Let no one fool thee and thou should not fool thyself, there will be sharp and noticeable decrease in your purchasing power between last quarters of 2015 and second quarter of 2016. We can say that our past leaders has not done enough in the past to put our economy in it right place amongst top economy in the world, when the economy was booming and oil price was $78 per barrel, we lost the chance and it is not coming back soon. This is action time and not a period to hurl blames on anyone. Rather, it is time to look beyond and think proactively. A lot of citizens are eager to know how to shield their hard earned savings and investments from adverse effects of inflation, I will focus on three things that has proven to be great armour in inflation battlefield over many years.
• Invest in stock; I know what is running through the minds of average citizens of Nigeria just by the mention of stock or equity, someone will say- is it not the stock that has failed millions of investors in the past? The reality is that there is no better time to invest your money on stock than this moment when the prices has fallen and there will be so many fearful owners that want to sell. If you keep that money in the bank, you are only guaranteed an interest rate of 2.5% on savings account against inflation of 9.5%. According to experts forecast, it is expected that inflation will rise to 2-digits by middle of 2016. Currently, your savings is devalued by 7% of its actual worth.
However, buying some equities will prove to be a wise decision in cushioning the effects of inflation; running through your mind is this- since companies cannot gainfully invest in projects which can yield good investment above production cost, they will also fall victim of inflation. The fact is that, corporations sells their produce at increasing prices, which brings to them high revenue, earnings and increasing stock prices.
Choose wisely by investing your savings on companies that can naturally alter their commodity and still retain loyal customers, companies that focus on consumer goods such as oil, grains, metals, alcoholic and non-alcoholic beverages enjoys dynamic pricing power at this moment. Therefore, look out for corporations that focuses of low production and have high profit margins, such corporation will likely give you better dividends on your share, thereby giving you better return on your investments. Some investment platforms with great prospect that I can recommend are UACN, Oando, and Beta Glass plc. These stocks are doing fairly well despite the undulating condition in Nigerian stock market.

• Consider Real Estate Investment; another potent way to protect your savings from this bad guy (inflation) is by investing it on real estate, this can be very profitable if done rightly and for the right reasons. The secrets of real estate success is to have great eyes for hidden values in lands and houses, you need more than average patience to hold your investments for a couple of years, because time enables full maturity of properties which can later be sold to buyers at reasonable price. Don’t worry, I know you are concerned about how capital intensive it is to invest in real estate. The good news is that you can invest in this venture in Nigeria with as little as #400,000 which is currently an equivalent of one thousand five hundred dollar, you only need to look inwardly, there are numbers of shopping complex and plaza for sale all over urban areas. The developers only build and sell per unit shop to people at profitable prices, shops could be sold for as low as #800,000-1,000,000 per unit, and you can always partner with someone and secure one together with written agreement to shared profit in proportion to amount invested by each of the parties, you gain money when you lease it out. You can sell it off as soon as substantial amount of money is realised from rents and your investment return is already equal to principal.
Look around and put your ears on the ground, there are realtors (estate agents) in your vicinity, and vconnect is a great local search engine that can connect you with estate agents in Nigeria. Before you embark on this voyage, I often advise potential investors to arm themselves with prerequisite knowledge by reading books, attending seminars and workshop trainings on real estate. My favourite books by international and Nigerian authors are Guide authored by Spencer Strauss, and Investment Property Strategy by Samson Itoje.

• Invest in yourself; when you are faced with future investment uncertainty, the best tool at your disposal is yourself. It doesn’t matter how much you spend in adding values to yourself, no known strategy is more potent in fighting inflation than investing in you, and this empowers you to increase your future earning ability. The higher your academic qualification, the more indispensable you become to your employer and the higher your pay. As an entrepreneur; the more you invest in knowledge that is relevant to your business development, the better chances you have to weather the storm. Investment in oneself do not only shield one from inflation, it can guard you against economy recession as well.
Obviously, you are reading this write-up because you are a great thinker and you must have thought about something before landing on this page. So, what do you think about this article? I will gladly provide answers to your questions and I will be happy to read your comments and contributionshttps:///post/thinkerspool..

Thinkerspool:

Let no one fool thee and thou should not fool thyself, there will be sharp and noticeable decrease in your purchasing power between last quarters of 2015 and second quarter of 2016. We can say that our past leaders has not done enough in the past to put our economy in it right place amongst top economy in the world, when the economy was booming and oil price was $78 per barrel, we lost the chance and it is not coming back soon. This is action time and not a period to hurl blames on anyone. Rather, it is time to look beyond and think proactively. A lot of citizens are eager to know how to shield their hard earned savings and investments from adverse effects of inflation, I will focus on three things that has proven to be great armour in inflation battlefield over many years.
• Invest in stock; I know what is running through the minds of average citizens of Nigeria just by the mention of stock or equity, someone will say- is it not the stock that has failed millions of investors in the past? The reality is that there is no better time to invest your money on stock than this moment when the prices has fallen and there will be so many fearful owners that want to sell. If you keep that money in the bank, you are only guaranteed an interest rate of 2.5% on savings account against inflation of 9.5%. According to experts forecast, it is expected that inflation will rise to 2-digits by middle of 2016. Currently, your savings is devalued by 7% of its actual worth.
However, buying some equities will prove to be a wise decision in cushioning the effects of inflation; running through your mind is this- since companies cannot gainfully invest in projects which can yield good investment above production cost, they will also fall victim of inflation. The fact is that, corporations sells their produce at increasing prices, which brings to them high revenue, earnings and increasing stock prices.
Choose wisely by investing your savings on companies that can naturally alter their commodity and still retain loyal customers, companies that focus on consumer goods such as oil, grains, metals, alcoholic and non-alcoholic beverages enjoys dynamic pricing power at this moment. Therefore, look out for corporations that focuses of low production and have high profit margins, such corporation will likely give you better dividends on your share, thereby giving you better return on your investments. Some investment platforms with great prospect that I can recommend are UACN, Oando, and Beta Glass plc. These stocks are doing fairly well despite the undulating condition in Nigerian stock market.

• Consider Real Estate Investment; another potent way to protect your savings from this bad guy (inflation) is by investing it on real estate, this can be very profitable if done rightly and for the right reasons. The secrets of real estate success is to have great eyes for hidden values in lands and houses, you need more than average patience to hold your investments for a couple of years, because time enables full maturity of properties which can later be sold to buyers at reasonable price. Don’t worry, I know you are concerned about how capital intensive it is to invest in real estate. The good news is that you can invest in this venture in Nigeria with as little as #400,000 which is currently an equivalent of one thousand five hundred dollar, you only need to look inwardly, there are numbers of shopping complex and plaza for sale all over urban areas. The developers only build and sell per unit shop to people at profitable prices, shops could be sold for as low as #800,000-1,000,000 per unit, and you can always partner with someone and secure one together with written agreement to shared profit in proportion to amount invested by each of the parties, you gain money when you lease it out. You can sell it off as soon as substantial amount of money is realised from rents and your investment return is already equal to principal.
Look around and put your ears on the ground, there are realtors (estate agents) in your vicinity, and vconnect is a great local search engine that can connect you with estate agents in Nigeria. Before you embark on this voyage, I often advise potential investors to arm themselves with prerequisite knowledge by reading books, attending seminars and workshop trainings on real estate. My favourite books by international and Nigerian authors are Guide authored by Spencer Strauss, and Investment Property Strategy by Samson Itoje.

• Invest in yourself; when you are faced with future investment uncertainty, the best tool at your disposal is yourself. It doesn’t matter how much you spend in adding values to yourself, no known strategy is more potent in fighting inflation than investing in you, and this empowers you to increase your future earning ability. The higher your academic qualification, the more indispensable you become to your employer and the higher your pay. As an entrepreneur; the more you invest in knowledge that is relevant to your business development, the better chances you have to weather the storm. Investment in oneself do not only shield one from inflation, it can guard you against economy recession as well.
Obviously, you are reading this write-up because you are a great thinker and you must have thought about something before landing on this page. So, what do you think about this article? I will gladly provide answers to your questions and I will be happy to read your comments and contributionshttps:///post/thinkerspool..

i've 40000, in my bank account. hw can i invest it?
am thinking of starting forex trading next yr. any advice?

stardragon:

i've 40000, in my bank account. hw can i invest it?
am thinking of starting forex trading next yr. any advice?

I don't advise investors to invest into business that I have no prerequisite know about, #40k is enough to start buying and selling of domains, all you need to do is to look up tonnes of information on how tos- online and start investing on domains. Forex trading is not a wise business right now because I am yet to read bulk of good testimonies about it. Please do your research very well before you go into forex.
Good luck sir.

Good read!

Real estate investment is a good one if you do you homework very well before investing; it promises great ROI with relatively less risk. It's a good bet for the risk averse.

As for investment in share, a good understanding of the fundamentals, financials and the technicals is very important and most times it's beyond what the corporate report says.

Yeah, investing in oneself pays the highest return

I doubt if people get rich by saving ~ wise investment precedes wealth!

Great read,

Recently, I was approached by an insurance company marketer who want me to buy an investment in their company. The investment has a five years fixed period and 8% compound interest rate per annual.

I turned him down and a friend of mine who had purchased such asked me why I made such decision.

It simple, if inflation is at 11% and my investment is yielding 8%, then I don't think I need an angel to tell me that isn't a good investment decision.

Inflation is very bad but sadly a lot of people are ignorant of it.

A lot of people have been sold the idea of earn, save and enjoy. But, they were not told how inflation can eat up their savings and investment in a little time. Even your retirement savings can be eaten by inflation before you retired.

It is wise to consider the return on your investment before investing, by this you will be able to know if your investment can beat inflation or not.


If you really want to know more about inflation and how to protect your savings and investment, I recommend that you read this article

https://moneypedals.com/effect-of-inflation-your-savings-and-investments/