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How Should Young People Invest Their Extra Cash? - Investment - Nairaland

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How Should Young People Invest Their Extra Cash? by soldierAnt(m): 11:02am On Mar 24, 2013
How Should The Young And Recently Employed Invest Their Extra Cash

To all seasoned investors and friends in the house,

I'm young, just bagged my first real job and I'm looking to start investing right away. I figured I'd better start early because I know I've still got lots to learn and my commitments couldn't possibly be any lower than they are right now. I'm prepared for a bumpy ride but I'd really appreciate any advice I can get from the house.

Been thinking about money market funds and index funds, but I'd really like to know how to go about obtaining a proper financial education. I'm quite a tech geek, you see; I know next to nothing about finance.,

Thanks in advance.

1 Like

Re: How Should Young People Invest Their Extra Cash? by stockbull(m): 11:25am On Mar 24, 2013
i think you are right.
i would advice you to invest in stock market as you are fortunate to enter the market in a bullish time period.
The market is risky and you may lose money just as all businesses has a tendency to bring loss at one time.try to do some research on your own especially on how the nigeria stock market works and let me know if you would've interest
Re: How Should Young People Invest Their Extra Cash? by Seun(m): 11:35am On Mar 24, 2013
Many investment gurus have said that most lucrative investment you can make is an investment in yourself. Use your extra cash to buy things that will increase your earning power, such as certifications, career-enhancing books, part-time studies, and good healthcare. Or expand your primary business, if you're an entrepreneur.

Index funds are definitely the safest way to invest in stocks if you don't know what you are doing - that is, if you cannot calculate a company's monetary value to a high degree of accuracy by reading its financial statements.

We dont seem to have index funds in Nigeria yet, though we have mutual funds. Mutual funds are not an appropriate substitute for index funds because they charge much higher fees but do not perform any better than index funds. Mutual funds can fail catastrophically due to mistakes by their managers, while index funds tend to fail only when the entire market is failing, e.g when an asset bubble bursts.

You should also consider safe government securities like tbills and bonds. You can put up to half of your funds in them. They tend to do better when stocks are not doing so well. They are also very easy to convert to cash when you need cash urgently. For active investors, these can be used like a savings account while you're waiting for the right investment to come along.

I recommend "Buffett: The Making Of An American Capitalist" if you really want to learn more about investing and stocks.

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Re: How Should Young People Invest Their Extra Cash? by biolabee(m): 11:36am On Mar 24, 2013
before you enter stock, get educated first


Make sure you have 3 times your average monthly salary as backup

Also get educated on other vehicles such as real estate,
Be patient

2 Likes

Re: How Should Young People Invest Their Extra Cash? by biolabee(m): 11:58am On Mar 24, 2013
Seun: Many investment gurus have said that most lucrative investment you can make is an investment in yourself. Use your extra cash to buy things that will increase your earning power, such as certifications, career-enhancing books, part-time studies, and good healthcare. Or your business, if you're an entrepreneur.

Index funds are definitely the safest way to invest in stocks if you don't know what you are doing - that is, if you cannot calculate a company's monetary value to a high degree of accuracy by reading its financial statements.

We dont seem to have index funds in Nigeria yet, though we have mutual funds. Mutual funds are not an appropriate substitute for index funds because they charge much higher fees but do not perform any better than index funds. Mutual funds can fail catastrophically due to mistakes by their managers, while index funds tend to fail only when the entire market is failing, e.g when an asset bubble bursts.

You should also consider safe government securities like tbills and bonds. You can put about half of your funds in them. They tend to do better when stocks are not doing so well. They are also very easy to convert to cash when you need cash urgently.

I recommend "Buffett: The Making Of An American Capitalist" if you really want to learn more about investing and stocks.

Excellent post, Seun

What's this virus on top
Re: How Should Young People Invest Their Extra Cash? by outrage: 1:47pm On Mar 24, 2013
Front page things.
Re: How Should Young People Invest Their Extra Cash? by soldierAnt(m): 4:21pm On Mar 24, 2013
stockbull:




i think you are right.
i would advice you to invest in stock market as you are fortunate to enter the market in a bullish time period.
The market is risky and you may lose money just as all businesses has a tendency to bring loss at one time.try to do some research on your own especially on how the nigeria stock market works and let me know if you would've interest

Thanks bro, I'm already on the research thing. Once I feel like I'm getting a handle on things I'll reach out to you. My number is 08135604698, drop me a line. Thanks.
Re: How Should Young People Invest Their Extra Cash? by soldierAnt(m): 4:40pm On Mar 24, 2013
Seun: Many investment gurus have said that most lucrative investment you can make is an investment in yourself. Use your extra cash to buy things that will increase your earning power, such as certifications, career-enhancing books, part-time studies, and good healthcare. Or your business, if you're an entrepreneur.

Index funds are definitely the safest way to invest in stocks if you don't know what you are doing - that is, if you cannot calculate a company's monetary value to a high degree of accuracy by reading its financial statements.

We dont seem to have index funds in Nigeria yet, though we have mutual funds. Mutual funds are not an appropriate substitute for index funds because they charge much higher fees but do not perform any better than index funds. Mutual funds can fail catastrophically due to mistakes by their managers, while index funds tend to fail only when the entire market is failing, e.g when an asset bubble bursts.

You should also consider safe government securities like tbills and bonds. You can put up to half of your funds in them. They tend to do better when stocks are not doing so well. They are also very easy to convert to cash when you need cash urgently. For active investors, these can be used like a savings account while you're waiting for the right investment to come along.

I recommend "Buffett: The Making Of An American Capitalist" if you really want to learn more about investing and stocks.

Seun I must say you're quite ubiquitous in this investment portal. I really appreciate your advice and enjoyed reading it. It's quite remarkable how quickly you guys respond and your willingness to help. Thanks again.

To reply to reply to your points, I want to do a bit of both: Try to boost my earning potential through courses and certifications and also put some money away in something more than a dumb savings account - something passive and rather long term for a start (say 10 years)

I really appreciate the book suggestion too; one more to add to my reading list. I've already got "Think and Grow Rich" and "The Intelligent Investor"

1 Like

Re: How Should Young People Invest Their Extra Cash? by olushowunm(m): 5:30pm On Mar 24, 2013
WHAT YOU NEED IS SIMPLE HAVE AN INVESTMENT PLAN AND BE DISCIPLINE TO FOLLOW IT!

YOU CAN CHECK MY THREAD "HOW TO INVEST EFFECTIVELY" AND THE ART OF PERSONAL LEVERAGE (THE LECTURES SERIES). ALL ON NAIRALAND INVESTMENT SECTION...
I WILL TRY AND UNCOVER MOST MYTHS OF FINANCE AND INVESTING!
Re: How Should Young People Invest Their Extra Cash? by soldierAnt(m): 9:34pm On Mar 24, 2013
olushowunm: WHAT YOU NEED IS SIMPLE HAVE AN INVESTMENT PLAN AND BE DISCIPLINE TO FOLLOW IT!

YOU CAN CHECK MY THREAD "HOW TO INVEST EFFECTIVELY" AND THE ART OF PERSONAL LEVERAGE (THE LECTURES SERIES). ALL ON NAIRALAND INVESTMENT SECTION...
I WILL TRY AND UNCOVER MOST MYTHS OF FINANCE AND INVESTING!

I'll certainly do so. Thanks bro, you're a gem.
Re: How Should Young People Invest Their Extra Cash? by hrmkz: 1:30pm On Mar 25, 2013
Investing in oneself is simply the best for a young chap!

1 Like

Re: How Should Young People Invest Their Extra Cash? by valdubem(m): 1:34pm On Mar 25, 2013
I love this Section!
Re: How Should Young People Invest Their Extra Cash? by Seun(m): 1:35pm On Mar 25, 2013
soldierAnt: To reply to reply to your points, I want to do a bit of both: Try to boost my earning potential through courses and certifications and also put some money away in something more than a dumb savings account - something passive and rather long term for a start (say 10 years)
If possible, put your money in 1 year FGN Treasury Bills, so you'll have a yearly opportunity to modify your investment strategy.

I really appreciate the book suggestion too; one more to add to my reading list. I've already got "Think and Grow Rich" and "The Intelligent Investor"
"The Intelligent Investor" is a great book, though it's a bit old. It was written by the lecturer/investor who taught Warren Buffett (the most successful investor of all time) how to accurately value stocks. But I don't know about the other book "think and grow rich". It was written by an author whose sole claim to fame is that he pioneered the personal success genre of literature. You should read think and grow rich if you want to be a successful author of personal success literature, but if you want to learn investing, I think you should learn from people who have been consistently successful as investors over a long period of time. For example, Warren Buffett. wink

1 Like

Re: How Should Young People Invest Their Extra Cash? by Reyus: 1:39pm On Mar 25, 2013
Read my lips... BUY LAND! BUY LAND!! BUY LAND!!!

Save money, buy and fence GENUINE LAND.

Of course, it depend on how much you have.

But you will never regret it.

13 Likes

Re: How Should Young People Invest Their Extra Cash? by Dee60: 1:44pm On Mar 25, 2013
Read and write. That is the first step.
Re: How Should Young People Invest Their Extra Cash? by Seun(m): 1:48pm On Mar 25, 2013
Reyus: Read my lips... BUY LAND! BUY LAND!! BUY LAND!!!
Save money, buy and fence GENUINE LAND.
Of course, it depend on how much you have.
But you will never regret it.

There are many costs associated with land, which people fail to account for when boasting about their real estate investments. For example, cost of fencing, cost of taxes and complying other government requirements, cost of dealing with omo-onile, cost of scouting, etc. When all those costs are considered, I suspect that the returns obtainable from an average investment in land would be quite modest; nothing spectacular.

1 Like

Re: How Should Young People Invest Their Extra Cash? by ume(m): 1:51pm On Mar 25, 2013
Just invest in babaijebu things and u will be suprised how de harvest would be

1 Like

Re: How Should Young People Invest Their Extra Cash? by Nobody: 1:56pm On Mar 25, 2013
Seun: Many investment gurus have said that most lucrative investment you can make is an investment in yourself. Use your extra cash to buy things that will increase your earning power, such as certifications, career-enhancing books, part-time studies, and good healthcare. Or your business, if you're an entrepreneur.

Index funds are definitely the safest way to invest in stocks if you don't know what you are doing - that is, if you cannot calculate a company's monetary value to a high degree of accuracy by reading its financial statements.

We dont seem to have index funds in Nigeria yet, though we have mutual funds. Mutual funds are not an appropriate substitute for index funds because they charge much higher fees but do not perform any better than index funds. Mutual funds can fail catastrophically due to mistakes by their managers, while index funds tend to fail only when the entire market is failing, e.g when an asset bubble bursts.

You should also consider safe government securities like tbills and bonds. You can put up to half of your funds in them. They tend to do better when stocks are not doing so well. They are also very easy to convert to cash when you need cash urgently. For active investors, these can be used like a savings account while you're waiting for the right investment to come along.

I recommend "Buffett: The Making Of An American Capitalist" if you really want to learn more about investing and stocks.

Where Sir, Can I learn about this 'FGN bonds'? I am a complete novice
Re: How Should Young People Invest Their Extra Cash? by ochallo: 2:01pm On Mar 25, 2013
,
Re: How Should Young People Invest Their Extra Cash? by Adanyebe(m): 2:02pm On Mar 25, 2013
by keeping away all girlfriends

2 Likes

Re: How Should Young People Invest Their Extra Cash? by Akpaife(m): 2:02pm On Mar 25, 2013
Ur gal friend can be ur investment
Re: How Should Young People Invest Their Extra Cash? by Pennywise(m): 2:03pm On Mar 25, 2013
Whatever you do, stay away from the Nigerian stock market. Its a grand pyramid scheme with operators that do not have any scrupple whatsoever.

1 Like

Re: How Should Young People Invest Their Extra Cash? by Seun(m): 2:06pm On Mar 25, 2013
yomola: Where Sir, Can I learn about this 'FGN bonds'? I am a complete novice
http://www.dmo.gov.ng/debtprofile/fgnbondmarket.php
Re: How Should Young People Invest Their Extra Cash? by Nobody: 2:09pm On Mar 25, 2013
Thank you seun
Re: How Should Young People Invest Their Extra Cash? by dedons: 2:11pm On Mar 25, 2013
buy d latest jeans and shirts in town


or dig the ground and bury your hard earned money...i think it is safer there









DATZ ALL!!!

1 Like

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