What the NaijaSingleGirl needs to learn about money to get ahead….

You are probably in your mid 20s, out of university, decent starter job, living at home with no real responsibilities (0r even on your own). You feel like your whole life is ahead of you, so investing and saving can come later. The truth is there is no better time than now to set financial goals and learn about what investment opportunities are available to you.

Get Money

In order to maximize your earning power and have the ability to invest, you need to pursue a career you are passionate about and create multiple streams of income. This does not necessarily mean you have to become an entrepreneur. The reality is, not everyone is cut out to be ‘their own boss’ and you need to learn this early on. Being a boss is not about working for yourself and avoiding the discipline of a 9-5. It is about adding value and being a high performer, wherever you are. There are two ways to be stuck. (and you don’t want to be stuck in your 30s or 40s) Stuck in a 9-5 job you hate and stuck in an entrepreneurial role you can’t do. Turning your passion into a paycheck is more complex than it sounds. You need to figure out what comes naturally to you, than it does others (yours ever can write, talk, make things happen wherever she is...great team leader*smiles* but don't leave your juveniles for her cos she will end up spiking up their stubbornness....lol) Just because you liked planning your wedding, does not a wedding planner make. Liking something doesn’t mean its your passion, being good at it and willing to do what it takes to sharpen your skills, is what will turn your passion to profit....(Atleast mine is paying my bills..*smiles)

Create a game plan for your money.

In order to take control of your money you need to devise a strategy that helps you allocate your resources efficiently and cultivate the habit of spending less than you earn and investing the rest in assets that generate income. (i.e mutual funds, real estate, money market products) The longer you leave your money invested the better your average annual returns will be, so time is on your side.

Change your money mentality: Again, if you earn a N100m and you spend a N100m, what you have left is zero. You need to derive the same amount of joy from investing, as you do the Pigalles 120mm, it hurts but it’s worth it right?

We are generally good at working hard and earning money but they are terrible when it comes to scaling their consumption. If you can spend N100k on shoes, you should be able to make N100k in investments to match it.

Establish your Net worth:
Aliko Dangote (yes, I’m a bit obsessed loll) is not the richest man in Africa because he earns $23.5 bn as his salary. He is the richest man in Africa because his net worth (assets- liabilities) is $23.5bn. Therefore, building wealth is about using the money you earn to make more money by investing in building assets. For example, Tinuke makes N10m, invests N3m in land and spends the rest, assuming she has no liabilities and no other assets; Her net worth has gone from N0 to N3m. It’s not the number that matters but the progress. Set a goal to increase your net worth by 10% every year....

Awesome week ahead!!!!