Millennial money is not a new term. We have been at it for a while now. More so if you live or work in an advanced country or society that has available options for savings and investments. Then, you probably are privy to knowledge that many people aren’t. But if you are lagging behind a bit on money management, savings and investments, then it isn’t entirely too late.
It is best to think of your future right now.
I have always been interested in finance, savings, money and risk management. And I still have the F.I.R.E. goal in mind. (Short for FINANCIAL INDEPENDENCE RETIRE EARLY)
Although I am still in school and haven’t held a “real”, proper 9-5 job for once, I have somehow managed to make a steady stream of income for the past few years. That’s a topic for another day.
This is just to show you that you don’t have to earn a lot to save a lot. You can do it just with whatever you are getting.
I’m still in the process of learning so let me just share what I know so far.
Invest in Yourself
This may sound cliche but it really is the easiest, most straightforward way to build investment discipline. Invest your time by taking free courses aligned to your career and financial goals. Learn all you can about the financial structure in your country’s economy and any other economy you may be interested in. I’m not saying you should go and get a finance degree, it’s just for you to know the deal so that it won’t all sound like jargon. You can not invest in forex or bonds and stocks when you don’t even know what it means.
Investing in yourself also means investing in your craft. So if going to medical school will bring you closer to your long term plan, then do it. If taking a course and another degree will do that then why not?
Mutual Funds
This is a low risk, short term plan that helps you to pool money for different investors. It may seem a bit complicated but you only really need a good company that helps you through the process. For Nigerians, Cowry wise, Meristem etc helps you invest in mutual funds for not just Naira but other currencies.
Stocks and Stock Indexes
This is when you pay a certain amount of money to own a part of a company. Imagine if you invested in Netflix or Zoom a few years before this pandemic. Your money would be growing right now. And unlike how it may seem, you don’t need a ton of money to invest in these places. Companies like Apple and Amazon buy and sell stocks all the time. If you’re in Nigeria, this one may be a bit tricky. But you can find companies like Invest Bamboo that help you invest in US stocks and stock indices.
Forex Markets
Being a day trader isn’t the easiest thing, to be honest. Unlike the other where you can just hand your money to a company and let it go till you need it, Forex trading is more hands on. It’s a skill set you need to learn and be good at so as not to lose money. It is high risk but extremely rewarding. Any body can day trade. From doctors to students. Anyone.
However, beware of scam brokers, and companies trying to sell a dream life to you via day trading though. People that say you need to join their team and get other people under you and you can start earning millions. Nothing good comes easy. You can learn day trading on your own and via many skilled teachers.
Agribusiness
As millennials in Africa and Nigeria, we may not have the best structure here. We may not have the whole system of 41k and ROI set up, but we do have pretty decent agribusiness investments that will steer you in the right direction. Companies like PiggyVest, Agropartnership ans FarmCrowdy.
Real Estate
I saved the best and probably the most popular for last. Real estate investment is pretty solid and straight forward in Nigeria. But has been misunderstood to require a lot of money, and very high duration to see results. Well, right now, you don’t have to have 40 million naira to have a property or a piece of property in Nigeria. There are structures in place to help you co-own properties for a while, let them yield their returns and then split interests again. And for as low as 1 million Naira and some installmental payments, you can own property. Companies like Land wey and Siesterliving.
Well, that’s all I have for now. I’m still exploring options. The most important thing in investments is to do extensive research on the company that will be helping you as well as on the type of investing you will be doing.
See you at early retirement.