Good Morning 😃
Friday letters are usually dedicated to taking questions from our community.
Do you have a question for us?
Please feel free to
- send an e-mail to info@themoneyafrica.com; or
- send a DM to any of our social media channels, or
- simply fill out this form. Don’t worry, your responses are kept anonymous.
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Question
How do I save and budget effectively with my ₦48,000 monthly income as a youth corper?
Answer
In the current economic climate, maximising your income while serving as a youth corper is crucial to achieving financial goals. Combining your fixed income with additional income streams can significantly improve your savings potential. Here are some strategies to consider:
- Utilise the NYSC Skills Acquisition & Entrepreneurship Department (SAED) Programme: I know SAED wasn’t necessarily fun, but if you were able to pick up a thing or two during the programme, you could sharpen your knowledge by watching videos on platforms like YouTube. Leverage that skill by offering services or even making products for sale.
- Freelancing: Platforms like Upwork and Fiverr allow you to offer your skills to clients remotely in various fields like writing, editing, translation, virtual assistance, and programming. If you have no previous knowledge, you could learn online. There are various resources to learn from; you just have to be patient with yourself in the learning process.
- Tutoring: If you excel in specific subjects, offer private tutoring to students. This can be done online or in person, depending on your preference and the student’s needs.
- Content creation: Monetise your skills in writing, photography, or videography by starting a blog, YouTube channel, or social media account focused on your interests.
Also, keep the following in mind:
- Prioritise your NYSC duties: Ensure your primary responsibilities as a youth corper are not compromised while pursuing additional income opportunities.
- Manage your time effectively: Plan and schedule your work and personal activities efficiently to avoid burnout.
- Network: Connect with other youth corpers and entrepreneurs to learn from their experiences and explore potential collaborations.
By combining your fixed income with additional income streams and practicing effective saving strategies, you can maximise your financial resources and achieve your goals even in these challenging economic times.
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Question
What is compound interest? Never taking profit?
Answer
Imagine if your money could earn money, and that money could earn even more money. Sounds like magic, right? Well, that’s exactly what compound interest does.
Here’s the basic idea: compound interest is interest earned on both your initial investment and the already accumulated interest. It’s like a snowball rolling downhill, gathering momentum and growing bigger with every turn.
Now, imagine taking things to the next level by never taking profit, meaning you reinvest all your earnings back into your investment. This allows compound interest to work its magic even harder, exponentially increasing your wealth over time.
Here’s an analogy: think of planting an apple seed. If you leave the apples on the tree and let them fall naturally, they will decompose and contribute nutrients to the soil, making the tree stronger and producing even more apples the next year. That’s similar to how reinvesting your earnings allows your investment to “grow” and generate even greater returns in the future.
So, while taking some profit occasionally might be tempting, remember the power of compound interest and leave it to do its thing. Over time, this strategy can help you achieve financial goals you never thought possible.
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We often get questions regarding how to plan your finances to align with your relocation plans, especially for students seeking to further their studies. As always, we have heard you, and we have put together an e-book to help you navigate this. Follow this link, to get your FREE copy of the e-book: The Japa Encyclopedia.
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