When we were much younger, we mostly fantasized about our first million which we expected to come through salary payment. Joining the workforce usually opens our eyes to the realities of money management. 

Your first million may not immediately come from your first paycheck!

This, of course, is not to say that making your first million requires waiting till you get a massive promotion or bonus payout. On the contrary, “little drops of water make a mighty ocean”, which implies that you can achieve your financial goals by being intentional with savings and investments. 

Let’s get right into it. It is widely recommended to save 20% of every income earned, use 50% to meet essential needs, and the final 30% for wants. Of course, this is not a hard and fast rule; sometimes, especially in the face of the current economic realities, your essential needs may account for more than 50% of your salary (in which case you probably should re-evaluate your current spending or create additional income opportunities).

For instance, if an entry-level professional earns a salary of One Hundred Thousand Naira (NGN 100,000), the expectation is that the individual saves Twenty Thousand Naira (NGN 20,000) monthly. This may not seem very large at first but with consistency and the effects of compounding interest, the individual is well on the way to a decent nest egg. This makes earning your first million well within reach.

It is pertinent to note that while savings is very important, it does not equate to investments. Money saved in the bank earns interest, however, with the prevailing double-digit inflation and sustained currency devaluation, the interest earned from money saved in the bank is already eroded.

Discerning persons, therefore, need to actively invest to protect their funds and sustainably grow wealth.

Depending on key metrics like your financial goals, spending habits, risk appetite, and age, investments can be tailored to fit your purpose. It however requires a level of financial literacy to understand investment options available to mitigate risk through diversifying your portfolio and hedging. Greenwich Asset Management has the requisite expertise to guide you towards achieving your financial goals. With our depth of experience in financial advisory services, we are equipped to partner with you to sustainably grow, manage and transfer your wealth by leveraging an array of investment options developed to meet your needs.