Caveat: The post below is not a financial advise. I am not a certified or trained financial adviser. This is just a log of my own experience with investing.
My Journey started some years back when I decided that the Nigeria currency, The Naira was just too volatile and unstable. It lost over 66% of it’s value in the last 7 years. This got me to convert my savings to dollars and store it in a dollar savings account I opened a while back. The idea was to hedge my savings against Naira devaluation (which happens at an average rate of 6% annually) and inflation. The goal is; as the naira slides downwards, the value of my savings (in dollars) remain as it was when I converted them to dollars.
Sometimes last year, it occurred to me that, putting my money in dollars alone is not enough. I needed to do more here is why.
- My money is in the Nigerian Banking system and still vulnerable to the Nigerian economy and the fortune of the naira. I am one CBN regulation away from losing all my savings.
- I am not taking advantage of the time value of money in that, at a 0 interest savings account, my money was not yielding any interest. I am limiting the power of my money working for me. aka money making money for me.
Wealth comes through investing not (just) savings