• a. Increase in energy prices such as premium motor spirit (petrol), diesel, kerosene, and aviation fuel.
• b. Increase in transportation prices
• c. Increase in food prices given the global increase in fertilizer prices and persistent insecurity issues.
• d. Increased spending related to the 2023 general elections.
• e. Increase in FX crises, Naira depreciated to ₦427.45/$ at the Investors and Exporters (I&E) window and to as low as ₦700/$ at the parallel market.

• Times are hard lately as the cost of living keeps rising without a relative increase in income. If you find yourself struggling to survive with the same income you’ve been okay with, you’re not alone. The key to surviving this period is to follow some basic personal finance rules you may have ignored in the past. Here are some basic personal finance principles you can apply to stay financially stable during this period.

  1. Keep it simple

  The more investment accounts you have, the less attention you can give to each one, and the more likely it is that you’ll miss a big problem.

  2. How much is your time worth?

  Figure out how much you earned last year after taxes. Subtract from that all of the costs of commuting and other expenses you paid out of pocket. Then, figure out how many hours you worked, plus the hours you commuted and attended other business meetings. Divide your after-expenses income by your total hours of work to get your true income value.

  3. Renting vs. home ownership

  Rent, unless your total monthly cost of home ownership is lower than renting. It’s easy to get sold on the homeownership dream, but if it’s going to jack up your bills, it’s probably not a wise move. 

  4. The 10-second rule

  Whenever you’re tempted to splurge on something, simply hold it in your hand for 10 seconds and ask yourself honestly whether you need it or not. Try to think of reasons you shouldn’t buy this item. Will you really get enough value out of it? Usually, just 10 seconds will convince you that you don’t really need the item, but if it passes the test, feel free to buy it!

  5. Build the right budget

  Build a budget based on your actual spending over the previous few months. Get real numbers, not estimates. Dig through your bank statements and credit card statements and figure it out. This will easily show you the areas where you actually overspend.

  6. Cancel unused memberships and subscriptions.

  Unused subscriptions and memberships do nothing but devour your money month after month. If you’re too busy to watch TV, keeping your Netflix and DSTV subscriptions is a waste. Cancel and renew when you need to use them.

  7. Invest in stocks and hold

  Money in stocks, over the long term, tend to offer very good returns, but stocks are very volatile, with lots of short-term jumps and falls in value. However, stocks become profitable if left for the long term. So, hold on and be patient.

  8. Spend less than you earn.

  Spend less than you earn and put away that difference for the future so that you can still survive and thrive when you’re older and don’t have the opportunities and energy of today. Without your earnings being greater than your expenses, you simply cannot achieve big financial goals without some sort of miracle – and you should never bet your future on a miracle.

  9. Have an emergency fund

  You certainly should have an emergency fund sitting in a savings account always because an emergency can happen anytime. You can start building an emergency fund by setting up an automatic weekly or monthly transfer from your salary account to your savings, then leave the savings alone until an emergency rear its head.

  10. Reduce investment losses with fixed income investment

  It’s good to have at least some of your money in safer investments like highly rated bonds and FGN Treasury notes. Fixed income investments tend to increase in value steadily over time and are far less volatile than stocks. However, if you have a very high-risk tolerance, or you’re young and your financial goals are still quite distant in the future, this may not be very crucial.

• Investing can be as easy as ABC, especially when it is done right. If you are new to investing or just looking for a refresher course, this article will guide you into making the right calls like the best investors out there.

 1. Create a Watchlist: a watchlist is like a vision board. It helps you identify all the potential stocks that you are or may be interested in.

How to create a watchlist?

· Make a list of companies that you hear frequently on the news that are listed on the Nigerian Exchange.

· Make a list of companies that you like that are listed on the Nigerian Exchange

 2. Learn the Essentials by Searching for information: there are a few things you need to know such as:

· What does the company do?

· What is their major income source?

· Who are their competitors?

· How has the stock price performed?

· What are analysts and market players saying about the stock?

 3. After step 1 and 2 have been properly executed you can now proceed to opening a stockbroking account on I-invest and clicking on the buy button.

Some advice  

· Buy only companies that you have sufficient information about.

· Have a plan and time frame before buying. Example: I expect to make 18% return in the next 3 months.  

· Have a stop loss. Example: If the value of the stock declines by 8%, I will cut my losses and buy another stock.

· Monitor the performance of the stock daily

4. Keep up with the news and research publications about the stock market. You can also sign up for the daily newsletters and periodic publications: this will give you all the necessary information to make the best decisions.

 

Most of us still have memories of our mothers stashing money in weird places back in the day — some of us benefited from stumbling on them as kids (if you know what I mean.) Saving was more predominant while investing was left for the wealthy, and if you own some stocks, omo you have arrived.

 

Only the rich could afford to own an investment portfolio, as this entails having a large sum as capital, a stockbroker who would earn an exorbitant fee on his portfolio, and several time-consuming procedures. The ordinary man could not afford these luxuries, so they merely work, spend, save, and repeat, while the wealthy man keeps his fortune.

 

Thanks to the recent advancements in fintech solutions, a wide range of investment opportunities are now open to everyone to invest and grow wealth even with little money. However, having access does not always guarantee success in investing. The rich go the extra mile by following some standard rules. Here are 7 of them.

 

Here are five golden investing rules you can adopt on your wealth-building journey.

 

Map out an investment plan.

Our situations are unique, and so are our goals. What works for one investor may not work for you. Before investing, assess your current situation and future goals, including your income, career, travel plans, family, risk tolerance, and time horizon. These will help you determine how much you can invest and how often as well as the type of investment to stake your money in. 

 

Remember to periodically review and adjust your investment plan along the way to determine if it still suits your goals and needs. Talk to a financial advisor.

 

Never buy all at once. Never sell all at once

To maximize your profits, stage your buys, work your orders and try to get the best price over time. If your goal is to buy 10,000 units MTN shares, you can buy it in units of 1000 while trying to get the best price.

 

Stay Consistent.

It’s important that you continue to invest over time, in good or rough time, even if you it’s only a little amount. By continuing to invest regularly, you’ll learn the habit of living below your means as you build up a nest egg of assets in your portfolio over time.

 

Have an emergency fund.

The concept of making money from investing can become thrilling that you get tempted to put in all your money for more returns. Be careful not to give in to such temptation. Always have money in easily accessible savings account to cover unexpected life events. You can ensure that you always have adequate cash for emergencies by automating a small portion of your salary into a savings account. 

Start automated savings

  

Don’t put your eggs in one basket.

Diversification comes in various forms — the types of assets you buy and the individual assets within each class. Putting your money in different assets and investment types can help minimize risks and shields your portfolio from the impact of downturns in any one or more of the asset or market type. 

Diversify your investment across asset classes like Stocks, Bonds, treasury bills, Real estate, etc.

 

Stop timing the market

Smart investors understand that time in the market is more important than timing the market. The idea here is that you need to stay invested for the long term to get strong returns instead of jumping in and out of the market.

 

Make compounding work for you.

Compounding lets earn returns from your returns. If you have no urgent need for income from your investments, you may want to consider reinvesting it to buy more of your investment. Doing this will help increase the value of your investment and boost your overall returns. Bear in mind, however, that reinvesting income from capital appreciation or dividends rather than taking it as cash means you risk losing it or seeing its value fall — or rise. 

 

Read Also: What is Compounding and How Can it Work for You

 

If it seems too good to be true, it is.

Beware highly speculative investments that seem too good to be true. Be careful not to follow the herd and try not to fall into the trap of investing because other people are doing so. 

 

Similar article: Common Investment Red Flags Most Victims Ignore

 

Only invest in what you understand.

Warren Buffet used this rule to become the wealthiest investor in the world. His mantra: Never invest in a business you cannot understand. Warren believes that as an investor, you must understand the company you want to invest in and know if it is within your circle of competence or not. You must align with its values and trust its growth potential.

 

The only way to know this is to DO YOUR RESEARCH properly. Research the products, the financials, the leadership, the trends, and everything that makes the company you are about to invest in tick or suck.

 

The good news: You do not have to dive into the investment pool alone. The research team at Parthian Parthian securities has eyes on the market and can give you valuable insight to help you make better investment decisions. Subscribe to the Parthian newsletter for stock market updates, company updates, investment tips, and more

 

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• Mutual funds and exchange-traded funds (ETFs) are similar in many ways. Both are made up of a variety of assets and are popularly used by investors to diversify their portfolios. While these two funds may have striking similarities, they also have some significant distinctions. In this article, we will look at some of the major differences between these two funds.

   What are mutual funds and ETFs?

  Mutual funds are made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. ETFs on the other hand are exchange-traded funds that generally track a specific index. When you buy an ETF, you get a collection of assets that can be traded during market hours.

   Click here learn more about ETFs in Nigeria

   So, what are core differences between ETFs and Mutual Funds?

   1. Trading: ETFs can be traded during market hours like stocks, whereas mutual funds can only be purchased at the end of each trading day at a calculated price called the net asset value.

   2. Fund Management: Most mutual funds are actively managed, meaning that fund managers make decisions on how to distribute assets within the fund. Whereas ETFs are mostly passively managed 

  3. Capital: Mutual funds often have a higher minimum investment requirement compared to ETFs because they require more time, effort, and personnel for security research and analysis.

  4. Pricing: Because ETFs are traded on a stock exchange, the fund’s value is determined by market forces. If the fund is in high demand, it may be priced higher than its net asset value, which is the underlying value of the securities it holds. Mutual funds, on the other hand, are always priced at their net asset value at the end of each trading day.