WHAT WOULD YOU DO WITH 500 MILLION NAIRA?

The money. It is said that we do not need money to be happy, and it is true, at least in part. We do not need money, but we need the things that the money can give us: a better home, an increase in comfort, the freedom to do what we want alive. However, most are not accustomed to much money, and if we wake up with them suddenly, I think we would not know what to do with them.

Lately I have read articles about financial education, about people who have suddenly earned large amounts of money, and talked with some friends about the hypothetical situation in which we would have big sums of money.

My conclusion to the articles read and the talks? The Nigerian financial education is limited, and most of us, if they wake up with 500 million naira, would spend it fast instead of investing it.

Normally, if we win 50,000,000 Naira, we'll know quickly what to do with them, because it's a sum to which we can report, we'll use it to solve our urgent problems. We'd probably get a house, a car, go for a few holidays, help our family and get it done, the money's over. And afterwards?

When you talk about 500 million Naira things are changing. This amount is not enormous, those who have gone from scratch and become millionaires would know what to do with them just because they got used to managing money, but the others, the ordinary people who make plans in the short term, would I do? It is, however, a consistent amount that not only could change our lives, but could change the life of our family, including the next generations, if it is used with the head.

If I would win or I would have 500 million naira I would do the following:

• I would make sure no one learns that I have earned that money, except for very close family and friends, because the money attracts the envy of others, and when you suddenly win them you can wake up as your friends become enemies and the world changes suddenly your attitude towards you.
• I would not change my lifestyle suddenly, not to attract the attention / envy of others. In the meantime I would buy / build a normal house with land in a quiet area, I would probably change the car to something a little better but I would not throw money left and right, Let's say that I would allocate 10% of the amount to improve lifestyle.
• 10% of the amount I would use to help my family without waiting for something.
• 50% of the amount I would invest in long-term investments in small or medium-risk investments (shares in safe companies, bonds, treasury certificates, investment funds), but I would not invest my head but with the help of a financial counselor. Sometimes we have to recognize our limits, leave money management and investment recommendations to those who already manage considerable amounts of money. No Forex or similar nonsense.
• 20% I would invest in real estate, probably 2-3 apartments. It's not a revenue-generating investment, but the market is pretty stable now, plus I'd rather put money in apartments to rent than to keep them in the bank. After what has happened recently in the Country, Nigerian banks do not have too high guarantees.
• The remaining 10%, so 50,000,000 Naira, I would use it to start or fund businesses with long-term gain potential, both offline and online.

I'd probably go to the percentages, but I'll see exactly when I get this money. 

500 million naira can be spent in a few years if we do not have financial education and if we do not know how to manage them, I say. I have seen enough cases where people who have earned millions of naira have spent homes and luxury cars, exotic vacations, company clothes, etc. without thinking about investing for the future without trying to turn the money you earn into a bigger, a generator of long-term income.



What would you do with 500 million naira?