reasons. Generally, people will limit spending to basic necessities and most essential services. Given the current situation, this outcome is inevitable.
The times are desperate and we are likely to turn to alternative sources of finance. Currently, investing and saving may become the key source of income for many Nigerians now and in future.
Now, let’s go into details…
The world is evolving. Yet, a lot of people still believe in old-fashioned ways of saving or investing to accumulating wealth. The standard for wealth, however, has shifted. Now don’t get me wrong, the concepts are the same over time, but the mechanism has evolved. In fact, many fail to appreciate how much has shifted in the past few years, and how accessible and mobile wealth creation has become. So, if you are caught up in a web, deciding where and what you can invest or save in, you’ve come to the right place. We hope some concepts explored in this post will encourage and shed some more light on how accessible a wide range of investment opportunities are in Nigeria. Perhaps, it can motivate you to be one step closer in raising more capital.
And maybe you will begin to believe that 2020 is the year you really will begin to invest your money in long- or short-term growth. You may have invested a decent sum in a high-interest saving account, but you know it’s not enough to conserve cash because money needs to be used to earn you more cash. The question is: what can you invest your money into?
The nation has its corporate climate stable and fairly simple, with many investment prospects in different sectors. It is understandable that you might be skeptical, but be rest assured that you are not making a wrong choice. The article offers information on the best investment prospects in Nigeria, so without further ado let’s dig into our outline below.
1. Invest in Real Estate
Purchasing property has become number one most stable investment, particularly in a growing nation such as Nigeria. One factor that should be noted when investing in Nigerian properties: you must take the city or area where the property is situated into consideration. If you desire a quick return on this, consider prime locations like Abuja, Lagos and Port Harcourt. As a forewarning, consider that you do thorough investigations before diving into real estate.
We alluded to this – but the trick here is that if you are low on capital or starting out small, buying land that has a lower point of entry while offering high growth potential is critical; it’s a sort of science actually. This science can be based on key factors: what are the infrastructural city plans of the area, who is migrating to that area of the city—the list goes on. Once acquiring the land, using it for rent services has proved to be one of the most sought-after investment prospects in Nigeria over time; especially if the land has been bought and preserved for some time
Most Nigerians are plagued with issues of housing. Tapping this pressure point provides a variety of real estate opportunities. You might propose contracting out to conferences, seminars, and public events for parties of all sorts. Real estate investment, particularly in commercial areas of the world, is highly productive.
For easy direction, check out these apps on real estate management. Property Fixer and Auction.com. They are perfect for investors looking for good deals of real estate investments. These apps help you understand your potential profits and how to navigate through.
2. Invest in Agriculture
This may sound absurd; however, I suggest that agriculture is a perfect option if you want to make it big and save enough. The agricultural sector creates a new millionaire from agriculture in Nigeria every day. The phenomenon persists as the country uses agricultural production to promote economic development at all levels.
The livestock production will continue to flourish, such as chicken, pig, snail, and fish farming. Think about how frequently we rely on these animals to sustain our way of life – from parties or even just a quick stop at your local restaurant. If it still unsettles you, consider using the indirect pattern of investing in companies which are experienced and interested in large-scale farming if you do not like farming, but want the revenue that flows from it.
Operators will use your resources to complete these operations and pay you occasional dividends on your investment.
Farming is an integral part of the Nigerian economy’s development and growth. In reality, if you think this was the best investment in Nigeria, you would not be too far from right.
Agriculture investment is also a means of investing in people; people (human capital) have now been the leading force in the wealth of countries. Today, knowledge, skills, and expertise, commonly referred to as human capital, are a large part of global wealth and must be continuously sustained. Importantly, you can invest in a company that makes money from livestock farming as well.
A few examples of companies that does agricultural investment that you should checkout are Farmcrowdy and Smartfarm. With both, you can farm remotely by investing.
3. Invest in Stock Market
A lucrative and booming market that you can venture into is the stock market. The process is made easy because you do not have to run it yourself. You can make use of a broker or Robot-advisor.
Even though, investing in this business can be particularly tricky and volatile, leading to people opting out at an early stage or waiting simply too long. The reality is standing by the sidelines or procrastinating helps no one as there is no ideal time.
Stocks investment will have a fantastic return if carried out carefully, and you know your market adequately. Again, stocks can be extremely volatile, so in order to achieve big success, a good market analysis is necessary. Nevertheless, experts claim it’s worth investing in, whether in a portfolio or a taxable investment account. Don’t waste time trying to break into the market at the perfect time because there is none. To make choosing from plethora of possibilities easy, check out Chaka investment.
4. Join Transportation to include Taxify, Uber
Over the years, transportation has become one of the booming businesses globally, even in Nigeria. The transportation business has recently expanded and is among Nigeria strongest investment prospects today. Taxify and Uber are all at the peak of Nigeria’s supply chain.
Taxify and Uber, now running in major cities across the country, offer young and old Nigerians jobs, especially those who are capable of managing the service. Investing in this business means getting a car or more, sign with one of the companies which will help you hire a driver who works for you indirectly. Investing in transportation is juicy, and you have the opportunity to get your money daily or weekly.
With Uber and Taxify, you can make close to a hundred thousand naira per week and with more than a car, you make more
5. Investing in Telecommunications
Telecommunication is another lucrative business to invest into in Nigeria.
The rate at which people purchase smartphones and recharge cards is quite high, making this a more significant investment. Telecom controls the market, and with the internet, the growth is immeasurable.
In the telecommunications category, value buyers seek for perfect pickings. Regardless of changes in the business cycle, the thirst for telecom services, an essential part of the global economy, continues. While demand is constant, suppliers tend to increase. Government regulations also shield many of these businesses from competition, enabling them to make consistent sales from an established consumer base.
It is important you know that if a company collapses as a result of a shift in the industry, investors can still take values as long as fundamental rules are strong and adaptable to change. The trend of payout and the daily rise in dividends in the telecommunications business makes investing more fun.
6. Investing in Mini-Importation
Mini importation has to do with a macro way of importing wears, electronic gadgets etc. from other countries such as china, turkey etc. at a cheaper price to your Nigeria.
An easy and fast way to make cash is to invest in mini importation. It is one booming business that everyone or anyone can do. Consider starting one yourself or invest in a trusted person’s business. Importantly, the mini import is a trade you can invest in with little or massive capital that will yield substantial gain.
Mini importation is undoubtedly a fast-growing Nigerian business that you might consider investing in. First, survey the market to discover which is an appropriate niche for you. Duly note, that wears, gadgets, and electronics are the most sought-after goods in the importation business.
7. Investing in Cryptocurrency
According to most, the purpose of investing is to double your capital, if not more. Cryptocurrency, popularized in recent years, has emerged as a lucrative investment space for Nigerians today and of course, globally. Buying cryptocurrency like Bitcoin, Ethereum, Litecoin, etc. is an excellent way to invest in all the extra capital you possess and similar to stock, bigger investors are rewarded with profit. In fact, the cryptocurrency world would see a rise in business in the post-pandemic world because a lot more people are ready to get involved due to its high-income rate. There are a host of sites, but be guided and do your research on what companies to choose.
8. Invest in the Food Business
With environments in mind, eateries and restaurants are making high waves in Nigeria. You can liaise with a fast-growing business and invest in it. Domino’s Pizza is one of the best companies to invest in regarding food investment or consider homegrown franchises, such as Chicken Republic.
9. Tap Into Online Banks
There are various online banks in which you can save or invest your money. Cowrywise and Piggybank are some of the best in Nigeria and a reasonable attempt to save up. You can lock your savings with them for a while, and you get high interest on it. Also, these banks run investment programs, so you can invest with them and without the fear of being scammed.
Check out Cowrywise and Piggyvest website and for easy usage, both online bank app are made available on iOS and playstore
Some Quick Tips on Finances
Keep Track of Your Cash Flow
You need to plan:
- What income is coming in
- What expenses are going out – line by line
- Categorize your expenses (e.g. groceries, take-out, and utilities, etc.)
- Sump up your categories
You can do it over the last month. Use your bank statements. A lot of banks in Nigeria provide e-bank statements, so download the data and paste it into Excel.
Have More Than One Income Stream
You can only alter so much on the expenses side:
- The amount you can afford to save = limited to the difference between your earnings and your costs
- The mount you can earn = unlimited.
- To increase your savings rate, you need to increase your income.
- While it would be ideal to have a higher salary, sometimes it’s easier to add a side income.
In conclusion, investors should know that discipline is an important skill. Everyone needs good results, so we have to work towards getting things done. Many people lose faith because their returns are not as swift and or bonuses as they wished for. It takes time to create wealth and enough time to improve.
Another line item – do not fail to reinvest the return you get if you get full returns on your investments or get necessary things for your livelihood. We don’t have all the answers and no one really does, but making money is about having the humility to learn and adjust to market changes. We hope these tips kick starts you or motivate you to press onward! KingsVine Luxury is a growing e-commerce marketplace that provides a platform for you to get quality essentials at a very affordable price. We offer the best in customer service and swift delivery, making us a perfect solution to your lifestyle. We love to empower our customers and brand fans so that they can enrich themselves, so thanks for visiting our BlogSpot. Feel free to check our marketplace as well.