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4 Easy Ways To Make Your Money Work For You

When money realizes that it’s in good hands, it wants to stay in there and multiply

The quote says that you can always increase your money if you invest it wisely and correctly, regardless of the economic situation.

At this particular moment, the Nigerian economy is facing a downturn, high inflation and a harsh business environment, you can still choose not to join the group of people who are complaining.

Did you know that while some complain about the economy every day, others smile to banks every day? The latter group is the only one that sees opportunities in the system and makes them capital.

This group is largely able to protect its investments from inflation and other forms of economic shocks.

In this article, we will discuss how you can implement the right strategies to maximize your money and work for you in the face of economic difficulties and bad policies in Nigeria.

4 Easy Ways To Make Your Money Work For You

Create a financial plan

Creating a financial plan is the first thing you need to do if you want to invest your money in a channel that will make you a lot of money.

Note that your planning significantly determines the success and longevity of your investment.

Your financial plan is a pillar of your investment, just as a pillar holds a two-story building. A popular saying goes that those who do not plan will fail.

The religious book also says that if one wants to build a tower, one must first sit down and plan the cost of the proposed tower, otherwise the project will fail.

Poor or insufficient financial planning can definitely result in failed investments.

What is a financial plan?

Simply put, financial planning is the act of estimating the capital needed to achieve your personal financial life goals.

Financial planning is more than deploying your funds on a specific project or investment; it must be part of the lifestyle. Drawing up a financial plan therefore requires a high degree of discipline.

If you can hear the life stories of successful investors in Nigeria and around the world, they are people who demonstrate a high level of financial discipline and planning. Having a good financial plan means that you have strong control over your finances, which means that you have money under control, not otherwise.

So if you want your money to work for you, you need to create a solid financial plan. If your money starts working for you through a well-organized financial plan, you will have enough money to spend on important things for yourself and your family.

The economic turmoil and the current high rate of inflation in Nigeria do not have a big impact on your life, because through financial planning it is wise to send your money to tasks that will make you more money, ie plans for the future.

Open a fixed deposit account

A large number of Nigerians are not aware of fixed deposit accounts.

A fixed deposit account differs from savings and current accounts because it is an investment account. This means that you not only keep your money, but also invest it (fixed deposit) with an agreed interest rate in the agreed time horizon (tenor).

Accumulated interest rates vary depending on the bank.

For example, if I agree with Bank X to deposit 200,000 into my fixed deposit account for a specific period with an interest rate of 10% PA. So at the end of the agreed period (eg 12 months) I now have access to my money with an extra interest rate of 10% on my fixed deposit.

The investment period called the tenor usually has a minimum of 30 days and a maximum of 360 days. It should be noted that a Fixed Deposit Deposit Account gives you the advantage of terminating the investment for the agreed period.

A fixed rate deposit account offers a higher interest rate compared to savings and current accounts. Another advantage of a fixed deposit is its flexibility, as you can open it at different banks offering different systems.

Operating a fixed deposit account with Wema Bank and GTB will provide 3% interest for 30 days.

Wema Bank provides 3.25% interest for 60 days.

At Access Bank, a fixed deposit will pay you 4% for 30 days, 4.35% for 60 days, while you will get 4.5% for 90 days.

Sterling Bank offers you the highest interest rate for fixed deposits in Nigeria. You will get a return of 5% of your investment within 30 days and 5.25% within 60 days and 5.5% within 90 days.

These are the three banks that offer some of the highest interest rates on fixed deposits in Nigeria, but you need to do some research and opt for it.

Don’t forget to invest your money

There are different types of instruments and assets to choose from depending on your risk profile

Stock market

If you want to be able to use your money, the Nigerian Stock Exchange Limited (NGX) is another fertile ground for you.

Investing your capital in the stock market is not as complicated as you think, but you have to choose stocks wisely.

A newcomer who wants to invest there can obtain securities directly from the primary market if there are new offers from issuers. You can also sell the already mentioned securities through the secondary market platform.

If you are interested in stock market opportunities, you should first buy securities on the primary or secondary market. You will also be instructed to select a securities trader who is a registered NGX trading license to help you expedite the opening of your trading account.

The documents required to open an NGX trading account must meet the regulatory requirements of the Know-Your-Client (KYC).

Like other investments, investing in the stock market has risks, so you need to do a good survey of the stocks you want to buy. You can get information on the broker’s website. Important information is important.

CFD trading

CFD (Contract for Difference) trading involves speculation about changes in the value of the underlying asset, such as forex, stocks, commodities, etc.

You can make a profit if the market moves in the expected direction, but if it goes against your direction, you lose.

Although flexible and requires little capital, the risk is much higher and unregulated in Nigeria. CFDs can be traded through the highest regulated forex brokers in Nigeria, which offer CFD trading, and some popular brokers include FXTM, HotForex, OctaFX & Exness, and these brokers are regulated by foreign regulators. .

Mutual funds

This is another unique opportunity to let your money work for you. It is one of the well-known channels for building wealth and satisfying your needs without any hassle.

Mutual funds can be simply described as “a pile of money invested by different investors and managed by an individual as an investment fund manager.”

Simply put, it serves as a system where money is collected from various investors to invest in bonds, stocks, etc.

We have two types of mutual funds.

They are open-ended funds and closed-end funds.

Open-ended funds are not traded on the Nigerian Stock Exchange. This fund has no limit on the number of shares issued. A closed-ended fund is very different from an open-ended fund. The number of shares is limited.

Mutual funds are registered with the Securities and Exchange Commission (SEC) and can be traded on NGX.

There are popular mutual funds in Nigeria, such as the Legacy Equity Fund, the ARM Discovery Balanced Fund, the New Gold ETF and many others from which the investor can choose.

Federal government bonds

The Federal Government of Nigeria, in its desire to finance resources for practical projects in the country, provides bonds in the form of debt securities through the well-known government agency; Debt Management Office (DMO) to pay principal to the bondholder (investor) and the interest rate for the agreed period (maturity date of the bond).

As a federal government bond, it is considered by stakeholders to be the safest way to invest in the home loan market because it has no standard history and is risk-free.

Consider a business investment or starting a business

You can invest your capital in running a secondary business as a workflow that provides passive income.

For example, some of the opportunities you may see include rental income if you have enough capital to buy land / buildings. Or you can run your online store and so on. Or you can invest in start-ups if you have enough capital. This gives you the opportunity to invest in high-growth companies in the future.



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