Investing as a Student – Students need to know how to start investing in Nigeria, you must know that the job market is saturated as millions of graduates roam the street, daily seeking job opportunities that are rarely available. Nigerian students have the best opportunity to begin the journey to financial freedom and wealth even with little capital.
Research reveals that most working-class citizens in Nigeria have a fixed salary over a long period, even when expenses and bills keep rising, all as a result of the economic condition of inflation that affects the general price of all commodities.
What is investing?
Investing is putting money aside for growth in real terms, while capital invested keeps accumulating faster than inflation consistently. Some see investment as a get-rich-quick scheme, which most times tend to be wiped out in the future. Generally, an investment could be risky, but the risk is reduced with a financial plan. There are great advantages to investing early as you would live a better life as you grow.
Why should a student start investment?
Though we usually see investment as an activity that should occur after school, there are so many reasons why it is ideal to start investing as a student. Some of which include:
- The experience accumulated would be worthwhile after graduation.
- Investing would bring about quick maturity and exposure for the student. Many students would engage in wasteful spending, but an investor knows that all money should be effectively managed and invested for profit.
- Experiences that cannot be learned in the four walls of a school would be gained. Also, reading books is important, but to have the practical experience of investment is better.
- Starting is usually the most difficult phase of any task, the same as investing. By starting as a student, you have an edge in life.
- To save and invest as a student is the prove of potential and productivity with limited income. A student that gains any level of experience in investing has a greater advantage over others.
Examples of sites and apps to start investing as a student in Nigeria
- Payday Investor Kolopay
- ALAT by WEMA bank
Examples of institutions to invest in Nigeria as a student
- Stanbic IBTC Asset Management
- Vetica Capital Management Limited
- Metistem Securities Limited
- Greenwich Trust Limited
Steps to begin investing as a student in Nigeria.
- Get a head start by saving: As a student that wants to begin investing, the first step is to set aside a portion of your income monthly. Any investment would require surplus money that you are willing to risk investing without much impact if there is a loss of the capital invested. The money to be set aside can be deposited in a fixed deposit account for a tenured deposit, or recurring deposit account. A large percentage of banks in Nigeria provides a service for savings. An example of banks that provide this service is GTBank, and it pays about 4 percent interest annually. For students, the use of apps could be very effective and easier, such as Piggybank or ALAT.
- Let your goals be clearly stated: No one at the top reaches there automatically or without a plan. Becoming rich is not overnight, it takes several hours of continuous learning, strategizing, and tenacity. As a student that wants to go into investing, setting unattainable goals would deter you from doing anything futuristic. The easiest way is to clearly state your goals and the strategies of achieving those goals. For instance, set a goal of N200,000 per year and a target of 30 percent growth annually on the saving.
- The place of acquiring knowledge: Investing is risky as it is popularly said, but an investment is not doing what you don’t have any idea about. Students that want to go into any investment niche must be willing to acquire relevant knowledge to reduce loss. Furthermore, as you begin you would come across many terminologies that might want to take you off balance, be sure to acquire enough knowledge about investment so you won’t be swayed into a bad investment. The technical and analytic skills are essential, and the ability to read beyond what is presented is a key to success in investing.
- Selecting an investment instrument: The next step for a student that wants to begin investing is to select an investment instrument. The selection could be based on the volume of capital at your disposal or the trends in the market. Some of the investment instruments available for Nigerians are mutual funds, gold, stock, and forex.
- Update about the market trends: Investors must be up-to-date about the patterns and where investors are investing successfully, or the direction market would move shortly. Be up-to-date on the investments that are growing and others that would still grow shortly. Market movement applies to all asset and investment instruments, where there is a movement for both volumes and prices.
As a Nigerian student with the knowledge of the economic and employment challenge faced by graduates in this country, the best choice is to start investing early. Get a head start before others, and you would have created a steady income and wealth for yourself shortly.