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Money Notes

Money Notes #9 – The Bi-Weekly Newsletter from Halo Invest

Two notes in one month. 

Only the most useful, relevant, and practical entries on finance and money. 

If you like our notes, invite your friends to subscribe here.

Hot Topic in Finance 

Industry conversations we think you should know.


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To get Halo Invest’s bi-weekly newsletter sent to your mail, with all the financial insights, tips, and tricks you need, subscribe here.

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Money Tip

Knowledge you can use

The past couple of months have been ridiculous, with food inflation hitting the roofs and the prices of foodstuff being more expensive than ever.

Sapa has become the reality of many Nigerians and people are finding ways to make smaller, more affordable sizes of everything including Yam and Spaghetti, in order to serve those who can no longer afford the original size.

How can you survive this hunger game?

1. Stock up on non-perishable goods: If you can afford to buy goods that have a long shelf life in bulk, do so. Stocking up on things like sardines, spaghetti, etc. will help you avoid spending more on those items if the prices increase by the following week. Brands like Grocedy are a great way to buy food for cheap.

2. Always have a shopping list: The number one rule to grocery shopping is to go with a list. This keeps you from overspending on impulse purchases and you become more aware of how prices have changed over time.

3. Buy the essentials: If you like to experiment in the kitchen, there are probably times when you buy foodstuff you end up not using. Don’t waste your money on buying what you won’t use, instead focus on buying the essentials.  The staple foods that would most likely be on your list are rice, beans, spaghetti, yam, etc.

4. Price goods when you can: Every Nigerian is familiar with pricing things when at the market. Try to price things down so you get them at a reasonable price without being cheated or cheating the seller of their gain. If you can afford to tip the seller too, do so. It’s a tough time for everyone.

5. Go for alternatives: So your favorite milk is now being sold for twice the price that it was last week. This is probably the best time to switch to another affordable brand that still gives you the quality you desire. 

6. Avoid take-out: Try to prep your meals at home instead of constantly ordering food. 
The 3,000 naira meal you decide to order from that Instagram vendor might be able to buy you some foodstuff at the market.

7. Cut down on your sugar intake: Junk food is getting expensive too. It’s time to say goodbye to coke, chocolates, and so on, and start focusing on living a healthy lifestyle.

You can choose to reward yourself once in a while with your favorite treats or snacks but also incorporate fruits in your life.

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Halo Invest gives you access to the best financial insights, insider tips, and tools to help you improve your relationship with money. Click here to subscribe to our emails. We never spam you, promise.

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For You

Fun, useful stuff you will absolutely love!

How this person made 6.8 million naira at 26.

Find out how this woman stopped living paycheck to paycheck by learning to budget.

If you constantly worry about your finances, this one’s for you.

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If you found this helpful, follow us on InstagramFacebookLinkedIn, and check our Blog for more frequent updates, tips, and tools to help you improve your relationship with money.

Categories
Money Notes

Money Notes #8 – The Bi-Weekly Newsletter from Halo Invest

Two notes in one month. 

Only the most useful, relevant, and practical entries on finance and money. 

If you like our notes, invite your friends to subscribe here.

Hot Topic in Finance 

Industry conversations we think you should know.

  • USSD charges have taken effect and every transaction via USSD will now cost you ₦6.98.
     
  • CBN has officially increased foreign exchange allocation for banks, therefore allowing customers access to forex for travel, medical fees, tuition, business etc. This means people who were previously unable to acquire foreign funds will now be able to access it.
     
  • El Salvador has become the first country to make Bitcoin a legal tender alongside the US dollar. This is expected to ease the inflow of remittances and aid financial inclusion in the country.
     
  • AMC might be the next Gamestop.

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To get Halo Invest’s bi-weekly newsletter sent to your mail, with all the financial insights, tips, and tricks you need, subscribe here.

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The Breakdown

The world of finance made simple and relatable

For a couple of hours on Monday, May 24, the CEO of LVMH, Bernard Arnault became the richest man in the world, and peer pressure spending might have contributed to it.



LMVH is a luxury goods company that houses several brands like Fendi, Christian Dior, Sephora, Tiffany & Co, etc.
 
Typically, US tech moguls top the World’s Richest list, this is why it surprised people that a luxury brand like LMVH could amass such wealth during the COVID-19 period.

But fashion is a key part of many lives and a lot of people feel the need to conform to trends so they spend money on the latest high-ticket items to “feel among”.

Peer pressure spending happens in many ways.

From day-to-day choices like spending ₦10,000 on food at aesthetically pleasing restaurants just so you can post on Instagram to buying ₦30,000 aso ebi for a friend’s wedding when you can’t afford to or even feeling like you need to buy your first car at age 25 because everyone is posting pictures of their new car.

The pressure from this is enough to affect our mental health and cause a lot of financial stress when we feel the need to do things to please society instead of ourselves.

How can you avoid peer pressure spending?

  1. Realize that it’s okay to say No. If you can’t afford to go partying with your friends every Friday night, tell them just that.
     
  2. Start having open conversations about money. It’s important that your friends, colleagues, or family are aware of your financial situation or priorities.

    This helps build stronger relationships and can be a great way of being there for each other instead of pressuring one another into ridiculous spending habits.
     
  3. Only go out with the amount you’re willing to spend. This will help you limit your spending.
     
  4. Focus on spending for yourself. Only do what matters to you. Before making a spending decision, ask yourself why you want to and if it is necessary.
     
  5. Find low-cost alternatives to things e.g. a games night or picnic at the beach instead of lunch at expensive restaurants.


    Also, before you point fingers, check yourself. Are there times when you have pressured your friends into spending more than they planned to? Try to do better by always checking with your friends before throwing plans at them.

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Halo Invest gives you access to the best financial insights, insider tips, and tools to help you improve your relationship with money. Click here to subscribe to our emails. We never spam you, promise.

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For You

Fun, useful stuff you will absolutely love!

Personal financing is very…INTERESTing. Here are some other money-related jokes we found hilarious.

Looks like it’s time to tell your budget the truth.

This advice on what to do when one partner earns more than the other in a relationship.

This interesting conversation between millionaires and minimum wage workers.

A reminder that you should be kind, financial stress is real.

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If you found this helpful, follow us on InstagramFacebookLinkedIn, and check our Blog for more frequent updates, tips, and tools to help you improve your relationship with money.

Categories
Money Notes

Money Notes #6 – The Bi-Weekly Newsletter from Halo Invest

Two notes in one month. 

Only the most useful, relevant, and practical entries on finance and money. 

If you like our notes, invite your friends to subscribe here.

For You

Fun, useful stuff you will absolutely love!

This hot take on not saving while in your 20s… but respectfully.

Be sure to watch this crazy yet amazing movie – I care a lot on Netflix to get a glimpse of how far some people will go for money.

If you love creating Tik Tok videos, here’s how you can monetize the platform.

Things you probably already know about building wealth, but we’re still sharing just in case.

Nigerians tell us what age they earned their first million and their replies will have you rolling.

chance to join the Halo team as the Chief Technology Officer… if you fit the bill.

Money Tip

Knowledge you can use

Let the news guide your investment decisions

In Money Notes #2, we wrote about what to look out for when deciding where to invest.

One of these ways was to pay attention to what companies release as news to the public.

As an investor, the news is a free tool that should be your best friend because it plays a role in how company stocks rise and fall.

When good news is reported about a company in terms of productivity, improvement or leadership (e.g. announcing a new Managing Director with a great track record), stock prices are likely to go up.

For instance, when Pfizer (a top pharmaceutical company) announced new vaccines for Covid-19, the shares of the company went up. 

Also, if a company like Tesla announces that they are rolling out a newly optimized electric car, shares will typically go up. 

Now, Tesla might not experience immediate financial growth but by releasing a new product line, it will cause its share price to increase thereby creating profit for investors that want to sell their shares at the increased price. 

Staying up to date with the news helps you monitor the market and make wiser investment decisions that will ensure you get better at building your wealth.

To help you out, here are some of the most trusted digital news outlets for information on market performances.

Global:
a. Investing.com
b. Yahoo finance 

Local and international: 
a. Nairametrics – They publish earnings calls
b. Proshare – They also publish earnings calls
c. Business Day – This is the go-to financial guide for a lot of Nigerians
d. Punch – They have a business section that covers financial news

If you want to stay ahead of the news, set Google alerts for companies or sectors you are interested in and pay attention to digital media channels. 

Newspapers tend to send out news hours after it has been announced, which means that it is very possible that you are not getting fresh information if you wait.

Hot Topic in Finance 

Industry conversations we think you should know.

Highest Performing Assets in the First 4 Months of 2021

The global economy is recovering from the effects of COVID-19.

In the first four months of 2021, both international and Nigerian asset classes saw a positive rebound as economies were reopened.

Many countries saw more money come in as stimulus packages were rolled out.

We took a look at the asset class performance across global markets and decided to share some of the top-performing assets from January to April:

1. Crude Oil:

By the end of April, crude oil prices increased, with Nigeria’s Brent crude seeing a significant rise from $51.8/barrel in January to $66.76/barrel as of April 30 (a 28.9% increase). 

This price appreciation was due to OPEC production cuts which were issued to all partner countries including Nigeria. 

This production cut helped increase crude oil prices due to a controlled supply and more-than-regular demand. 

Since 80% to 90% of Nigeria’s revenue comes from crude oil exports, the initial low price of crude did not help meet the budget benchmark, however, the sustained price increase might help reduce the country’s budget deficit.

2. US REITs:

The Real estate market had an impressive rebound with US REITs reaching a total return of 17.5%. 

More money came into the sector due to investors’ optimism that the effect of the Coronavirus is fanning out.

They believe that workers will return to offices and malls will be reopened (seeing as commercial real estate is a fundamental component of REITs).

3. Commodities (Bloomberg Commodities): 

The commodities market is largely impacted by economic growth, currency fluctuations, and geopolitical situations. 

Typically, investors will invest in commodities as a way to maintain the value of their money or gain profit from the volatile nature of this asset class (which includes gold, silver, copper etc).

In the last 4 months, the Bloomberg Commodities returned a substantial 15.8%.

4. US Stocks (Russel 3000 and S&P 500):

Now, aside from the increased returns earned by US stock investors, one can say that the $1.9 trillion stimmy package influenced the stock performance in the US market (with a total return of 11.8%). 

Three key factors that resulted in the US stock price appreciation are Income, Earnings, and Valuations.

On a local level, the Nigerian fixed income market saw a significant rebound in yields with bonds returning as high as an average of 15.5%, 12.67%, and 11.96% for Corporate Green BondNigerian Corporate Bond, and FGN Sukuk/ Ethical Bond respectively (as of 30th April). 

The Monetary Policy Council of the CBN is in charge of fixing the Monetary Policy Rate which is currently at 11.5% while the Debt Management Office has the sole responsibility of auctioning Treasury bills and FGN Bonds.

The above factors, alongside inflation, have an impact on the movement of yields in the general fixed income market.

While the rates of these bonds were drastically reduced late last year and early 2021, they have since increased following the recent auction that saw Treasury bills being subscribed to at rates as high as 9%. 

This further influenced the secondary market for both the existing and newly listed FGN and Corporate bonds.  

Follow us on Instagram,  Facebook, LinkedIn, and check our Blog for more frequent updates, tips, and tools to help you improve your relationship with money.

Categories
Money Notes

Money Notes #5 – The Bi-Weekly Newsletter from Halo Invest

Two notes in one month. 

Only the most useful, relevant, and practical entries on finance and money. 

If you like our notes, invite your friends to subscribe here.

For You

Fun, useful stuff you will absolutely love!

This episode from Blackish where Diane explains Art of Arbitrage to Bow.

This Japanese lifestyle trend, Kakeibo, will help you get better at budgeting.

What happens to your money when you invest it vs when it’s in your account.

In case you missed this hilarious reply on Twitter on what makes you happy besides money

Hot Topic in Finance 

Industry conversations we think you should know.

whot card money notes newsletter

Nigerians:

CBN: Pick two

At 18.17%, inflation rates have risen again and food inflation is at 22.95%. 

But that’s not why we’re here.

Let’s talk about printing money and if it is the answer to all our problems.

The CBN Governor, Godwin Emefiele recently admitted that the CBN was printing money for the Federal Government.

Printing money is not unusual for countries, however, you cannot print money to get out of a recession or downturn.

When more money is printed and released to the economy, it increases the amount of money in circulation and reduces its value (inflation).

FYI, you do not want to hold on to assets that pay no yield in an inflationary climate.

We are about to launch the Halo Invest app, a savings and investment app that will give you access to assets that will yield returns in NGN and USD.

To get early access to our beta app, sign up here.

Q: What else should I be concerned about? 

A: The country’s debt profile. 

Did you know that you (and every other Nigerian) currently owe the CBN money? 

Yup.

The current government met a debt of 12.6 trillion naira in 2015 and as of last year, Nigeria’s debt was recorded at 32.2 trillion naira.  

The FG has agreed that the country’s debt will be paid over the next 30 years, starting with a 2-year pause on payment. 

Now, that money isn’t going to pay itself, so Nigerians will be paying off this debt through special instruments that will be repackaged and sold as bonds.

The Minister of Finance, Zainab Ahmed predicted last year that by the end of 2021, Nigeria’s debt will hit 38.68 trillion naira. 

Just so you get a clearer picture of how much we have to pay off. 

The Breakdown 

The world of finance made simple and relatable.

The Magic of Compound Interest 

Compound interest is an investor’s best friend.

When you earn returns on investment, you can choose to reinvest your capital + interest over and over again to generate additional earnings.

The more you invest, the more you earn. This is the principle of compounding interest.

Q: How does it work?

Picture this: Three people (Hauwa, Tope, and Michael) put money in a high-yield savings plan on the Halo Invest app. 

This plan yields 10% interest per annum and interest is compounded monthly.

Hauwa:

  • 20 years old
  • Wants to retire at 60 to live her rich aunty life
  • Opens the plan with 20,000 naira
  • Invests 20,000 naira monthly for 40 years and leaves the money to compound every month

At the end of her saving duration, Hauwa will have put in ₦9,620,000 and earned an interest of ₦119,989,618.15. In total, she will receive ₦128,609,618.15.

Michael:

  • Didn’t learn about compound interest until he was 30
  • Also has a plan to retire at 60
  • Opens the plan with 20,000 naira
  • Invests 20,000 naira monthly for 30 years and leaves the money to compound every month. 

At the end of his saving duration, when he is 60, he would have invested ₦7,220,000 and earned an interest of ₦38,763,254.47. In total, he will receive ₦45,983,254.47.

Because Michael started late and invested for a shorter period of time, his payout is a lot less than Hauwa’s.

If you’re interested in starting now, sign up here to get early access to our beta app.

Tope:

  • Doesn’t care about compound interest
  • Feels 10% interest per annum is too small an amount to worry about
  • Opens the plan with 20,000 naira
  • Invests 20,000 naira monthly for 40 years
  • Never leaves his interest to compound, always takes it out.

At the end of his saving duration, because he didn’t leave his interest to compound, Tope will have put in ₦9,620,000 and received an interest of ₦80,000. He will receive the total amount of ₦9,700,000.

Summary:

Hauwa – Invests ₦9,620,000 and receives ₦128,609,618.15 (Compound interest for 40 years)
Michael – Invests ₦7,220,000 and receives ₦45,983,254.47 (Compound interest for 30 years)
Tope – Invests ₦9,620,000 and receives ₦9,700,000 (No compound interest, just simple interest)

Who would you rather be? Hauwa, Michael or Tope?

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Halo Invest gives you access to the best financial insights, insider tips, and tools to help you improve your relationship with money. Click here to subscribe to our emails. We never spam you, promise.

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Money Tip

Knowledge you can use

Have you ever considered investing in the real estate market in Nigeria but don’t know where to start?

It’s pretty simple and no, you don’t need that much money to invest.

Real estate is a great way to diversify your portfolio and the Nigerian real estate market offers you so many opportunities to do so. 

To help you get started, here are 4 simple ways that you can invest in the Nigerian real estate market:

1. Join a crowdfunding platform

This is fast becoming a popular way to invest in the real estate market. 

Several online platforms exist for Nigerians to invest. On these platforms, Investors pool their money together to invest in real estate and become owners of fractional units of a property.

When you invest through crowdfunding, your money and that of other investors are used to purchase, renovate, and sell properties so you can earn one-off returns.

You can also opt for investments that offer periodic returns on real estate properties that are bought, renovated, and rented out.

2. Purchase and flip assets

First off, you need more than a million naira to get into this. 

To purchase and flip assets means that you’re using your own money to buy real estate properties that you can develop, renovate, sell or rent out.

You can start with one plot of land, then move up to owning 2 to 10 acres of land or as many as you want. 

3. Rent out portions of your house

This is a great way to start making money off that empty room in your house/ rented apartment. If you’re familiar with the AirBnB model, then you will understand how this can earn you some extra cash over a period of time.

Let’s say you’ve paid up rent for your 2 bedroom apartment, you can decide to short let the spare room for a reasonable fee and earn periodic income off it in a way that generates more profit than your initial rent.

Please be sure to put security measures in place for your safety.

4. Invest in REITs (Real Estate Investment Trusts)

REITs work just like mutual funds as they are traded like stocks on the NSE. 

These trusts or companies own, operate, and finance income-generating real estate.

Your funds and the funds of other investors are pooled together to purchase and manage income property or mortgage loans. 

If you would like to explore this option, you can easily buy these shares through a broker.

Follow us on Instagram,  Facebook, LinkedIn, and check our Blog for more frequent updates, tips, and tools to help you improve your relationship with money.

Categories
LifeStyle

10 Important Financial Red Flags to Watch Out For in Your Relationship

Do you know the first rule of building a strong, healthy relationship with your partner? Never ignore red flags.

Enjoying each other’s company is not enough to sustain a relationship. It is also important to ask tough questions and have deep conversations to make sure you and your partner are on the same page in key areas.

One of the most important conversations to have is the money conversation.

You need to talk about money with your partner to identify and address any financial red flags that might affect your relationship in the future.

To help you understand what to look out for, we have compiled a list of 10 important financial red flags you should never ignore in a relationship:

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

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1. Paying bills late

Imagine your partner forgets to pay the light bill on time and the light gets cut off in the house. Annoying right?

He/she can probably afford to pay the light bill, but constantly forgets to pay. They may have just made it a habit to disregard that task.

Even when you bring it up, they don’t take responsibility for their actions and don’t think it’s a big deal.

But what happens when they keep forgetting to pay other things like rent, flight tickets or if you’re married with kids, the children’s school fees?

If your efforts to remind them to get these things done are usually in vain, it might become a big source of frustration to you in the future.

They prefer to live life on the edge and you don’t. This is a major red flag that can affect your relationship. Whether you’re married or just dating, it can turn out to be a problem, so it should be addressed on time.

2. Avoids talking about money

A lot of people shy away from conversations about money but it’s an important conversation to have.

Based on other relationship red flags, it’s more worrisome when your partner doesn’t want to discuss their current financial status.

Both sides need to be aware of how they relate to money, their spending habits, and how much they earn.

Sometimes, it might take a while for one or both parties to open up about their financial situation but you should want to know where your partner stands financially. Are they in debt? Are they good or terrible with money?

The answers to these questions can be a direct reflection of how they handle money and talking about it can help both of you know your weaknesses and strengths.

Being open about your finances builds a stronger relationship because you are always able to handle the ups and downs when they come up.

3. Your partner doesn’t know how to stick to a budget

Budgeting is key, but being able to stick to it is a huge bonus for anyone. Is your partner an impulsive spender who never seems to be able to stay on budget? Then this is something you and your partner need to talk about.

If your partner goes shopping for food with a 20,000 naira budget but comes back home having spent 30,000 naira more on other inessential items, it might be a problem.

It might be difficult to meet eye to eye on certain topics in a relationship, but when it comes to money, you and your partner should want what’s best for your future.

If you want to build your wealth together, then a budget is important to hit those financial goals.

4. Wants to control how you spend

Some partners enjoy being in charge of how you spend your money. They want to know how much you spend, what you are saving for, and basically monitor what you do with your finances.

While being accountable to your partner can be healthy for any relationship, it can also easily become a red flag.

Whether or not you have a money problem like overspending or giving out too much, your partner should be able to help you become a better spender, not use it against you.

It’s a problem when they always want you to ask for permission before spending money on yourself, or they provide you a monthly allowance.

If you can relate to this, then you need to speak up and tell your partner how you feel, so that they understand and do better.

You don’t want to be stuck in a relationship where you don’t have any control over your own finances.

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5. They expect you to pay for everything

You have become your partner’s personal ATM and they ultimately expect you to pay for all their needs.

In a relationship, it’s normal for one person to be an over-giver, but they can easily be taken advantage of.

Maybe he wants you to buy him the PlayStation 5 or she wants you to buy her that expensive designer bag you can’t afford. Or they expect you to pay when their car needs to get fixed or the generator needs to be serviced.

This person never wants to spend their own money to pay for anything because they expect that you have them covered always.

This is a definite red flag in relationships, especially when it’s from a place of selfishness

It’s okay to want to do nice things for your partner, but just make sure you’re receiving as much as you’re giving. Communicate your needs (and how you feel) to your partner and also get to know and practice each other’s love language.

6. They don’t tell you when they are in debt

You’re in a serious relationship and your partner won’t discuss or ask for help when they are in debt.

So your partner got into a lot of debt so you could have your dream wedding. Or maybe a business deal didn’t work out so they have to pay off the debt.

They kept this debt from you for the longest time and now it’s affecting your finances in the relationship. Hiding debt is as good as lying.

You don’t want to end up in a situation that leads to your family being kicked out of the house because your partner had to figure a way out of the debt.

You should talk about debt as early as possible to avoid painful situations and if there’s any existing debt, draw up a plan to sort it out.

7. Being secretive about how they spend money

Having a joint account means you both need to be accountable for how you spend money.

It can put a strain on your finances if your partner is always dipping into the savings account for personal needs. It’s even more annoying if they won’t say what they spent the money on.

Unnecessary spending can take you further away from your goal when you have both been saving towards rent, a trip, or buying a car.

If this is something your partner constantly does, then you both need to address it or maybe seek counseling before it gets out of hand.

8. Zero interest in saving or investing

Does your partner have zero plans of saving money for their future? or they don’t even bother to understand how investing can help them build wealth?

This can be a sign that your partner has no plans or isn’t taking their future seriously. They aren’t worried about where they stand financially and don’t mind living life paycheck to paycheck.

When you think about your future together, this behavior can be considered a red flag as you should aim for financial stability as a couple.

To build better money habits as a couple, you and your partner can sign up to learn when the Halo Invest app launches so you can get access to high yield savings plans and naira/dollar investments.

9. Borrows money from family and friends

It’s not wrong to ask for favors when you’re financially stranded. However, making it a habit doesn’t do you any good, especially when you keep borrowing without any means to pay it back.

It’s better to improve your financial situation by getting a job, asking for better pay, or getting a side gig that can afford you certain needs.

Borrowing easily becomes a red flag in a relationship when you constantly depend on others as opposed to managing your finances better.

10. Your financial values differ

You and your partner will not always agree when it comes to money.

However, if you’re constantly arguing/fighting about how money should be spent or saved, that can be considered one of the red flags in your relationship.

Your money personality and some of your financial values don’t have to be similar for you to be together. Our background, experiences, and values often influence how we are with money.

You and your partner should get down to the details of how your past is playing a role in your relationship with money and causing unnecessary fights before it’s too late.

Get your partner to read this article too and discuss what financial red flags are in your relationship. This is a step to working on yourselves and being better in your finances and relationship.

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

Categories
Money Notes

Money Notes #7 – The Bi-Weekly Newsletter from Halo Invest

Two notes in one month. 

Only the most useful, relevant, and practical entries on finance and money. 

If you like our notes, invite your friends to subscribe here.

Hot Topic in Finance 

Industry conversations we think you should know.

African heads of state beg for debt cancellation from World Bank


World Bank Group right now

Word on the street is that the World Bank Group President, David Malpass isn’t considering the requests made by African heads of state to cancel their countries’ debts.

On Tuesday, May 18, 2021, the African leaders addressed the debt issue as one of the themes during the Paris Conference, pleading for debt cancellation.

In order for these African countries, including Nigeria, to clear their debt, David Malpass stated that the available solutions include debt suspension, debt reduction, the resolution of debt, and debt transparency. 

This means that cancellation of the debt is not an option to be revisited.

Nigeria recently received $2 billion from the World Bank this year which sums the country’s debt portfolio to over $12 billion. 

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To get Halo Invest’s bi-weekly newsletter sent to your mail, with all the financial insights, tips, and tricks you need, subscribe here.

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Money Tip

Knowledge you can use

It might be time to adjust your budget

If you have been living on the same monthly income since last year and your spending habits haven’t changed or improved to accommodate the current state of the economy, you might need to adjust your budget downwards.

The federal government is planning to remove fuel subsidies soon, so fuel prices might go up from ₦162- ₦165/ltr to ₦385/ltr. And everyone knows that once fuel prices go up, the price of everything else goes up.

The subsidy removal isn’t happening in June, so that’s not going to affect your spending yet, but the purchasing power of the naira is already low so this is a discussion we need to have.

How to adjust your budget while you try to up your income:

a. Track your spending:  Consider creating a spreadsheet or downloading an app that will allow you to track your expenses so you know where all your money is going. You can try this for Android devices and this for iPhones.

b. Cut down on some expenses: Identify and separate wants from needs, then decide what wants you need to spend less on. 

c. Look out for the best deals: Find little ways to save money. Compare vendor prices to get great deals and find more affordable ways to get things done.

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Halo Invest gives you access to the best financial insights, insider tips, and tools to help you improve your relationship with money. Click here to subscribe to our emails. We never spam you, promise.

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For You

Fun, useful stuff you will absolutely love!

This fun chart tells you how good you are with money based on your score

The big difference that can happen to your investments when you renegotiate your salary

You should start building your net worth, here’s how

Read this person’s experience of trying out ‘The 30-Day Money Cleanse’ before you read the book.

Follow us on Instagram,  Facebook, LinkedIn, and check our Blog for more frequent updates, tips, and tools to help you improve your relationship with money.

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Money Notes

Money Notes #4 – The Bi-Weekly Newsletter from Halo Invest

Two notes in one month. 

Only the most useful, relevant, and practical entries on finance and money. 

If you like our notes, invite your friends to subscribe here.

The Breakdown

The world of finance made simple and relatable

How much is an hour of your time worth?

Whether you’re self-employed or you work a 9 to 5, it is important to know how much your time is worth. 

This will help you make better personal, business and financial decisions.

The first way to do this is to divide your average monthly income by the average number of hours you work in a month.

Hourly Rate = Average monthly income/Average number of hours worked per month

In an ideal world where a person works for 40 hours every week, you would be looking at 160 hours a month. 

If a guy named Sola earns 120,000 naira a month doing 160 hours of work, this means that an hour of his time is worth 750 naira.

Every time Sola gives out 5,000 naira, he is effectively giving out what amounts to 6.5 hours of his time. Almost a full work day.

Think that’s bad? Let’s push this a bit further and look at it from another angle.

How much do you earn every hour?

A lot of people spend most of their waking hours working for money. This means that their total monthly income is in fact how much they pay themselves for all their time. 🌚

If your total monthly income from all your main and side gigs is 250,000 naira a month, divide that amount by 30 (days) to get your day pay. 

Day Wage = Total Monthly Income/30 (days)

This means you get ₦8,333.33 every day on average.

Divide that amount by the number of hours in a day (24).

You pay yourself ₦347.22 naira per hour.

How many hours of your time is that ₦50,000 bag? 

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It is not sustainable to keep working for all your money because what happens when you can no longer work?

Instead, you should be looking for reliable ways to put your money to work and build sustainable wealth. 

This is what we do at Halo Invest. We work with a team of experienced investment professionals and financial analysts to curate the best investment products and make them accessible to everyone.

Interested in being a part of the Halo community? Sign up here to get early access to our beta app.

Money Tip

Knowledge you can use

How to make your hours count and make more money

1. Manage your time well. Find ways to be more productive and avoid work spillovers.

2. Think of money in terms of time. Before you spend money on an item, be sure it is worth the amount of hours you put in. 

Is that 20,000 naira dress worth 15 hours of your time? Is that PS5 worth 239 hours of your time?

Unless you have saved towards a purchase over a period of time, try to think through your spending decisions to identify what’s important to you.

Decide what you are willing to let go of. 

3. Find ways to earn more. Read this article to learn how to make more money doing what you love in Nigeria

4. Don’t be afraid to ask for what you’re worth. 

If you don’t think you’re getting paid enough per hour for the value of work you produce, charge more or ask for a raise. 

Do this with solid reasons to back up your request and show why you should be earning more. 

5. Determine and calculate what your hourly rate should be, then make a plan to work towards earning it.

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Halo Invest gives you access to the best financial insights, insider tips, and tools to help you improve your relationship with money. Click here to subscribe to our emails. We never spam you, promise.

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For You

Fun, useful stuff you will absolutely love!

The naira notes share their experiences in the hands of Nigerians and it’s hilarious!

These money affirmations will get you going through the month.

If you plan to combine finances with your partner, then this is for you!

An interesting conversation that dissects the truth about common money phrases like ‘money can’t buy happiness’, ‘money is the root of all evil’, ‘cash is king.’

Follow us on Instagram,  Facebook, LinkedIn, and check our Blog for more frequent updates, tips, and tools to help you improve your relationship with money.

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LifeStyle

7 Nigerians Tell Us How They Made Their First Million

Do you remember how you earned your first million?

We asked a couple of Nigerians to tell us how they made their first million and share the feelings that came with it and here’s what they had to say;

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

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Semilore

I made my first million at 23.

It was about 1.5 million naira, I was working back then and I decided to put money into some investments and they yielded profits.

It made me so excited, but it fuelled the desire to make more.

1 million naira began to feel like 100k. It was fulfilling sha. I kept looking at my balance with joy.

Luckily, I didn’t spend it all. I re-invested a large part of it and used the rest to pay bills.

It would have been better if I used the money to go on vacation and enjoy myself. Over time, I have realized that the money will always come back. I also need to enjoy myself while making money.

Tope

I was still a student when I earned my first million at 19. It was around 1.1 million and I made it from practicing music.

Omoo! I was on top of the world, I felt like I could buy anything! I flexed and put a large portion back into my music.

If there is anything I wish I had used the money for, it would be buying Bitcoin.

I for become billionaire today 😭

Esther, IT Specialist

I earned my first million when I was 17.

I had worked on a research project which involved the database of a new university system and got paid 1.5million naira to 1.7milllion naira. It didn’t seem like a big deal to me then because I was young.

It was realizing that I made my first million at 17 as I grew older that made me start to feel a sort of accomplishment. But at that time, I just felt the same way everyone does when they’re paid for work they did.

Haha, I was so unwise with the money.

I was fully sponsored by my parents then so I didn’t use it for anything useful. I spent the money by traveling to 3 countries in Asia and had a great time.

Now, I totally wish that I had invested that money in people I know that have skills, and also in crypto.

But the memories of Asia are worthy contenders for the regret lol.

Nnenna, Doctor

I was 25 when I earned my first million. It was exactly 1.5 million naira.

At that time I was doing an internship and I had to save up to make it.

🤣 I felt super excited about making that much and ended up spending it on international exams and a “get rich quick” forex scheme that crashed 😩

Honestly, I wish I had invested more of that money (and wisely too).

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John

At 26, I provided consulting services to a firm trying to acquire an energy company and got paid 6.8million naira for the job.

It felt sweet when my bank manager called to confirm. I knew that it would be the first of many. So far so good.

It’s now a blur because we don rock many more millions but I reckon that I spent the first part at Coldstone.

I wish I had bought crypto back then.

Charles

I earned my first million through performance bonuses from my job when I was 23. It was exactly 1.1 million naira.

It came in two installments over a couple of months, so it didn’t really dawn on me till later. I was excited about seeing that amount in my account.

I invested the bulk of it in Agritech and stashed some away in a savings plan and a fixed deposit account (silly decision now that I think back).

Then I spent what was left. I should have spoken to a financial advisor sha.

I missed out on the opportunity to put the money in crypto and stocks!

Nonso

I made my first million at 23 from selling digital products as an affiliate marketer. It was about a million-plus, I guess.

I didn’t really feel anything when it came in.

Spent some of the money on myself, gave to the church, helped people, bought stuff for people, and helped my family.

I also used the money to pay off some debt. I wish I had saved and invested some part of it at least.

How did you make your first million? Share your experience in the comments. Read other interesting articles on the blog.

Categories
Money Notes

Money Notes #3 – The Bi-Weekly Newsletter from Halo Invest

Two notes in one month. 

Only the most useful, relevant, and practical entries on finance and money. 

If you like our notes, invite your friends to subscribe here.

Hot Topic in Finance

Industry conversations we think you should know.

Unemployment Rate in Nigeria hits 33.3%.

According to the National Bureau of Statistics, the rate of unemployment in Nigeria rose to 33.3% in the last quarter of 2020.

Unemployment in youths between the ages of 15-34 also reached an all-time high of 42.5% from 34.9% in Q2.

This means that if you are on a bus with 10 youths between the ages of 15 – 34, 4 out of 10 of them are unemployed.

The bus driver is battling with poverty, the conductor is struggling to make ends meet and at least half of the remaining 6 youths are stuck in jobs they do not enjoy.

Unemployment aside, every single one in that bus is facing the effects of inflation and devaluation and looking for better ways to make more money.

So, here are 6 ways you can make more money doing what you love in Nigeria.

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Money Tip

Knowledge you can use

Everyone looks forward to the weekend but hardly anyone realizes that it is a scam.

For the shortest two days of break from work, the average Nigerian spends more money on weekends.

As more companies shift into working remotely, employees are trying to cut down on costs and save more.

But what you might not realize is that when you decide to flex on the weekend, you end up spending more money that could have been saved. With owambes, parties, restaurant hopping, movies, uber fares, the list of weekend expenses are endless.

So here’s how you can cut down on costs this weekend: 

  1. Avoid going out if you don’t need to
  2. Before your outing, decide how much you are willing to spend
  3. Split cab rides and other bills with friends
  4. Find other cost-effective activities you can do e.g. visiting an art exhibition and taking lit pictures

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Halo Invest gives you access to the best financial insights, insider tips, and tools to help you improve your relationship with money. Click here to subscribe to our emails. We never spam you, promise.

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For You

Fun, useful stuff you will absolutely love!

How much can you comfortably “dash” somebody?

These men between ages 5-75 answer what they are saving up money for

Getting help or helping someone in financial trouble

9 financially toxic people you are probably friends with
 

Follow us on InstagramTwitterFacebook, LinkedIn, and check our Blog for more frequent updates, tips, and tools to help you improve your relationship with money.

Categories
Money Notes

Money Notes #2 – The Bi-Weekly Newsletter from Halo Invest

Two notes in one month. 

Only the most useful, relevant, and practical entries on finance and money. 

If you like our notes, invite your friends to subscribe here.

Hot Topic in Finance

Industry conversations we think you should know.

Naira officially depreciates further to ₦410/$.

The naira has been devalued twice since March last year. Right now, the current official rate (as stated by the CBN Governor) is ₦410 to the dollar which is an 8.2% depreciation.

This means that you can expect black market rates to go even higher (Estimate of ₦500 to ₦520/$).

The prices of goods and services in the country will also increase as the general market adjusts to this new price because of things like increased importation costs.

N.B: As of Monday, 8th March, 2021, on the import and export window it further dropped to ₦411.64 to the dollar.

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Money Tip

Knowledge you can use

In a world where Nigerian artistes are companies listed in the stock market and you are about to make your first investment, where would you put your money? 
 

 DavidoZinoleeskyRema
Years Active2010 – present20202018 – present
Albums/EPs613
Net Worth$18 millionUnknown$1 million

Let us help you decide:

STEP 1: Analyse the artistes’ profile

  1. Davido (The trendy stock)

If you follow trends, then your first thought will be to buy Davido shares. I mean, he’s clearly worth $18 million, has been in the industry since 2010, and has consistently dropped albums that have kept him on the map.

Most early investors who have already bought stocks in Davido since the start of his career to date are sure to make more returns on their investment as he grows.

However, as a new investor, it might be too late to join the crowd and start investing in him, as you will most likely not gain as much returns as his initial investors. You might even make losses as market prices rise and fall.

  1. Zinoleesky (The stock to look out for)

While Zinoleesky might have released other songs before 2020, none of them have gotten as much media attention as his 2 viral hits: Ma Pariwo and Kilofeshe.

As a new artiste trying to make his way around the music industry with no track record, it is not wise to immediately invest in this stock.

What you want to do instead is keep an eye on him and his growth trajectory.

It is easier for his family and friends to become angel investors, but as there is no guarantee right now that he will continue to perform well or maintain consistency in the industry, it is wise to monitor his growth for some time before going all in as an early investor.

  1. Rema (The growth stock)

Rema is currently signed to Don Jazzy’s Mavin Records, a label that has brought out a number of popular acts.

He has shown potential, released viral hits and been on a steady climb.

Based on his current trajectory, management and the direction of the music industry, he makes for a great long-term investment as he will definitely grow in the next few years.

As an early investor, your best bet would be to invest in Rema’s shares.

Who knows, he could be double Davido’s value in the next 5-10 years and you’re getting in on the action early.

Analysing past performance is just one of the many steps in helping you decide where to invest when it comes to the stock market.

Other things to look out for are the answers to the following questions:

  • Are the company’s earnings growing?
  • Is the company performing well compared to its competitors?
  • Is the company promising? Does it have long-term stability?
  • Does the company have effective leadership?
  • What’s the company’s policy on dividends?

It is important to do enough research into any company you are interested in before making the decision to buy.

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Halo Invest gives you access to the best financial insights, insider tips, and tools to help you improve your relationship with money. Click here to subscribe to our emails. We never spam you, promise.

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For You

Fun, useful stuff you will absolutely love!

If your spending habits don’t look so goodthis article will tell you the role your circle of friends plays in your finances

This timely article advises women to celebrate international women’s month by making money!

Confessions of people who have kept financial secrets from their partners

Follow us on InstagramTwitterLinkedIn, and check our Blog for more frequent updates, tips, and tools to help you improve your relationship with money.