A Woke Millenial’s Guide To Smart Investments (Step 1: Start ASAP)

A Woke Millenial’s Guide To Smart Investments (Step 1: Start ASAP)

If you have not put much thought into making money and building an asset portfolio outside your paycheck, you need to flick your eyes to the title again. 

Tell yourself “I need to be ‘woke'”. Now say, “I need to be financially ‘woke’!” Say it as many times over until it sinks in.

A financially woke young woman is the woman who strives to have other sources of income(which could be through entrepreneurship or investments) asides a steady paycheck!

I really want every young woman to get to that place where she realizes that her financial status should not be tied down to a job. 

What happens when you get fired, out of nowhere?

And at this point, you are already living on your own(rent, yikes), you have spent this coming salary in advance, what you have, saved up, won’t sustain you till you get another job-? ‘Oh yeah, yikes!’

We were cultured with, ‘You will be financially free after you go to school, and land a good job’ but does this work?

Look around you. Look at the people you know. How well has this worked out for them?

What happens after? After you’ve got a job? Are you a financial literate? Do you know how to keep your money locked and loaded or are you spending as soon as salary hits the account? 

Ask yourself is living from paycheck to paycheck really what you want? If your answer is ‘No’, you have answered well. 

Here’s our advice for you: work at your job and keep an eye out for viable investment opportunities.

Investment: According to Investopedia “An investment is an asset or item acquired with the goal of generating income or appreciation.”

Simply put, it is putting your money in ventures that will increase your income over time. The profit generated from such investments can be reinvested for more profit.

Eventually, over some time, and a series of wise financial choices, you will achieve financial stability.

The earlier you start making moves for a financially secure future, the better.

A ‘woke’ woman’s guide to investments

If you are are a newbie on investments, you should start off with low risks investments; the danger of losing money is very minimal. Hence, you can go to sleep without worrying about your money. Such investments include:

Money Market Funds

The money market fund is perfect for newbies who just want to test the world of investments before going in deep. It is also great for when you want to keep money in holding for use in the short term.

It is not advisable for long term investment because its yields are quite small.

The benefits:

  • Start with a minimum of just N10,000 and multiples of N5000 
  • Low risk and competitive return
  • Quarterly dividends
  • High liquidity (24-hour redemption)
  • Minimum holding period of 90 days
  • Funds are open-ended
  • Free entry and exit

Eurobond Fund

It is a bond issued by the Federal Government of Nigeria in Nigeria but denominated in US Dollars. You buy in Dollars, and the interest and principal repayment are in US Dollars.

The Benefits:

  • Significantly higher returns than domiciliary bank accounts
  • A good hedge against depreciation of the Naira
  • 24-hour redemption
  • Open-ended funds; they are open for new and additional investment
  • Minimum holding period of 30 days
  • Least Subscription of 10 units 
  • Entry amount is a minimum of US$1,000.00
  • Significantly higher short to medium term capital appreciation in USD with higher returns projected at a minimum of 7.5% annually over four years
  • Dividends to unitholders in the Fund can be collected as cash or reinvested into the Fund, further enhancing the growth of the investment.

Federal Government Bonds 

These are entirely risk-free. You get to lend the government money for some time. You get your money back with interest.

The Benefits:

  • Start with a minimum of N10,000
  • High quality fixed income instruments
  • High liquidity (24-hour redemption)
  • Minimum holding period of 90 days
  • Open-ended funds; they are open for new and additional investment
  • Option to switch among the distinct Funds
  • Free entry and exit

As you widen your knowledge of investments, you can then take tentative steps into building your income. You can now play at high-risk investments such as the equities market(shares) and real estates.

Links on investments that we love:

CreateCultivate – Quick Question—How Much Money Do You Need to Start Investing?

StyleSalute.com – When Is The Right Time To Invest? (Good Question)

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