Why Investment is Important while Earning?

Before now, people have been able to rely solely on savings for their current and future needs. The same is no longer true today. Money stored in a piggy bank (kolo) or savings account is unlikely to serve this purpose. There are two major reasons for this. Firstly, you don't get enough interest in them, and secondly, neither has the potential to beat inflation.

This shows that it is insufficient to simply make money and hoard it. It is more beneficial to make your money work for you, and the best way to do that is through investments. Investing is important because it helps you earn more money. It is a way of saving your money for the future. You can invest in many things, like stocks, bonds, mutual funds, equity funds, and real estate. The importance of investing while earning is essential to reaching financial freedom. You get your chance to grow your net worth over time and reap the rewards when you reach your financial goals.

If you are looking to start investing while earning, you are in the right place. The investment market is a big one, and there is a lot to learn about it. In this blog post, you will learn the most popular types of investments and the best ways to invest in them.

What is investment?

Investment involves putting your money in a business’s financial assets such as stocks and bonds, with an expectation that it will yield returns.

Why Should You Invest While Earning?

By investing regularly—every month or quarter—you not only get more back on your money sooner but also take advantage of compounding interest. This means that every Naira invested earns interest on its own account, so the more money is invested in, the longer it grows!

The best way to save is not with a lump sum, but by making regular deposits which allow you experience compound interest.

Another reason why you should invest while working is to build a wealth portfolio that will provide security in your later years. It also provides a financial blanket if there is a temporary layoff from work. The good news is that there are many investment options readily available today. These can supplement your income and offer some safety nets for difficult times.

Popular Investment Options in Nigeria

There are many good investment options in Nigeria. Just make sure your investment choice fits with your financial goals, risk tolerance, and investment horizon. Some of the popular investment options available in Nigeria are:

Money Market Funds

The money market fund is a low-risk investment plan that gives you access to different investment securities and types. This is a good choice for people whose risk appetites are low and who want to maximize their interest in short-term securities.

Equity Income Fund

The equity income fund is a higher-risk investment plan that gives you access to stocks and equities available on the Nigerian Stock Exchange (NSE). It is quite popular among investors because when you buy shares in a company, you have an indirect ownership stake in it. It also has the potential to earn investors attractive returns.

Fixed Deposits

Many people regard fixed deposits as the best investment option for investors who are conservative. This is because they provide a fixed rate of return for a certain duration. They often have higher interest rates than savings accounts.

Conclusion

We hope this article has informed you of the benefits of investing while earning. Do your research and make informed investment decisions. If you would like to talk to a financial advisor, you can contact us or visit any of the AXA Mansard branches nationwide.