Hey! So you opened this post with the sole purpose of reading something so hilarious and rib-cracking. And that’s exactly what I’m about to do. Keep reading and stick through.
I’m about to explain the history of money in a way an average Nigerian could understand, and here I began.
A lot has been said on how money comes into being in the first place and I wouldn’t bore you with many details other than a joke.
A joke that could make you smarter and wiser.
After reading a couple of modern history books, I become more confused about whether money really started from the Roman Empire, or China, or even Africa.
But let’s forget about all that and understand the concept of money with this simple joke.
Yes, I mean a simple joke.
Let’s say we have 10 guys at 9jaCashFlow Tech Hub in Ibadan, Nigeria(L = 10), sorry, I forget this, not a maths class.
Anyway, if these guys are traveling to Maiduguri tomorrow, and they had to drop their laptops in the hub and come back with their receipts to pick it up.
What do you think happened to the receipt?
The receipt has become a form of money because it’s now valuable, or isn’t it? Yes, it is.
Anything that’s valuable can be exchanged for another thing of value and can be termed literally as money.
Let me continue the joke.
So this guy’s traveled to Borno state for the first time and came back safely. They quickly submitted their receipt and got hold of their laptops. No big issue(thank God).
But that’s not all.🤔
Later that week, they had to travel and this time around to Calabar.
On coming back, one of the guys was smart enough to create 5 receipts so he was able to successfully cart away with 4 laptops + his own making 5.
Now I have to ask? Is this system still balance?
Of course not, but let me tell you this. In some scenarios, it’s balanced.
The same way 4 of the remaining 9 guys just got their wealth(laptop) or valuables stolen, some of our government officials are stealing from us.
You often see people that produce very little or add nothing to the economy of a country getting to earn a big salary and compensation. This could only be possible because someone is printing money.
But who’s printing money? Maybe the government.
But wait, doest government has to print money to function well? Yes, they do and that’s why they’re powerful. But they need to also understand that 2 much printing of money leads to inflation.
And inflation itself is your money losing its purchasing power monthly or yearly due to the increase in the prices of goods and commodities.
Right now in Nigeria, inflation is about 16%, so every investment you do that provides less than 16% yield is more or less a losing investment.
I’m sure you’re like, do I really know what I’m saying? Yes, I do.
Your savings, fixed deposits, bonds and other securities you invest in that doesn’t yield a return higher than 16% is just losing the purchasing power of your money gradually.
But I must say, doing any of the above is still better than putting your money to no use in your wardrobe at home.
So what can you invest in?
But wait, who I’m I to even tell you what to invest in? I’m Kehinde Lawal, founder of this great website (9jacashflow). I’m not a financial advisor but I do share what I’ve tried(my experience) on this platform. Mind you, not just my successes but most of my failures as well.
So back to the joke 😂
I can’t tell you what to invest in because I don’t know you or your current situation, but I’d say you should put your money in; scarce resources, businesses, or Investment that can beat inflation.
A good example is Gold, Bitcoin, Silver, Online and offline businesses, and scarce Agricultural commodities.
Gold for example was $250 in 1990 but as of today (2020) cost $1,900. Did it beat inflation or not? I can’t really say because I don’t know the purchasing power of $250 then but I think it did.
So the concept of this joke 🤣 or article is the fact that many people are the joke.
- You’re the joke if you put all your money Naira while it keeps getting devalued to the dollar
- You’re also the joke if you put all your money in the dollar while it keeps getting devalued to Bitcoin.
Note: there is no holy grail, master key, or a golden bullet when it comes to investing. Even Bitcoin is difficult to invest in when you’re not knowledgeable about it but taking a portion of your money to buy Bitcoin, saving in it, holding it, and understand Bitcoin is important if you don’t what to be the joke.
So how do you go about it?
Until next time, keep learning.
PS: Don’t be the joke by investing in things that give very little return or wouldn’t beat 16% inflation
PPS: Start that business, buy some Gold, Bitcoin, and invest in Agriculture.
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To your financial success
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