5000 Naira Could Just Be All You Need to Build Your Financial Future.

How So? 

Some years ago, if you had asked the average Nigerian youth what they thought about investment, you most likely would have gotten a common response— “investment is for people who have bulk money, and I don’t have that kind of money.” 

People with “bulk money” here translates to people with anything from ₦500,000 and above. How many Nigerian youths can even boast of having such money in their accounts or at their disposal? Crazy reality but it’s the hard truth. 

This shared ideology could arguably be said to have been borne from ignorance and lack of exposure. However, with the rise of digital investment platforms, championed widely by fintech players, there is a deliberate effort at sensitization of the public on investment and how it works. These players (platforms) also provide a convenient and accessible entry point for young Nigerians, with previously held misconception that substantial capital was a prerequisite, to venture into the world of investments with as little as ₦5,000.  

Despite the harsh economic conditions, the constant rise in the cost of living, and the obligations that black tax places on them, Nigerian youths are increasingly embracing investing as they see this as a pathway to creating or building wealth or reaching their financial goals. The fear of missing out is also a tool, spurring more youths to explore the best savings and investment platform that gives the best returns. 

The interest that Nigerian youths have developed is not merely characterized by a willingness to invest, but also by a disciplined and deliberate approach to saving. Truth is, it’s a tough choice to choose to set funds aside just to save or invest, especially given the financial reality of many Nigerians. But how does one beat the system at the end of the day? 

Creating a budget, cutting down on frivolities, and following through with the budget does the trick for most. For the investing Nigerian youth population, the act of purposefully setting aside funds with the intent of directing them towards various investment opportunities shows a deliberate effort and a step in the right direction in setting their financial priorities right. It is important to check spending habits and cut down on conventional spending patterns like— splurging or spending to show off, which is not uncommon amongst youths.  

What setting aside that ₦5,000 monthly, which could have been spent on a movie ticket or a roadside shawarma, does is that, it helps build a habit of saving. If you’re still sleeping on this then, you most likely will still be in Lalaland 10 or 20 years down the line when compared to peers who had built a saving and investing culture within the same period. 

As their interests continue to pique, young Nigerian investors should continue to explore opportunities and sectors they can invest in. Some of these opportunities exist in agriculture, healthcare, transportation, government bonds, etc. There are quite a range of options, depending on the openings available on their select digital investment platform per time. These are more accessible options for them if they align with their individual preferences and risk appetites.  
 
Why is it important for youths to start investing early? 

  1. Young Nigerians can build wealth through compounding interests which investing affords them.  
  1. Investing helps young Nigerians become more financially independent 
  1. Investing helps in achieving long-term financial goals such as buying a house, education, or retirement. 
  1. Investing empowers youths, giving them a sense of ownership and control over their financial future. 

The deliberate efforts of young Nigerians at investing signals financial empowerment and responsibility. In the long run, this fosters a culture of wealth creation and economic engagement. Young Nigerians need to leverage investments as this allows them to become financially independent. The key is starting, it doesn’t matter how small. 

If you’re looking to build your financial future, you can start by investing in any of our mutual funds. Click here to get started.

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