<p><span style="font-weight: 400;">It’s Black Friday shopping season and as I’m sure you’ve all noticed, retail and shopping outlets have started advertising eye popping deals to entice buyers. </span></p>
<p><span style="font-weight: 400;">Here at MoneyRise we want you to make smart money decisions, so we are going to share some quick tips about how to make the most of the Black Friday deals. If you use this season well, you&#8217;ll get really great deals at prices that save you money!&nbsp;</span></p>
<h2><span style="font-weight: 400;"><span style="font-weight: 400;"><strong>Don&#8217;t Buy Anything Just Because It&#8217;s On Sale</strong><br />
</span></span></h2>
<p><span style="font-weight: 400;"><span style="font-weight: 400;">If you buy an item worth ₦10,000 for &nbsp;₦7,000, you did not save&nbsp; ₦3,000, you spent &nbsp;₦7,000. Don’t be enticed to spend money you were not going to spend. Only spend money on what you already need. Which means you should have a list of what you want to buy, and stick to it. That nice blender selling for 40% off is not meant for you, if you already have a blender at home. Don’t play yourself. Be disciplined.</span></span></p>
<h2><strong>Not Everything Is Cheaper On Friday</strong></h2>
<p>Don’t just think, <em>&#8220;Well, its Black Friday, so everything I buy is probably cheaper.&#8221;</em> It doesn’t work like that. Some outlets don’t do deep enough discounts. Some intentionally inflate their supposed original price to make their discounts look deeper than they are. To get the best deals, do price comparisons ahead of time, check many sites to know what a fair price is and if you’re actually getting a good deal or not. Bonus points if you already did this weeks or days ahead of time.</p>
<h2><strong>Have A Shopping Budget</strong></h2>
<p><span style="font-weight: 400;"><span style="font-weight: 400;">Please there is life after Black Friday. There is the Christmas season, and that three-month period between December 31st and January 31st. We all know that period. You need your money to last through all that. So know exactly how much you can put towards your Black Friday shopping and once you hit that amount, stop. Ties right back to point one. Don’t get carried away.</span></span></p>
<h2><strong>Some Things Are Cheaper Offline</strong></h2>
<p><span style="font-weight: 400;">Black Friday seems to be an eCommerce driven activity. There are often better deals in the physical store, or in the open market. I’ve seen bargain hunters go offline, and find items at prices that make Black Friday deals look like daylight robbery. It may not be as convenient as ordering, but the savings might just be worth it. Another advantage of shopping offline is that you can leave your ATM/Credit card at home and only go with the money you’re willing to spend. If it’s gone, you’re done.</span></p>
<h2><span style="font-weight: 400;"><strong>Save As You Shop</strong><br />
</span></h2>
<p><span style="font-weight: 400;">If you’re going to spend during shopping season, use it as an opportunity to also save. For every &nbsp;₦5,000 you spend on shopping, invest &nbsp;₦5,000. It helps you avoid the guilt that comes with shopping, and also keeps something away to grow and possibly fund your future purchases.&nbsp;</span></p>
<p><span style="font-weight: 400;">One of the smartest things you can do with your money is to earn dollar returns on it with Rise. Get started at </span><a href="http://www.risevest.com"><span style="font-weight: 400;">www.risevest.com</span></a></p>
<p style="text-align: center;">


How To Make The Most Of Black Friday Shopping


<p>London, Birmingham, Manchester, Glasgow, Belfast or wherever you are in the UK, you can now fund your Rise wallet directly from your UK bank accounts. That’s right! If you live in the UK, you can now seamlessly use Rise and enjoy returns between 8 &#8211; 15% on your investment.</p>



<p>You can invest in a portfolio of some of the best-performing US stocks, profitable US real estate properties, and a stable fixed-income portfolio without converting to naira or dollar first. Fund your account with any amount you can, starting with as little as £1 and earn dollar returns. You can also withdraw as wire, directly to your bank account, or to your Nigerian account with ease.</p>



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<p>Thanks for using Rise.</p>



<p>Love and returns,</p>



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<p><em>“If there is such a thing as a white elephant, this is surely one of its more awesome specimens,&#8221; Nosa Igiebor, Time magazine editor, 1993, on the Ajaokuta Steel Company.</em></p>



<p>Ajaokuta Steel Company was dubbed the “bedrock of Nigeria’s industrialisation”, and it stood as the symbol of Nigeria’s dream of greatness, modernity and prosperity. </p>



<p>However, that dream didn’t materialise. The project spans 24,000 hectares (59,305 acres), almost the size of the Maldives islands in the Indian Ocean, which includes the 800-hectare plant and a town comprising 10,000 houses, a hospital, and a school. </p>



<p>But almost nothing has been completed since construction started 38 years ago.. Of the 10,000 houses envisioned for workers, the 4,000 completed are occupied mostly by retirees. The current workforce of about 1,500 civil servants is tasked primarily with keeping parts of the plant in serviceable condition. </p>



<p>The combined 120 kilometres (75 miles) of internal roads and railroads, including the school, library, and hospital for workers and their families, are largely unused. The clearings meant to store coal for the furnace now serve for cattle graze.</p>



<p>Russian contractor Tyajz Prom Export (TPE) first started construction in 1979. It was estimated to cost between $6 billion to $10 billion. Yet, the steel company has never produced a single bar, coil or rod due to repeated stops and starts, ownership changes, poor governance, and sheer incompetence that hamstrung the project. Today, ‘Made in USSR’ adorns a rusty crane at the Ajaokuta Steel complex.</p>



<h2><strong>The Prevailing Argument for Ajaokuta </strong></h2>



<p>The official argument was that any efforts to increase a developing country’s power status through technological advancement must come through the development of indigenous steel.&nbsp;</p>



<p>In the words of (former) President Obasanjo:&nbsp;</p>



<p><strong><em>“In my first presidency, there was the general belief that steelmaking was at the heart of industrialisation. India had built the first steel plant with Russian help, and they built their second almost without help. We thought we needed to achieve that, but we did not have enough money to do it alone. So, we went to the Soviet Union, and there we obtained the best deal on offer: we got a free loan from the Russian government, and we commissioned an experienced Soviet contractor, TPE, to design and build the plant.</em></strong></p>



<p><br>The economic imperatives were also clear. Nigeria depends on crude for 90% of its export earnings. With volatile global oil prices, foreign exchange shortages are a daily reality. Nigeria, Africa’s largest oil producer, has little domestic capacity to refine gasoline and thus must pay to re-import its oil. </p>



<p>Those intentions underpinned the construction of Ajaokuta in 1979. At full capacity, it was intended to produce as much as 3 million metric tons of steel annually, enough to largely close the gap between Nigeria’s current steel consumption and domestic output.&nbsp;&nbsp;</p>



<p><strong>Why can&#8217;t Ajaokuta make steel?</strong></p>



<p>The choice of location was difficult and ultimately non-optimal. A place close to the available ore and coal deposits had to be found, and while Ajaokuta was one of the options, Onitsha was closer to both deposits. However, economic optimality was trumped by political justifiability (in 1974, just four years after the civil war, it was not considered economically prudent to award a strategically important project to one of the strongholds of the rebelling state).</p>



<p>There was also the raw materials dilemma. Nigeria has large ore deposits (albeit with low iron content, below 40%) but a paucity of coking coal, with abundant gas from oil production. Therefore, the choice was between an old-technology blast furnace process, with relatively cheap beneficiation of local ore, and a modern direct reduction process using cheap gas for heating and iron reduction but requiring higher-grade ore.</p>



<p>Ultimately, the blast furnace process, pushed for by TPE, was chosen. Still, coking coal would have to be imported because the local coking-ready coal from Lafia/Obi had excessive ash and sulphur content, with structural mine problems. Therefore, the plant would require a 66 km rail line to transport ore from the mine at Itakpe and a river port to receive imported coking coal. Thus, it was clear from the outset that the economics of the plant would not be straightforward.</p>



<p>Nonetheless, all these problems ultimately had solutions and were known to the decision-makers, and none were “showstoppers”, in the words of President Obasanjo.&nbsp;</p>



<p><strong><em>“The Russians warned us that our own iron ore would have to be ‘beneficiated’ in order to feed this plant. So, we knew we would have to invest in this, and also, we would have to dredge the river port to ship the coal, and we committed to building a railway stretching from the iron ore deposit to the plant and further South to the coast. So, we made these three additional commitments at the outset – ore beneficiation, river port and ore railway, to make it work.”&nbsp;</em></strong></p>



<p><strong><em>It is interesting to note that Nigeria did not complete the rail line until 2020.</em></strong></p>



<p>However, another aspect of Nigeria’s grand steel ambition was more insidious: Ajaokuta was not the only project in the pipeline. Nigeria’s industrialisation was believed to require a portfolio of steel mills: 1977 saw the signing of a contract with a consortium of ten German and Austrian firms to construct a 1M ton direct reduction plant, Delta Steel, and 1979 witnessed contracts (with Japanese and German companies) for three rolling steel mills of 200K tons per year in Katsina, Jos and Osogbo to produce bars and wire rods (based on the steel output from Ajaokuta and Delta). More plants were foreseen.</p>



<p>Although Delta was commissioned in 1982, it never produced more than 200K tons per year. Even this declined because of rampant corruption (for instance, paying inflated prices for materials), which led to declining production and, finally, an end to its operations in 1995, which, in turn, shut down the rolling plant. More generally, undertaking these overly ambitious projects simultaneously turned the steel dream into a nightmare for Ajaokuta. There simply wasn’t enough money or talent to carry out all these projects.&nbsp;</p>



<h2><strong>Ajaokuta Over the Years&nbsp;</strong></h2>



<p>TPE was originally expected to deliver half the capacity of the project in 1983 and the complete output by 1983. It had a track record of on-schedule, on-cost delivery of steel projects, including in Brazil, South Korea and China. However, the Soviets wanted to focus on the steel mill, so Western contractors had to be found for the civil works.&nbsp;</p>



<p>Furthermore, disputes arose, with the Soviets withholding personnel because their accommodation had not been built. Another tension arose between Russian and Nigerian personnel because the Russians were perceived to be receiving astronomical salaries, among other things. Hence, delays and overruns accumulated. By the end of 1983, all work had to be halted because the government ran out of money and stopped paying the contractors. The civil works contractors withdrew their personnel, blocking TPE’s work.</p>



<p>The military also deposed the Shagari government and installed General Muhammadu Buhari as a military president. Within days, the general manager of Ajaokuta was in jail, along with 12 fellow senior managers, halting all work at Ajaokuta.</p>



<h2><strong>The PPP Revival 2000-2007&nbsp;</strong></h2>



<p>When Olusegun Obasanjo returned for his second term as president in 1999, the project had been stalled for ten years. He still believed in its rationale and wanted to revive it, but the Soviet Union, its previous partner, was no longer in existence.&nbsp;</p>



<p>So when all avenues for continuing Ajaokuta as a government project had run out, President Obasanjo turned to a public–private partnership (PPP) construct. The Mittal Steel subsidiary, Global Infrastructure Nigeria Ltd (GINL), owned by Pramod Mittal, won a concession in addition to the right of way on the railway. GINL also bought the now-defunct Delta Steel for $30M. The Federal Ministry of Mines handled the process and power rather than the Bureau of Public Enterprise, an institution established by an Act of Parliament to sell government assets or agree to concession government property.</p>



<p><strong>Is it time to let the Steel company go?</strong><br>After 39 years and over $8B, the project requires almost as much remaining investment as the original budget. Yet, no solution exists to make progress until a new investor trusts the government to honour its agreements.</p>



<p>Moreover, simply adding the missing pieces is insufficient. The existing equipment is likely obsolete in design, controllability, optimisation, and automation. And even if functional, it won’t be competitive. However, the plant is deeply embedded in the Nigerian rhetoric of industrialisation and progress that “over the years, Ajaokuta has been the most permanent fixture of the ever-changing Nigeria”, and no administration has dared to question it.</p>



<p>It is time for Nigeria and Nigerians to seriously ask whether Ajaokuta has a future. Remember that the plant has 3000 employees, in addition to site maintenance (and has had for the last 30 years, without producing a single ton of steel). Every year, a decision is postponed, and the country bleeds.&nbsp;</p>


Ajaokuta; The $8 billion Dollar Steel Plant, That Has Never Produced a Steel


<p>We’re thrilled to announce that crypto payment is back. Yay! You can now fund your Rise wallet with crypto using stable coins like USDT, USDC, and BUSD and earn between 8-15% returns from anywhere in the world. All crypto funding is settled by our payment processors in USD and credited to your wallet.</p>



<h2>Here’s how to fund:</h2>



<ol><li>Log into your Rise app.</li><li>On your homepage, click on <strong>‘Add Money.’</strong> A few options will pop up.</li><li>Select <strong>‘Crypto’</strong></li><li>Choose your preferred coin and copy the address.</li><li>Make your transfer, and it will be reflected in your Rise Wallet.</li></ol>



<p>Note that this feature is available only on the Binance Smart Chain (BSC), Ethereum Blockchain, and Polygon chains so ensure you confirm the address or network you’re sending from before you initiate any transaction.<strong> </strong>Deposit takes only 15 mins to reflect and costs 1% service fee only. We do not accept native coins, like Ethereum and Bitcoin.</p>



<p>For any questions or concerns, contact us via our in-app chat, <a href="mailto:hello@risevest.com">email</a>, <a href="https://twitter.com/Risevest?s=20">Twitter</a>, or <a href="https://instagram.com/rise.vest?igshid=NTc4MTIwNjQ2YQ==">Instagram</a> or +234 818 71 47405 and +234 912 296 4245. We’re always here to support you.</p>



<p>Love and returns,</p>



<p>The Rise team</p>


Crypto Payments are Back🚀!


<p>The end of the year is usually a season of yuletide,  a period where most people spend more on things— from buying gifts for friends and family to organising get-togethers and hangouts to weddings and engagements.  </p>



<p>After a long, rollercoaster year, it is common for many people to want to unwind and spend some of the money they&#8217;ve worked so hard for. However, as we immerse ourselves in the joy of the season, it is crucial to remember that January—the longest month of the year (literally and figuratively) — is difficult for many, with businesses and shops quieter as people count their money post-Christmas. And for millions of people who get paid earlier than usual in December, it also means having to stretch your money until your next pay cheque. Also, considering the prevailing economic uncertainties in a country marked by fluctuations in the dollar&#8217;s value and inflation, the need to save and invest becomes more important. </p>



<h2><strong>Why do you need to save for 2024?&nbsp;</strong></h2>



<p><strong>Inflation</strong><br>With economists forecasting a staggering 30% inflation rate by December, it becomes imperative for you to exercise caution in your expenditures. Inflated prices can significantly impact your purchasing power, making it essential to adopt a frugal approach during the festive season to weather the financial storm that may follow in January.</p>



<p><strong>Foreign exchange</strong></p>



<p>Nigeria&#8217;s economic landscape has been marked by persistent scarcity of dollars, leading to fluctuations in the local currency. The scarcity of foreign exchange introduces an additional layer of issues, affecting international transactions, the cost of imported goods, and the overall stability of the domestic economy. In light of this, thoughtful spending during the festive season becomes a strategic measure to mitigate the potential impacts of currency volatility.</p>



<p><strong>What to do</strong><br>The current economic landscape is uncertain, creating an environment where financial prudence is more critical than ever. In the wake of these economic conditions, we launched the #Roadto2024 savings challenge, an initiative that aims to empower you with tools and insights to navigate the challenges that may arise in the coming months.</p>



<h2><strong>What is the #Roadto2024 Challenge?</strong></h2>



<p>The #Roadto2024 Challenge is not just about saving money; it is a commitment to your financial well-being. By participating, you&#8217;re taking a proactive step towards ensuring a smooth and stress-free January and hopefully, the rest of 2024.</p>



<p><strong>Here&#8217;s why you should join the challenge</strong></p>



<ul><li><strong>Prepare for 2024</strong>: By saving a portion of your funds this month and next, you&#8217;re proactively preparing for the longer month that follows. The financial cushion you build through the challenge will help you navigate January and the rest of the year easily.</li><li><strong>Be Mindful of Economic Realitie</strong>s: The current economic situation requires us to be mindful of our spending. The #Roadto2024 Challenge encourages a conscious approach to finances, helping you make informed decisions about where your money goes.</li><li><strong>Handle Unexpected Expenses</strong>: If you’re not prepared with savings and investments, handling emergencies will be hard as you scramble to pay for them. Some unexpected expenses are relatively small—a flat tire, broken appliance or utility bill. But other expenses like a new roof or a surprising move can cost hundreds or thousands of dollars. If you have savings and investments, you can focus on fixing the problem instead of how to pay for it.</li><li><strong>Reduce Your Stress</strong>: It’s never fun to calculate whether you can afford a bill, say yes to extracurricular activities for your kids or join friends for dinner. But if you don’t have savings, you might find yourself trying to figure out if you can pay for expenses more than you care to admit. Savings can reduce your stress and allow you to enjoy life more.<br></li></ul>



<h2><strong>How to Join the Challenge</strong>&nbsp;</h2>



<ul><li>Join our Telegram community <a href="https://t.me/joinchat/DMuBqxYV5GSwSEypHwbmiA">here</a>, and follow our community social media handle on <a href="https://instagram.com/riseinvestmentclub?igshid=OGQ5ZDc2ODk2ZA==">IG</a>.</li><li>Create a 3-month real estate or fixed income plan and name it &#8220;Road to 2024.&#8221;</li><li>Create a challenge username; it can be anything you like. This username will only be used for the leaderboard.</li><li>Please, fill out this <a href="https://forms.gle/zLCaFkd8Z7e9c5S19">form</a> where you enter your challenge username and Rise email address.</li></ul>



<p>Add funds to your plan as consistently as you can, and stand a chance to win up to $100 in prize.</p>


After Detty December Comes Dry January


<h2><strong>Report Summary</strong></h2>



<p>October was an eventful month for major asset classes like stock, real estate and fixed income. As the last quarter of the year progresses,&nbsp; war in the middle east, heightened geopolitical tensions between US and China, and another potential spike in oil prices dominating the headlines certainly isn&#8217;t good for global markets. Even though there&#8217;s no direct relation to OPEC+ and oil supplies here, there is likely the perception that this will curtail supply, adding to an already tricky situation in the fight against global inflation.</p>



<p>The stock market experienced a downward trend in the month of October. The broad-market index &#8211; S&amp;P 500, The industrial Dow, and the tech-heavy NASDAQ Composite were down 3%, 1.36%, and 3.75% respectively. The stock market continued to decline in October predominantly due to higher bond yields, lower earnings (and projections) and higher-for-long interest rates.</p>



<p>In the bonds market, Fitch’s downgrade of US Sovereign debt had initially kickstarted a rise in US Treasury yield earlier in Q3 2023 —combined with anecdotal inflation indicators and higher-for-longer interest rates, the yield on the 10-year Treasury bond shot above 5% —hitting its highest since 2007 and rattling investors, before retreating a bit.</p>



<p>In the housing market, rates hit a-23 year high with the 30Y Mortgage rate hitting 7.7%. Higher interest rates have rubbed off on mortgage rates, causing the market to experience its lowest housing applications since 1995.</p>



<h2><strong>Asset Classes Overview</strong></h2>



<h2><strong>Stocks:&nbsp;</strong></h2>



<p>The S&amp;P 500 and Nasdaq Composite wrapped up their worst October since 2018. The S&amp;P 500&nbsp; fell 3% this month, marking its third-straight month of declines.<img loading="lazy" src="https://lh7-us.googleusercontent.com/YUIHEX8W5nKDbbeegzju83sow7yr9u2LqtDVwW4F7YllpPVi6hVGu-r3ViSw20e-XEqN9aZLhvA85HgzCbXv9az0ZOyc_MX-iqjpHSmwH0xzqdhax4gT15n9gVI_qgJIuvUza38xlUbXnrc5NxSircw" width="543" height="268"></p>



<p>Our Rise Equity portfolio also closed the month negative (<strong>-2.71%</strong>), mirroring the momentum in the broader stock market (−2.62%). Amidst the sell-offs in the market, our market hedges and shorting positions are helping to reduce the impact of the overall market downturn on our stock portfolio.&nbsp;</p>



<p>We are about halfway through the earnings season, with major Q3 corporate profits higher than expected and beating estimates (77.5% beat, compared to the historical two-thirds). During this reporting period, we closely watched tech giants, financial institutions, semiconductor and energy companies. This performance by major corporations fits well with solid U.S. consumer spending and nominal gross domestic product (GDP) growth during the period. Still, equity investors have become more risk averse as they assess the outlook for resilience, growth and inflation.</p>



<p>The health of the US economy continues to be a focal point of concern. Reports on employment figures, inflation rates, and manufacturing data have influenced market sentiment. Investors have closely monitored these economic indicators for insights into the potential trajectory of interest rates and overall economic stability. The Federal Reserve&#8217;s monetary policy decision on interest rate remains a critical factor affecting market direction.</p>



<p><strong>Regardless of the bearish market sentiment, we remain optimistic about our investment strategy and the business fundamentals of our portfolio companies. We are confident in our position in the market, and we encourage you to approach your investments with a long-term perspective: “buy low and sell high”.</strong></p>



<h2><strong>Real Estate:</strong></h2>



<p>Our Rise Real Estate portfolio returned <strong>1.26% </strong>in rental income for October,<strong> </strong>up by 0.09% from 1.17% in September. The ripple effects of high interest rates translate into higher mortgage rates, higher home prices, and higher rental income, which our real estate assets benefit from.</p>



<p>Mortgage rates are currently at the highest level in 23 years, while applications for home buying have plummeted to lows not seen since 1995. Interest rates on a 30-year mortgage are close to 8% up from 3.9% pre-pandemic, with the average new house payment at a record $1,900/month &#8211; the highest point in almost a quarter century, creating an enormous premium for home buying vs renting, with home buying over 50% more expensive.</p>



<p>Having analysed the renewed housing data in the wake of the spike in mortgage rates over the past two months, we discovered that while new home sales rose strongly in September, existing home sales fell for a seventh consecutive month in October to their lowest level in more than a decade, making this period the least affordable housing period of all time in the US.&nbsp;</p>



<p>With this, we expect our real estate portfolio to continue to provide better returns to our investors due to high mortgage rates and low house inventory in the US. In a period of sell-offs in stocks and bonds, real estate provides another lucrative investment opportunity for investors. Our real estate asset class provides investors with stable and consistent cash flow and is a haven in these uncertain times.&nbsp;</p>



<h2><strong>Fixed Income:</strong></h2>



<p>At Rise, our fixed-income investments generated a return of <strong>0.83%</strong> for October 2023. This performance underscores the resilience and stability of our fixed-income strategy.&nbsp;</p>



<p>In the fixed income market, the sell-off in global markets has gathered pace, and yields on 30-year Treasury bonds hit 5%, the highest level since 2007, as traders brace for an extended period of elevated interest rates. The benchmark bond (10-year Treasury) yields climbed above 4.5%, the highest levels since 2007, as investors weighed a more hawkish Fed, large US fiscal deficits, and persistent inflation.</p>



<p>Treasury yields have risen steadily for almost two years, as investors kept anticipating that Jerome Powell would raise interest rates to combat persistent inflation. Bond yields are used as the benchmark against which lots of other interest rates are set, so recent sky-high yields have contributed to the current eye-popping mortgage rates, which have made homeownership 52% more expensive than renting.</p>



<p>US employment news also did not bode well for those focused on when the US Fed will start lowering interest rates. The labour market data showed job openings unexpectedly jumped in September. Investors are worried that if rates stay higher for longer and we slow down the economy far enough to battle inflation, the US economy will slide into a full-blown recession. Fixed-income traders and investors are bracing for further bond sell-offs amid surging oil prices and a massive fiscal deficit, alongside the US economy&#8217;s continued resilience.&nbsp;</p>



<p>Through diversification and a keen eye for opportunities, we expect our fixed portfolio to continue to provide better and steady returns to our investors. At Rise, we are committed to helping you achieve your financial goals through thorough analysis and careful selection of investment opportunities. So remember to stay invested.</p>


Rise October 2023 Portfolio Report


<p>Investing can be a rollercoaster, from picking what to invest to understanding the markets to applying all the investment strategies like diversification. Diversification involves spreading investments across a range of assets to mitigate risks. It is not merely a recommendation but a fundamental principle for anyone seeking to build and protect their wealth. So whether you&#8217;re a seasoned investor or someone just beginning to explore financial markets, understanding the concept of diversification is key.</p>



<p>The reason for diversification is simple: the investment landscape is fraught with uncertainties, from global economic shifts to sudden market downturns and unforeseen geopolitical events. These unpredictable factors can swiftly turn fortunes, making it essential for investors to mitigate risk and safeguard their financial well-being. Diversification serves as a shield against the volatile nature of the markets.</p>



<p><strong>But first, how exactly do your investments work?&nbsp;</strong></p>



<p>First and foremost, it’s really important to understand how your investment portfolio interacts with each other. What we mean by your “portfolio” is the collection of different investments you’ve amassed and how they are spread across assets like cash in the bank, stocks, bonds, or real estate.&nbsp;</p>



<p>When you own more than one investment, you have built a portfolio. And you now have to consider more than just the potential returns of each asset. Mathematics shows that the value of a portfolio containing several investments that move in uncorrelated ways will jump about less. In practice, finding truly uncorrelated investments is hard. Still, if you manage it, you should suffer from fewer and shallower drops in the value of your portfolio – and hence <strong><em>fewer sleepless nights</em></strong>.</p>



<p>This translates to not putting all your eggs in one basket. Think of a balanced portfolio as gains in one investment that can offset any losses in another investment.</p>



<p>Imagine you own $500 of Apple stock. You won&#8217;t have added much diversity to your portfolio if you have another $500 and use it to buy shares in another giant smartphone manufacturer, Samsung. Both companies’ stocks will likely move in reaction to the same sorts of triggers, like the cost of silicon chips or the willingness of US consumers to spend money. But if you use that extra $500 to buy a French water company’s shares or Canadian government bonds, you’ll probably have diversified quite a bit.</p>



<p>Hence, building a diversified or balanced portfolio minimises your risk of losses.</p>



<h2><strong>How to spread your investments</strong></h2>



<p>There are a range of assets that you can put in your investment basket. The most famous are stocks or equities, shares of the ownership of a company.<br></p>



<p>You’ve also got bonds – the debt of a government or company – foreign currencies, commodities (things like gold or oil ) and even real estate like your house or an office building. Different forces drive the price of these assets, which is a good thing for investors.</p>



<p>For example, stocks are closely linked to company profits, so they tend to gain when the economy is rosy, people are spending freely, and corporations are making money. Stocks in the US – the world’s biggest market – have returned an average of about 9% yearly over the past century. But those returns are far from steady. In 2013, the US stock market surged 32% but tumbled 37% in 2008.</p>



<p>Meanwhile, bonds pay a fixed return; hence, they do well in periods of low inflation (higher inflation erodes the value of their fixed payments) – and bonds of wealthy governments – like the US or Germany – are a favourite for investors in periods of risk because they’re much safer than stocks. US government bonds have returned an average of 5-6% annually over the past century. There’s also gold, which, unlike bonds, climbs when inflation spikes because it is considered a physical, fixed store of value. When inflation causes investors to lose faith in the value of traditional currencies like the dollar or the euro, they head to the safety of commodities like gold.</p>



<p>There’s no definitive way to spread your investments across these assets: there will always be a trade-off between potential gains and losses. But to give you some ideas and inspiration, let’s compare a few portfolios recommended by notable investors:</p>



<h2><strong>Portfolios and Recommendations from Notable Investors</strong></h2>



<p>Warren Buffett, often called the Oracle of Omaha, is renowned for his straightforward investment philosophy. He recommends allocating 90% of your portfolio to a low-cost S&amp;P 500 index fund representing the U.S. stock market and the remaining 10% to short-term government bonds. This approach is rooted in the belief that the U.S. economy will continue to grow in the long run, and by investing in the entire market, you benefit from that growth.</p>



<p>An investment advisor named Harry Browne devised the “permanent portfolio” that splits your pot into four and allocates an equal amount to stocks, long-dated US government bonds, gold, and cash. This fairly conservative strategy aims to provide reasonable gains no matter what the economy is doing. A study assessing the strategy over the 40 years through 2013 found that it gained almost 9% annually.<br><br>Ray Dalio developed the &#8220;All Weather Portfolio,&#8221; to achieve stability and consistent returns in various economic environments. This portfolio consists of 30% U.S. stocks (e.g. S&amp;P 500), 40% long-term U.S. bonds, 15% intermediate-term U.S. bonds, 7.5% gold, and 7.5% commodities. Ray Dalio&#8217;s diversified approach stands out for its adaptability. By holding assets that perform differently in various market conditions, this portfolio seeks to provide steady returns, making it particularly suitable for risk-averse investors.</p>



<p>William Bernstein advises you to split your money into four equal pots, consisting of 25% big US stocks, 25% smaller US stocks, 25% non-US stocks, and 25% bonds. This is a more aggressive approach, as its reliance on shares gives it greater potential for gains and losses.</p>



<p>The best approach for you depends on your risk tolerance, which depends on how long you want to keep investing your money. If you’re building up a down payment to buy a house in five years, you probably want to keep things more conservative than if you’re in your 20s, not planning to touch your stash until retirement.</p>



<p>A rule of thumb used by many investors is to hold more risky investments like stocks while young and gradually allocate more to conservative assets like government bonds over time.</p>



<h2><strong>How to diversify your portfolio on </strong><a href="https://risevest.com/blog/how-you-can-diversify-your-investment-with-risevest"><strong>Rise</strong></a><strong> </strong></h2>



<p><strong><br></strong>Achieving a well-balanced and diversified investment portfolio is essential for financial stability and growth. While the concept of diversification is clear, it can be complex, especially for those lacking the time, expertise, or resources required to construct and manage a diversified portfolio. This is where Risevest comes in.</p>



<p>Risevest is an online investment platform designed to simplify and streamline the investment process for individuals looking to create diversified portfolios. Its core mission is to empower investors of all experience levels by providing access to various asset classes, strategies, and expert guidance.</p>



<ul><li><strong>Broad Range of Investment Options</strong></li></ul>



<p>One of our primary strengths is our commitment to diversification. We provide access to a wide range of asset classes, including <a href="https://risevest.com/stocks">stocks</a>, <a href="https://risevest.com/fixed-income">bonds</a>, and <a href="https://risevest.com/real-estate">real estate</a>, enabling you to create a diversified portfolio that aligns with your investment objectives and risk tolerance.</p>



<ul><li><strong>Professional Portfolio Management</strong></li></ul>



<p>Risevest&#8217;s team of experienced investment professionals manages your portfolio daily. We construct and adjust portfolios to maximise returns while effectively managing risk. This hands-on approach ensures that your investments align with your financial goals and market conditions.</p>



<ul><li><strong>Personalisation and Flexibility:</strong></li></ul>



<p>While we offer professionally managed portfolios, we allow investors to tailor them to meet their specific financial objectives. Whether saving for retirement, a major life event, or just&nbsp; growing your wealth, our goal-based plans help you customise your investments to match your goals.</p>



<ul><li><strong>Education and Support:</strong></li></ul>



<p>We also go beyond just being an investment platform; we provide educational resources and support to help you make informed decisions.</p>



<h2><strong>Conclusion</strong></h2>



<p>Diversification is key to successful investing, and Risevest offers a convenient, user-friendly solution to help you achieve a well-balanced portfolio. By leveraging the opportunities on&nbsp; Risevest, you can confidently navigate the complexities of the financial markets, knowing that your portfolio is carefully balanced and aligned with your financial goals. Sign up <a href="https://click.risevest.com/gb0g/ovb6r0h0">here</a> to begin your investing journey on Rise and achieve a diversified portfolio. If you already have an account, log in to your Rise account to fund and create your investment plans.</p>


Why Diversification is Important.


<p>Hello Risers,<br>We are glad to share the ‘Road to 2024’ savings challenge with you.</p>



<h2><strong>What is the challenge about?</strong></h2>



<p>The idea behind the Road to 2024 challenge is to encourage you to save up some funds during the last few months of 2023 so that you have a good financial start to the new year 2024.<br></p>



<h2><strong>Why is it important for you to start saving towards 2024?</strong></h2>



<p>We all know the end of the year can be a busy time with lots of expenses caused by celebrations, gifting, travel and other unexpected costs.</p>



<p>By participating in this savings challenge, you are joining a group of Rise users who are keeping some money aside to ensure that 2024 kicks off on a good financial note.<br></p>



<h2><strong>How can you join the challenge?</strong></h2>



<ul><li>Join our Telegram community by clicking on our bio and follow our community social media handle on IG</li><li>Create a 3 month real estate or fixed income plan and name it &#8220;Road to 2024&#8221;</li><li>Create a challenge username, it can be anything you like.</li><li>This username will only be used for the leaderboard.</li><li>Please fill out this form where you enter your challenge username and Rise email address &#8211;<a href="https://forms.gle/zLCaFkd8Z7e9c5S19"> https://forms.gle/zLCaFkd8Z7e9c5S19</a> Add funds to your plan as consistently as you can.</li><li>Stand a chance to win prizes based on the volume of your funding.</li></ul>



<p><strong>NOTE</strong>: <br>Please note that we encourage you to bring in new funds for this challenge, instead of moving funds from your existing plans into the Road to 2024 plan.<br></p>



<h2><strong>Prizes To Be Won</strong></h2>



<p>Joining the challenge is free, the goal is to foster a savings and financial planning culture but we will be giving out cash prizes to the highest funders by January 14th, which is when the challenge ends.<br>You need to have a minimum of $300 in the Road to 2024 plan to be eligible for a prize.<br></p>



<h2><strong>Prize for highest funders</strong></h2>



<ul><li>$100 for the top funder</li><li>$50 for the second top funder</li><li>$30 for the third top funder</li></ul>


Road To 2024 Savings Challenge


<p>A few months ago, we hosted an event called The Art of Finance, an intersection between Art and finance. We believe that despite requiring patience, research, and a commitment to learning, investing in art can be a rewarding and enjoyable experience. However, the art market is dynamic and can be influenced by trends and changes in the global economy, so staying informed is crucial. In this article, we will explore how to invest in Art.</p>



<p><br><strong>Clearing the misconception about investing in Art</strong><br>Before we dive in, we want to clear the common misconception about investing in Art. Heading down to your local crafts store and buying a canvas, some paints, and an easel is one way to invest in art, but that isn’t the only way. While art owners can’t trade paintings or sculptures like a stock or bond, they can buy art, as it is an asset class itself. Investors typically describe assets like art as “alternative investments.” Other alternative investments include real estate and typically high-risk hedge funds, crowdfunding, cryptocurrencies, private equity, and venture capital.</p>



<h2><strong>Why invest in art?</strong></h2>



<p>The short answer is diversification. A well-rounded portfolio should encompass various asset classes, including stocks, bonds, and, yes, alternative investments like art. Diversification helps mitigate potential losses in one asset category, such as stocks, by capitalising on gains in others.</p>



<h2><strong>How do you invest in Art?</strong></h2>



<p>Art investors have a few ways to draw themselves into the market. They can buy artworks by relatively unknown or aspiring artists, classics by well-known, usually deceased legends, or works by artists somewhere in between the two.&nbsp;</p>



<p>The barriers to investing in unknown artworks are relatively low since it can be as simple as buying a friend’s piece or something you like at an art fair. In doing so, investors take on the risk of volatility; the price of the piece could rocket if its creator is discovered and critically lauded in the mainstream, or it could melt lower if the artist doesn’t become mainstream.&nbsp;</p>



<p>On the other hand, buying works by old masters or modern legends has historically been trickier, requiring investors to find their way into pretty exclusive auction houses and shell out big bucks to get in on the action. Those who do, however, typically see the value of their artworks rise over time.&nbsp;</p>



<p>The value of the top artworks rose by an average of 9% each year between 2000-2018, while the US stock market rose an average of 3%. The index tracking the value of the most important artists’ work is adjusted annually – as with a stock market index like the S&amp;P 500 – with newly successful artists supplanting those falling from favour.</p>



<p>To grasp this better, the number of major art sales began falling months after the onset of the 2008 global financial crisis. Yet, art’s value didn’t fall as much as stocks’ during the downturn. Research by economists shows that the prices of high-end artworks don’t typically move in lockstep with the stock market, i.e. its correlation with markets is relatively low.</p>



<p>That may be because art isn&#8217;t subject to systemic risk, the notion that a market tends to behave as a single entity. When the economy’s healthy, art changes hands frequently, and there’s high liquidity. But while stock market investors often race to sell their assets when things head south, owners of expensive artworks, who tend to be pretty well off, usually don&#8217;t resort to desperately grasping for whatever they can get. Instead, they simply hang onto them until the market becomes more favourable for selling.</p>



<h2><strong>Things to look out for Before Buying Art</strong></h2>



<p>Here are four key things to think about before buying art:&nbsp;</p>



<ol><li><strong>The historical importance of the artist</strong></li></ol>



<p>Assessing the historical importance of an artist is a fundamental aspect of art investment. To gauge an artist&#8217;s significance, consider if the artist is recognised and esteemed by major institutions and art scholars, as their approval can be a strong indicator of an artist&#8217;s lasting impact on the art world. Additionally, if the artist is deceased, the presence of an estate or trust to safeguard and promote their works&#8217; best interests can significantly contribute to preserving and appreciating their Art&#8217;s value over time. Examining whether the artist was part of a broader art movement, like Impressionism, is also essential, as such movements often raised the profiles of many artists beyond just the most prominent figures. Lastly, the artist&#8217;s recognition and high ratings by import dealers and art critics can offer insight into their potential for robust resale value and enduring appeal in the art market. These considerations collectively help investors evaluate an artist&#8217;s historical significance and ability to withstand time, playing a pivotal role in making well-informed art investment decisions.</p>



<ol start="2"><li><strong>Art first, artist second</strong></li></ol>



<p>As the saying goes, “a rose by any other name would smell as sweet.” A similar principle applies in the art world. Simply because a piece bears the signature of a renowned artist doesn&#8217;t automatically ensure its greatness. Take, for instance, the prolific Pablo Picasso; while his name carries considerable weight in the world of art, not all his creations are equally hailed. Many of his lesser-known works may not hold the same significance as his blockbuster pieces, explaining why some of his ceramics can be found at relatively affordable prices. In the world of art, as in nature, it is often the intrinsic qualities and uniqueness of a piece that truly define its worth rather than the fame of its creator.</p>



<ol start="3"><li><strong>Access is Everything.</strong></li></ol>



<p>When delving into the art market, it&#8217;s essential to recognise that access can often be the true bargain. The question to consider is, do you have the kind of access that opens doors to networks of dealers who specialise in the specific art you&#8217;re passionate about? In this world, the significance of access can often surpass the importance of the initial price.</p>



<p>In fact, it might be worth paying a slightly higher price for a piece that grants you entry into exclusive networks and opportunities, both in terms of future acquisitions and sales. The art market isn&#8217;t always solely about immediate gains; it&#8217;s also about establishing valuable connections and positioning yourself strategically in the market.</p>



<ol start="4"><li><strong>Don’t spread yourself too thin.</strong></li></ol>



<p>In art investment, it is important not to spread your resources too thin. This approach contradicts traditional investment advice, which often strongly emphasises diversification. However, when purchasing artworks outright (as opposed to acquiring shares in one), the prevailing belief is that most investors fare better by allocating their resources toward one or two high-value pieces rather than many affordable ones.</p>



<p>The rationale behind this strategy is rooted in the unique dynamics of the art world. It&#8217;s important to note that highly-rated and critically acclaimed artworks tend to come with heftier price tags. Consequently, investing in a more expensive piece is more likely to be regarded as historically significant, thus enhancing its potential for long-term appreciation in value.</p>



<h2><strong>Risks Involved in Buying Art</strong></h2>



<p>Counterfeits are a concern for many art investors. Naturally, a fake isn’t worth as much as an original, and its discovery as such can render an investment nearly worthless. As with all assets, investors are also subject to market fluctuations, affecting the value of their investments.</p>



<p>Some investors are negative about art altogether. One common opinion is that it’s more guesswork than thoughtful investing since tastes can change, and most pieces lack any inherent value beyond the aesthetic, unlike companies’ stocks, whose values are based on expected future profits.</p>



<p>Another concern art detractors highlight is that, while art is typically a good way to preserve the value of money, it’s not so good when it comes to getting that cash back out since major art sales are few and far between. And there’s no guarantee investors will find a bidder willing to pay the price they want.</p>



<h2><strong>Where can you buy Art?&nbsp;</strong></h2>



<p>Buying a work of art is a great option for investors with serious cash. Fancy a plate by Picasso? Buy for $5,000. An oil painting of his mistress? More like $155 million.</p>



<p>Buying and selling high-value art tends to be centred around a few big auction houses, which hold regular public events or organised private sales.</p>



<p>Once investors have their artwork, they can display it at home or store it for safekeeping. However, some savvy investors might loan their art to a gallery. Sure, they risk damage or theft, but having it on display is a constant reminder of the art’s value and might help it sell for a higher price in the future.</p>



<h2><strong>Buying shares of art</strong></h2>



<p>If the above seems a bit beyond your reach, don’t worry. Thanks to technological advancement, investors who don’t have millions to spare can invest in art, too.</p>



<p>Just as we have helped to democratise access to finance and portfolio-based investing, we have a product called <a href="https://www.assetbase.capital/">Assetbase</a> that provides a gateway for art enthusiasts and investors to partake in the art market in a more accessible manner. Assetbase offers the opportunity to buy art shares, effectively democratising the art investment landscape.</p>



<p>This means that instead of needing a substantial financial outlay to acquire a complete artwork, you can invest in fractions or shares of valuable artwork. This approach reduces the financial entry barrier and also allows you to build a diversified art portfolio without the constraints of buying entire pieces.</p>



<p>So, whether you&#8217;re a seasoned art connoisseur or a budding investor with a passion for the arts, <a href="https://www.assetbase.capital/">Assetbase</a> opens doors to the art market, making it more inclusive and within reach for a broader range of individuals. Join the Assetbase beta launch by creating an account <a href="https://www.assetbase.capital/#waitlist-section">here</a>.</p>


Everything You Need To Know About Investing in Art


<h2><strong>Investment Thesis &#8211; Ulta Beauty</strong></h2>



<p>During economic downturns, investors often seek investments that can withstand the recession. Hence, our team’s current focus is on companies and stocks that can remain resilient throughout the economic cycle. We found that Ulta Beauty, a cosmetics and beauty retail chain, fully meets this criteria.  While makeup may be perceived as an indulgence, Ulta&#8217;s resilience in times of slowing consumer spending and escalating inflation presents a compelling case for investment.</p>



<h2><strong>The Business Summary</strong></h2>



<p>Ulta Beauty, founded in 1990, has a simple and easy-to-understand business model. They have a wide variety of more than 25,000 products from more than 600 brands, sold across 1,300+ stores in high-traffic locations around the US. They sell their products with a very low markup, giving them some of the best prices in retail, with one catch: you need to be a loyalty club member to get the best deals. This gives Ulta Beauty the kind of defensible market strategy employed by the dominant retailer, Costco, where membership confers you access to low-cost products, incentivising more memberships and increasing sales.&nbsp;</p>



<p>Ulta Beauty has products across all the major beauty categories: cosmetics, hair-care products, skincare, fragrance and bath, accessories and services. They also have physical stores, a digital app, and partnerships with retailers like Target. They experience some seasonality, with sales peaking around Valentine’s Day, Christmas, Mother’s Day, etc.</p>



<h2><strong>Business Performance</strong></h2>



<p>Ulta Beauty has some strong numbers, and their numbers have improved over time. Here is the growth in their gross margins and return on invested capital over the last six years:</p>



<figure class="wp-block-table"><table><tbody><tr><td></td><td><strong>2018</strong></td><td><strong>2019</strong></td><td><strong>2020</strong></td><td><strong>2021</strong></td><td><strong>2022</strong></td><td><strong>2023</strong></td></tr><tr><td><strong>Gross Margin</strong></td><td>35.6%</td><td>35.9%</td><td>41.2%</td><td>31.7%</td><td>39.0%</td><td>39.6%</td></tr><tr><td><strong>ROIC</strong></td><td>21.7%</td><td>31.8%</td><td>21.5%</td><td>6.7%</td><td>32.6%</td><td>35.2%</td></tr></tbody></table></figure>



<p>Ulta Beauty owns a relatively large share (almost 10%) of a fragmented industry, with their closest competitor, Sephora, a good distance behind. They have an average net profit margin of 10% and have grown their revenue at roughly 17.6% annually in the last decade. Although growth has slowed slightly in the last two quarters, partly due to rising inflation, we have seen an uptrend in Ulta&#8217;s sales over the past seven years. The company also expects to grow at a 6% average for the next few years, which is still a decent rate.&nbsp;</p>



<h2><strong>Our Thesis</strong></h2>



<p>We believe that Ulta Beauty will continue to post strong profits for the long term, even with modest growth. With a valuation of around 14.6x earnings, they are slightly undervalued relative to their growth potential. This should translate to a healthy return for investors, especially considering management has historically bought back stock aggressively, reducing the outstanding shares and increasing shareholder returns.</p>



<p>We also believe Ulta Beauty has a few sources of competitive advantage: First, they have a large store network with large sizes (over 10,000 square feet), allowing them to carry a wide variety of products. This means they are a speciality retailer with the foot traffic and scale of a mass retailer. It also means they will always be the ideal point of call for a vast market selection. Ulta Beauty already serves almost 25% of all adult women in the United States and owns 39% of the speciality retail market.&nbsp;</p>



<p>Secondly, their loyalty program is best in class and drives most of their sales, with loyalty members accounting for 76% of total revenue and growing. This is almost effectively a captive audience that will continue to drive sales for Ulta.</p>



<p>Thirdly, they have a very strong free cash flow conversion, with 95% of their net income ending up as free cash flow, indicating that they can grow without excess capital commitment.&nbsp;</p>



<p>Lastly, looking at its P/E ratio, the stock currently trades below its 5-year average P/E ratio, showing some buying opportunity and posting significant upside.</p>



<figure class="wp-block-image"><img src="https://lh6.googleusercontent.com/rLdvQRnG5x9w6NktfZ9_4T2Z13ucgtF-vJurgeqP2h3oDeEG4hTLJ89thGfaX5xkRThJzfudAWSyMazeLXFvULirC4q47jatFFPRnIP9AzP35XCwjo85-AaqFvFyfkbOq432OdyIpRhwoBEDsyEc4Ao" alt="" title="Chart"/></figure>



<h2><strong>Risks</strong></h2>



<p>The biggest risk Ulta Beauty faces is competition from Sephora (owned by LVMH), who have enough resources to push their brand aggressively. Another risk is the rise of influencer-driven beauty brands, a model where many social media influencers push their brands through online or e-commerce channels rather than traditional stores.&nbsp;</p>



<p>However, despite these risks, we believe that Ulta Beauty is a compelling investment at these levels and we will be adding it to our long-term portfolio.&nbsp;</p>


We Added Ulta Beauty To Our Stock Portfolio


<p>Investing is one of the few ways to build wealth and meet your financial goals. It is also a journey that very few people like or have the patience to wait out. But not Simisoluwa. In this episode of #MoneyRise, she tells us about her love for investing, her career journey as a finance manager, working with an NGO, and investing on Rise.</p>



<h2><strong>Can you tell us a little bit about yourself and what you do?</strong></h2>



<p>My name is Simisoluwa Abraham. I possess a professional certification with ICAN and studied accounting at Babcock University. Currently, I serve as a finance manager at LEAP Africa, a non-profit NGO. I&#8217;ve always been in the NGO sector since the start of my career. As a finance manager at LEAP, I&#8217;m responsible for managing the finance in the organisation, developing and driving financial resilience, operational strategy, process, and resource optimization including financial and risk management. I have a fiduciary duty to my internal and external stakeholders. My internal stakeholders are the board, management, while external stakeholders are my funders or beneficiaries.</p>



<h2><strong>That’s an interesting bio right there. So why accounting?&nbsp;</strong></h2>



<p>Historically, my interest in finance began as a child when I used to admire the way my dad and other bankers dressed and looked smart. I wondered who they were and what they did. Little did I know that it was a tasking job.</p>



<p>Also, I had a dilemma between accounting and law. I was so confused at the admission stage that I bought two forms— the law and accounting forms. My dad wanted me to read law because he believed I was too expressive and vocal, but I didn’t see that in myself. Decision-making can be very hard for me; I could not decide whether to study accounting or law, so I had to do all the courses in secondary school. I wrote both art and commercial courses at WAEC level. I felt like I could do law because I liked literature and government subjects. At the same time, I liked business studies, accounting and other commercial courses, like economics and commerce. It was really hard to decide. However, I had to ask myself if I wanted to do what I wanted to do or what my father wanted me to do. I had to take the bullet and go for my own choice rather than my dad&#8217;s. That was how I found myself in accounting.&nbsp;&nbsp;</p>



<h2><strong>What has the experience been like?</strong></h2>



<p>My experience so far has been a mix. I have had to learn the ropes of working within finance functions. I started as an intern, and five months later, my manager left. I was lost and left to find my foot in the entire space. I had to&nbsp; learn, unlearn and relearn. But I&#8217;ve been able to grow in the field, gathered experience, and grew to my current position of managing a unit. I’ve also had the opportunity to oversee people’s finances.</p>



<p>To deepen my work within the finance function, I signed up for the CFA program to learn other dynamics of finance and do more innovative and challenging work. Knowledge can never be too much, so I want to know it all.</p>



<h2><strong>You mentioned working in NGOs throughout your career. Have you always wanted to?</strong></h2>



<p>I always get that question. People ask why I chose to work in an NGO instead of an accounting firm. It all started after I was posted to an NGO for my service in Ibadan. I saw how it aligned with my visions and goals, as I was already carrying out community development projects. I renovated a dilapidated home with children living with polio, provided them with supplies and did an entire facelift of that facility. So, working in an NGO just brought those two visions together. I realised that I could actually do my finance work in the sector I wanted.</p>



<p>From there, I got promoted to a full-time role in the organisation. After a while, I moved to another not-for-profit. So it&#8217;s always been not-for-profit over the years. Currently, I work with LEAP Africa, a not-for-profit focused on youth development, leadership, and training. We build up leadership and life skills in young people, and continue to proffer solutions to problems facing youths within the ecosystem. I&#8217;ve grown over the years at LEAP Africa. I feel like I&#8217;ve paid my dues on a daily basis. I enjoy my day-to-day work of managing the entire financial system.</p>



<h2><strong>Wow. Weren’t you fazed by the pay disparity, especially knowing that you could earn more with your finance background working in a for-profit?</strong></h2>



<p>That was an eye-opener for me as well. When I started NYSC, I had this mindset that not-for-profit organisations don&#8217;t pay well. Many often assume that people who work in not-for-profit work for free or for lesser pay because they’re trying to give back to society, but that’s not totally true. It really depends on how large or small the organisation is and if it is a local or international one. In not-for-profit, there’s already a standard way of creating payroll. Funders decide how much each employee receives and put it away. Hence, whatever situation or crisis happens in the economy, you already have the amount set aside, sometimes in dollars. And by the time you convert it to naira, it&#8217;s already bigger than your regular worker’s pay.</p>



<h2><strong>That’s quite the revelation. So, let&#8217;s talk about investing. What are your thoughts on investing?</strong></h2>



<p>I love investing, and I&#8217;ve always been an investment chap. The main idea of investment that many people do not get is that as an investor, you need to have a long-term horizon mindset to make the money work before yielding adequate returns.&nbsp; I advise everybody around me to be an investor. You cannot sit down on cash that you have because it keeps depreciating by the second. If you were earning 200,000 naira last year, the value right now is almost less than 100,000 based on the current economic situation. Hence, I clamour for everyone around me, like my husband, friends and siblings, to make investments. I also try to do investments on different platforms to diversify my options.</p>



<h2><strong>Speaking of diversification, what are some of the things you like to invest in?&nbsp;&nbsp;</strong></h2>



<p>I am currently learning how to position well within the stock markets. The ideal person to invest in stocks is someone who understands what movement means in the chart flows and the stock markets. Regardless, I know how important it is to invest in stocks. You just have to be ready for long-term investment. Because of my limited knowledge of the stock markets, I would rather put very little money in a stocks portfolio. Hence, I put more of my money in fixed income because I know that regardless of what happens, there&#8217;s a fixed percentage coming in for me. I also like real estate because although it is a high-risk, high-return investment, it is not as volatile as the stock market. So, I do real estate on Rise.</p>



<h2><strong>Let&#8217;s talk about your journey on Rise.</strong></h2>



<p>I&#8217;ve been on Rise since 2021. At first, I was sceptical because when I wanted to start using it, there was news that the CBN had frozen Rise account and a few other fintech companies’ accounts. I had recently just downloaded it, ready to start, but I decided to take a step back and wait. I just put very little money in there, one I could let go of. After a while, I came back to start properly. I asked several people who used Rise what their experiences were, and the responses were great, so that built my confidence.</p>



<p>When I was getting ready for marriage, I had to think about what would make my budgeting journey successful for my wedding. I knew the amount and goal I had in mind, but if I kept it in naira, it probably would not work. It was also 2022, and I knew I was getting married in eight months. It was also around the time that the news about currency redesign came out, so scarcity started. I decided to keep my money in USD in Rise, as its value would still be preserved to a very large extent than if I just left the money in naira. This move saved me from a lot of financial trouble.</p>



<h2><strong>We love it! What other ways has Rise helped your financial journey?</strong></h2>



<p>Apart from my wedding, I just try to save and invest in USD largely. If I have my monthly income, I would rather put a larger proportion in Rise because I will convert that money to USD, and I know that I can always withdraw my money in USD if I need it at any time. I would just keep a small percentage for my day-to-day operations in naira. Basically, apart from helping me meet my wedding goal, Rise provides me with capital preservation.&nbsp;</p>



<p>Also, I&#8217;m trying to learn, and Rise helps with that. I read many of the articles published on the blog and feed, particularly the monthly report that shows asset performance for the period, which I use to learn and understand the stock markets better. I also love the explainer articles. For instance, when fuel prices increased, I knew Rise would publish an article explaining why and its implications on people and their finances. And guess what? I was right. I use that to understand more about things happening in the economy.</p>



<h2><strong>You’re welcome! If you had to rate your experience on Rise over 10, what would you rate it?</strong></h2>



<p>I would say eight because there&#8217;s always an improvement to be done on the app for it to be more user-friendly. But overall, it&#8217;s easy to use. I like the fact that I can buy dollars from my bed. I don&#8217;t have to stand up to do that. I can also get my funds back in USD, which is a good plus.</p>



<h2><strong>Thank you! Finally, how likely are you to recommend Rise to people?</strong></h2>



<p>Very 100 percent likely. In fact, 101 percent. Like I said earlier, I always tell people around me to invest, so I recommend Rise every day, every time.</p>


“As An Investor, You Need To Have a Long-Term Mindset To Allow Your Investments Yield Adequate Returns” My Name Is Simisoluwa, And This Is How I make My #MoneyRise.


<p>Inflation is the continuous and consistent increase in the general price level of goods and services in an economy. In this article, we will delve into the strategies and insights that can empower you to make informed investment decisions during times of escalating inflation.</p>



<h2><strong>Moderate and controlled Inflation can be good for Investors</strong></h2>



<p>As goods and services prices increase moderately, businesses make more money in sales and profits. These profits can be used to pay investors more money in the form of dividends or to reinvest in the business to increase revenues and profits, ultimately making companies more valuable.</p>



<h2><strong>High and hyper-inflation is bad for Investors</strong></h2>



<p>When inflation rises beyond a certain point, consumers will not be able to afford to pay for goods and services if their incomes don’t rise to match. If consumers cannot afford to buy as many goods, company revenues and profits will fall, which could cause an economic recession. For assets like real estate, if people looking to buy homes cannot afford to pay more for houses, prices will fall.&nbsp;</p>



<p>This is why Central Banks set inflation targets to allow for long term sustainable growth. While inflation is generally suitable for investors, too much inflation can be harmful.</p>



<h2><strong>How Inflation Affects Different Assets</strong></h2>



<p>Inflation affects assets differently. Some investments perform well when inflation is rising while others suffer. While it’s difficult to precisely predict how each asset will perform, we can look at history and economic theory to get a clue.</p>



<h2><strong>Cash</strong></h2>



<p>Cash is widely known as the worst asset to have as inflation rises. As major definition of inflation is the steady decline in the purchasing power of money. In 2016, it cost a family of five ₦4,087 to make a pot of jollof rice. Last month, the same quantity cost ₦8,590.</p>



<p>That is, the ₦4,087 someone had six years ago that was “strong/powerful enough” to cook one pot of hot delicious jollof rice is no longer “powerful enough” to cook the same today. The purchasing power of cash has been diminished, and inflation has eroded value.</p>



<p>Even cash left in savings or fixed deposit accounts is still not protected because the interest bank accounts pay is significantly lower than inflation. <a href="https://www.banknaija.com/best-high-interest-savings-accounts-in-2020/#:~:text=Currently%2C%20banks%20are%20under%20pressure,speculated%20in%20the%20near%20future.">Nigerian banks</a> offer 3% interest on a savings account on average, while Nigeria’s inflation is at 24.08%, a huge gap.</p>



<h2><strong>Bonds</strong></h2>



<p>A bond is a promise from one person, known as the issuer, to pay another person (bondholder) the money borrowed (principal) at an agreed future date and interest (coupon) regularly. It is an asset that allows governments and companies to borrow money from investors.</p>



<p>Bonds allow issuers to borrow money from investors today, pay the agreed coupons over the bond’s life (agreed borrowing period), and pay the principal upon maturity (agreed future date). E.g. If a company issues a 10% $100 bond with a life of 5 years, the company will pay $10 to investors every year, and at the end of the five years, the company will repay the $100 principal.</p>



<p>Bond issuers can choose to pay investors fixed or variable coupons. When the issuer initially offers the bond for sale, they state the type of payment structure they’ll use.&nbsp;</p>



<p>Inflation is very damaging to fixed-rate bonds because it reduces the value of the coupons paid over the life of the bond and the principal paid at the end. A bond that was paying ₦4,000 in 2016 could cook you a pot of Jollof, but that same bond can no longer do the same in 2022.</p>



<p>If the inflation is higher than the interest rate, investors essentially lose money after adjusting for inflation. However, there is a type of bond that protects investors against inflation. These bonds are called Inflation-Linked Bonds (ILBs).&nbsp;</p>



<p>ILBs have their coupons and principal linked to the inflation rate in an economy. The coupons and principal investors get from holding ILBs rise and fall with inflation.<br></p>



<h2><strong>Real Estate</strong></h2>



<p>Investors can own real estate either directly by owning a house or land or indirectly through Real Estate Investment Trusts (REITs). Real Estate is often referred to as a store of value. The asset class has performed relatively well historically during high inflationary periods.</p>



<p>Investors who own rental properties will generally still be able to rent their property as inflation rises because housing is necessary. However, Central Banks are more likely to raise interest rates as inflation increases.</p>



<p>Higher interest rates can be bad for owners of rental properties and those who sell houses. As interest rates rise, the rate banks charge on mortgages (home loans) rises. An investor who bought their rental property with a floating rate mortgage will pay higher interest on their home; thus, they would have to increase rent to afford their mortgage.&nbsp;</p>



<p>Higher mortgages also mean it is more expensive for people to buy houses. It also reduces the number of people who qualify for loans to buy homes.</p>



<h2><strong>Commodities</strong></h2>



<p>Commodities are a broad category that includes natural gas, petroleum, precious metals, minerals, grains, electricity, currencies, emissions, and other financial instruments. Commodities have historically been seen as an indicator that inflation is to come.</p>



<p>As commodity prices rise, the price of the products that the commodity is used to produce rises as well. Commodities have historically performed well in high inflationary periods.</p>



<p>Investors don’t generally own physical commodities like a barrel of oil or a bar of gold in their homes. They use commodity derivatives to invest in commodities. Commodity derivatives are traded on exchanges like stocks.</p>



<p>Investors can also invest in multiple commodities via exchange-traded funds (ETFs) like the iShares S&amp;P GSCI Commodity-Indexed Trust (GSG).</p>



<h2><strong>Precious Metals</strong></h2>



<p>Gold is often considered one of the best hedges against inflation. Gold was the global reserve currency before it was replaced by the US Dollar almost half a century ago. Some investors still view gold as a reserve currency.&nbsp;</p>



<p>When inflation rises, and the value of traditional currencies like the US dollar falls, investors consider the old reserve currency a safehaven. However, gold is not a perfect hedge against inflation. Central Banks tend to raise interest rates to combat high inflation. Gold doesn’t pay dividends like stocks or coupons like bonds. This reduces the value it can offer investors when interest rates rise.</p>



<p>Stocks</p>



<p>Stocks can be good as a long-term inflation hedge but suffer in the short term if inflation spikes. Not all stocks are created equal. The stocks of high-growth companies do not perform well during inflationary periods, while value companies perform better.</p>



<p>Growth companies are fast-growing companies catering to a rapidly growing customer base. These companies spend a lot of money on advertising, research and product development to achieve this growth.</p>



<p>As such, many growth companies are not profitable, and the ones that make profits end up reinvesting all the profits in the business instead of paying shareholders dividends. When inflation rises, the cost of funding growth companies increases, and future cash flows are discounted to lower values.</p>



<p>This makes it more expensive to fund the desired growth and increases the risk that they might not achieve their goals. On the other hand, value companies like consumer staples, energy, and pharmacy companies will still see revenues because their services are essential to users.</p>



<p>High dividend-paying stocks also tend to suffer when inflation rises beyond manageable. As explained earlier, companies earn more profits when inflation increases and can pay higher dividends. But when inflation is too high, profits fall, forcing companies to reduce their dividends.</p>



<h2><strong>How to Invest when Inflation is rising</strong></h2>



<p>The best bet is to have a diversified portfolio of different assets. Lower-risk assets like cash and bonds tend to perform poorly when inflation rises, so seek opportunities outside those assets.</p>



<p>Assets like commodities, high-dividend stocks and real estate tend to perform better in high inflationary periods. However, it’s essential to have a healthy balance of high and low-risk assets to protect the value of your investment. Because as we learned in this article, high inflation can lead to recessions, and high-risk assets don’t perform too well during recessions.</p>



<p><a href="https://risevest.com/">Rise</a> offers a diverse selection of assets, giving you great opportunities to make profits and protect your investments during market downturns. Check out our offering today.</p>


How to Invest when Inflation is Rising


<p>Several significant life decisions often appear as if they&#8217;re already set in stone, even though they are options that you can choose from. Consider the typical path of getting married, purchasing a home, and having children. Although societal norms concerning marriage and parenting have evolved, the urge to own a house remains quite influential.</p>



<p>Like any other major life choice, deciding whether to rent or buy property requires careful thought; you must consider several factors and make essential enquiries. This article outlines all the things you must consider when choosing&nbsp; between becoming a homeowner or remaining a renter.</p>



<h2><strong>Focus on What You Want</strong></h2>



<p>You might have heard that renting is a waste of money and that owning a home is a better investment. But these ideas are not always true and depend on your situation. To figure out what&#8217;s best for you, ask yourself some of these important questions,&nbsp; “Do you plan to move soon? Are you going to have a bigger family? Do you want to work from home or at an office?”</p>



<p>Some of these questions might not have easy answers, but it&#8217;s really important for us to think about these short pieces of advice we hear about renting versus buying, considering how they fit with our own lives,&#8221;</p>



<p>Simply put, don&#8217;t pay too much attention to what others say you should do. Focus on what you want. There&#8217;s no one-size-fits-all way to decide where you live and how you pay for it.</p>



<h2><strong>Consider Your Life Situation</strong></h2>



<p>Many financial experts challenge the idea that renting is always a waste of money. They emphasise that having a place to live is a fundamental need for everyone, hence renting isn&#8217;t necessarily throwing money away. The decision to buy or rent a house isn&#8217;t black and white; it depends on your financial situation, needs, and where you are in life.</p>



<p>For people still saving up to buy a house or prefer not to deal with property maintenance, renting can be a smart choice. It&#8217;s also beneficial when exploring a new city or a different neighbourhood because it gives you flexibility. Sometimes, the freedom you get from renting makes up for the monthly money you spend.</p>



<p>Ultimately, whether to rent or buy isn&#8217;t just about the numbers. It&#8217;s about your personal circumstances, how much money you have, and what kind of life you want.</p>



<h2><strong>Crunch Some Numbers</strong></h2>



<p>If you aim to choose the most economical option, it&#8217;s crucial to analyse the figures involved. Acquiring a home has the potential to reduce expenses associated with yearly rent and monthly costs. In the same vein, iit is possible that the money paid for the house might be more expensive than the equivalent rent for a similar space.</p>



<p>For instance, Chydee, who purchased a house with the intention of owning a valuable asset, shared his perspective: &#8220;Let&#8217;s assume I spent ₦35 million on buying the house and an additional ₦10 million on finishing it. In January 2021, this was over $100,000. Had I invested this amount in the Fixed Income plan on Risevest, I would have gained a yearly return of $10,000. This sum is sufficient to rent a superior house compared to mine, situated in a more convenient location. Meanwhile, I would retain the compounded $100,000 (now worth about ₦80 million), without the responsibilities and expenses tied to maintaining a house. This also offers the flexibility to relocate without excessive contemplation.&#8221;</p>



<p>Consequently, the argument that renting is wasteful and buying a house is an investment is nullified. Stock market investments generally yield an average annual return of around 10%, while home prices typically grow by approximately 4% each year. </p>



<p>Given this, if you&#8217;re advising an average individual who&#8217;s debating between investing in the stock market and gradually building equity through homeownership, a direct comparison of the two numbers reveals a discrepancy.</p>



<h2><strong>Determine Your Readiness to Own a Home</strong></h2>



<p>Dreaming about having your own home can feel wonderful, but it&#8217;s important to know that owning a home comes with more than just the initial cost you pay. </p>



<p>There are other things like property taxes that you need to think about, and these can add up over time. If you&#8217;re not ready or interested in handling these responsibilities independently, renting might be a better choice.</p>



<p>However, having your own home also has its special side. You can paint the walls any colour you like or even put in a door for your pet. This can be really nice. But if you&#8217;re ready to take on the not-so-fun parts of owning a home, like fixing things and keeping everything in good shape, it might be a good time to consider buying a home seriously.</p>



<h2><strong>Assess Your Financial Standing</strong></h2>



<p>When you&#8217;re thinking about buying a home, there are a few important things you should do. First, you need to make sure your finances are in good shape. </p>



<p>This is the most important step, and it&#8217;s never too early to start getting organised with your money. Also, take some time to ask yourself some important questions. Are you confident that you&#8217;ll keep earning a steady income? How are your finances overall? Are you dealing with a lot of high-interest debt?</p>



<p>Even though the answers to these questions won&#8217;t give you a definite &#8220;yes&#8221; or &#8220;no&#8221; about whether you should buy a home, they can help you figure out what you need to do to get ready financially.</p>



<h2><strong>Take Your Location Into Account</strong></h2>



<p>Sometimes, you might be ready to buy a home financially, but the place you live might not be the best option. For instance, you could have enough money to afford a house in a town like Abiriba, but the same amount might only get you a much smaller property in a city like Port Harcourt. </p>



<p>On the other hand, if the homes in your current area are too expensive, you&#8217;ll have to consider moving to a cheaper place to fulfil your dream of owning a home. Alternatively, it&#8217;s more important to stay where you are and keep renting, even if it costs more. It&#8217;s a decision that depends on how much you can afford, what kind of lifestyle you want, and what matters most to you.</p>



<h2><strong>Explore Renting and Buying</strong></h2>



<p>Sometimes, you don&#8217;t have to limit yourself to just one choice. If you&#8217;re in a good financial position to buy a home somewhere but are not ready to give up your city rental lifestyle in a more expensive area, there&#8217;s another option to consider. </p>



<p>You could buy a property in a different location and still keep your rental where you are. Another idea is to invest in a property that you can rent out. This way, you&#8217;ll have another source of income, and you&#8217;ll also be building ownership in a property while still renting your own home.</p>



<p>Buying a property with the intention of renting it out can provide a better return on your investment than simply buying a home to live in. Think about it this way: when you look at the investment portfolios of wealthy people, you&#8217;ll often find that their main source of wealth isn&#8217;t the house they live in. </p>



<p>It&#8217;s usually the real estate they own and rent out to others. This distinction is important. It means that a home can be seen as an investment if you&#8217;re renting it out, but if you&#8217;re living in it, there are many additional costs to consider.</p>



<h2><strong>Determine Which Choice Might Set You Up for Future Success</strong></h2>



<p>Many believe owning a home is a great way to build wealth over time. However, this isn&#8217;t always the case, and it&#8217;s important to make smart choices instead of just following what everyone else does.</p>



<p>There&#8217;s a common idea that you&#8217;re only a real grown-up when you&#8217;re living alone in your own house. But being a responsible adult also means managing your money and planning for your future, like retirement savings.</p>



<p>True adulting involves owning a home and caring for your future self. If owning a home actually makes it hard for you to save for the future, then that&#8217;s not really being a responsible adult. It&#8217;s more like putting yourself in a tough situation that will be difficult to get out of later on.</p>



<p><br>In the end, whether your preference lies in purchasing a home or renting, there&#8217;s an opportunity to consider. You can explore the <a href="https://risevest.com/blog/how-real-estate-returns-work-on-rise">Risevest real estate plan</a>, a way to invest in property, particularly in the US and regardless of your chosen path. Click <a href="https://risevest.com/real-estate">here</a> to be a homeowner.</p>


Now That You’re Rich; To Rent or To Buy?


<p>Saving money is crucial to financial stability and security, which everyone should strive to achieve. In Nigeria, where the cost of living can be high and the economy is often volatile, saving money can be incredibly challenging. However, with more planning and effort, more Nigerians can save money and secure their financial future. This article explores some practical tips and strategies for saving money in Nigeria.</p>



<h2>Never let your rent be more than your three months&#8217; income.&nbsp;</h2>



<p>One of the most effective ways to save money is to ensure that your rent always falls within a few months of your income, specifically, not more than three months&#8217; worth. This means that if you make N600,000 per month, your rent should never be more than N1,800,000 per year. Keeping your rent at or below this threshold gives you flexibility and ensures you have enough leftover money each month to cover other expenses and save some for your future. Doing this can help you reach your financial goals easier, and live a fulfilling life.</p>



<p>Another benefit of keeping your rent within this guideline is that it can help you avoid falling into a cycle of debt. When rent is too high, it can be challenging to make ends meet and pay for other necessities, such as food, transportation, and healthcare, leading to financial stress and even debt, which can be difficult to break out of. You can avoid this trap and maintain a stable financial situation by keeping your rent affordable.</p>



<h2>Buy in bulk, cut some costs.</h2>



<p>Many of us grew up in Nigerian homes where our parents bought home supplies in bulk, lasting the family months and saving them the cost of buying in pieces. Maybe, at the time, we were kids who didn’t know its essence, but bulk buying is an essential tool when thinking about cutting down spending costs.</p>



<p>Buying in bulk is a cost-effective strategy that can help businesses and individuals take advantage of economies of scale and save money on their purchases. This strategy involves buying large quantities of a product at once, typically at a discounted price. By purchasing large quantities of a product at once, you can negotiate better prices with suppliers and reduce the overall costs of the items. The cost savings can come from various sources, including bulk discounts, volume discounts, or reduced shipping costs.</p>



<p>Additionally, buying in bulk can help businesses and individuals avoid purchasing products frequently, saving them time and money. However, it&#8217;s essential to remember that buying in bulk may not always be the best option. It may not be feasible for businesses or individuals with limited storage space or budget. It&#8217;s also important to consider the product’s expiration date before buying in bulk, as it may not be a good idea if the product goes bad before you can use it.</p>



<h2>Have a giving bucket. When it’s full, close the tap.</h2>



<p>As Nigerians will say, “It takes a village to raise a child.” In return, the child grows up and takes care of the village that nurtured them. This village includes parents, family members, and friends, and the nurture ranges from paying rent or the school fees of a relative, buying clothes, starting a business for them, and generally, catering to their financial needs. Some would call it black tax.</p>



<p>Having a budget for your black tax or how much you give is a great way to ensure that you give back to your community and support causes you believe in without overspending. This budget should be a set amount of money you allocate specifically for charitable donations and volunteer work.&nbsp;</p>



<p>When creating your giving budget, it is important to be realistic about how much you can afford to set aside each month. It can be tempting to give more than you can afford, but remember that you also need to take care of yourself and your financial needs.</p>



<p>Once your giving budget is set, it is important to stick to it. And when you reach the budget limit, you should close the tap and not overspend. This will help you stay on track with your overall financial goals and ensure that you are not only able to save but also able to continue giving back in the future.</p>



<p>It&#8217;s also important to remember that giving doesn&#8217;t always have to be monetary. You can give your time and skills by volunteering or mentoring, which can be equally valuable and impactful. Remember, the most important thing is to make a positive difference in the lives of others and contribute to your community while also saving.</p>



<h2>Budget for everything, especially entertainment.</h2>



<p>It&#8217;s important to budget for everything, including entertainment. Entertainment can be a big expense, especially in big cities like Lagos, and if you like to go out a lot. Whether going to the movies, going out to eat, or taking a weekend trip, these things can add up quickly and be a major drain on your budget.</p>



<p>One way to budget for entertainment is to set a monthly or weekly entertainment budget. You can base this budget on your income and other expenses, such as rent, utilities, and groceries. It&#8217;s important to stick to this budget, even if it means saying no to some fun activities or events.</p>



<p>Another way to budget for entertainment is to look for free or low-cost activities and events. You can attend free concerts, festivals, and other events that are open to the public. You can also check out local museums, parks, and libraries for free or low-cost activities.</p>



<p>When planning a trip or vacation, it&#8217;s important to budget for all expenses, including transportation, lodging, food, and entertainment. Plan and book your trip early to get the best deals. You can also look for travel deals and discounts on sites that offer them.</p>



<p>Budgeting for entertainment is about being mindful of how you spend and finding ways to have fun without breaking the bank. Setting a budget, looking for free or low-cost activities, and planning will allow you to enjoy all the fun and entertainment you want without breaking the bank or going into debt.</p>



<h2>Get insurance; unforeseen events are a thief of wealth.</h2>



<p>There’s a joke that says, “It won’t happen to me,” is Nigerians’ insurance. However, mere words are insufficient to protect anyone from car accidents, fire, theft, or any other type of loss.&nbsp;</p>



<p>Insurance provides individuals and businesses a safety net against financial loss in the case of unforeseen circumstances. Without insurance, unexpected events can cause significant financial strain and even bankruptcy. For example, a car accident can result in costly medical bills and repairs. Without a car and medical insurance, the individual would be responsible for paying for these expenses out of pocket, which could lead to financial ruin.</p>



<p>Hence, investing in a comprehensive insurance plan is essential to safeguard against potential financial loss and ensure peace of mind in the event of unexpected circumstances.</p>



<h2>Buy original for longevity.</h2>



<p>Buying original products for longevity is a smart financial decision that can save you money in the long run. When you purchase original products, you invest in products made with high-quality materials and built to last, which means that you will not have to replace the product as often, saving you money over time.</p>



<p>For example, purchasing an original handbag will likely last you for several years, whereas a knock-off handbag may only last you for a few months. In the long run, you will spend more money on knock-off handbags because you will have to replace them more frequently.</p>



<figure class="wp-block-image"><img src="https://lh5.googleusercontent.com/gKW6BMwl4uP29vw30oc2-aXAoK0cOhnqWNCWXcbmgSGdRVn37GJLUYZV0fyCnyU9_8EoHlDAnrmLImBaupCaNHDPV_pfPRDjE0Ra-3AvicKZUHa-nhl8G_Ns-iW5DK6KDv_9VsWnpXd4qq1aW3Y-IjHJtWeS1J8_6mbZv_7YVl6rb1dXzEBKpiYsEXANxw" alt="Image"/></figure>



<p>Another benefit of buying original products is that they often come with warranties and guarantees. If something goes wrong with the product, you can have it repaired or replaced at no extra cost, saving you money on repairs or replacements that you may have to pay for if you had purchased a knock-off product.</p>



<p>So, next time you shop, consider investing in original products for a more cost-effective purchase.</p>



<h2>If you work remotely, move to a cheaper City&nbsp;</h2>



<p>One of the biggest expenses in major cities is rent. However, living in a secondary city in Nigeria or anywhere in the world can be a great way to save money if you work remotely. Secondary cities in Nigeria, such as Abeokuta, Calabar, and Ibadan, offer a lower cost of living compared to the major cities like Lagos and Abuja, which means that you can save money on expenses like rent, transportation, and food.</p>



<p>For example, in Lagos, the average rent cost is as high as N500,000 per year. In contrast, the average cost of rent in a secondary city like Abeokuta can be as low as N200,000 annually, meaning that you can save N300,000 per year on rent alone by moving to a secondary city.</p>



<p>So if you work remotely and are looking to save cost, you should consider moving to a cheaper city.</p>



<h2>There’s rice at home.&nbsp;</h2>



<p>Eating outside, whether at a restaurant, fast food establishment, or just grabbing takeout, can be a significant expense. Preparing meals at home is often much cheaper and allows you to have more control over what goes into your meals and the nutritional value of your food. By cooking at home, you can buy food items in bulk, save money, and plan your meals, which can help you avoid impulse purchases at the grocery store. Eating at home can also save you money on transportation costs and other expenses associated with going out to eat.</p>



<p></p>



<p>As inflation keeps soaring and things get more challenging, it is essential to adopt these cost-saving tips and live up to them. This way, you can save and reach your financial goals faster and easier.</p>



<p>Remember, the more you save, the more you can invest into your future and the more money that gives you down the road. So channel some of those savings into your investment plans on Rise.</p>


The Best Money Saving Tips for Nigerians


<p>Everyone wants to grow their wealth and meet their financial goals— from the trader in the market to the university professor to the young tech founder. However, investing your hard-earned money is a crucial decision that can significantly impact your financial future. Where do you invest? How do you begin? What options do you have available? These are some of the questions you may have.</p>



<p>As a Nigerian investor— beginner or not— it is essential to consider the options available and weigh their pros and cons. Two popular investment options available in Nigeria are stock and real estate investments, which we&#8217;ll discuss in this article to help you decide which suits you better.</p>



<h2><strong>Stock Investment: Building Wealth through the Stock Market</strong></h2>



<p>Stock investment involves buying shares of publicly traded companies listed on the stock market. When you invest in stocks, you become a shareholder, owning a portion of the company&#8217;s assets and earnings.&nbsp;</p>



<p>Some companies offer investors different stock options in Nigeria, ranging from Nigerian stocks to foreign stocks like Meta, Alphabet, JPMorgan, and Apple. One of these companies is <a href="https://risevest.com/">Risevest</a>, a dollar-denominated investment platform that puts your money in high-quality assets, helping you build wealth and achieve your financial goals.</p>



<h2><strong>Benefits of investing in stocks</strong></h2>



<ul><li><strong>Liquidity</strong></li></ul>



<p>One of the key advantages of stock investment is liquidity. Stocks are highly liquid assets, meaning they can be easily bought or sold on the stock market. This flexibility allows investors to react quickly to market changes or take advantage of potential investment opportunities.</p>



<ul><li><strong>Opportunity for diversification</strong></li></ul>



<p>Another benefit of stock investment is the opportunity for diversification. The stock market offers a wide range of companies across various sectors. By investing in different stocks, you can spread your risk. If one company or sector underperforms, your portfolio can still be protected by the performance of other stocks in different industries.</p>



<ul><li><strong>Potential for significant growth</strong></li></ul>



<p>Stocks also provide the potential for significant growth. Well-performing companies can experience substantial capital appreciation over the long term. Investing in fundamentally strong companies with solid growth prospects can lead to impressive returns on investment.</p>



<p><strong>Downsides of stock investing</strong></p>



<p>Although stock investing has quite some benefits, it comes with its disadvantages.<strong> </strong>The stock market is volatile, with prices subject to frequent fluctuations due to market conditions and economic factors. This volatility can lead to short-term losses and requires investors to have a long-term perspective, remaining focused on their investment objectives.</p>



<p>Furthermore, stock investors have little control over the day-to-day operations of the companies they invest in. As a passive shareholder, you have no direct say in management decisions. Changes in company leadership, poor performance, or unforeseen events can impact the value of your investment.</p>



<h2><strong>Real Estate Investment: Profiting from Property Ownership</strong></h2>



<p>Real estate investment involves purchasing land, residential homes, commercial buildings, or rental properties. Real estate investments provide tangible assets with inherent value. Many Nigerian companies offer numerous opportunities for real estate investment, even in the global market, with a growing population and increasing demand for housing and commercial spaces. One such company is Risevest, which invests in a portfolio of <a href="https://risevest.com/real-estate">rented buildings in the US</a>, managing your money for returns through rent and capital appreciation.</p>



<h2><strong>Benefits of investing in real estate</strong></h2>



<p>Some of the benefits of real estate investing include:</p>



<ul><li><strong>Potential for cash flow</strong></li></ul>



<p>One of the main advantages of real estate investment is the potential for cash flow and passive income. By purchasing rental properties, you can generate regular income through rental payments. This offers a steady cash flow stream that can provide financial stability and grow over time.</p>



<ul><li><strong>Control and flexibility</strong></li></ul>



<p>Real estate also provides a certain level of control and flexibility. Unlike stocks, where you are a passive shareholder, real estate investments can allow you to make decisions that directly impact your investment returns. You can control property management, renovations, rental rates, and overall property strategy.</p>



<ul><li><strong>Hedge against inflation</strong></li></ul>



<p>Additionally, real estate investments can act as a hedge against inflation. Land and properties have the potential to appreciate over time, keeping pace with or even outpacing inflation. This can help preserve and grow your wealth in the long run.</p>



<h2><strong>Downsides of Real estate investing</strong></h2>



<p>Despite the above benefits associated with real estate investment, it has drawbacks. Here are some of them:</p>



<ul><li><strong>Not very liquid</strong></li></ul>



<p>Liquidity is the ease with which an asset can be readily converted to cash while maintaining its market price and value. Real estate is relatively illiquid (cannot be easily converted to cash) compared to stocks. Selling a property may take time, and the process can involve transaction costs such as legal fees and property transfer taxes. This lack of liquidity means that real estate investments may not be suitable for those needing quick access to cash.</p>



<ul><li><strong>Availability of funds</strong></li></ul>



<p>Real estate investment also requires a substantial initial investment. Purchasing properties often involves significant capital, including down payments, property maintenance costs, and other associated expenses. This can make it challenging for some individuals to enter the real estate market. Rise, however, makes real estate investing easy for investors. With as low as $10, you can invest in US real estate on Rise.&nbsp;</p>



<p>We aggregate investments from our clients, which we use to purchase rental properties across the United States to generate returns for our investors through rental income and price appreciation when properties get sold. If you haven&#8217;t started, you can start investing <a href="https://app.risevest.com/login">here</a>.</p>



<ul><li><strong>Potential market and location risks</strong></li></ul>



<p>Additionally, real estate investment carries market and location risks. The value of real estate can be influenced by factors such as the property&#8217;s location, market demand, and local economic conditions. Investing in properties in undesirable locations or during a downturn in the real estate market can result in decreased property values or difficulty finding tenants, impacting your investment returns.</p>



<h2><strong>Factors to consider before choosing between real estate and stocks.</strong></h2>



<p>When deciding between stock and real estate investments, you must consider some factors specific to your financial goals, risk tolerance, and personal circumstances.</p>



<ol><li><strong>Risk and Return: </strong>Stocks generally offer higher potential returns but have higher volatility. On the other hand, real estate tends to be more stable but may offer moderate returns over the long term. Consider your risk appetite and the level of risk you are comfortable with when making your investment decision.</li><li><strong>Liquidity: </strong>If you require quick access to your funds or prefer investments that can be easily bought or sold, stocks offer greater liquidity. On the other hand, real estate investments can be more illiquid and may take time to sell.</li></ol>



<ol start="3"><li><strong>Investment Horizon: </strong>Determine your investment horizon, i.e., the length of time you intend to hold your investment. Stocks are often more suitable for long-term investors who can weather short-term market fluctuations. Real estate investments, particularly rental properties, tend to provide stable income over a more extended period.</li></ol>



<ol start="4"><li><strong>Expertise and Involvement:</strong> Consider your knowledge and experience in the respective investment fields. Stocks require research, analysis, and staying informed about the companies you invest in. Real estate investments may require understanding property market dynamics, property management, and tenant relations. Assess your comfort level with each investment option based on your expertise and willingness to be involved in the investment process.</li></ol>



<p>On Risevest, however, we take that stress off you. We do the work for you and are fully committed to investing your money at the best available price and conditions. So you don&#8217;t have to worry too much about the market.</p>



<ol start="5"><li><strong>Portfolio Diversification: </strong>Diversification is key to managing risk. Assess how your investment in stocks or real estate would complement the existing assets in your investment portfolio. Diversifying across different asset classes can help mitigate risk and potentially enhance overall returns.</li><li><strong>Tax Considerations: </strong>Evaluate the tax implications associated with each investment option. Both stocks and real estate have tax considerations, including capital gains tax, rental income tax, and property taxes.</li></ol>



<h2><strong>Conclusion</strong></h2>



<p>Both stock and real estate investments offer unique advantages and disadvantages for Nigerian investors. Stocks provide liquidity, diversification, and the potential for high returns but also carry market volatility and lack of control. Real estate investment offers tangible assets, cash flow, and control but requires significant capital and can be less liquid.</p>



<p>Ultimately, the choice between stock and real estate investment depends on your financial goals, risk tolerance, investment horizon and other personal needs. It&#8217;s essential to conduct thorough research. You may also want to consider a diversified investment approach to maximise your chances of achieving your financial objectives. Rise gives you that. You can diversify your investment portfolio by investing in our stock and real estate plans, mitigating risks and tapping into the potential of higher returns.</p>


Stock Investment vs Real Estate Investment: Which is Better for Nigerians?


<p>The possibility that the United States Government might default on its debt is becoming very real, as the standoff between President Joe Biden and House Speaker Kevin McCarthy over raising the federal debt limit is causing some anxiety in the market.&nbsp;</p>



<p>And while the United States officially hit its debt limit on Jan 19, prompting the Treasury Department to use accounting manoeuvres known as extraordinary measures to continue paying the government’s obligations and avoid a default, Treasury Secretary Janet L. Yellen has warned lawmakers that the United States could run out of cash by June 1 if the borrowing cap isn’t raised or suspended.&nbsp;</p>



<p>The mere mention of the US Treasury defaulting on its debt is causing panic as such a scenario would have far-reaching consequences, impacting not only the US economy but also the global investment climate and stock markets.&nbsp;&nbsp;&nbsp;</p>



<p>In this article, we delve into the potential repercussions of a US Treasury default, exploring its effects on the stock market and investment climate, and how Rise will provide guidance in navigating these murky waters. So, fasten your seatbelts as we navigate the uncertain terrain of a hypothetical default.</p>



<h2><strong>But first, what is the debt limit?&nbsp;</strong></h2>



<p>The debt limit is a cap on the total amount of money the United States is authorised to borrow to fund the government and meet its financial obligations. Because the federal government runs budget deficits — meaning it spends more than it brings in through taxes and other revenue — it borrows huge sums of money to pay its bills. Those obligations include funding for social safety net programs, interest on the national debt, and salaries for members of the armed forces.</p>



<p>Approaching the debt ceiling has elicited calls by lawmakers to cut back on government spending. But lifting the debt limit does not authorise any new spending — in fact, it simply allows the United States to spend money on programs that Congress has already authorised.</p>



<h2><strong>Why does the United States have a debt limit?</strong></h2>



<p>According to the constitution, Congress must authorise government borrowing. In the early 20th century, the debt limit was instituted so that the Treasury would not need to ask Congress for permission each time it had to issue debt to pay bills.</p>



<p>During World War I, Congress passed the Second Liberty Bond Act of 1917 to give the Treasury more flexibility to issue debt and manage federal finances. The debt limit started to take its current shape in 1939 when Congress consolidated different limits set on different types of bonds into a single borrowing cap. At the time, the limit was set to $45 billion.</p>



<p>While the debt limit was created to make the government run more smoothly, many policymakers believe it has become more trouble than it’s worth. In 2021, Ms. Yellen said she supported abolishing the debt limit.</p>



<h2><strong>How much debt does the United States have, and how much is the borrowing cap?</strong></h2>



<p>The national debt crossed $31 trillion for the first time last year. The borrowing cap is set at $31.381 trillion.</p>



<h2><strong>What happens if the debt limit is not raised or suspended?</strong></h2>



<p>If the government exhausts its extraordinary measures and runs out of cash, it will be unable to issue new debt. That means it would not have enough money to pay its bills, including interest and other payments it owes to bondholders, military salaries and benefits to retirees.</p>



<p>Economists and Wall Street analysts warn that such a scenario would be economically devastating and could plunge the entire world into a financial crisis.&nbsp;</p>



<ul><li><strong>Investment Climate in Turmoil</strong></li></ul>



<p>A US Treasury default creates a hostile investment climate filled with uncertainty and risk aversion. Investors, both domestic and international, seek safe-haven assets during times of turmoil. US Treasury bonds have traditionally been considered safety pillars due to their perceived low risk. However, a default shatters this notion, leading investors to question the reliability of US government debt as a safe investment.</p>



<p>When trust is broken, investors look for alternative investment options. Precious metals like gold and silver and cryptocurrencies like Bitcoin often witness increased demand during uncertain times. These alternative investments are viewed as stores of value that can weather the storm of a default. Consequently, their prices surged, reflecting the flight of capital away from traditional markets.</p>



<ul><li><strong> The Stock Market Roller Coaster Ride</strong></li></ul>



<p>A US Treasury default would undoubtedly trigger significant volatility in the stock market. Investors thrive on stability and predictability, but a default would introduce a high degree of uncertainty, causing panic and anxiety. The US government debt is seen as a risk-free entity with a solid history and track record of financial stability. When the US government fails to pay its debts, it erodes investor confidence, leading to a rapid sell-off of stocks. As a result, stock prices plummet, and market indices experience sharp declines.</p>



<ul><li><strong> Policy Implications and the Road to Recovery</strong></li></ul>



<p>Following a US Treasury default, policymakers will be forced to undertake swift and decisive action to mitigate the damage and restore investor confidence. Emergency measures, like injecting liquidity into the financial system, implementing fiscal stimulus packages, and introducing regulatory safeguards, might be deployed to stabilise the markets and instil a sense of security.</p>



<p>Rebuilding the investment climate would require concerted efforts to restore trust in US government debt. This could involve implementing fiscal discipline measures, addressing structural issues in the economy, and crafting policies that demonstrate a commitment to debt repayment. These actions would gradually help restore investor confidence and encourage them to reenter the market.</p>



<p>At Rise, our position is clear— to protect your wealth and help you achieve your financial goals. We are optimistic that a deal will be reached soon between the executive and Congress. A deal will bring freshness and relief to the market, which could rally the market. Thus, the best time to INVEST in <a href="https://click.risevest.com/gb0g/ovb6r0h0" data-type="URL" data-id="https://click.risevest.com/gb0g/ovb6r0h0">RISE</a> is now.</p>


Everything You Need To Know About The US Debt Ceiling


<p>Apple recently launched a savings account in partnership with Goldman Sachs, which offers a 4.15% interest rate through its Apple Card product. This rate is more than 10 times higher than the US national average interest rate, drawing nearly $1 billion in deposits in just four days of its launch.</p>



<p>While the savings account is unlikely to have a material impact on Apple&#8217;s profit-and-loss statement, it reinforces the company&#8217;s strategy to increase customer loyalty to the Apple Card and key into the Apple ecosystem. </p>



<p>This is where the savings account is easily accessible through the Wallet app, and users can view their balance, interest rate, and transaction history. Apple’s new offering is the most recent in a string of financial efforts from the company, helping the tech giant compete directly with banks. This move has the potential to significantly impact Apple&#8217;s business model in several ways.</p>



<p>As usual, in pursuit of our mission to help our users become better-informed investors, Rise will attempt to provide some perspectives on this and how Apple&#8217;s move will impact its business model and long-term growth prospects.&nbsp;</p>



<h2><strong>Generating New Revenue Streams</strong></h2>



<p>By offering savings accounts, Apple is providing a new product to consumers that could drive usage. While Apple&#8217;s business model has traditionally relied on hardware sales, such as iPhones and Macs (52% came from iPhone sales in 2022), the launch of savings accounts with a high interest rate could help the company generate new revenue streams.&nbsp;</p>



<h2><strong>Increasing Customer Loyalty</strong></h2>



<p>Apple has a loyal customer base, and by offering a high-interest savings account, the company is providing another incentive for customers to remain within the Apple ecosystem. This move could help boost customer retention and increase overall customer loyalty. Also, Apple&#8217;s reputation for innovation and excellence may also translate to financial services, enhancing customer trust in the company&#8217;s new offerings.</p>



<h2><strong>Enhancing Brand Value</strong></h2>



<p>The launch of savings accounts with a high interest rate could also enhance Apple&#8217;s brand value. By entering the financial services sector, Apple is positioning itself as a financial services provider, which could further enhance the company&#8217;s reputation and help attract new customers. This move could also help Apple differentiate itself from other technology companies and create a competitive advantage.</p>



<p>In conclusion, the launch of savings accounts is all about the power of hooks for Apple. Aside from the fact that it could drive new revenue streams, diversify revenue sources, this move will further increase customer loyalty, enhance brand value, and keep customers within its ecosystem. Only time will tell how successful Apple will be in this new venture, but it&#8217;s clear that this move represents a significant shift in the company&#8217;s business model and could have far-reaching implications for the technology and financial services industries.</p>


How Apple’s New Savings Account Will Impact Its Business Model


<p>The major story since the final weeks of March has been the move by a number of countries ranging from Russia, China, India, and now Saudi Arabia to switch their trade settlement currencies from the global reserve USD to their own individual currencies. </p>



<p>These agreements have largely been bilateral, but it has accelerated with the Ukraine war and China’s growing influence. This has raised eyebrows from many about the status of the US Dollar on the global stage, and the continued value of investments domiciled in US dollars.&nbsp;</p>



<p>As always, Rise will try to provide some perspectives on this in response to a number of questions from our users and in pursuit of our mission to help our users become better-informed investors.&nbsp;</p>



<ol><li><strong>The US Dollar Is Not the World’s Only Reserve Currency</strong></li></ol>



<p>One of the first things we often have to point out is that the US dollar has never been the <em>only </em>reserve currency in the world. Reserve currency, in this case, is defined as the currencies countries use to settle trade balances, hold central bank reserves and flow to for a safe store of value. By this definition, the Euro, the Japanese Yen, the British pound, and the Chinese Yuan all qualify.&nbsp;</p>



<p>The primary difference between these other currencies and the dollar is the much larger share of world trade conducted in dollars versus the rest. In 2000, 71% of the world’s trade was settled in dollars. By 2022, this number had dropped to 58%. However, that is still far larger than the second-placed Euro (at 20%), third-place Yen (5.5%), fourth-place Pounds (4.9%) and the Chinese Yuan (2.2%) to round up the top 5. So while these shifts will continue to happen as China, India, and other countries control more of the world’s trade, it is not as dramatic as the media makes it seem. The higher the slice of global trade you control, the easier for more countries to accept and do business in your currency. So while the share of trade settled in US Dollars will ebb and flow in the long run, the dollar will always hold sway as a strong, reserve currency unless something catastrophic happens to the US economy.&nbsp;</p>



<ol start="2"><li><strong>The US Dollar Is Still Going to Be In Demand Despite the Switches</strong></li></ol>



<p>Despite some of the announced switches, it is crucial to understand that being used as a trade settlement currency is not the only reason for US Dollars demand globally. One of the advantages the dollar has is that it is connected to a deep, liquid and active securities market tied to it, which makes it fast and stable to do business in and protects you from a decent amount of exchange rate risk. For this reason alone, a lot of the world’s business will always be done in dollars. It’s a bit like a network effect— the dollar is the most massively traded currency and is connected to the deepest liquid markets.&nbsp;</p>



<p>The US economy, its monetary and credit system is also the most trusted globally, meaning that the majority of the world’s central banks, and the banks that rely on them, regardless of which currency they hold reserves in, want to ensure that when they need funds, they will get it. The dollar offers the best chances of that happening. The US also has a long creditworthiness history, which also means that parking money in the US Treasury is one of the few reliable choices for many central banks.&nbsp;</p>



<p>All these will ensure that dollar demand does not drop radically despite the current changes we are seeing.&nbsp;</p>



<ol start="3"><li><strong>The value of your dollar investments is not tied to the dollar being a reserve currency.</strong></li></ol>



<p>One of the mistakes a lot of people make is to think that the main driver of their investment returns is because it is in dollars. That is not the case. Investing in dollars is very beneficial, especially if your local currency is weakening or has high inflation— the dollar will be more valuable over time.&nbsp;</p>



<p>But the real gain in your investment comes from the increased value of the asset due to its performance and economic gains over time. For instance, while the dollar’s share of global trade dropped -13% from 2000 to 2022, the S&amp;P 500 gained over 311% in the same time frame. Several stocks like Domino’s Pizza, Tesla and Apple have gained more than 1000% in the period. As an investor in these assets, the acceptability of the dollar is not why your investment did well. Your investment did well because it gained value; it was domiciled in a strong securities market with a lot of liquidity and a large economy with a strong demand base. As long as these remain true, your investments will still do well no matter what happens with Yuan.&nbsp;</p>



<p>In conclusion, as we continue to navigate the ever-changing financial landscape, we understand that staying ahead of the curve is essential in providing you with the best investment opportunities worldwide. Hence, we are committed to adding additional investments representing the best opportunities for your money, and we look forward to helping you achieve your investment goals.</p>


Why Countries Switching Trade Currencies Does Not Affect Your Dollar Investments


<p>Ejigi was recently scammed of ₦51,000. He had seen a post on Twitter from one of the fintech companies he has an account with about a giveaway and decided to participate in it. </p>



<p>That would be his first time ever. Just after he liked the post, the handle reached out to him with a link, and told him the steps he needed to follow to win the giveaway. </p>



<p>Unsuspecting Ejigi clicked on the link, which requested for the sign-in details to his account, but nothing came up. A few moments later, he got another message from the same handle asking him to make a deposit of ₦50,000 into his account as it was one of the requirements that would qualify him for the giveaway. </p>



<p>Prior to that, he had just a thousand naira in his account. Excitedly, Ejigi transferred ₦50,000 to his account, making his total balance ₦51,000. Right after his deposit, he received a debit alert of ₦51,000. This was when it dawned on him that he had just been scammed. Two months later, Ejigi is yet to get his money back. You may have had a similar experience as Ejigi or know someone who has. </p>



<p>There has been a recent spike in the stories about cyber scams, particularly relating to financial apps and accounts. These stories range from the young woman who was unknowingly communicating with a fake help handle of a fintech company on Twitter, to the one whose account was hacked and wiped through a phishing link to the story of Ejigi above.</p>



<p>In today&#8217;s world, where most of our daily activities are conducted online, protecting our personal information and financial data has become more critical than ever. Scammers and hackers are always on the lookout for opportunities to steal passwords and exploit unsuspecting users to gain access to sensitive information to their accounts.</p>



<p>Hence, it is essential to take the necessary precautions to secure your passwords and financial apps.&nbsp;</p>



<h2><strong>Common scam methods:</strong></h2>



<p>There are quite a number of methods used by scammers to gain access to personal information of victims. Here are some of them:</p>



<p><strong>Phishing Emails/Messages:</strong> Phishing emails are fake emails that look like they come from a legitimate source, such as a bank or a financial institution, but are designed to trick you into giving away your login credentials or personal information. Messages like this always contain malicious links or attachments, which the scammers use to get every information that they need.</p>



<p><strong>Fake Social Media Handles/CS Representatives:</strong> For companies with social media presence, scammers usually create a misleading social media help account, which they often use to reach out to and scam unsuspecting victims who open up to them when they have issues relating to their account.</p>



<p><strong>Scam Calls: </strong>With this type of scam, the caller pretends to be from your bank or a fintech company, claiming that your account has been compromised and that they want to help you fix it. They request for your personal information and sometimes a one-time password (OTP), which will be sent to your phone. Once they have all this information, they can then hijack your account and take out all the funds you have.&nbsp;</p>



<h2><strong>Here are some tips to help you stay safe from scammers:</strong></h2>



<ol><li><strong>Use strong passwords:</strong> A strong password is one that is at least 8 characters long and includes a mix of upper and lowercase letters, numbers, and special characters. It is important to avoid using easily guessable words or phrases such as your name, date of birth, or common words like &#8220;password&#8221; or &#8220;123456.&#8221; Use different passwords for different accounts, and change them regularly.</li></ol>



<ol start="2"><li><strong>Enable two-factor authentication:</strong> Two-factor authentication (2FA) adds an extra layer of security to your accounts by requiring a second form of authentication, such as a fingerprint scan, a text message, or an app notification. This makes it harder for scammers to gain access to your accounts, even if they have your password.</li></ol>



<ol start="3"><li><strong>Verify company’s handle and links: </strong>Before you click on any link or share any information with anyone, verify that the links are safe and secure and that the account you’re interacting with is a trusted one.</li></ol>



<ol start="4"><li><strong>Report fake CS representatives and malicious activities: </strong>If a customer representative requests for your login credentials, ensure you report the situation to the company; they or the channel may have been compromised. In no context is a customer representative allowed to request for a user’s login credentials.</li></ol>



<ol start="5"><li><strong>Keep your apps and devices updated:</strong> Updates to your apps and devices often contain security patches that address vulnerabilities and bugs that can be exploited by scammers. Make sure to keep your apps and devices up to date to ensure that you have the latest security features.</li></ol>



<ol start="6"><li><strong>Be wary of phishing emails and scams:</strong> Threat actors leverage on a range of human emotions such as curiosity, urgency, fear, greed, and even trust to harvest and steal login credentials. Be cautious of unsolicited emails or messages and do not click on links or download attachments from unknown sources.&nbsp;</li></ol>



<ol start="7"><li><strong>Use a reputable antivirus software:</strong> Antivirus software can help protect your computer or mobile device from malware, which can be used to steal your passwords or financial data. Use a reputable antivirus software and keep it up to date.</li></ol>



<ol start="8"><li><strong>Be cautious when using public Wi-Fi:</strong> Public Wi-Fi networks are often not secure and can be easily hacked by scammers. Avoid using public Wi-Fi networks when accessing sensitive information or financial</li></ol>



<p>Remember, Risevest will never ask you for your password, pin or other sensitive information required to gain access to your account. In such instances, reach out to our verified handles on Twitter (@Risevest), Instagram (@Rise.Vest), or email <a href="mailto:hello@risevest.com">hello@risevest.com</a>.</p>
