You can start investing with as low as 10,000NGN. Investing your money wisely can grow wealth with as little as 10,000NGN in your pocket. You should save money for emergencies and other life changes, so it’s not a terrible idea to put some money away in the bank. However, you need to do more than just save if your objective is to build wealth.
This post will show you several successful strategies to invest as little as 10,000NGN, so if you’re seeking a great approach to achieving financial freedom through investment, look no further. Let’s first examine profitable investment opportunities in Nigeria before discussing why you should increase your investment rather than your saving.
Why Invest Instead of Saving Money?
There are differences between investing and saving. Saving means maintaining cash in a savings account for significant life events like relocating, having a baby, or unexpected expenses. However, despite its hazards, investment offers a better chance of outpacing inflation and increasing wealth.
The procedure of planting seeds is comparable to investing. Are you aware of how a seed might be produced, grown, and yield countless fruits after a specific time? The farmer watches the seed patiently for it to sprout. Even though the weather isn’t ideal for the seed, the farmer doesn’t uproot the seed because of the bad conditions; instead, he patiently watches the seed grow until his goal is reached. Similarly, you may be confident that the appropriate investment will help you acquire unfathomable wealth over time by making investments and patiently watching them without giving up in the face of inflation or an economic crisis.
Even though saving money is more secure, we cannot use it to increase wealth. After examining the distinctions between saving and investing, let’s look at seven profitable investments you can begin with, starting at 10,000NGN.
- Invest in Yourself.
Investing in yourself is one of the best bets you can make because it can both assist you in making the proper choices and help you avoid losing money on the investment you want to make. Spend money on classes, speak with investing coaches, attend seminars, and gain as much knowledge and expertise as possible. Always remember that achieving financial success requires a skill that must develop.
Above all, continue learning; take action and apply the knowledge you’ve learned in training and seminars to actual situations. If you keep up your efforts, you can start with as little as 10,000NGN, and you’ll be delighted with your progress.
- Invest in Stocks
I’m sure you’ve heard people discuss how profitable stock investing is and how to invest in stocks and other forms of wealth-building. The reality is that many individuals are reluctant to enter the stock market because of the risks, but you shouldn’t because life itself involves risks. Isn’t it?
Thanks to online brokers and other trading platforms, investing in stocks is much simpler than it formerly was. To make the best investments, you must understand the fundamentals of buying a good supply and the questions you must answer before selecting an appropriate online broker.
As a beginner investor, since you’re just dipping your feet into the water, starting with as low as 10,000 NGN is advisable to give yourself room to learn more and understand how the stock market works. You must maximize your chances of making sustainable gains and avoid losing money. Over time, you’ll be knowledgeable enough to invest more money and grow your wealth.
- Invest in Mutual Funds
A mutual fund is a profitable investment that many investors love because it takes off the burden of choosing your stocks and bonds. After all, that’s a significant challenge investors face. You must be ready to keep an eye on the market, which is demanding. It’s almost impossible to know which stocks to invest in, especially when starting up.
This investment is profitable and well-liked by many investors, which stems from the fact that it relieves investors from the stress of selecting their stocks and bonds, which is a significant difficulty for investors. You must be prepared to monitor the competitive market. Knowing which stocks to buy is practically impossible, especially when starting.
With a mutual fund, the fund handles those hurdles on your behalf. When investing in mutual funds, you can buy multiple stocks at once rather than just one. It resembles having a basket full of several stocks representing various firms. The ability to leverage it is one benefit. If you have ten different companies in your portfolio and one of them declines, you still stand to gain from the other nine stocks, as opposed to investing in just one that, if it falls, will cause you to lose money.
A mutual fund is a good choice if you have a low-risk tolerance, want to diversify your portfolio, and want to reduce the danger of losing money. All you need to do is pick a fund that supports your objectives.
Different types of mutual funds are categorized to meet the needs of other investors depending on their goals, investment objectives, and level of risk tolerance. Investing in mutual funds may reduce your paperwork and avoid several problems, such as late payments, incorrect delivery, and useless follow-ups with brokers and companies. Mutual funds make investing quick, easy, and convenient while offering an enormous profit potential.
- Investing in Federal Government Bond
Another way to invest with as little as 10,000NGN is in federal government bonds. Your capital and interest are guaranteed with this investment, which makes it beneficial and exciting. Another advantage of this type of investment is that the interest collected is tax-free. If an investor makes a 14,000NGN investment and earns a stake of 10,000NGN, there is no tax due on the 10,000NGN.
The interest rate on federal government bonds is paid every six months. The following banks are where you can invest in federal government bonds: Many institutions in Nigeria, including Eco Bank, Fidelity Bank, First Bank, and Guarantee Trust Bank, provide this form of investment. If you enter one of these banks, a representative will walk you through the steps necessary to begin investing.
- Using Investment Apps
You can invest in various investment applications, including Bamboo, Risevest, Cowrywise, and many others. Depending on your risk tolerance, several apps allow you to invest in various securities, such as fixed income, mutual funds, and others, to diversify your investments and build a successful portfolio.
- Treasury Bills
Treasury bills are yet another lucrative avenue for investment in Nigeria. The CBN has been issuing short-term, government-backed securities known as Treasury Bills. They are given when the government needs to borrow money for a while. They are sold at a discount from their face value and have a maximum maturity of 364 days. Although similar to a short-term bond, T-Bills differ and offer low yields compared to high-risk investments such as stocks.
The CBN holds twice-per-month auctions to sell Treasury Bills. Buyers make bids, and the average low bid is chosen. The government sells these bills for far less than face value. The investor then keeps the T-Bills until they mature, at which point they are eventually paid their total face value.
As indicated by its issuer, the value of a security is known as a face value in the economic context.
Here’s an illustration: If an investor chooses to purchase an N100,000 T-Bill with a 10% discount, they will only spend N90,000 and receive the total N100,000 face value at the maturity date. The difference between the face value and the discounted sales price of Treasury bills is known as interest. Additionally, unlike bonds, good is not paid while the investment is made.
- High-Interest Deposit Account
A special kind of savings account, a high-interest deposit account, was developed to help you save money for particular projects or emergencies. Investing your money in a high-interest deposit account rather than keeping it sitting in your savings account is preferable.
You may maximize the credit interest you receive on your savings with a HIDA account’s tier-based interest rates. A more considerable sum in your savings equates to higher interest rates. The accumulated annual interest accrues every day and is payable each month.
Bottom Line
You must consciously take calculated steps, which include investing, to enjoy financial freedom. You don’t need much money to begin your investing journey, though. Starting with as little as 10,000NGN will allow you to gradually increase your wealth using the various assets covered in this article. Which of the investments would you like to try out? Kindly share with us in the comments section.
