₦airaland Forum

There’s a misconception many of us in Nigeria, especially, have about investment, and I think it’s one of the major reasons people keep falling for scams.

When people they hear "invest your money," what they actually imagine is: put 500k somewhere today and get 1 million back in some months. That expectation alone is why many people keep getting trapped by schemes that promise unrealistic returns - small money to pack big money.

THE TRUTH IS: Investment is a long game.

Even if you invest in treasury bills, fixed deposits, stocks, land, or real estate, the returns are often not as dramatic as people think. Everybody keep hammering on "invest, invest, invest", but many don't really understand how investing works.

Example, Land - if you buy land, you're not looking at massive gains in one or two years. Sometimes you're thinking in 5-year, 10-year, or even longer timelines. Same with many other forms of investment.

Now yes, there are situations where returns can come faster. Maybe you're investing in a friend's buy-and-sell business, like cars or goods with fast turnover. But even then, money doesn't magically multiply overnight. Businesses have expenses, market changes, risks, and profit margins.

The problem is that many people have somehow developed the mindset that investment means "quick money."

We saw people fall for M.M.M. We saw similar schemes happen again and again. Every few years, another platform appears promising absurd returns, people rush in, and then it crashes.

But if you understand how investments actually work, some of these promises immediately start sounding suspicious.

Think about it: nobody is printing money.

If you put money in a fixed deposit or an investment platform, your money is usually being loaned out, used for business activities, invested into assets, or used in ventures expected to generate returns. The dividends or profits generated from those activities are where your own returns come from.

And because businesses can fail, markets can change, and assets can lose value, investment naturally comes with risk.

Even stocks are not guaranteed. You can buy shares today and watch prices drop tomorrow.

In the thread on frontpage asking: "If someone gives you ₦500k today, what would you use it for?" More than half voted for "invest." - shey na so e easy? 😅

My question is: invest in what exactly? And more importantly, do you actually understand how that investment works?

Because before investing money, perhaps we should invest in understanding.

Ladies and gentlemen,what are some wrong ideas our Nigeria people have about investment? Share your opinion.

Note: Do not promote any investment scheme here, just help people understand how this stuff works in real life.

Cheers and Happy New Week.

cc: nlfpmod

An investment is basically allocating time, money, energy, or resources today with the expectation of getting a better outcome in the future. The returns does not always have to be cash directly.

A person exercising and eating well is investing in his health and longevity.
A person learning a skill or trade is investing in himself for a better future. You paying for your child's school fees today, will be considered investing in him, for a brighter future.

Investing is way bigger and broader than buying assets, stocks, treasury bills and what have you. To each his own people prioritize different kinds of returns from their investments . some may prioritize income growth, others may prioritize stability, knowledge, family, health, human capital, etc.

Jakarta:
An investment is basically allocating time, money, energy, or resources today with the expectation of getting a better outcome in the future. The returns does not always have to be cash directly.

A person exercising and eating well is investing in his health and longevity.
A person learning a skill or trade is investing in himself for a better future. You paying for your child's school fees today, will be considered investing in him, for a brighter future.

Investing is way bigger and broader than buying assets, stocks, treasury bills and what have you. To each his own people prioritize different kinds of returns from their investments . some may prioritize income growth, others may prioritize stability, knowledge, family, health, human capital, etc.

Thanks for your submission. If we expand the definition of "investments" without bounds, then of course, everything is an investment - even breathing is an investment into not dying of asphyxiation after 2mins.

The thread is about financial investment with expectations of financial returns.