Let’s talk about something that affects every single one of us: money. No cap – money can be tight. We won’t just talk about spending it, but growing it. If you’ve ever looked at your salary at the end of the month or profit from your business and thought, “There’s got to be a better way,” you’re not alone. The better way is not rocket science, nor is it magic; it is an investment. Investment isn’t a secret for the rich in Ikoyi; it’s a vital tool for the average Nigerian striving for financial freedom. Think of it as planting a seed today so you can enjoy a harvest tomorrow.
Why every Nigerian should think about investing
You might be thinking, “I barely have enough to feed myself, how can I invest?” That’s exactly why you must learn about it. Investment is your best defense against two major enemies: Inflation and Stagnation.
Beating inflation: Inflation is eroding the value of your money right now. That ₦10,000 in your account today won’t buy the same amount of rice next year that it does today. We are all aware of the ongoing rise in prices.
Beyond beating inflation, investment helps you:
Build wealth for the future: whether that’s for your children’s education, buying land, or starting a business.
Create additional income streams, because relying on just one source of income in today’s economy is risky.y
Achieve financial freedom: imagine not worrying about money in your old age.e
Leave a legacy: something valuable to pass on to the next generation
The Magic of Compounding: This is the real star! Compounding means earning returns not just on your initial investment, but also on the returns you’ve already made. It gets bigger and faster over time. The earlier you start, the more time you give this magic to work.
Investment Jargon Made Simple
Don’t let big words scare you. Here are a few terms to make you sound like a pro:
Investment Term: Asset
Simple Explanation: Anything valuable that can earn you money (e.g., a stock, a piece of land, a rental apartment).
Investment Term: Risk Tolerance
Simple Explanation: How comfortable are you with the possibility of losing some money? Low-risk means safety first; high-risk means you’re willing to take a chance for bigger returns.
Investment Term: Diversification
Simple Explanation: Don’t put all your eggs in one basket! Spreading your money across different assets to lower your overall risk.
Investment Term: Liquidity
Simple Explanation: How quickly and easily you can turn your investment into spendable cash without losing much value.
Investment Term: Mutual Funds
Simple Explanation: Think of it as a cooperative savings scheme. A professional manager pools money from multiple investors to purchase a diversified mix of stocks, bonds, and other assets.
Investment Term: Dividend
Simple Explanation: A share of a company’s profit is paid to its shareholders. It’s like a ‘thank you’ bonus for owning their stock.
The Bottom Line
Investment isn’t just for the wealthy or the highly educated. It’s for anyone who wants a better financial future. As a Nigerian facing the economic realities of our time, inflation, currency fluctuations, and uncertain job markets, investing isn’t just smart; it’s necessary.
Your financial security is too important to leave to chance. The money you earn through your hard work deserves to work hard for you in return. Whether you’re a student, a young professional, a trader, or approaching retirement, there’s an investment strategy that fits your situation.
The best time to start investing was yesterday. The second-best time is today. Don’t wait until you have “enough” money or until you “understand everything.” Start where you are, with what you have, and grow from there.
Your future self will thank you for the seeds you plant today. Take that first step. Your journey to financial freedom begins now.
Bravewood provides Nigerian professionals with low-risk, high-return investment products, licensed by the Central Bank of Nigeria.
