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How to Invest and Make Your First GHc100,000 in Ghana

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How to Invest and Make Your First GHc100,000 in Ghana

Becoming a millionaire or simply being rich is the dream and concrete goal of many, millions. Day and night, people move from home to office, switch jobs, sweat to earn promotions, carry on loans to fund good and bad ideas, buy properties, and do many imaginable and unimaginable things just to achieve this goal.

It may come early to some people whilst others take up to their last two years to retirement to see a GHc100,000. When you listen to the stories of these near-retirees, you may not blame some of them, but you’re sure to see that some of them also made common mistakes you should be avoiding.

Don’t Buy a Car, yet.

When I started my career, it was quite uneasy for me to move around the city of Accra in my suits trying to get a trotro or a taxi. Such frustrations make you forget the good plans you had just before you landed a job. Your priorities change; you need a car. The first ‘asset’ that many workers buy is a car –to help them move comfortably from home to work without worrying about the rain or the scorching sun.

It sure comes with some comfort, but at what cost? You either take a loan to buy the car or save over about two years only to pay the car dealer for that beautiful car. You end up locking about GHc40,000 of savings (or loan) in a possession that does not add periodic income to your account.

Rather, it takes away from you money in the form of fuel, maintenance and repairs, especially if you buy a used-car. Over that three or four year period, your GHc40,000 could have easily doubled even if you don’t take risk with it by buying treasury bills. In personal finance, a car is not really an asset –if it’s not earning you anything.

Buy a Land?

Well, not a bad investment in Ghana and most parts of Africa if the location is good, and the price is right. With a good location, you’re sure to see your investment double in  just about two or three years. In prime locations, you could easily be approached by an investor for outright purchase or a partnership. Often, this is a fast lane to your first GHc100,000. But not many get this opportunity. So why lock up GHc40,000 in idle land somewhere outskirts of Accra?

Trade Fast Moving Consumer Goods

Do you know the margins on salt, sugar, rice, soft drinks, groceries, and other products that come to the shelf and are sold within a day or two? These are products that millions of people are consuming daily.

If you invest your money here, you’re surely making your first GHc100,000 if your pricing is right and customer service is excellent. Many businessmen and women in Accra are making at least GHc12,000 on monthly basis selling fast moving consumer goods, taking less than a year to hit GHc100,000.

Transportation is Money

Transportation in the cities is capable of doubling your investment in just 2 years. Before you begin you must learn about the transportation business first; especially the risks and how to manage them. Growing population in these African cities and improvements in road infrastructure is a powerful boost to the business.

For the Risk Averse

Those who fear to take risk with their savings often do not get to the GHc100,000 mark quickly, but they surely get there, often than those who take risks. At current treasury bills rate of 22% thereabouts, it takes a little above 4years if you’re starting with GHc40,000. There are other fixed income securities on the market with higher rates, which means you’ll take lesser period to make GHc100,000.

The Big Advice

There are many businesses in Ghana, Kenya and Nigeria that can make you rich quickly. The key is knowing how to identify a business opportunity and how to invest in it. There are times when you need an expert’s opinion, but mostly these guidelines should help you make good investment decisions that help you make money quickly and safely.

  • Know your risk appetite
  • Analyze and compare many investments before you choose
  • Invest in businesses you understand
  • Do not put all your money in one investment
  • Invest in businesses that you can exit whenever you want
  • Consider the long term, not short term

Ultimately, you want to make money. They say, it’s the first million that is most difficult to make. However, to make a million, you must first make a thousand. Gradual steps would get you there, too.

 

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