Assuming one monthly income is around 50k and instead of saving in bank or doing contributions that will not catch up with inflation. How best can one start investing at least 15000 to 20000 monthly. With out any prior knowledge of investing and shareholding. What security will be good in giving the person the required experience of investing.
Let's dive in! Imagine Mr. Emeka, a civil servant earning around 50,000 naira monthly, is looking to invest a portion of his income, about 15,000 to 20,000 naira, to beat inflation. He doesn't have any previous knowledge of investments or shares. How can he start investing wisely to gain valuable exRead more
Let’s dive in! Imagine Mr. Emeka, a civil servant earning around 50,000 naira monthly, is looking to invest a portion of his income, about 15,000 to 20,000 naira, to beat inflation. He doesn’t have any previous knowledge of investments or shares. How can he start investing wisely to gain valuable experience?
Now, let’s break this down the Nigerian way. Mr. Emeka can start by thinking of investing like planting seeds in his small backyard garden. Instead of just storing his money under the mattress or in the bank where inflation may slowly eat away at its value, he can plant some seeds (money) to grow more valuable over time.
A good starting point for Mr. Emeka, who is new to the world of investing, is to consider investing in a secure and easy-to-understand option like Treasury Bills or Mutual Funds.
Let’s take a quick walk through the market to understand these options better:
1. Treasury Bills (T-Bills): Imagine T-Bills like lending money to the government with a promise to pay you back with interest after a set period, like borrowing a friend some money and getting it back with an extra token for helping out.
2. Mutual Funds: Picture Mutual Funds as a bowl where many people, including Mr. Emeka, come together to put their money. A professional ‘chef’ (fund manager) then decides how to invest this money in various ‘ingredients’ like stocks, bonds, or other securities, reducing the risk for everyone involved.
By opting for T-Bills or Mutual Funds, Mr. Emeka can start his investment journey without needing to worry too much about individual stocks or complex financial jargon. These options provide a good balance between safety and potential returns, serving as a beginner-friendly introduction to the world of investing.
As Mr. Emeka nurtures his investment garden, he can slowly learn more about different investment opportunities and grow his knowledge over time. Remember, the key is to start small, stay patient, and continuously seek to learn more about the investment world to make informed decisions.
So, Mr. Emeka, get your gardening tools ready, and let’s start growing your money tree in the financial garden!
See lessWhat do I need then to start, I mean the details, And please give me a good heads up on chn and cscs, what are they used for, which one must remain one for my investment journey and which one can be two or more
What do I need then to start, I mean the details,
See lessAnd please give me a good heads up on chn and cscs, what are they used for, which one must remain one for my investment journey and which one can be two or more
If you're just starting your investment journey and you're seeing words like CHN, CSCS and stockbroker everywhere, don't worry. Let me break it down. What do you need to start? You basically need: 1. A bank account This is where your money comes from and where certain investment payments can go. 2.Read more
If you’re just starting your investment journey and you’re seeing words like CHN, CSCS and stockbroker everywhere, don’t worry. Let me break it down.
What do you need to start?
You basically need:
1. A bank account
This is where your money comes from and where certain investment payments can go.
2. BVN and a valid ID
You’ll need your personal details for verification when opening your investment account.
3. A stockbroker
This is the company that helps you buy and sell shares on the Nigerian market.
4. A CSCS account
This is where your Nigerian securities are recorded electronically. You don’t normally open this separately first; you start with a stockbroker, who handles the process with CSCS.
Now, what is CHN?
CHN means Clearing House Number.
Don’t let the big name scare you.
Think of your CHN as your unique investor ID in the Nigerian capital market. CSCS says it identifies each investor.
So what’s the difference?
Think of it like this:
CSCS = the system that keeps your investment records
CHN = your unique number that identifies you in that system
They are not two different investments and you don’t choose one over the other.
Can I have more than one?
Yes, a person can end up with multiple CHNs, especially when they have accounts with different brokers.
But as a beginner, you don’t need to deliberately create multiple ones.
If you already have multiple CHNs, CSCS has a process called CHN Consolidation, which allows them to be merged into one preferred CHN.
So the simple thing to remember is:
One main investor identity → your CHN → your investments can be held through your broker(s).
And if you change brokers later, you don’t automatically lose your investments. CSCS has processes for moving and consolidating accounts.
That’s the basic setup.
You don’t need to understand every financial term before you start. Just understand who holds your money, who executes your investment, and where your investment is recorded.
See lessYou earn ₦50,000 every month and you want to start investing ₦15,000–₦20,000? Let me make it very simple. If you have never invested before, please don't just wake up and start buying random shares because someone on Facebook said, “This stock will blow.” Start small. 1. Start with ₦15,000 Don't forRead more
You earn ₦50,000 every month and you want to start investing ₦15,000–₦20,000?
Let me make it very simple.
If you have never invested before, please don’t just wake up and start buying random shares because someone on Facebook said, “This stock will blow.”
Start small.
1. Start with ₦15,000
Don’t force yourself to invest the whole ₦20,000 if you still need money for transport, food or emergencies.
2. Put the ₦15,000 in a money market fund
You can use a trusted, regulated investment platform to access one.
You don’t need to understand the stock market before starting.
Basically, your money is pooled together with other investors and invested in things like government securities and other short-term investments.
3. Keep doing it every month
₦15k this month.
₦15k next month.
₦15k the month after.
Don’t underestimate consistency.
4. While your money is growing, learn about shares
Start learning about companies like GTCO, MTN, Airtel Africa and Dangote Cement.
Understand what a share actually means.
Learn about dividends.
Learn why share prices go up and down.
5. Then you can start buying shares
For example, after you’ve learned the basics, you could decide to split your ₦15,000 like this:
₦10,000 → money market fund
₦5,000 → Nigerian shares
You don’t need to know everything before you start.
Start small.
Learn.
Invest consistently.
And please, don’t give your money to somebody just because they promised you 30% or 50% returns.
If it sounds too good to be true, biko, ask questions first.
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