There are two primary ways to generate income: by working for it or by investing in opportunities such as businesses, people, or other avenues that offer profit-sharing.
In simple terms, money can be earned through active efforts, or it can be used to create more wealth. Those who truly understand this principle combine both strategies—they work to earn money, then use that money to generate even more income.
As the saying goes, money flows to where it’s treated well. Unfortunately, some Nigerians hold the belief that spending recklessly today will somehow be taken care of tomorrow, leading to a cycle of poverty fueled by a lack of financial discipline.
On the other hand, those who use their money wisely make things happen. The rule is simple: “No spending unless it’s planned for.” Many people in poverty work just to cover their basic needs. In contrast, the wealthy work to earn money and then put that money to work by investing it, rather than letting it sit idly in bank accounts.
People who only work for a paycheck often struggle to save or invest. However, the wealthy enjoy a significant advantage—they can leverage their money and even borrow to invest, provided they maintain good credit. They understand money management better than those whose income barely covers their expenses.
To move towards financial independence, individuals must embrace a bit of risk. This means finding investment opportunities, whether in stocks, Treasury bills, bonds, or mutual funds.
Once you start investing, you’re setting yourself on a path toward financial growth, and it only improves with time. While getting started may seem difficult, the key is to begin. For example, buy stocks—but remember, the rule is to buy low and sell high, and factor in any fees, like brokerage costs, when selling.
You can also explore mutual funds, offered by various investment banks. The performance of these funds can vary, so it’s wise to do some research to find out how they’ll manage your money.
Government bonds are another option worth considering, and investment firms can provide insights on the potential returns. What you should avoid is leaving your money in a savings account, as banks use your deposits to make their own profits—that’s your money they’re using.
Stay tuned, as we’ll soon be sharing a list of investment banking firms and how you can connect with the right people.
