Categories
Features

8 Ridiculous Ways Nigerians are Bleeding Money Every Day

Did you know that the average Nigerian bleeds money in at least 8 different ways every month?

Don’t believe it? Let’s break it down.

_________________________________________________________

Halo Invest gives you access to the best financial insights, insider tips and tools to help you improve your relationship with money.

_________________________________________________________

1. The New USSD Charge

With the new CBN directive, people who make use of mobile transfers will now be charged ₦6.98 per USSD transaction.

So, every time you make a mobile transfer via USSD, ₦6.98 will be deducted from your bank account as a fee for using the service.

If you make 3 transactions in one day, you will lose ₦20.94. This means that on average an active USSD user can lose as much as ₦628.2 on USSD transactions every month.

Think it’s a small price to pay? It adds up.

2. Payment on Electronic Transfers

Picture this.

You have 6k in your account. Last card.

You have to send some money to someone and your plan is to send 5k so you have at least 1k left.

You make the transfer and get the alert, only to realise that you have less than 1k in your account because of bank charges.

Transfer fees depend on the amount being transferred.

You pay ₦10 on transfers below ₦5,000, ₦25 on transfers between ₦5,000 and ₦50,000 and ₦50 on transfers above ₦50,000.

This means that the more transfers you make in a month, the more money you lose.

3. Making Withdrawals Via Another Bank’s ATM

How many times have you considered ATM withdrawal fees when using an ATM?

Did you know that you get charged a transaction fee every time you use another bank’s ATM after the first 3 withdrawals?

Every time you break a ₦50,000 withdrawal into 5, you pay that fee 5 times.

Before 2020, this fee was ₦65. Now, it has been reduced to ₦35 to encourage financial inclusion in the country.

This does not take away from the fact that you’re still losing money.

Think of how many times you withdraw in a month from another bank’s ATM and multiply it by 35. That is about how much you lose monthly on ATM withdrawals alone.

4. Maintenance Fee on Debit cards

The famous card maintenance fee.

For all accounts with a debit card, bank customers are charged a maintenance fee.

The more cards you have, the more money you pay, and while a CBN directive in 2020 reduced the amount of money you had to pay, you’re still paying money to maintain those cards in your wallet.

__________________________________________________________

Sign up for our Money Notes newsletter to get bi-weekly financial insights, tips, and tricks sent to your mail.

__________________________________________________________

5. Bank Stamp Duty

Stamp Duty is the tax that banks are required to charge their customers on transactions. For every eligible transaction above ₦1,000, your bank deducts ₦50. This stamp duty applies to the receiver of the money.

When a vendor is transferred ₦10,000 as payment for a service, the bank deducts ₦50 for stamp duty.

He/she receives ₦9,950, excluding other fees being charged by the bank.

A lot of merchants have transferred this stamp duty charge to their customers. When making payments via POS, a customer is charged ₦10,050 for a product that costs ₦10,000.

This means that as a customer, you lose ₦50 on every POS transaction made.

6. SMS Mandatory Alert Fees

Bank customers have the option of receiving bank alert notifications either via SMS or Email, but not everyone has access to good internet.

In fact, most people prefer to receive SMS alerts so they can stay up to date with every transaction made on their account.

Your bank charges ₦4 for you to receive each alert, this is one more way you bleed money every month.

7. Devaluation of the Naira

According to the CBN, the naira recently experienced an 8.2% depreciation, causing it to trade at ₦410 to the dollar.

Every time the naira loses value, the money you have in your savings account loses value too.

Your ₦5,000 can no longer afford you the same goods and products it could before and just keeping it in a basic savings account isn’t helping.

Consider moving the bulk of your money to high-yield savings plans like the ones we are about to launch at Halo Invest. Click here to sign up for updates and early access to our beta app.

8. Bank Savings Interest Rate

In order to retain customers, the minimum interest rate for a savings account as instructed by the CBN is 1.125%, a rate that most Nigerians consider too low.

When you withdraw more than 3 times a month, you forfeit this interest.

This means that at the end of the day, you do not get this interest, you pay to send, receive and withdraw money, you pay for SMS notifications and you pay to maintain your account.

A lot of Nigerians have probably experienced losing the money they had in an inactive account due to bank charges.

If you leave ₦1000 in a savings account and check back months later, you might even find that you’re owing the bank money because of bank charges like maintenance fees, alerts etc.

—–

Want to reduce the amount of money you spend every month, build your savings and diversify your investment portfolio? Sign up here to know when we release our product and get access to high yield savings and investment plans.

Categories
Features

Make More Money Doing What You Love in Nigeria in 6 Steps

According to the National Bureau of Statistics, 23.2 million people in Nigeria are unemployed. Inflation is high, devaluation is steady and income is unchanging.

It doesn’t matter how much you make, as the prices of goods and services increase, your money loses value. So how do you match up with the current economy? You find ways to make more money (without burning out, of course).

Whether you are currently working a 9 to 5 job, have a skill or business, or are in need of a new job, following these steps will help you earn more money doing what you love.

_________________________________________________________

Halo Invest gives you access to the best financial insights, insider tips and tools to help you improve your relationship with money.

_________________________________________________________

1. Figure out what you’re good at

What makes you happy or keeps you going? It is easy to monetize what you are good at and offer it as a service to others. Don’t force yourself into turning a skill or knowledge into business if you don’t enjoy it.

We end up burnt out and stressed when we take on roles that we don’t enjoy.

2. Turn your skill into profit

Have you discovered what your skill is? Everyone has a skill or talent they can monetize but it’s also understandable if you decide you want to keep it as a hobby rather than a profitable business.

If you enjoy singing or can play a musical instrument, you can land yourself gigs to sing/play at birthday parties, weddings or small events that are willing to pay. Sell your artwork if you enjoy painting or if you are good at mural painting, offer to beautify a school, restaurant, office for a fee.

A lot of people enjoy gifting their baked goods, jewellery, old books/clothes to friends and family but you can also create an online store to sell what you have available or love creating to make money.

3. Find new ways to make more money off what you’re already being paid for

There are definitely other means to earn more money from the job or business you already have. Highlight and research other opportunities you can create for yourself from that skill.

For instance, if you work in a company as a digital marketer, you can decide to also go into freelance. Sell yourself to other companies or clients in need of your services. Here is a list of services you can offer to earn more money in your field of expertise:

  • Be a consultant
  • Create an online course
  • Tutor others
  • Become a coach for others in your field
  • Startup your own blog
  • Create an educational Youtube/Podcast

There are many more ideas you can capitalize on, but you can start with these and figure out what works best for you. Don’t be scared to put a price on your work. Are you a fashion illustrator, product designer, fitness coach, architect or lawyer? Whatever field you’re currently earning money from can certainly help you make more money.

Offer your expert services to people around you outside of your office. This can be to business owners, friends, family etc.

__________________________________________________________

Sign up for our Money Notes newsletter to get bi-weekly financial insights, tips, and tricks sent to your mail.

__________________________________________________________

4. Look out for potential opportunities and career openings

Always be open to having conversations. Stop waiting for job openings on LinkedIn to apply. Be open to meeting people that can connect you and help land your new job.

Attend networking events where you can meet with the CEO or have the chance to pitch yourself to a top person in a company you want to work in (Or follow them on LinkedIn). Practice your pitch, approach them and prove that you are suitable for that role or new project.

Start networking with new people and engaging in conversations that get them familiar with your work.

Every “no” brings you closer to a “yes”

-Mark Cuban

Now, this isn’t “aspire to perspire” advice, but sometimes you need to remember that getting turned down many times doesn’t mean game over. There is definitely a gig or job role waiting for you.

5. Be realistic

It’s very important to structure your day by creating a schedule that allows you to accommodate the workload. Don’t overwork yourself. It’s alright to also say no to any work that might strain you.

If you own a car and decide to earn more money by joining a ride-hailing service like Uber or Bolt while working your 9 to 5 job, then your side gig should only be when you’re off work and/or on weekends.

Of course, it’s not realistic to offer rides during the day when you should be attending a meeting at the office.

Also, make sure you have work-life balance, so while you are earning more, you are able to create time for yourself, family, and friends you love.

6. Put yourself out there more

A lot of people land new job roles or clients just by putting themselves out there on social media so make sure you are sharing your work, talking about it and connecting with new people on Twitter or Instagram.

If they don’t know what you do and do well, they can’t send the right opportunities your way.

Create an online portfolio that allows people to see your past work because you never know who’s watching or might reach out!

Are you considering a career switch but don’t know how to navigate it? Then, this is for you.

Read this article for more side gig ideas to make more money. Don’t keep this information to yourself, share it with someone else looking to earn more🤗.

Categories
LifeStyle

7 Weird Places You’re Sure To Find Spare Change at Home

Ever got so lucky that you find spare change in the oddest places around the house, especially when you need it the most? Maybe you kept the money somewhere and totally forgot about it or it simply went missing.

At moments like these, it almost feels like you have won a lottery.

So let’s go on a little treasure hunt today, here are 7 places you’re sure to find some spare change in your home right now!

_________________________________________________________

Halo Invest gives you access to the best financial insights, insider tips and tools to help you improve your relationship with money.

_________________________________________________________

1. Go through your Pockets

Believe it or not, the pockets of your jacket, trousers, and other pieces of clothing you wear often or haven’t worn in a while might have some money in them.

You never know until you put your hands into the pockets of that trouser kept at the back of your wardrobe😉

2. Check your Sofa

It was fun while growing up to randomly put your hands in the space between your sofa and find the most random things like keys, tiny toys, and just about anything.

Finding money used to be the highlight of your day because once nobody claims it, you’re about to go to the nearest kiosk and buy some biscuits or sweets.

As an adult, finding  ₦500 naira goes a long way for you so make sure you check under the sofa too!

3. Try Your Purses or Bags

You’re most likely to find spare change hiding inside bags or purses you don’t carry out as much.

If you’re someone who carries a lot of items in your bag daily, you should clean out your bag and you just might find enough cash to buy yourself some suya tonight or put in your savings 🤩.

_________________________________________________________

Click here to sign up for our Money Notes newsletter and get bi-weekly financial insights, tips, and tricks sent to your mail.

_________________________________________________________

4. Under your Bed

One way or the other, a lot of things go missing under the bed and that includes money. You know those times you were sure you left money on your bed but couldn’t find it even after searching everywhere?

Well, try searching under your bed, sweep thoroughly and you might find some money and a couple of other items.

5. Between and Under Car Seats

Just like your sofas, you can definitely find spare change in your car when you least expect it. Keep storing it up in a compartment in your car and it might come in handy someday.

Then again, you can also put it into a high-yield savings account and get that money to make money babies.

6. In Between Books

Some people used to hide money in books as kids while others just used money notes as bookmarks. If this has ever been you, it might be a good idea to flip the pages of your books before giving them away.

There’s a high chance you have a book somewhere around the house saving up money for you. All you have to do is hope it’s not an outdated money note.

7. Folded around Old Receipts

It’s time to clear out those receipts you keep storing up. Why do you have so many receipts in your wallet or in your drawer?

Anyway, there’s probably some spare change stuck between those receipts, so be sure to check thoroughly before throwing those receipts out.

Here are some other interesting locations you can find spare change outside of your home.

Time to get to work! Let me know what you find or have found in these spots. If you have other strange places you have found money in before, share in the comments, let’s check those places too!

Did you enjoy this post? Then share it with a friend and check out other interesting articles here.

Categories
LifeStyle

What Being Owed Money Feels Like to the Average Nigerian

Being owed money can feel very annoying especially when the borrower isn’t forthcoming with paying back their debts.

If you’re Nigerian and you’ve ever borrowed someone money, we can bet you’ve gone through at least one of the stages below:

_________________________________________________________

Halo Invest gives you access to the best financial insights, insider tips and tools to help you improve your relationship with money.

_________________________________________________________

1. When someone asks you to borrow them money and out of the goodness in your heart, you do.

Only 50k in your account, but you’re lending someone 40k 🤔.

2. The moment you realize the big mistake you have made because the money has entered voicemail

Now that your money has entered voicemail and there’s no knowing when the person is going to pay back, what’s next? Time to start soaking up some garri for breakfast, lunch, and dinner.

3. When you calculate how much they owe you

This is the moment you realise the money you let them borrow would have saved you a lot of other costs.

4. When you are feeling broke then remember that friend that still owes you

Then you remember someone else still owes you money and you get excited because you’re hoping you can count on them to pay back immediately.

_________________________________________________________

Click here to sign up for our Money Notes newsletter and get bi-weekly financial insights, tips, and tricks sent to your mail.

_________________________________________________________

5. You don’t know how to ask the borrower for your money back

You start to wonder how best to ask for your money back and avoid a very awkward conversation.

6. When your borrower refuses to pay back, so you’ve become a borrower too

Your borrower says they don’t have money to pay back, even though you just saw them post pictures of their new car. They’ve promised to pay back in 2 weeks, so you have to move from being just a lender to being a borrower too. How else will you survive the next two weeks?

7. How you suffer in silence waiting for the money

Everyone is asking you what’s wrong, but you don’t even know where to start from in explaining your predicament, so you just suffer in silence.

8. How you constantly monitor your account balance hoping they have sent the money

Another day of shock and annoyance because the money still hasn’t entered.

9. How excited you get when they finally credit your account

Your money is finally back in your account. You’re excited even though you are about to spend it on something random.

10. When you’re built differently so you start writing a thread to call out your borrower on social media

You’re not wasting time listening to your borrower’s cock and bull story on why they can’t pay back.

Have you ever been owed money before? How many of these can you relate to? Share your answers in the comment section. Then share this article with your borrower so they know what’s up 😏.

Categories
LifeStyle

7 Nigerians earning ₦100k to ₦500k share how they spend

The cost of living in Nigeria is relatively expensive, especially in Lagos. A lot of people have argued on whether or not ₦400,000 is enough to allow a person to live comfortably. So we got 7 Nigerians earning ₦100k to ₦500k to share how they manage and spend money.

_________________________________________________________

Halo Invest gives you access to the best financial insights, insider tips and tools to help you improve your relationship with money.

_________________________________________________________

Chidinma, 25, Journalist

Earning: 400,000 naira

Luckily, I have a side gig that pays me £1000, so I don’t have to spend my salary except when I decide to buy gifts for my friends and family. On average, I save about ₦150,000 and invest ₦50,000.

Currently, I’m living in a shared house and pay £600 for rent. Then I spend £300 on other expenses like food which comes out from my side gig pay. I don’t go out a lot because of Covid, so the rest of the income goes into savings too.

I was definitely still living a comfortable lifestyle even when I had just my salary because I didn’t have to worry about rent. At that time, I was actually earning less than my current ₦400k pay and I used to go out more.

I deserve to be earning more, so a £3000 pay would go a long way for me. I would be able to travel to France and anywhere else around the world when I want to 😍.

Bisi. 28, Strategy Consultant.

Earning: ₦380,000

It’s a pretty simple breakdown, 30% goes into rent, 20% for the church, 5% for charity, 15% for food, 10% for utility payments, 7% for transportation, and about 10% for investments.

The rest of my salary is for flexing. I usually spend between ₦30k to ₦35k on outings. It’s really just peer pressure though, it’s never worth it.

I invest in cryptocurrency and high risk stocks. I’m more of gambler when it comes to investments.

I thought life would be easier with my current income but it’s been a direct battle between dropping costs or raising income. I want my life to be more comfortable so I plan to raise income and maintain current costs. Click To Tweet

Honestly, earning anything from 1 million naira would be enough to afford me an even more comfortable lifestyle. With 1 million naira, I can hit my saving, investment, and giving targets without constraining my current lifestyle.

Daisy, 23, Lawyer

Earning: ₦240,000

I normally save ₦60,000 of my salary, ₦24,000 for tithe, ₦84,000 is for general expenses, ₦36,000 is for specific giving, and of course ₦33,000 for when I want to splurge on myself.

I spend about ₦20,000 on days when I want to enjoy myself. Since I work mostly remotely, I prefer to eat out or order in on days when I’m too lazy to cook and work gets overwhelming. Then I also take an uber on other days when I have to go out.

I'm pretty content with my salary but an increase won't be so bad either. Not a lot of law firms pay up to what I earn for 0-5 years post-call lawyers, so I understand that my entry-level pay is pretty decent. Click To Tweet

If I was earning more, I would spend more on giving to family, church, those in need, and other things that would make my life more comfortable. Personally, one or two vacations a year and remodeling my apartment are top priorities. I would also outsource laundry, cooking and do a lot of personal shopping.

_________________________________________________________

Sign up for our Money Notes newsletter to get biweekly financial insights, tips, and tricks sent to your mail.

_________________________________________________________

Fola, 28, Techbro

Earning: ₦400,000

My salary is split into two, 50% goes into savings and the other 50% for expenses. I send my sister a 10% monthly allowance, 15% is for monthly feeding, utility bills, and the internet, 15% is for the church, and 10% goes into investments like stocks, agro, real estate cryptocurrency, and sometimes for emergencies.

Earning ₦400,000 in Lagos has not been easy as I have to sometimes delay gratification. My salary can partially afford me a comfortable lifestyle, but you know, baby boy life in Lagos is quite capital intensive.

I would love to double my income, so ₦800,000 at the minimum would be able to afford me to furnish my current apartment and maybe move into a better apartment, get more certifications and expand the gospel.

Jack, 23.

Earning: ₦250,000

Every month, I split my salary into a 60-40 ratio. ₦150,000 of my salary is for spending, the other ₦100,000 goes into saving for rainy days and investments. I majorly make cash payments, and I’m still trying to adapt fully to the cashless society. On the other hand, cash payments help me keep track of my spending. I try to make sure whatever I spend in a month falls between that 60%, but I definitely can’t say that it always works out.

So far, I try to live within my means which helps to keep me in check.

I believe my current salary affords me some level of comfort but earning ₦500k a month would be great. That's a 100% increase in my current income, so that target won't hurt anybody😉. Click To Tweet

With that salary increase, I would be able to invest more in my church, get into some DIY projects I have in mind and a car would be great too.

Busayo, Content Creator

Earning: ₦200,000

The added advantage about my current pay is that I’m currently in university, so I don’t have a lot of responsibilities to worry about at the moment. My salary is split into three – ₦100,000 for investing in cryptocurrency, ₦50,000 naira savings for emergencies, and ₦50,000 for regular expenses like transportation, provisions, and more.

The cost of living in Ibadan isn’t high at all, so I don’t have to worry about things being ridiculously expensive plus I still get some provisions from home once in a while. On days when I feel like giving myself a treat, I go to a fancy restaurant and spend ₦7,500 on average.

I got my job late last year and it has given me peace of mind that my future is secure to some extent.

Joe, 32, Accountant

Earning: ₦120,000

₦20,000 from my salary goes into savings against retirement, ₦10,000 naira covers my transport, another ₦20,000 for provisions. I send ₦20,000 to my parents every month, even though they don’t need it and ₦40,000 is spent on food – I mostly eat out. I live in Makurdi, so I pay a rent of ₦10,000.

Being the only son and the last child of the family, I don’t have to deal with so much pressure or demands from home. I want to achieve a lot for myself but life has also taught me to be content with what I have.

It’s not so hard managing my finances except on days when I make some costly decisions that will run my pocket dry. The goal is to earn from ₦300,000 and up, in order to enjoy a comfortable lifestyle.

Do you have an interesting story of a personal experience you will like to share or be interviewed on? Reach out to us at social@haloasset.ng

We keep our interviewees’ names anonymous on request.

——

If you enjoyed this article, read what these 4 couples had to say about how they deal with financial stress in their relationship.

Also, you can follow us on Instagram, Twitter, Facebook and LinkedIn for more frequent updates.

Categories
Features

How Different People React When the Stock Market Goes Up

For some people, how the stock market performs is something to look forward to every morning while others don’t care or know anything about it.

Generally, everyone reacts to the stock market differently, especially when the share price of companies goes up.

_________________________________________________________

Halo Invest gives you access to the best financial insights, insider tips and tools to help you improve your relationship with money.

_________________________________________________________

1. The ones who wished they had bought stocks while it was low

“Procrastination is the thief of time” or in this case, money. You have had your eyes on the stock market for the longest time, sitting on the sidelines but you still didn’t buy any stocks. Now that prices have gone up, you’re mostly full of regrets.

Worry not, young padawan. Stick with us and you’ll learn to make better investing decisions.

2. Those who get excited because they have earned returns

This person is excited about how much returns they got from the stock market’s performance and has immediately taken their money. They are the richest person at that point in time and you can’t tell them otherwise, especially if they have met their target price.

Good job meeting your target price.

Want to diversify your portfolio with NGN and USD investment plans? Click here to subscribe to our bi-weekly newsletter and be one of the first to know when we launch our savings and investment app.

3. Those who still don’t understand how the stock market works

This person turns left and right and it’s only conversations about the stock market that they hear. They always have a look of confusion on their face because they don’t understand the stock market.

If this is you, you should follow us on social media and subscribe to our newsletter here. Our job is to make these things simple for you.

4. Those who would rather use their money for enjoyment

“Na enjoyment sure pass.” This person doesn’t care for the stock market or the noise about it. They would rather have a buffet for themself alone than use 1 million naira to buy stocks.

We’re big fans of living your best life, but we believe you have to balance it with smart financial decisions so it is sustainable. Learn how to make your money do more when you subscribe here.

5. The one who leaves their money waiting for the share price to go up more

It doesn’t matter how good the market gets, this person would rather leave their money in than take it out.

Although there’s no certainty that market prices will go up or come down, they are in it for the long run.

Investing in the stock market is about playing the long game, but good investors know not to get too greedy.

It is important to properly analyse the companies you have invested in and weigh your options to be sure you are making the right decision.

6. When the stock market goes up but your shares didn’t gain a lot of returns

You put 5,000 in the market but you’re expecting 100,000 naira returns? The math isn’t adding up but you were still hopeful.

Investing isn’t magic. Any “investment plan” that promises you outrageous returns that you cannot track to the source is probably taking you for a ride. Know this and know peace.

7. The ones who decide to buy now that the stock price is up

You’re running on vibes and have decided to buy those shares now instead of waiting for it to go down because you know how unpredictable the market can be.

8. That person waiting for the share price to drop so they can buy-in

All you do is stare at the stock market in anticipation of the price dropping so you can immediately buy some shares.

9. The one who has calculated how they will spend the money

You’re either calculating for the future or for now. This person is thinking about all the great things they can do with their investment money. Some even have their retirement planned out from that money.

Which one are you? Tell us in the comment section below.

If you enjoyed this blog post, then you should read more here.

——–

Sign up for our Money Notes newsletter to get bi-weekly financial insights, tips, and tricks sent to your mail.

And follow us on Instagram, Twitter, Facebook, and LinkedIn for more frequent updates.

Categories
LifeStyle

5 Lies You Told Your Nigerian Parents For Money Growing up

Your Nigerian parents probably had to listen to you tell at least 3 out of 5 of these lies growing up. For some reason, your upkeep was never enough or you simply weren’t satisfied with the money your parents gave you, so you came up with new ways to scam them and get some cash to buy that new dress or attend a party.

_________________________________________________________

Halo Invest gives you access to the best financial insights, insider tips and tools to help you improve your relationship with money.

_________________________________________________________

1. “Our lecturer gave us a list of textbooks to buy”

The biggest lie ever told. You got away with it once and never looked back from there on. The excitement on your face when you got the first ₦20,000 knowing you were about to spend it on something ridiculous was top tier.

It’s a different story for you if your parents liked to talk to your friends to confirm such claims.

2. “School fees have increased”

If you won’t fear your parents, at least fear God. Every now and then you were calling up your parents to let them know you needed to pay one fee or the other in school.

Hiking up school fees was your favorite thing to do. Some of us are even guilty of collecting school fees twice in one semester.🌚

3. “We are contributing money for a school excursion”

You’re clearly the only one that had five excursions to attend in one semester. I bet you even skipped the real excursions your class had to take🙄.

4. “I want to learn a new skill”

You’re probably guilty of telling your Nigerian parents that you wanted to learn to sew or get into photography. After collecting that 100,000 naira, hope you have learned the new skill?

5. “I need money for a school project”

Whether in secondary school or university, this is one of those excuses that never gets old. You’re doing your final research project, why do you need 50,000 naira for a 15,000 naira project? But anyway, you got away with it and used it to celebrate being a graduate.

Which of these do you remember doing? Share your experience in the comments.

If you enjoyed reading this article, then you will enjoy reading these.

——–

Sign up for our Money Notes newsletter to get bi-weekly financial insights, tips, and tricks sent to your mail.

Categories
Features

7 Investing Myths You Still Think are True about The Stock Market

Investing in the stock market comes with a lot of myths and misconceptions that cause people to either rush into it or stay away from investing entirely.

_________________________________________________________

Halo Invest gives you access to the best financial insights, insider tips and tools to help you improve your relationship with money.

_________________________________________________________

These myths about the stock market have majorly influenced people’s decisions or opinion of the stock market and in this article, we talk about 7 of the biggest stock market investing myths.

1. You can’t lose when you invest in stocks

If you’re new to the stock market, then you probably think that it’s impossible to lose the money you put in because it’s long-term.

Wrong. It is not wise to buy stocks and not monitor the market to see how your shares are performing.

A lot of beginner investors leave their stocks without checking on them for days to months, in the name of having long-term investments. But the truth is, long-term or short-term, you still need to monitor the market. You are likely to lose money when you don’t pay attention to the stock market.

Let’s say you bought 10 shares for 2000 naira worth of stock from company A and didn’t buy from company B. If stock A drops from 2000 naira to 1,800 naira, it means that your shares have lost some value.

You then have to make a decision to sell or hold because the market is unpredictable. Just remember, you shouldn’t always be in a rush to sell out as you can still recover.

Now, if you had bought shares from companies A and B, you might have had a better chance of spreading your risk.

2. Investing in the stock market is as good as gambling

This is the biggest myth in stock market investing and it is completely false.

Both investing and gambling involve a lot of risk-taking to earn a profit. What makes them different is that with gambling you are mostly guessing, using tact and wits to predict your opponent’s moves. There’s no skill needed to know how to gamble.

With the stock market, there are valuations and research that goes into predicting the stock market.

Buying a company’s stocks means you are invested in the company and own a portion of the company which is referred to as shares.

3. You need to have a lot of money to be able to invest

There was a time when you needed to be very rich to be able to get into investing. Only stockbrokers and those who could afford to or knew enough about investing put their money in stocks. The stock market wasn’t readily accessible to the public.

However, this investing myth is no longer true.

The major concern then was that people couldn’t put small amounts in the market. Now, thanks to the internet, technology, and the introduction of retail fintech companies, everyone can now start investing in the stock market.

You can get started on your phone and become an investor without needing the help of a financial advisor or stockbroker.

Information on the internet about investing is inexhaustible and you can get started with as low as 500 naira.

4. The little you know about stocks is enough

People telling you about the stock market shouldn’t be enough to get you interested in the stock market.

Before you become an investor, it is important to do your own research. You should know how to start investing and what to look out for before you become an investor. Be willing to put in the time and don’t be in a rush.

Asking questions will help you but make sure you are asking a financial expert.

Want to learn more about how the stock market works? Subscribe to our Money Notes newsletter to get bi-weekly financial insights, tips, and tricks sent to your mail.

5. If stocks go down, it will go back up

You can’t use the performance of a stock in the past to determine how well or bad it will do later. The stock market doesn’t work this way.

Investing myths like this might be true for some stocks in the market whose prices tend to fluctuate but not all stocks recover. Investing your money in the shares of a company with hopes that it will recover will only keep you from enjoying the benefits from other stocks.

You can end up disappointed when you buy stocks from Company A today whose price dropped from ₦2,000 to ₦1,800 last year because you’re hoping it will eventually come back up.

You can start by channeling your energy into buying stocks of companies with good financial performance, instead of focusing on just stock prices.

6. When stock prices go up, it will come back down

What happens when you see a stock performing better than you thought it would? Regret!

At this point, you also try to console yourself that the price will certainly drop. So, you focus all your attention on that company’s stock so that you can buy once it dips.

There’s no certainty that a stock that goes up will come down, so it’s best to buy the share when you have the opportunity to. It’s also important that you believe in the company’s potential, but don’t let your emotions control you.

7. Always Invest in Trending Stocks

A lot of people believe in investing in the latest or most talked about stocks. It’s advisable to not follow the crowd and invest in stocks because they’re trendy.

When you invest early in a company, you stand to benefit more if the stock rises than someone who invests late.

People rushing to either buy or sell off their stocks in a company have a great influence on how the stock performs. A scare in the market can cause investors to sell their shares which may result in a dip.

Always do your own research before you invest in any company.

Here’s a tip for you: If a lot of people are already talking about a particular share price, chances are that you are already too late to buy that stock. So, you should be looking at other stocks instead.

Did we miss anything? What other myths about investing in the stock market do you know? Share in the comment section.