In Nigeria, we know that good things take time. Whether it’s waiting for freshly pounded yam to pair with egusi soup or watching cassava transform into delicious garri, patience is key. The same principle applies to building wealth. Wealth-building is not a sprint where you expend all your energy at once—it’s a marathon that demands steady and consistent effort over time.
It’s also like constructing a solid “face-me-I-face-you” in the heart of Lagos or a modern duplex in Abuja—you need a strong foundation, a detailed plan, and steady progress to achieve the desired result.
If you’re serious about creating a financial legacy for yourself and your family, consider focusing on long-term investments. They might not give you quick wins, but they guarantee steady growth and sustainable wealth. Here’s why long-term investments are worth considering:
• Compound Growth: Long-term investments take advantage of compound interest. Imagine putting money in a piggybank that not only stores your cash but also multiplies it every month—this is the magic of compounding! Your initial investment grows, and so do the returns on those gains.
• Wealth Preservation: The Nigerian economy like every other, has its ups and downs—fuel price hikes, exchange rate fluctuations, or even unexpected government policies. Long-term investments help you weather these storms, offering a cushion against market volatility.
• Goal Alignment: Many significant life goals, such as buying land in Lekki, funding your children’s education abroad, or enjoying a peaceful retirement in your hometown, take years to achieve. Long-term investments align perfectly with these aspirations.
Laying the Foundation
You can’t build a house without a strong foundation—or as we say in Nigeria, “if the ground no strong, the house go collapse!” Similarly, your journey to wealth must begin with financial stability. Before embarking on long-term investments, take these essential steps:
1. Build an Emergency Fund: Life is unpredictable—from sudden hikes in the price of petrol to unexpected “August visitors.” Ensure you have 3–6 months’ worth of living expenses saved to handle these surprises without disrupting your financial plans.
2. Pay Down High-Interest Debt: Debt is like suya without pepper—it doesn’t sit well! Prioritize clearing debts with high interest rates. Keeping debts while trying to grow your wealth is like fetching water into a basket.
3. Set Clear Goals: Know what you’re investing for. Are you planning to buy land in Gwarinpa, retire comfortably in Osun, or leave an inheritance for your children? Having clear goals helps you choose the right investment strategy.
Choosing Your Investment Bricks
When building a house, you pick bricks based on quality, strength, and durability. It’s the same with investments. Some financial options are particularly suited for long-term goals:
• Stocks: Investing in shares of Nigerian companies like MTN, Dangote, or Access Bank allows you to benefit from the growth of these businesses over time. The Nigerian Stock Exchange has historically delivered solid long-term returns, despite short-term challenges.
• Mutual Funds and ETFs: If you don’t want the stress of monitoring individual stocks, mutual funds and ETFs are for you. Think of them as “egusi with assorted meat”—they’re diversified, spreading your risk across various assets.
• Real Estate: Nigeria’s property market is always buzzing. Whether it’s land in Ibeju-Lekki or a block of flats in Lugbe, real estate offers consistent rental income and long-term appreciation in value.
• Retirement Accounts: Did you know you can secure your retirement through pension schemes like the National Pension Commission (PenCom)? Contributing to retirement accounts ensures a comfortable life after you stop working.
• Bonds: When you invest in Federal Government Bonds or corporate bonds in Nigeria, it’s like lending your money to a reliable friend who promises to pay you back with interest. Bonds provide steady returns and add stability to your portfolio.
Relax and Stay the Course
As Nigerians, we know the power of resilience—whether it’s enduring Lagos traffic, dealing with NEPA blackouts, or finding creative ways to stretch our naira. Long-term investing requires similar patience and discipline. Here’s why it’s worth it:
• Market Recovery: Over the years, Nigeria’s markets have bounced back from downturns. Those who stay invested during tough times often reap sweet rewards when things improve.
• Reduced Risk: The longer you stay invested, the less the effects of short-term volatility. Over time, your investments are more likely to yield positive results.
• Emotional Discipline: Sticking to your plan helps you avoid impulsive decisions—like selling your shares during a market dip or buying into a “get-rich-quick” scheme. Long-term investing teaches you to focus on your goals and stay calm in the face of challenges.
Start Your Journey Today
In Nigeria, we say, “the best time to plant a tree was 20 years ago; the next best time is now.” Start building your wealth today, one brick at a time. Whether you’re just starting out or already laying blocks, Credlanche has your back.
Our expert advisors are ready to guide you through the next steps, offering tips and strategies to create a sturdy financial portfolio.
Chat with us online or call our customer service at (234) 812-377-8399 for more information on investment, credit, and asset management services. Let’s help you build your financial house, one solid brick at a time!