How Investing GHS15 Can Make You a Millionaire!
Did you know if you could spare only 15 Ghana cedis, you could be on your way to becoming a millionaire? As someone who has experience in investing and has been investing in different sectors like the stock market, mutual funds, treasury bills, I'm going to show you how simple and low-risk investments that can help you grow your money to secure your future.
If you could save just 400 Ghana cedis every single month in an investment that can give you an average return of about 18% every year after 10 years you could have enough money to consider retiring early. But here is where it gets really interesting. If you decide to keep investing for another 10 years, that is going to be 20 years in total.
You can turn this investment into over 1 million Ghana cedis. From 450 Ghana cedis, that is just 15 Ghana cedis a day to over 1 million Ghana cedis in just 20 years. Yes, I know someone will ask 1 million in the next 20 years will be worthless. Yes, we will talk about the tricks and the tips on how to do that. So the big question here is what kind of
investments can get you to a million in just 20 years and how can you grow your money faster and what are the tools that can help you get started if you are a total beginner.
First let's talk about the secret source compound interest. Compound interest is when you earn interest on your money that you have saved and then also your interest also earn an interest you have already earned. In simple terms, your money starts working for you, then your money's money will also start working for you.
That is why Albert Einstein called it the eighth wonder of the world. He said, "He who understands it earns it. He who doesn't pays it." So, let me show you a quick example. According to this compound interest calculator here, if you invest let's say,000 Ghana cedis as a starting amount, this amount can be any amount depending on your strength.
Then you consistently add up 450 Ghana cedis every single month for the next 10 years. For the next 10 years at an average return of 18%, you will have around 200,000 Ghana cedis. But here is the magic. If you keep going for another 10 years without even increasing your monthly investments, that money could grow to over 1 million Ghana cedis.
Why? because your money is no longer going in a straight line. It's growing exponentially. I'll put the calculators link in the description below so you can also use it to plan your investments and also grow your money. So, you don't actually need to invest 450 Ghana cedis every month.
You can start with just 200 Ghana cedis, then increase the deposit monthly or yearly to catch up with inflation. I know someone will say 1 million Ghana cedis will be worth less in the next 20 years time. That is why this calculator provided a space for inflation and that is why you need to also increase your deposit amount to factor inflation.
As far as your income goes, you should also think about increasing your monthly deposit to factor inflation. So, what kind of investments can give you this? Now, let's talk about the type of investments that can help you achieve this goal. I'm not talking about some shady deal or some Ponzi scheme. I'm talking about real tested and legitimate investments.
You can start with stocks if you are a high risk taker. But if you're a lowrisk taker, you can start with mutual funds and index funds. These are groups of investments managed by professionals. In Ghana, you can start with mutual funds like stamic cash trust fund or the IC liquidity fund.
The principal objective of this is to optimize your investment in a short to medium-term. investing in money market securities like treasury bill and fixed deposits. This one also allows you to withdraw your investment any time within 48 hours withdrawal time frame and you can start with as low as 10 Ghana city, 20 or 100 Ghana cedis.
So this gives you an opportunity to invest at least 15 Ghana cedis every day or 450 Ghana cedis monthly. So where are we going to invest all this? We're going to invest this one in one platform called the plus app. I introduced the plus app last year, the same app that we used to save for December chilling.
I hope you remember that video. You can actually use the plus app to invest in mutual funds like the ice liquidity and you can also invest in the US stock market right on the plus app. So, let me show you how to invest on the plus app. So, you can find plus app on both Android and iOS. First of all, you need to register and make sure you fill in your details.
So, I've created some portfolios for myself. So, if you want to create a portfolio, all you need to do is to create a portfolio. Go to portfolio here down there. Click on the plus and enter what you want the portfolio to be about. Let's say vacation. Select anything. I mean, can let's say you want to go to Dubai.
So, you can see I've already done that here. So, I'm going to click on invest. Then I can select any of this. So if you want to invest in treasury bill, you can do that. Treasury bill's car rate is around 13 to 16% depending on the amount. So I'll click on stake cash. Click on invest. These are my portfolio.
Buy a car, travel, US stocks and house. So let's say I want to buy a car. So I'm starting with 450 Ghana cedis. So this is what I'm going to do for the next 10 to 20 years. So I already have my momu here. Click on next. So I'll click on complete. Click on proceed. So you can see they are saying your investment will take at least two working days to process. Right? So click on proceed.
So you can see the transaction has been successful. Then I'll click on done. So it will take 48 hours to reflect on your investment. So your investment your payment has been done. But this is very easy. So if you want to also invest in the US stocks. So you need to click on this side.
Then you can see some of the stocks that you can invest in here. If you want to invest in Nvidia, you click on it and click on buy stock. Then you can select where you want to invest. Then you enter the amount that you want to invest. So you can see I only have um my cash wallet of 1.5. So you can see here they are saying you need additional 98.45 to make this purchase.
I'll click on cash wallet. Then I'll select the payment that I can use to deposit. Then I'll click on next. Then I'll click on confirm. So when I click on confirm, I should get the popup here. Then I can do the deposit. I'm not going to do it now. Here are some five quick tips that can help you reach your goals faster.
The first one is you need to start early. The earlier you start, the more time compound interest has to work for you. So if you're in your 20s or 30s, this is the best time to make more money with compound interest. Time is very crucial when it comes to wealth building. else you will need to increase your monthly deposit to be able to reach your goals.
Your initial deposit also counts a lot. Someone with 100,000 Ghana cedis will be able to reach his or her goal faster than someone who started with 10,000 Ghana cedis. The second one is budget. You can also use the 50/30 rule to budget your income. I have a link in the description below to help you budget your income.
It's called the 503020 rule calculator.
The third one is you must be consistent. You have to invest every single month without failing. No matter how small it is, it is still better to invest. Be consistent and this can help you grow your money faster. You also have to be very disciplined when it comes to investing.
Stay calm and stick to your plan. Don't withdraw your returns and let them grow. There are people who will just invest today and tomorrow they decide to withdraw their money. Always have a budget to your income. If you are putting money for investment, you also have to set aside some money for emergency funds. The fifth one is you need to increase your contribution over time.
As I said earlier on, as far as your monthly income goes, you also have to increase your monthly investment. You need to factor inflation when it comes to growing. Well, this is not a financial advice. Consult a professional financial advisor to help you use compound interest to grow your wealth. If you want to learn more about where to invest your money or get step-by-step guides, then make sure to check my other videos here to start building your wealth.