So you are a young lady/guy between the ages of 20-35. You just got your first job, or you are changing jobs, or about to start a business, about to get married etc. even through the economy is bad, you kinda still have extra cash in your bank account which will somehow disappear before you say jack Robinson but.. right now as you are reading this, the money is in your account. just staring at you…
What to do? what to do? you could just slap someone if they mention “start a business or buy stocks” … You want practical thing in plain English.
Am I the only one that enters panic mode when I start hearing things like money market, stocks, capitalists etc? Not only me abi?
so you are in the right place.
Before I start, I am not a finance analyst or finance anything. This is not my core competency, I did not go to school for this neither am I in the sector. I am just an Ijebu girl who likes to ask a lot of questions and read a lot.
like I wrote in my piggybank post, I have been very careless with money in the past. things had to change so I am on a learning spree on how to manage finances and these are my suggestions below: Not set in stone
If your extra cash is between any of these, thresholds, and in NAIRA, you could do these:
- Between 10- 50k: Aunty/Uncle your money is quite small but its still your money and no one can tell you nothing. Here I am assuming its not a one off, maybe you have 10k of extra change every month after your expenses, so Pls don’t go near any Nigerian mall or a club. My recommendation is to go and look for “AJO” or “Esusu” or in plain English, Thrift collection to do. Just drop your money and forget it there till you can collect in bulk. Then you can move to the next stage with pride.
- 50k-100k: Now you are joining the ballers small small, you havnt joined them o.. but you are close: Here I advice that
- 100k-250k : spare change of 250k? you are quite a big boy my dear: but you are not yet on the high table. You can buy some gold that can be hidden somewhere, wait for another 3 months, take it to your Mallam and you might just be smiling. If our economy was predictable, I would have said buy forex and keep but I honestly don’t know how that sector is doing. Forex is still never a bad idea.
- 250k-500k : Baller lo mo…. if you have 400k of spare change then you are quite comfortable. Don’t let your village people know abeg. I advise that you invest in something like Farmcrowdy or all these mushroom sure investments that you can make 50k back after a while.
- 500k- not yet up to 1 million:see ehn, you are now a big MAN: buy treasury Bills or open a mutual fund account and start getting some financial education.
- 1 million on the dot: Congratulations sir, you are now a millionaire .. lets go and pop some champagne.
- 1.something million: with 1. something, you can make down payment on land somewhere in Ajah or ikorodu and pay the rest off gradually with spare 1
- above 2 million and balling: if you have spare change of 2 million naira, you are dangotes offspring and I don’t know what you are doing here. Please go and start building house.
and if you have no spare change at all and you need to join the group of people up there… lets think of something for you.
- if you have a car you drive to work: sign up for Uber or taxify, get a driver to come and pick up when you are in the office and drop at a convenient time.
- learn a skill for free online and start doing dome work on fiver. use your data for something reasonable.
- or just get a job (which is almost impossible now) or an internship
- save your peanuts in piggybank.
- start networking and be a middleman: you know those contractors that are importers and exporters of everything in this world, ehnehn.. you can join them
- recycle: recycling companies like wecyclers and saocorp pay you in cash or kind if you bring stuff they need.
if all of these fail please go and see your pastor, I cant help you.
when investing in land, please ask about all the extra cost like survey, family forms etc. Don't be a learner.
if your spare cash band falls in the middle of any of these, just buy 2 of the lower or save up some more.
Like I said, before, If you have tried any of these and they have worked or even failed or you have some extr ideas that do not involve getting outta bed…
Please share the love and wisdom in the comment section below.