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How to start investing

According to research, an average individual in Nigeria earns a fixed income from his/her salary, which rarely increases over time. Factors such as inflation and high cost of living are prone to come up due to bad economic conditions. Not to mention the fact that expenses would also increase once one gets married and start having children. There are unexpected bills as well as expenses to take care of, and all of this is to be covered with a fixed income. Situations such as these give rise to questions like:

  • What are the ways to invest in Nigeria with a small amount of money?
  • Is it possible to invest in Nigeria with little money?
  • Are there opportunities for people who don’t have much money to invest in Nigeria and make money?

My answer is a Big Yes to every one of them.

Many people think that Savings and investments are selective save of the upper class. I mean, sorting out expenses and bills have not been met with the fixed income, wherefrom is there going to be savings, talk more of investing?

Despite what many people might think, anyone can start investing regardless of how much he or she earns; the earlier, the better!

How to invest money:

  1. Define your goals.

For you to succeed with regards to investing, you must have an objective and a technique that matches. Have a plan of what you intend to achieve and the amount of money you will be making as profit, ask questions, find answers, be realistic and flexible. How will I be able to make 10 million in the next ten years? How will I build the empire in the next 30 years? What should I start doing now? You need to start asking yourself these questions (depending on what you intend to achieve); It is all possible.

  1. Set a Realistic Target.

Not many wealthy people got rich overnight; it takes a lot of learning, planning, practice and determination. As an investor, it is smart to start with setting achievable goals. Don’t be too hard on yourself when looking at those that are successful; They all began little with reasonable and reachable objectives and grew their riches over time. Defining ridiculous goals and feeling that you can become rich short-term will cause you to lose enthusiasm and become disappointed.

For instance: set a goal for yourself to save and contribute N100,000/year with a target to increase your riches by 30% consistently. Choose what rate you want to go in. Setting reachable targets, go as far as years, and the capital will develop by certainty. 

  1. Save up.

To adjust well to the objective you have set, start saving as fast as possible if you do not have the funds yet. Stay consistent with this plan and do not derail; even if you do, take up the challenge, try again and keep saving. You can save 10% to 20% or more of your salary every month. Yes, you can! To help you with this, we have a different savings account called Popular Savings and EasySave. We also offer Target account to help you stay on track with your savings (all with interest rates).

  1. Choose an Investment instrument.

After going about the above steps, you are ready to begin contributing. But how and where do you place these amounts of money for most extreme yield? 

Other than the customary savings instruments like Savings accounts, there are many different investment instruments available for Nigerians, such as Bonds, Mutual Funds, Forex, Real Estate, Stocks etc. Some are high risk, while others require a more considerable amount of starting capital. If you want to explore any new investment options, it is best to learn about it before getting into it.

Asides from investing your money in Fixed Deposits (which do not require much capital to start), you could open a Fixed Savings Account (FSA). By opening a Fixed Savings Account, you can save as low as ten thousand Naira (N10,000) monthly. 

What is the best way to save with a little percentage of your monthly income?

Not having enough funds is not a valid reason not to plan and start building your future. Start with what you have now. 

To have a sound personal financial plan, you will need to stay debt-free as much as possible. Open an interest yielding account where you can save up funds regularly. Your short-, medium- and long-term financial goal is what will determine how to apportion your investment cash.

The general rule is:

Any money that you will need any time soon put it in an interest yielding savings account (Popular Savings, EasySave). 

Money that you will need at least in the next one year is best put in a high interest yielding bank deposit account (Target Account). The money you will need in 2 – 3 years is best invested in FGN Savings Bond, Mutual Funds or stocks.

Consider investing in a dividend-paying stock, FGN Bonds, Corporate Bonds or landed property if you won’t be needing your money in the nearest three years. That is if the amount at your disposal is enough to consider investment property option.

Finally, saving and investing is not only responsible, but it can also be really fun!

Take your time and invest in industries that you like and that you support.

Watching your money grow by itself without doing any extra work can be a fantastic thing, and once you get the hang of it, we promise you will be hooked. 

So start saving and investing!

And if you have any questions or need any help, we at Abbey Mortgage Bank will always be here to support you. (You can find our contact information below).

Thank you!

Contact us via

  • Our social media platforms
  • Email: enquiries@abbeymortgagebank.com

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