Investing On The Wrong Thing

It’s a good evening, I am here sitting in my parlor and eating pop corn while watching the TV, suddenly I get a text from a friend telling me he has $4,000 and he is thinking about investing the money. He doesn’t want to invest it in crypto because he thinks it’s too risky, but real estate seems like a more secured place to invest in. If you are not in Nigeria you would probably think that $4,000 in real estate is outrageously small, but in Nigeria you can buy a piece of land for as low as $1,000 and above. Although this highly depends on the location. In a more economical stable country, buying that piece of land is a great idea, because it gives you capital security. But in my country Nigeria, it’s not a good idea because your money is better off just staying as dollar than being invested because of inflation.

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My little experience with investment has shown me that before you start considering real estate investment or trying to invest the little money you have, it’s always advisable to invest in increasing your earning power. If it took you so long to make $4,000 and you know making it is not as easy as spending, then probably working so hard to increase your earning power should be the goal. It could be investing in yourself to acquire more skill to earn more at a shorter time, or just taking more jobs that will enable you earn more. I know the world has made us feel that when we have some money, investing it is the next goal. I personally will invest in crypto because I can take the risk and I have been taking the risk, but I wouldn’t advise anyone do that.

Better still, you can put the money in fixed deposit and let it auto compound overtime and increase while you earn more and save it as well. When your earning power has been increased, and is more stable, then investing into other things can come in place. Hopefully by that time you would have enough to fully invest in real estate and probably rent it out to make more money. Lots of people, in the spirit of trying to make their money work for them, they rush into investing is some business with your proper research and unfortunately lose the money later.

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