A friend recently told me it was impossible to save or invest with a monthly salary of N58,000. I told her it was possible, but she actually thought I was not being realistic.
My first real job after graduation (still my present job) paid a monthly salary of N68,000 (i.e. $530). One of the few things I did upon receiving my first salary was to develop a savings/investment plan. I had a plan to save at least two months worth of salary to purchase my first stock which was Intercontinental Bank Plc. I had to learn to live below my means.
I resulted to doing the following- once my account has been credited, I pay my tithe and set aside N30,000 for investment purposes, while the remaining amount was used for living expenses. You may wonder if I ever went for shopping or clothes, shoes and bags.
Yes, I did but I limited myself to one or two items each month (achieve a gradual build-up of my wardrobe). To a large extent, it made me more prudent and I was able to buy the items I really needed without giving into impulse buying.
At the end of that year, I had N600,000 in my savings account which I used to purchase the following stocks:
Intercontinental Bank – 5,000units
Union Bank – 20,000 units
I also got my colleagues together to set up a cooperative unit with which I was able to purchase 20,000units of Union Bank. For the first two years of working, I did not spend my vacation outside the country because I had set a goal of achieving N5mn by the age of 30years to make up for the years I had not invested.
You may be wondering if it’s really possible but believe me it is. You can actually build your net worth over time by setting aside a minimum of 30% of your monthly income.
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