Financial Wellness - Investment Ideas for Beginners
Intro
Are you interested in boosting your finances through multiple sources? What about practical ideas for increasing your income in Africa and beyond? Let us learn from Lady Mowunmi (Wunmi) Akinola, a strong advocate of financial wellness and personal financial freedom, as she shares her tips and tricks with us.
Guest Bio
Lady Mowunmi (Wunmi) Akinola is an IT Financial Strategist and Personal Finance Advocate.
Q: How did you become so wise with money?
I have had a lot of encounters with a lot of wise and knowledgeable people. One of them was my pastor, while I was in university. He would occasionally have finance seminars and talked about how to bless others through money. If you are blessed yourself, you are able to become a blessing to others. Our money is not just for ourselves, but for the people around us.
The first thing I did was take some of my pocket money and decided to start what I call “passive investing.” I define this as money where you do not have to work to earn it; you just put it into something and the money flows to you. I decided to buy shares in the stock market. Because of family circumstances, I had to cash them out somewhat quickly, but they had already doubled in value.
Q: Where can we start from, if we only have a little income?
It depends on where you are. Investing in the United States is very different from investing in Africa. In Africa, the first thing you need to know is how much you are making and how much you are spending. A lot of times, salaries are very variable, so it is important to average the last few months of your salary to determine your monthly earnings. After you do that, try to save 5-10% of your salary to use in investing. The end goal is 20%, but start smaller. It is also important to have an emergency fund, enough for about three months, set aside in case your investments do not pan out.
My favorite investment type for West Africa is stocks. You don’t need a lot of money to buy shares/stocks, and they are easy to manage. Stocks are also secured for the future, so you do not have to constantly worry about it. Even if the stock price drops for a time, do not panic! The stock will likely rise, given more time. In 15-20 years, you will have a large amount saved up for yourself. Patience is key to success in the stock market.
The other way to make money in West Africa is to start a business. If there is a need in your area, what can you do to provide for that need? For example, you could invest in a motor vehicle and provide transportation to those in your city. You could manage an internet café or buy a large TV and host major events or movies there. Be creative with the needs and resources around you.
Q: How can you start in investing in the USA?
The first place to look is the stock exchange. Most people abroad have salaried jobs, and it is a good idea to inquire about your employer’s matching retirement funds (401K/pension plans). If you put in $100, your employer may match that in that in your pension. If you are in a position to use a 401K or pension plan, fully utilize it. Other than that, the tips for Africa also apply to living in the United States as well.
Q: Do you have any advice for money management?
Don’t feel pressure to buy the newest gadget or fashion item just because others have it. There is a good chance that they paid for it through borrowing. It may look good for them now, but they will have to pay up in the future. Don’t put yourself in the same boat as them. Delay your gratification until you can actually afford it.
Summary
When it comes to money, try to be disciplined. When you plant seeds in the ground, they don’t grow immediately. Treat your money the same way. Have patience and let those things grow. And don’t give up! You will face challenges and temptations when dealing with finances. Discipline yourself, and your finances will thrive!
