Stories by Omodele Adigun
‘It doesn’t take a lot of money to make more money’, says an expert. ‘You can start with as little as N1000 or N2000. The hard part is breaking the habit of spending so-called disposable income on disposable items that don’t appreciate over time.’
But what if you take the money and save it or invest it in yourself? Over time, it can be a chunk of money.
Here are five things you can do with N10,000 so that it’s worth more in the future.
Savings
By putting N10,000 into a savings account, you’ll be in a better position than most people who have no saving, who are unbanked and therefore excluded from the financial system. Although you would still be among the people who can’t attend to a N50,000 emergency, and the paltry interest rate on savings accounts won’t get you there very fast. But keep saving and the money will start adding up. ‘The standard recommendation is to save 20 per cent of your income every pay period’, says CNN Money. That means, someone who earns N50,000 every month, and sets aside 10,000 of that in a savings account, would end up with N100,000 in 10 months.
There are other ways to grow your money, but savings is a key foundation – you need cash fast when emergencies strike.
Retirement
Retirement may seem like a long way away for young people, but the compounding power of the contributions to a retirement plan can make a substantial difference later.If you earn N50,000 and contribute 10 per cent of your income to retirement, you would put about N5000 away every month. If you’re 35 when you start with a N5000 contribution, you would have N2.1million by the time you’re 70, assuming you make regular deposits. But if you start when you’re 25, with the same assumptions, you’ll have earned N2.7 million by the time you’re 70. That’s how to put your money to work for you.
Investment
There are many pennystocks on which you can invest as much of your N10,000 as possible. By opening an account with a stockbroker who buys and trades online, you can buy and trade stocks with little or no fees.Investing in exchange traded funds (ETF) allows you some diversified access to stocks, mutual funds or bonds, like the FGN Bonds or the newly introduced Savings Bond.
Education
Put the money toward your brain and you will see new vista of opporunities. Take some classes, earn certifications and participate in continuing education as an affordable way to increase your value as an employee.
It may result in a better job or higher pay. Even if you put the money toward books, you’ll come out ahead.If you read a book a month in your field, you’d be approaching being an expert in your field, accordint to expert. What would that do to your earning potential? Shooting up.
Business
For those looking for a more creative way to build their $200, the gig economy offers no shortage of options, says CNNMoney.
“A lot of people are into creating their own brand.They may want to put that money toward starting their own T-shirt line, self-publishing a book or building a website offering services.
By investing the money in goods or services that you can sell, you’llnot only recoup and make profit from your N10,000 investment, but you’ll also raise your personal profile. The brand you build can lead to more income through other connections in your future.