We promised you pointers on how to make your first N1M, and that’s what we’re here to talk about. However, let’s get one thing straight, it will require patience and discipline.
If you were to rely solely on your salary, perhaps saving N20,000 every month — remember that little drops of water make a mighty ocean — you would have to save for 50 months to make N1M; which is a little over 4 years. Too long? What if we could cut that time to a little over 3 years, would that be better?
The truth is, you can! If you start today by investing N20,000 in an instrument that consistently gives you a 12% return every year, in 3 years and 5 months, you would have N1M! Maybe you’re thinking 3 years is a long time to wait but think about how much happier you would be now if you had started doing this 3 years ago.
Now, that isn’t the most beautiful part of the story. If we go back to those saving N20,000 every month in a regular savings account, they’ve spent 4+ years saving N1M; guess how long it will take to get that money up to N2M. That’s correct, another 4+ years. Meanwhile, if you were to invest, it would only take an additional 2 years and 5 months. Do you see what just happened there? Let’s simplify it like this:
Of course, there are numerous other factors to consider like inflation, changes in earning capacity, emergency situations that require significant funds, the growth rate of the economy, and a host of others. Regardless of the situation, the bottom line remains the same: making N1M is easier when you invest than when you save.