This is hilarious!!

Possible Causes of a Financial Crisis

A lot of times, financial crises are caused because the victims are low income earners…..but there are so many other reasons or causes of financial crisis:

1) Poor financial planning: when you spend your income without making any plans for the future, any problem that may arise, no matter how small, could form a huge crisis for you.

2) Debt: poor debt management can lead to financial crisis. Always pay back the debts with the higher interest rates first.

3) Poor investment decisions: failure to understand the risks involved with various investments before jumping into them can cause you to lose your entire life’s savings and cause a financial crisis.

4) Living beyond your means: if you’re on this table, just quietly come down. We all want to live lives of luxury, but if your income is not high enough to ensure you’re financially stable and still enjoy those luxuries, then you need to stop living beyond your means.

These are just a few reasons or causes of financial crisis. Have you ever had one before? What did you learn from it?

POOR: when you have too much month left at the end of the money
That wasn't a typo!

Has this ever happened to you where you find yourself in the 2nd week of the month with more than 75% of your salary/income spent already?

You’ll now take out your calculator and start doing further math as if it’ll magically increase how much you have to spend till the next payday/sale.

Having and following a budget is a great way to avoid this situation. When you properly allocate your income, you’ll hardly find yourself in this situation.

Of course, this doesn’t apply to people who just aren’t earning enough. It’s for those who earn enough to do that but YOLO will not let them shine!

Ouzidi77:


Please guide me on the euro bond, how is it done.. what's the complete process to be an investor.

Good morning, Eurobonds are bonds (loans basically) that are denominated in a foreign currency (mostly the dollar). They offer fixed rates on the bond and they're mostly low-risk. You can invest in Eurobonds through various asset management companies but I use a fintech to invest: Risevest. You can invest for 3months (minimum), 6 months or 1 year and the yield on the 1 year duration is 12% per annum.

You can ask other asset management firms for their rates, do your research and due diligence, and then decide if this is a good investment option for you.

Beautiful couple, happy married life!

I have a confession….I used to hate affirmations. Some days, I still don’t like them but other days, they make me feel like everything is possible.

Today is one of those ‘Anything is possible days’ so I’m saying this to myself: “There are no limits to the amount of money I can make”....and that’s that on that!

Hi guys, it's been a minute! A lot has been going on with the Nigerian economy. We're officially in a recession, the naira has fallen even more against the dollar....sike!

Today I'm going to be talking about:
Saving VS Investing

Saving is the act of accumulating money for emergencies and future investments.

Investing on the other hand is the act of putting money to work in order to generate more value or appreciation over time.

When starting your personal finance journey, you might feel like you have to save a HUGE amount of money first before you start investing. That’s not true.

You can invest as little as #500 in low risk investment options….your return of course will be low but that’s due to the combination of low capital and low interest rates.

While your first step in your savings journey should be to accumulate an emergency fund, you can also invest that fund in highly liquid (easy to convert to cash), low risk investments so that there is at least, a little return on that sum.

Saving your money in the bank is one of the worst decisions you can make. Bank rates are currently around 1.25%....ANNUALLY! That means that inflation will reduce the value of your money to a large degree, as it is not growing at the same pace as the inflation rate.

Saving and investing go hand in hand and you should constantly learn more about the opportunities available to you in order to take advantage of them.

How much did you or are you planning to accumulate before you start investing? Please START NOW!

Chumachu:


Forex is different though.. I trade cryptocurrency and I can say that there are months I make as much as 50%, but I am not a pro yet. I have a friend that makes over 100% monthly. Believe it or not. He has been consistent for the past 2 years. Treasury bills, euro bonds are old fashioned. I used to do them 2019. Infact all my savings were either in treasury bills or fixed deposit but now these only offer a max odf 2% per annum. Makes no sense at all. Explore with due diligence. Ever since I joined the forex investment train. I have gotten over 100% of my capital.

I don't keep money in the bank anymore. Either I buy cryptocurrency or US Dollars from piggyvest which gives me 5% interest rate yearly aside from the relative appreciation of the dollar against the naira.

Cryptocurrency and forex trading are the future. Explore these options even if it is with 100k. These are things banks won't tell you. All banks are Into forex trading.

Good morning, Forex and crypto are not a scam, yes but they're are high skill and high risk investments. If it suits your risk appetite than that's great, you have the potential to get really large returns.

Eurobonds can give you up to 15%, which matches the inflation rate and there are other investments that offer better returns in the medium risk range.

Not everybody is comfortable with losing money, even tiny amounts. For such people, high risk investments are a no go area.

Thanks for engaging!

There are certain questions you should ask before putting your money in any investment:

1) What does the company do?: You need to know what the company you're planning to invest with makes money, Are they selling goods? Rendering a service? If there's no solid answer, RUN.

2) Is the interest rate logical?: 30% Monthly is 360% in 1 year. Haba. How will the company make enough profit to pay me back that interest rate? The interest rate is high so the risk involved with the investment is definitely high! When you compare the interest rate they're offering to those of trusted investments such as Treasury bills, Eurobonds, mutual funds of various types, etc you'll know that you have to tread carefully.

3) Who owns and runs the company?: Anybody can make a flyer on canvas and put it out on the internet. Who is behind this company? Who can you hold accountable for your funds? Is the company registered and regulated as an investment firm?

These are just few questions you should always ask and if the answers aren't convincing, please put your money in your pocket.

ogoo4real:
Good day everyone I happen to have some amount of money I would like to invest for some time where i could get it back with compound interests. I really appreciate our kind responses.

You can contact me via DM or mail for a genuine and legit investment platform.

If you're looking legitimate, sustainable places, know that they won't offer large returns. You can expect 5-15% yearly, YEARLY OH! But that's how investments work.

1)Piggyvest lets you compound your interest monthly. You get 8% per annum and 8/12% on your investment monthly. You can also save in dollars to hedge against currency risk (the naira is expected fall further during Christmas)

2)Risevest: you can invest in Eurobonds, real estate and stocks and the risks are low, medium and high respectively. Your investment is in dollars so you're also protected from currency risk. Depending on what you choose you can get up to 15% per annum.

3) There are agritech platforms but a lot of them are scams and investing in agriculture is medium to high risk. You can get 15-40% in 3-9 months. If you know you don't want to lose money at all, this is NOT for you.

Basically there are a good number of platforms that are registered and well managed but they won't offer unreasonable returns. You can email me id you'd like to learn more. P.S I don't own any of the companies but I invest with most of them.

Johnxyz:
Wow, good read! Sane people with educative posts are surfacing on Nairaland. I'm already following you, please keep it up.

Thank you for the support! I will definitely keep updating this thread

Words of wisdom that will never get old!

The more of your craft you know, the more skilled you are, the more you can earn. If you're currently a low income earner and you're trying to find a way to make more money, look within. What skills do you have? What do you have experience in? What have you failed and succeeded in? There are currently people walking those paths who will pay to have access to your knowledge so that they can avoid the mistakes and errors you made.

As much as I love investing in various assets and asset classes, my greatest investment is in myself. I spend big on courses, books, workshops, etc. Anything that will make me better than I was and help me have more knowledge to apply and succeed with.

Invest in yourself today!

Explaining Diversification using Jenga

Diversification is a tool that EVERY investor must take advantage of!

It is the process of placing your money in a variety of investments, with different types and degrees of risks.

Imagine you’re playing a game of Jenga, where you have to pull out blocks from the structure and stack them again. If your stack falls, you lose!

Now imagine your Jenga stack is your investment capital. If you invest all of it in stocks of one company and the company goes bankrupt, your stack falls and you lose ALL your investment capital.

But what if you had 3 stacks of smaller Jengas? If one falls, you still have 2 standing! So if you invest in the stocks of 3 companies and one fails, you’re not back to ground zero, you still have some of your investment capital!

Diversifying your investments allows you to control your risk. If you put all your capital in one type of investment or asset class, then you will be a HEAVY victim of any problems that may arise.

Let’s say you have #100,000 as your investment capital. If you use it ALL to trade forex and the market crashes, you’d have lost ALL of your capital.

But if you diversify your portfolio and invest #50,000 in Treasury bills (relative safety), #30,000 in agritech (medium risk and higher returns than treasury bills) and #20,000 in FOREX. A market crash will only cost you your #20,000 but the bulk of your investment capital will be preserved.

Diversification is a vital part of investing and should be done wisely, to maximize return while controlling risk.

Do you have an investment portfolio? If yes, is it diversified?

megastarkels:
MORE Pls!!!!

GOD Bless you @PFM Babe

Thank you so much! I have a lot more in store

RealEzee:
Thanks a billion for this write up, I'll look up the book u suggested 'the richest man In babylon'

Thank you for the support!

It is better to WANT than to OWE


The keyword there is ‘WANT’. This does not refer to your needs, because if you don’t have enough income to cover food or housing expenses, then it is not unreasonable for you to borrow to meet up with such needs.

Taking a loan to buy a shoe, attend a wedding, go on a vacation, or buy 7 years’ worth of shawarma is not advisable…..AT ALL.

How your risk appetite affects your investment decisions

It’s simple actually if you’re on the conservative side, you’d lean towards safer investments such as treasury bills, money market funds, etc.

Investors with a low-risk appetite will take longer to achieve their investment targets, as their investment choices will deliver lower returns.

On the flip side, aggressive investors who take on investments with higher risks will have the chance to meet financial goals faster if their investments work out positively.

However, aggressive investors stand a higher chance of losing their investment capital, partially or fully. There is little or no preservation of capital in the opportunities they take on.

The key to having a reasonably profitable portfolio with relative safety of a good portion of your funds is to DIVERSIFY your investment portfolio.

Diversification is the process of dividing your investment capital across various asset classes, industries, etc. with different risk levels, in order to spread out your total risk.

What’s the most amount of money you’ve lost in an investment and what did that experience teach you?

What do we mean by Risk Appetite?

Your risk appetite is the level of risk you are able to handle with your investments.

In less serious terms, it’s the level of risk you can take that won’t give you sleepless nights and HBP.

It’s very important that you know what your risk appetite is.

Our next post will talk about how your risk appetite affects your finances and your investment decisions, so look out for it!

Do you consider your risk appetite before embracing an investment opportunity?

Risk and Return


Risk is the possibility that a situation will have a negative outcome. It is the probability of your investment losing value.

Return is the potential gain from an investment. The potential yield a particular investment can give you.

Risk and return are partners, they go hand in hand. The higher the risk, the higher the potential return and the lower the risk, the lower the potential return.

Every investment has a certain level of risk but of course, some are higher than others. Government securities such as Treasury bills carry the lowest risk while highly volatile investments such as FOREX, cryptocurrencies, investing in startups, etc. are some of the most risky investments one can make.

Are you a risk taker or do you prefer more conservative, safer investments?

Case Study: Meet Ibiso

Ibiso is a 26 year old woman who works at a bakery as an assistant manager. She earns #70,000 a month and though she has been working in that role for 2 years now, she hasn’t set anything aside as savings or for investing.

Ibiso knows that the Christmas holiday is just around the corner but she doesn’t make any Christmas purchases ahead of time.

Two weeks to Christmas, she writes her shopping list and heads to the market. The prices of goods have skyrocketed and she’s only able to buy 40% of the items on her list. She’s very upset and blames the state of the economy for the unreasonable market prices.

Are you still waiting to enter December before you start making your Christmas purchases?

Everybody on this planet knows that prices rise during the festive season. If you have the funds to make your Christmas purchases now, please go ahead. It will save you a lot of money.

Have you started making your Christmas purchases? If no, what’s holding you back?

Whhat is interest?

Interest is the fee paid for the opportunity of borrowing money. It is the cost or price a person pays in order to have access to, and spend money that would otherwise take time to accumulate.

When you borrow money, you pay interest to the lender for access to the funds. When you lend a company, investment agency, etc. your money in the form of investments, they pay you interest for access to your money.

Interest is passive income because you’re not putting in any effort or sweat to generate it.

Do you currently earn interest income?

Sicilyjoe:


U ended up saying nothing, he said which business can he invest in but u didn't mention any at the end of ur sermon

I'm sorry you feel that way.

lecoeur:

Thanks very much.

You're welcome

Whether this is fiction or not, it's funny as hell.

lecoeur:
Greetings everyone.
Just as the topic inscribes I have a sum of 300k I want to venture into a business with. I'm a teen, a student and I reside in the South-east for now. Fun fact is I'm not a business-oriented person despite my Igbo roots, so I really need your advice on how to start up a lucrative business in Today's Nigeria. Pls, it won't cause you anything to take out your time and give me ideas thanks.

Good day poster. Starting a business is a risky venture. Can it pay off greatly, yes but you can also lose all your money if the business does not generate revenue and profit as planned. If this 300k is all you have as savings I'd advice you to split it into two. Use #150k to start a business after doing adequate research and getting all the knowledge and skills you need, then invest the rest in LEGIT places where you know your money is safe. Please not all these high-risk investments that promise unsustainable rates.

Why I'm advising you to split the money is so that if your business doesn't succeed (I'm not saying it won't), you have something to fall back on. Don't put all your eggs in one basket.

That's nice of him. Maybe he was bored in his room and wanted jollof