
<p>Nigeria, Africa’s most populous country with over 220 million people, boasts a dynamic economy with immense entrepreneurial potential. Despite challenges such as inadequate infrastructure and fluctuating economic conditions, the nation’s burgeoning middle class, youthful demographic, and urbanisation trends create a fertile ground for various business opportunities. This article explores eight booming sectors within Nigeria’s entrepreneurial jungle, exploring the factors driving their growth, the challenges they face, and their prospects.</p>



<h2 class="wp-block-heading" id="h-8-thriving-business-sectors-in-nigeria"><strong>8 Thriving Business Sectors</strong> <strong>in Nigeria</strong></h2>



<ul>
<li><strong>Agriculture and Agribusiness</strong></li>



<li><strong>Technology and E-commerce</strong></li>



<li><strong>Renewable Energy</strong></li>



<li><strong>Real Estate and Construction</strong></li>



<li><strong>Healthcare and Pharmaceuticals</strong></li>



<li><strong>Education and EdTech</strong></li>



<li><strong>Entertainment and Media</strong></li>



<li><strong>Logistics and Transportation</strong></li>
</ul>



<h2 class="wp-block-heading" id="h-agriculture-and-agribusiness"><strong>Agriculture and Agribusiness</strong></h2>



<p>Agriculture remains a cornerstone of Nigeria’s economy, contributing about 22.35% to the GDP in 2022 and employing approximately 70% of the workforce. The sector encompasses crop production, animal husbandry, and agro-processing.</p>



<ul>
<li><strong>Crop Production: </strong>Nigeria is a leading producer of several staple crops. It ranks as the world&#8217;s largest producer of yams, producing 45 million metric tonnes in 2020. Additionally, it is a significant producer of cassava, with an output of about 59 million metric tonnes annually. The country also produces substantial quantities of rice, maize, and cocoa, with increasing investments in irrigation and mechanisation improving yields.</li>
</ul>



<ul>
<li><strong>Animal Husbandry:</strong> Poultry farming is a significant part of Nigeria’s agricultural sector, with the poultry market valued at $3.6 billion. Fish farming is another growth area, producing around 1.1 million metric tonnes of fish annually to meet the growing demand for protein-rich foods.</li>
</ul>



<ul>
<li><strong>Agro-Processing:</strong> Processing agricultural products adds value and reduces post-harvest losses, estimated at around 20-40% of total output. Companies like Olam Nigeria and Flour Mills of Nigeria invest heavily in processing facilities for rice, flour, and other staples.</li>
</ul>



<h3 class="wp-block-heading" id="h-drivers-of-growth"><strong>Drivers of Growth:</strong></h3>



<ul>
<li>Government initiatives include the Anchor Borrowers’ Program (ABP), which has provided loans to over 2.5 million smallholder farmers, and the Agricultural Transformation Agenda.</li>



<li>Increased investment in agricultural technology and mechanisation aimed to boost productivity.</li>



<li>There is growing domestic and international demand for Nigerian agricultural products, particularly in the wake of the African Continental Free Trade Area (AfCFTA).</li>
</ul>



<h3 class="wp-block-heading" id="h-challenges"><strong>Challenges:</strong></h3>



<ul>
<li>Poor rural infrastructure, particularly roads and storage facilities, hampers efficient market access.</li>



<li>Limited access to finance for smallholder farmers, despite various government schemes.</li>



<li>Inconsistent government policies and insufficient support mechanisms.</li>
</ul>



<h2 class="wp-block-heading" id="h-technology-and-e-commerce"><strong>Technology and E-commerce</strong></h2>



<p>Nigeria&#8217;s technology sector is a burgeoning landscape, with Lagos often called the &#8220;Silicon Valley of Africa.&#8221; Internet penetration is approximately 42% as of 2023, fueling growth in e-commerce and fintech.</p>



<ul>
<li><strong>E-commerce</strong>: The e-commerce market in Nigeria was valued at $12 billion in 2022 and is expected to grow to $75 billion by 2025. Significant players include Jumia and Konga, alongside niche platforms focusing on specific sectors like fashion (e.g., Fashpa) and groceries.</li>
</ul>



<ul>
<li><strong>Fintech</strong>: Nigeria is a leader in Africa’s fintech revolution. Companies like Flutterwave, valued at over $3 billion, and Paystack, acquired by Stripe for $200 million, transform payment systems and make financial services more accessible. The fintech sector attracted $600 million in investment in 2021 alone.</li>
</ul>



<ul>
<li><strong>Tech Hubs and Incubators:</strong> Over 90 tech hubs and incubators, such as Co-Creation Hub (CcHub) and the Tony Elumelu Foundation, support startups with funding, mentoring, and resources.</li>
</ul>



<h3 class="wp-block-heading" id="h-drivers-of-growth-0"><strong>Drivers of Growth:</strong></h3>



<ul>
<li>It is increasing internet and smartphone penetration, with over 100 million internet users as of 2023.</li>



<li>A young, tech-savvy population, with around 60% of the population under 25.</li>



<li>Significant foreign investment and interest in Nigerian startups, bolstered by a growing number of venture capital firms focusing on the region.</li>
</ul>



<h3 class="wp-block-heading" id="h-challenges-0"><strong>Challenges:</strong></h3>



<ul>
<li>Poor infrastructure, particularly electricity and broadband connectivity, hampers operations.</li>



<li>Regulatory uncertainties and the need for a more supportive policy framework for tech enterprises.</li>
</ul>



<h2 class="wp-block-heading" id="h-renewable-energy"><strong>Renewable Energy</strong></h2>



<p>Chronic energy shortages affect over 80 million Nigerians, creating a massive demand for alternative energy solutions. Renewable energy, particularly solar, is critical to Nigeria&#8217;s energy mix.</p>



<ul>
<li>Solar Power: Companies like Lumos and Arnergy are at the forefront of the solar revolution, providing off-grid solutions that power homes and businesses. Nigeria’s solar market is estimated to grow at a CAGR of 21.5% from 2020 to 2025.</li>
</ul>



<ul>
<li>Wind and Biomass: While less developed than solar, these sectors hold potential. The government’s Renewable Energy Master Plan aims to achieve 10% of the country’s energy mix from renewables by 2025.</li>
</ul>



<h3 class="wp-block-heading" id="h-drivers-of-growth-1"><strong>Drivers of Growth:</strong></h3>



<ul>
<li>There is a high demand for reliable and sustainable energy solutions due to persistent power outages.</li>



<li>Government incentives and policies supporting renewable energy, such as the National Renewable Energy and Energy Efficiency Policy (NREEEP).</li>



<li>International support and investment in clean energy projects, with organisations like the&nbsp;</li>
</ul>



<p>World Bank and USAID funding various initiatives.</p>



<h3 class="wp-block-heading" id="h-challenges-1"><strong>Challenges:</strong></h3>



<ul>
<li>High initial costs and financing barriers for renewable energy projects.</li>



<li>Inadequate infrastructure and technical expertise to support widespread adoption.</li>
</ul>



<h2 class="wp-block-heading" id="h-real-estate-and-construction"><strong>Real Estate and Construction</strong></h2>



<p>Urbanisation and a significant housing deficit of 22 million units drive Nigeria’s<a href="https://money.rise.capital/blog/how-real-estate-returns-work-on-rise/"> real estate</a> and construction sectors.</p>



<ul>
<li><strong>Residential Property:</strong> There is a substantial demand for affordable housing. Innovations in financing, such as mortgage schemes and public-private partnerships, aim to bridge the gap. The Federal Mortgage Bank of Nigeria (FMBN) is actively working to provide affordable housing solutions.</li>
</ul>



<ul>
<li><strong>Commercial Property</strong>: The rise of shopping malls, office spaces, and mixed-use developments cater to the expanding middle class and business sector. Notable developments include Eko Atlantic in Lagos and the Centenary City in Abuja.</li>
</ul>



<ul>
<li><strong>Construction Services:</strong> Infrastructure projects, including roads, bridges, and public buildings, are booming. The construction sector contributes around 4% to Nigeria’s GDP.</li>
</ul>



<h3 class="wp-block-heading" id="h-drivers-of-growth-2"><strong>Drivers of Growth:</strong></h3>



<ul>
<li>Rapid urbanisation, with an estimated urban population growth rate of 4.23% annually.</li>



<li>Government initiatives like the National Housing Programme aim to build 300,000 affordable homes.</li>



<li>Increased foreign investment in infrastructure, with Chinese firms playing a significant role.</li>
</ul>



<h3 class="wp-block-heading" id="h-challenges-2"><strong>Challenges:</strong></h3>



<ul>
<li>The high cost of construction materials is due to import dependency.</li>



<li>Regulatory bottlenecks and land acquisition issues complicate project execution.</li>
</ul>



<h2 class="wp-block-heading" id="h-healthcare-and-pharmaceuticals"><strong>Healthcare and Pharmaceuticals</strong></h2>



<p>Nigeria’s healthcare sector is expanding to meet its growing population&#8217;s needs, estimated to reach 401 million by 2050. There is an urgent demand for quality healthcare services and pharmaceutical products.</p>



<ul>
<li><strong>Private Healthcare Services:</strong> High-end hospitals and clinics are emerging, offering specialised care and attracting medical tourism. Hospitals like Reddington and Lagoon Hospital are leading the way.</li>
</ul>



<ul>
<li><strong>Pharmaceuticals</strong>: Local drug production is on the rise. Companies like Emzor and Fidson are expanding their manufacturing capabilities, which are supported by government policies to reduce import dependence.</li>
</ul>



<ul>
<li><strong>Health Tech:</strong> Digital health solutions, including telemedicine platforms like Helium Health and LifeBank, are gaining traction, particularly in urban areas.</li>
</ul>



<h3 class="wp-block-heading" id="h-drivers-of-growth-3"><strong>Drivers of Growth:</strong></h3>



<ul>
<li>Rising awareness and demand for quality healthcare.</li>



<li>Government policies promoting healthcare development, including the National Health Act.</li>



<li>Increasing investment in health infrastructure and services is projected to propel the healthcare market to $18 billion by 2024.</li>
</ul>



<h3 class="wp-block-heading" id="h-challenges-3"><strong>Challenges:</strong></h3>



<ul>
<li>Insufficient healthcare infrastructure and personnel, with doctor-patient ratios remaining low.</li>



<li>High cost of medical equipment and pharmaceuticals, often imported.</li>
</ul>



<h2 class="wp-block-heading" id="h-education-and-edtech"><strong>Education and EdTech</strong></h2>



<p>Education remains a critical sector, with a significant portion of the population under 25 and a growing emphasis on quality and accessibility.</p>



<ul>
<li><strong>Private Schools and Universities:</strong> There is a rising demand for private education, driven by the perceived quality and the inadequacies of public institutions. Institutions like Covenant University and Afe Babalola University are highly regarded.</li>
</ul>



<ul>
<li><strong>EdTech:</strong> Digital platforms offering online courses, tutoring, and educational resources are flourishing. Startups like uLesson, which raised $7.5 million in 2021, and Tuteria are making significant strides in providing accessible education solutions.</li>
</ul>



<h3 class="wp-block-heading" id="h-drivers-of-growth-4"><strong>Drivers of Growth:</strong></h3>



<ul>
<li>Nigerian families place a high value on education, with education expenditures constituting a significant part of household budgets.</li>



<li>Government reforms aimed at improving educational standards and outcomes.</li>



<li>Technological advancements facilitate online learning, particularly during the COVID-19 pandemic.</li>
</ul>



<h3 class="wp-block-heading" id="h-challenges-4"><strong>Challenges:</strong></h3>



<ul>
<li>Inadequate infrastructure, particularly in rural areas, limits access to quality education.</li>



<li>High cost of quality education, with many families unable to afford private schooling.</li>
</ul>



<h2 class="wp-block-heading" id="h-entertainment-and-media"><strong>Entertainment and Media</strong></h2>



<p>Nigeria’s entertainment and media industry, particularly Nollywood and music, is a global phenomenon that generates significant revenue and cultural influence.</p>



<ul>
<li><strong>Film Industry (Nollywood)</strong>: Nollywood is the second-largest film industry in the world by volume, producing over 2,500 films annually. The industry generates about $7 billion annually, and its quality and international distribution are increasing.</li>
</ul>



<ul>
<li><strong>Music Industry</strong>: Nigerian artists like Burna Boy, Wizkid, Ayra Starr, Tems and Davido are gaining international recognition. The music industry, particularly Afrobeats, is increasing, with a global audience and significant streaming revenue.</li>



<li><strong>Digital Media:</strong> The rise of social media and streaming platforms like Netflix and YouTube is transforming content consumption and monetisation. Nigeria&#8217;s digital media market is projected to grow by 12.9% annually, reaching $2.8 billion by 2025.</li>
</ul>



<h3 class="wp-block-heading" id="h-drivers-of-growth-5"><strong>Drivers of Growth:</strong></h3>



<ul>
<li>Cultural solid influence and global appeal of Nigerian content.</li>



<li>Increasing investment in production quality and distribution channels.</li>



<li>Expansion of digital platforms for content delivery, providing new revenue streams for creators.</li>
</ul>



<h3 class="wp-block-heading" id="h-challenges-5"><strong>Challenges:</strong></h3>



<ul>
<li>Piracy and intellectual property issues continue to plague the industry.</li>



<li>Inconsistent regulatory environment and limited government support.</li>
</ul>



<h2 class="wp-block-heading" id="h-logistics-and-transportation"><strong>Logistics and Transportation</strong></h2>



<p>Given its vast geography and urban-rural divide, efficient logistics and transportation are critical for <a href="https://money.rise.capital/blog/dangote-the-man-changing-nigerias-economic-fortunes/">Nigeria’s economic growth</a>. The sector is vital for the movement of goods and people, supporting various industries.</p>



<ul>
<li><strong>Courier and Delivery Services</strong>: The e-commerce boom has driven the growth of logistics companies like GIG Logistics and Max.Ng, providing last-mile delivery services. The logistics market was valued at $60 billion in 2021 and is expected to grow at a CAGR of 10% by 2025.</li>
</ul>



<ul>
<li><strong>Transportation Services</strong>: Ride-hailing services such as Uber Bolt and local startups like Gokada are expanding in urban areas, addressing the challenges of mobility and urban congestion.</li>
</ul>



<ul>
<li><strong>Freight and Haulage</strong>: Reliable freight services are essential for industrial and agricultural sectors. Companies like Kobo360 are innovating with digital platforms to streamline logistics operations.</li>
</ul>



<h3 class="wp-block-heading" id="h-drivers-of-growth-6"><strong>Drivers of Growth:</strong></h3>



<ul>
<li>E-commerce growth necessitates efficient delivery services, with online retail expected to reach $75 billion by 2025.</li>



<li>Urbanisation drives demand for transport solutions, with urban population growth at 4.23% annually.</li>



<li>Government investment in transport infrastructure, including roads, railways, and ports.</li>
</ul>



<h3 class="wp-block-heading" id="h-challenges-6"><strong>Challenges:</strong></h3>



<ul>
<li>Poor road infrastructure and traffic congestion, particularly in major cities like Lagos.</li>



<li>High operational costs and regulatory challenges, including multiple levies and poor enforcement of regulations.</li>
</ul>



<p>Ready to take control of your financial future? Download the <a href="https://app.risevest.com/signup?utm_source=blog&amp;utm_medium=mid_post">Rise </a>app today and start making smarter financial decisions that prioritize your needs and support your long-term goals.</p>



<h2 class="wp-block-heading" id="h-conclusion"><strong>Conclusion</strong></h2>



<p>Nigeria’s rich and diverse entrepreneurial landscape offers significant opportunities across various sectors. While challenges persist, the country&#8217;s large market, youthful population, and increasing investment create a conducive environment for business innovation and expansion. Entrepreneurs and investors who can navigate the complexities of the Nigerian market stand to gain substantially from these booming opportunities.</p>


8 Thriving Businesses in Nigeria’s Entrepreneurial Landscape


<p>Rise is building a network of community-building enthusiasts who are excited about building their own finance clubs in their various localities. This is why we are partnering with individuals who are passionate about finance and engaging people to support in building and scaling out their local finance clubs.<br></p>



<h2 class="wp-block-heading" id="h-the-goals-of-the-program-are"><strong>The Goals of the program are:</strong></h2>



<p><strong>For the Audience:</strong> This is an opportunity to join a local chapter of a finance club, which helps you learn about money and network with like-minded individuals.<br><br><strong>For the Community Hosts: </strong>As a community host, you will learn to build a community of people who want to have a better relationship with money by engaging them using a range of virtual and physical strategies, such as content and events.<br></p>



<p><strong>Meet The Host: Shofu </strong></p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://money.rise.capital/wp-content/uploads/2024/05/image-1024x576.png" alt="Meet The Rise Community Host: Shofu " class="wp-image-3433" srcset="https://money.rise.capital/wp-content/uploads/2024/05/image-1024x576.png 1024w, https://money.rise.capital/wp-content/uploads/2024/05/image-300x169.png 300w, https://money.rise.capital/wp-content/uploads/2024/05/image-768x432.png 768w, https://money.rise.capital/wp-content/uploads/2024/05/image-1536x864.png 1536w, https://money.rise.capital/wp-content/uploads/2024/05/image-1568x882.png 1568w, https://money.rise.capital/wp-content/uploads/2024/05/image.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p><strong><br></strong>Shofu is a communication and design enthusiast with a medical biochemistry background from the University of Benin.<br>Fascinated by human behaviour and how people interact with media, designs, content, and others, Shofu is passionate about building communities across Africa, one city at a time.<br><br>He is building <strong>Buj Seeders</strong>, a Rise-supported finance community in <strong>Abuja </strong>that creates a thriving learning space dedicated to empowering your financial future.<br><br>Join<strong> Buj Seeders</strong> by filling out this form &#8211; <a href="http://bit.ly/bujseeders">http://bit.ly/bujseeders<br><br></a><strong>Meet The Host: Pamilerin</strong></p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://money.rise.capital/wp-content/uploads/2024/05/image-1-1024x576.png" alt="Meet The Rise Community Host: Pamilerin " class="wp-image-3434" srcset="https://money.rise.capital/wp-content/uploads/2024/05/image-1-1024x576.png 1024w, https://money.rise.capital/wp-content/uploads/2024/05/image-1-300x169.png 300w, https://money.rise.capital/wp-content/uploads/2024/05/image-1-768x432.png 768w, https://money.rise.capital/wp-content/uploads/2024/05/image-1-1536x864.png 1536w, https://money.rise.capital/wp-content/uploads/2024/05/image-1-1568x882.png 1568w, https://money.rise.capital/wp-content/uploads/2024/05/image-1.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p>Pamilerin is highly passionate about financial literacy, and this translates into her love for educating young adults about <a href="https://money.rise.capital/blog/risevest-investing-user-story-vera/">personal finance</a>, investing, and building sustainable wealth.</p>



<p>She is currently building the <strong>MoneyMindset Tribe</strong>, a Rise-supported finance community in <strong>Ibadan</strong> that aims to create a platform dedicated to empowering young adults with the right knowledge towards personal finance and wealth building.</p>



<p>Join the <strong>MoneyMindset Tribe</strong> by clicking this link <a href="https://t.me/+1MDqBfcVggI1ZDQ0">https://t.me/+1MDqBfcVggI1ZDQ0<br><br></a><strong>Meet The Host: Shammah</strong></p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://money.rise.capital/wp-content/uploads/2024/05/image-2-1024x576.png" alt="Meet The Rise Community Host: Shammah " class="wp-image-3435" srcset="https://money.rise.capital/wp-content/uploads/2024/05/image-2-1024x576.png 1024w, https://money.rise.capital/wp-content/uploads/2024/05/image-2-300x169.png 300w, https://money.rise.capital/wp-content/uploads/2024/05/image-2-768x432.png 768w, https://money.rise.capital/wp-content/uploads/2024/05/image-2-1536x864.png 1536w, https://money.rise.capital/wp-content/uploads/2024/05/image-2-1568x882.png 1568w, https://money.rise.capital/wp-content/uploads/2024/05/image-2.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p><strong><br></strong>Shammah has engaged the financial system on many levels, including the <a href="https://money.rise.capital/blog/the-stock-market-is-at-an-all-time-high-should-i-double-down-or-sell-everything/">stock market</a>, forex trading, crypto trading. He is a creative writer and digital marketer, learning and writing about the financial system.<br></p>



<p>He just launched <strong>Fin Ed for Rockstars</strong>, a Rise-supported finance community based in Abuja, which is dedicated to learning about the financial system and how to build wealth within it.<br></p>



<p>Join <strong>Fin Ed for Rockstars</strong> here:<a href="https://bit.ly/FinEdRockstarsReg"> https://bit.ly/FinEdRockstarsReg</a></p>



<p><strong>Meet The Host: David</strong></p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://money.rise.capital/wp-content/uploads/2024/05/image-3-1024x576.png" alt="Meet The Host: David " class="wp-image-3436" srcset="https://money.rise.capital/wp-content/uploads/2024/05/image-3-1024x576.png 1024w, https://money.rise.capital/wp-content/uploads/2024/05/image-3-300x169.png 300w, https://money.rise.capital/wp-content/uploads/2024/05/image-3-768x432.png 768w, https://money.rise.capital/wp-content/uploads/2024/05/image-3-1536x864.png 1536w, https://money.rise.capital/wp-content/uploads/2024/05/image-3-1568x882.png 1568w, https://money.rise.capital/wp-content/uploads/2024/05/image-3.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p><strong><br></strong>David isn&#8217;t your typical stuffy finance guy. Forget boring spreadsheets and snoozy lectures.<br><br>He is a finance enthusiast&nbsp; on a mission to crack the code and show you how to make your money work for you (legally, of course!).&nbsp; His journey began with a thirst for knowledge, a desire to learn so much about the principles behind investing, finance and money.&nbsp;</p>



<p><strong><br>Tribe</strong>, a <a href="https://money.rise.capital/blog/risevest-telegram-group-users-share-why-they-love-the-group/">community powered</a> by Rise, is your one-stop shop for growth and development. It&#8217;s a safe space where you can learn, unlearn, share experiences, and explode your financial knowledge – all alongside a supportive community.<br></p>



<p>Tribe welcomes everyone, no matter where you are in the world. It&#8217;s a place for expression, excitement, and financial freedom. But if you&#8217;re in the city of <strong>Port Harcourt</strong>, I guess you might enjoy all the perks of our physical hangouts!</p>



<p>Join <strong>Tribe</strong> here:&nbsp; [<a href="https://bit.ly/Tribe_Community">https://bit.ly/Tribe_Community</a>]</p>



<p><strong>Meet The Host: Loveth</strong></p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://money.rise.capital/wp-content/uploads/2024/05/image-4-1024x576.png" alt="Meet The Host: Loveth " class="wp-image-3437" srcset="https://money.rise.capital/wp-content/uploads/2024/05/image-4-1024x576.png 1024w, https://money.rise.capital/wp-content/uploads/2024/05/image-4-300x169.png 300w, https://money.rise.capital/wp-content/uploads/2024/05/image-4-768x432.png 768w, https://money.rise.capital/wp-content/uploads/2024/05/image-4-1536x864.png 1536w, https://money.rise.capital/wp-content/uploads/2024/05/image-4-1568x882.png 1568w, https://money.rise.capital/wp-content/uploads/2024/05/image-4.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p><strong><br></strong>Loveth Ejumegu is a digital entrepreneur and financial literacy enthusiast who is passionate about helping people acquire bankable online skills.</p>



<p>With three years of experience in the online space, Loveth Ejumegu has developed a unique perspective and skill set that combines teaching and helping others who do not know how to navigate online.</p>



<p>If you&#8217;re in Abuja and interested in joining<strong> FinCreed Club</strong>, a Rise-supported finance community, please click the link below.</p>



<p>Join <strong>FinCreed Club </strong>here:</p>



<p><a href="https://chat.whatsapp.com/F36CwMDoIUbJKSiwGoIt4i">https://chat.whatsapp.com/F36CwMDoIUbJKSiwGoIt4i</a></p>


Launching The Rise Community Host Program

What Happened To Mr Biggs?

It is earnings release season in the US equities market and Microsoft Inc, one of our portfolio companies, continued to record impressive quarterly financial performance

Earnings Report: Microsoft Delivers Strong Results, grows earnings by 21%

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<p>Being financially literate is crucial today because It&#8217;s more than just knowing how to handle money; it&#8217;s about understanding the ins and outs of finances, making wise choices, and navigating tricky financial situations easily. This article dives deep into financial intelligence, the key skills needed to get there, its perks, how to boost it, mistakes to dodge, and where to find helpful resources.&nbsp;</p>



<h2 class="wp-block-heading" id="h-what-are-the-components-of-financial-intelligence"><strong>What are the Components of Financial Intelligence?</strong></h2>



<ul>
<li>Financial intelligence comprises several interrelated components that collectively contribute to one&#8217;s ability to make sound financial decisions:</li>
</ul>



<ul>
<li>Financial Literacy: Understanding basic financial concepts such as budgeting, saving, investing, debt management, and risk diversification. Financially literate individuals can interpret financial statements, assess investment options, and comprehend the implications of financial decisions.</li>
</ul>



<ul>
<li>Analytical Skills: Financial intelligence necessitates the ability to analyse financial data critically. This includes interpreting financial statements, evaluating investment opportunities, and assessing the financial health of businesses or individuals.</li>
</ul>



<ul>
<li>Strategic Thinking: Effective financial intelligence involves strategic planning and foresight. Individuals must anticipate potential financial challenges, set <a href="https://money.rise.capital/blog/risevest-helps-achieve-investment-goals/">achievable goals</a>, and develop actionable plans for financial stability and prosperity.</li>
</ul>



<ul>
<li>Risk Management: Assessing and mitigating risks is fundamental to financial intelligence. This involves <a href="https://money.rise.capital/blog/shine-your-eyes-how-to-identify-fraud-investment-schemes/">identifying potential risks associated with investments</a>, business ventures, or financial decisions and implementing strategies to minimise their impact.</li>
</ul>



<ul>
<li>Decision-Making Skills: Sound financial intelligence equips individuals to make rational and informed financial decisions amidst uncertainty. This includes weighing options, considering long-term consequences, and aligning decisions with overarching financial goals.</li>
</ul>



<h2 class="wp-block-heading" id="h-skills-required-for-financial-intelligence"><strong>Skills Required for Financial Intelligence</strong></h2>



<p>Developing financial intelligence necessitates honing specific skills that are instrumental in navigating the complexities of personal and professional finance:</p>



<ul>
<li>Critical Thinking: Financially intelligent individuals possess strong critical thinking skills, enabling them to analyse information objectively, identify patterns, and make informed judgments.</li>
</ul>



<ul>
<li>Numeracy: Proficiency in mathematics is crucial for interpreting financial data, performing calculations, and understanding complex financial concepts such as interest rates, compound growth, and valuation metrics.</li>
</ul>



<ul>
<li>Communication Skills: Effective communication is vital for conveying financial information clearly and persuasively, whether in discussions with financial advisors, presentations of investment proposals, or negotiations of financial agreements.</li>
</ul>



<ul>
<li>Problem-Solving Abilities: Financially intelligent individuals excel at problem-solving. They are adept at identifying challenges, evaluating potential solutions, and implementing strategies to overcome obstacles.</li>
</ul>



<ul>
<li>Adaptability: Given the dynamic nature of financial markets and economic conditions, adaptability is essential for adjusting financial strategies in response to changing circumstances and seizing emerging opportunities.</li>
</ul>



<ul>
<li>Emotional Intelligence: Emotional intelligence plays a significant role in financial decision-making, enabling individuals to manage emotions such as fear, greed, and impulsivity that can impair judgment and lead to poor financial outcomes.</li>
</ul>



<h2 class="wp-block-heading" id="h-benefits-of-financial-intelligence"><strong>Benefits of Financial Intelligence</strong></h2>



<p>The cultivation of financial intelligence yields numerous benefits, both in personal and professional spheres:</p>



<ul>
<li>Financial Stability: Financially intelligent individuals are better equipped to manage their finances prudently, reducing the likelihood of financial distress and instability.</li>
</ul>



<ul>
<li>Wealth Accumulation: Individuals with high financial intelligence can accumulate wealth more effectively over time by making informed investment decisions and capitalizing on opportunities.</li>
</ul>



<ul>
<li>Risk Mitigation: Financial intelligence enables individuals to identify and mitigate financial risks, safeguarding their assets and investments against unforeseen circumstances.</li>
</ul>



<ul>
<li>Improved Decision-Making: Enhanced financial intelligence leads to better decision-making, resulting in more favourable outcomes in various financial endeavours.</li>
</ul>



<ul>
<li>Enhanced Career Prospects: Employers value employees with strong financial acumen, as they can contribute effectively to strategic decision-making, financial planning, and resource allocation within organisations.</li>
</ul>



<ul>
<li>Personal Empowerment: Financial intelligence empowers individuals to take control of their financial futures, enabling them to pursue their goals and aspirations with confidence and autonomy.</li>
</ul>



<h2 class="wp-block-heading" id="h-how-do-i-become-financially-intelligent"><strong>How Do I Become Financially Intelligent?</strong></h2>



<p>Building financial intelligence is a gradual process that requires commitment, education, and practical experience. Here are actionable steps to enhance your financial intelligence:</p>



<ul>
<li>Educate Yourself: Invest in financial education by reading books, attending seminars, taking online courses, and leveraging reputable financial resources to broaden your knowledge base.</li>
</ul>



<ul>
<li>Set Clear Financial Goals: Define your short-term and long-term financial goals, ensuring they are specific, measurable, achievable, relevant, and time-bound (SMART).</li>
</ul>



<ul>
<li>Create a Budget: Establish a budget to track your income and expenses. This will allow you to allocate resources efficiently and identify areas for potential savings or investments.</li>
</ul>



<ul>
<li>Diversify Your Investments: Avoid putting all your eggs in one basket by diversifying your investment portfolio across different <a href="https://money.rise.capital/blog/how-a-strong-network-contributes-to-wealth-building/">asset classes</a> such as stocks, bonds, real estate, and alternative investments.</li>
</ul>



<ul>
<li>Seek Professional Advice: Consult with financial advisors or planners to gain personalised guidance on financial planning, investment strategies, and risk management tailored to your individual circumstances.</li>
</ul>



<ul>
<li>Stay Informed: Keep abreast of current financial news, market trends, and economic developments to make informed decisions and adapt your financial strategies accordingly.</li>
</ul>



<ul>
<li>Practice Prudence: Exercise prudence and restraint in financial matters, avoiding impulsive decisions or excessive risk-taking that could jeopardise your financial well-being.</li>
</ul>



<h2 class="wp-block-heading" id="h-common-mistakes-to-avoid-when-building-financial-intelligence"><strong>Common Mistakes to Avoid When Building Financial Intelligence</strong></h2>



<p>While on the journey to developing financial intelligence, it&#8217;s essential to steer clear of common pitfalls that could hinder your progress:</p>



<ul>
<li>Overlooking Financial Planning: Failing to create a comprehensive financial plan can leave you directionless and vulnerable to financial setbacks.</li>
</ul>



<ul>
<li>Ignoring Risk Management: Neglecting to assess and mitigate financial risks can expose you to significant losses and undermine your financial security.</li>
</ul>



<ul>
<li>Lack of Discipline: Succumbing to impulsive spending or investment decisions can derail your financial goals and impede your path to financial intelligence.</li>
</ul>



<ul>
<li>Failing to Diversify: Concentrating your investments in a single asset class or market sector increases your exposure to risk and diminishes your portfolio&#8217;s resilience.</li>
</ul>



<ul>
<li>Neglecting Financial Education: Underestimating the importance of ongoing financial education can limit your ability to adapt to changing financial circumstances and capitalise on opportunities.</li>
</ul>



<ul>
<li>Overconfidence: Excessive confidence in your financial acumen can lead to complacency and blind spots, increasing the likelihood of costly mistakes.</li>
</ul>



<h2 class="wp-block-heading" id="h-recommended-resources-for-improving-financial-intelligence"><strong>Recommended Resources for Improving Financial Intelligence</strong></h2>



<p>For individuals seeking to enhance their financial intelligence, numerous resources are available:</p>



<ul>
<li>Books: &#8220;Rich Dad Poor Dad&#8221; by Robert Kiyosaki, &#8220;The Intelligent Investor&#8221; by Benjamin Graham, and &#8220;The Total Money Makeover&#8221; by Dave Ramsey are acclaimed books that offer valuable insights into personal finance, investing, and wealth-building.</li>
</ul>



<ul>
<li>Online Courses: Platforms like <a href="https://www.coursera.org/">Coursera</a>, <a href="https://www.udemy.com/">Udemy</a>, and Khan Academy offer many online courses covering various aspects of financial literacy, investment strategies, and financial planning.</li>
</ul>



<ul>
<li>Financial Websites and Blogs: Investopedia, The Motley Fool, and NerdWallet provide comprehensive resources, articles, and tools to enhance financial knowledge and decision-making.</li>
</ul>



<ul>
<li>Podcasts: Financial podcasts like &#8220;The Dave Ramsey Show,&#8221; &#8220;Planet Money,&#8221; and &#8220;The Tim Ferriss Show&#8221; feature informative discussions on personal finance, investing, and entrepreneurship.</li>
</ul>



<ul>
<li>Financial Advisors: Seeking guidance from certified financial advisors or planners can provide personalised recommendations and strategies tailored to your financial goals and circumstances.</li>
</ul>



<ul>
<li>Financial Communities and Forums: Engaging with online financial communities and forums such as Reddit&#8217;s r/personalfinance or Bogleheads.org allows you to seek advice, share experiences, and learn from the collective wisdom of others.</li>
</ul>



<ul>
<li>Financial News Outlets: Following reputable financial news outlets like CNBC, Bloomberg, and Financial Times provides up-to-date information on market trends, economic developments, and financial analysis.</li>
</ul>



<ul>
<li>Financial Apps: Utilize financial apps such as Mint, Personal Capital, or YNAB (You Need a Budget) to track expenses, monitor investments, and manage budgets effectively.</li>
</ul>



<ul>
<li>Continuing Education Programs: Many universities and educational institutions offer continuing education programs in finance, investing, and financial planning, providing opportunities for further skill development and credentialing.</li>
</ul>



<ul>
<li>Webinars and Seminars: Attend webinars, workshops, and seminars hosted by financial experts and industry professionals to gain valuable insights, strategies, and best practices in <a href="https://money.rise.capital/blog/risevest-investing-user-story-vera/">personal finance and investing</a>.</li>
</ul>



<ul>
<li>By leveraging these resources and actively engaging in continuous learning, individuals can enhance their financial intelligence, make informed decisions, and achieve financial success.</li>
</ul>



<h2 class="wp-block-heading" id="h-conclusion"><strong>Conclusion</strong></h2>



<p>Financial intelligence is a multifaceted skill set encompassing financial literacy, analytical abilities, strategic thinking, risk management, and decision-making skills. By cultivating financial intelligence, individuals can achieve greater financial stability, accumulate wealth, mitigate risks, and make informed decisions in various financial endeavours.</p>



<p>Developing financial intelligence requires ongoing education, practical experience, and a commitment to sound financial principles. Avoiding common mistakes and leveraging recommended resources can expedite the journey toward financial intelligence, empowering individuals to take control of their financial futures and achieve their goals.</p>



<p>Ready to take control of your financial future? Download the <a href="https://app.risevest.com/signup?utm_source=blog&amp;utm_medium=mid_post">Rise </a>app today and start making smarter financial decisions that prioritize your needs and support your long-term goals.</p>


What is Financial Intelligence?


<p>As an investor, understanding buying power is essential for making informed decisions and maximising investment potential. Buying power represents the liquidity available to purchase securities, encompassing cash reserves and margin capabilities for leveraged accounts. This article explains the intricacies of buying power, exploring its significance, calculation, and the distinction between buying power and purchasing power.</p>



<h2 class="wp-block-heading" id="h-what-is-buying-power"><strong>What is Buying Power?</strong></h2>



<p>Buying power, often known as excess equity, encompasses the <a href="https://risevest.com/?utm_source=blog&amp;utm_medium=mid_post">financial resources</a> available to investors for purchasing securities. This comprises two main elements: cash on hand and available margin. Cash signifies liquid funds readily accessible for investment endeavours. Conversely, available margin refers to the borrowing capacity granted by brokerage firms to investors with margin accounts, potentially allowing them to amplify their purchasing capacity beyond their cash reserves. Understanding these components is essential for investors seeking to navigate the complexities of the financial markets and optimise their investment strategies.</p>



<h3 class="wp-block-heading" id="h-examples-of-buying-power"><strong>Examples of Buying Power</strong></h3>



<p>Consider the scenario of two investors, Sarah and John, each with $10,000 to invest in the stock market. Sarah operates with a cash account, while John utilises a margin account with a 2:1 leverage ratio, enabling him to borrow an additional $10,000 from his broker. Sarah&#8217;s buying power is limited to the $10,000 in cash available, allowing her to purchase stocks worth up to that amount. In contrast, John&#8217;s buying power extends to $20,000 ($10,000 cash + $10,000 margin), doubling his investment capacity.</p>



<p>Now, let&#8217;s examine how buying power influences their investment decisions. Sarah decides to allocate her entire $10,000 to purchase shares of a technology company trading at $100 per share. With her buying power fully utilised, she can acquire 100 company shares. Meanwhile, John diversifies his portfolio by investing in multiple sectors and leveraging his margin account. He allocates $5,000 of his own cash. He borrows an additional $5,000 on margin, enabling him to purchase 100 shares of the same technology company and a healthcare company trading at $50 per share.</p>



<p>In this example, buying power enables John to expand his investment portfolio and potentially enhance his returns through <a href="https://money.rise.capital/blog/how-you-can-diversify-your-investment-with-risevest/">diversification</a>. However, it&#8217;s essential to recognise that margin trading amplifies risk, as losses are also magnified. While Sarah&#8217;s approach may seem more conservative, it reflects a risk-averse strategy prioritising capital preservation. Ultimately, understanding buying power empowers investors to tailor their investment strategies to their risk tolerance, financial goals, and market conditions.</p>



<h3 class="wp-block-heading" id="h-understanding-the-significance-of-buying-power"><strong>Understanding the Significance of Buying Power:</strong></h3>



<p><strong>Flexibility in Investment Choices</strong>: Having ample buying power grants investors the flexibility to capitalise on emerging opportunities in the market. Whether it&#8217;s purchasing stocks, bonds, options, or other financial instruments, a robust buying power empowers investors to execute transactions and seize favourable market conditions swiftly.</p>



<p><strong>Margin Trading Opportunities</strong>: For investors with margin accounts, buying power is pivotal in leveraging their investment capital. By utilising margin, investors can amplify their purchasing capacity, potentially magnifying returns on successful trades. However, it&#8217;s crucial to exercise caution, as margin trading also entails heightened risk exposure and margin calls in adverse market scenarios.</p>



<p><strong>Capital Efficiency</strong>: Efficient utilisation of buying power allows investors to optimise their capital allocation strategy. By strategically deploying available funds and margins, investors can diversify their portfolios, manage risk, and pursue growth opportunities without depleting their entire cash reserves.</p>



<p><strong>Overcoming Market Constraints:</strong> In volatile market conditions or during heightened volatility, buying power enables investors to navigate price fluctuations and capitalise on undervalued assets. By maintaining sufficient liquidity, investors can capitalise on market dislocations and position themselves for potential long-term gains.</p>



<p><strong>Tactical Asset Allocation:</strong> Buying power facilitates dynamic asset allocation strategies, allowing investors to rebalance their portfolios and capitalise on shifting market trends. Whether reallocating resources to capitalise on sector rotations or adjusting exposure to mitigate downside risk, buying power empowers investors to adapt their investment approach in response to evolving market dynamics.</p>



<h3 class="wp-block-heading" id="h-calculation-of-buying-power"><strong>Calculation of Buying Power:</strong></h3>



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="314" height="213" src="https://money.rise.capital/wp-content/uploads/2024/05/Buying-power.png" alt="Buying power 
" class="wp-image-3314" style="width:520px;height:auto" srcset="https://money.rise.capital/wp-content/uploads/2024/05/Buying-power.png 314w, https://money.rise.capital/wp-content/uploads/2024/05/Buying-power-300x204.png 300w" sizes="(max-width: 314px) 100vw, 314px" /></figure>



<h4 class="wp-block-heading" id="h-cash-accounts"><strong>Cash Accounts:</strong></h4>



<p>In a cash account, buying power is straightforward to calculate as it solely relies on the liquid funds available for trading. The formula is simple:</p>



<p>Buying Power = Cash Available for Trading</p>



<p>For instance, if an investor has $10,000 in their cash account, their buying power would be $10,000.</p>



<h4 class="wp-block-heading" id="h-margin-accounts"><strong>Margin Accounts:</strong></h4>



<p>Margin accounts introduce an additional layer of complexity due to the borrowing capacity extended by brokerage firms. In these accounts, buying power calculation involves both cash reserves and margin allowances. The formula is slightly more intricate:</p>



<p>Buying Power = Cash + (Margin * Margin Multiplier)</p>



<h4 class="wp-block-heading" id="h-let-s-break-down-the-components"><strong><em>Let&#8217;s break down the components:</em></strong></h4>



<p><strong>Cash</strong>: This refers to the liquid funds available in the account.</p>



<p><strong>Margin</strong>: Margin represents the amount that the brokerage firm is willing to lend to the investor, based on predetermined criteria such as account equity and margin maintenance requirements.</p>



<p><strong>Margin Multiplier:</strong> The margin multiplier is a factor determined by the brokerage firm, reflecting the leverage ratio or margin requirement for the account. It indicates how much buying power is granted per dollar of margin.</p>



<p>For example, if an investor has $10,000 in cash and is granted a margin of $20,000 with a margin multiplier of 2, the calculation would be:</p>



<p>Buying Power = $10,000 + ($20,000 * 2) = $50,000</p>



<h2 class="wp-block-heading" id="h-factors-influencing-buying-power"><strong>Factors Influencing Buying Power:</strong></h2>



<h3 class="wp-block-heading" id="h-broker-s-margin-requirements"><strong>Broker&#8217;s Margin Requirements:</strong></h3>



<p>Each brokerage firm imposes specific margin requirements and leverage ratios based on regulatory guidelines and internal risk management policies. These requirements dictate the maximum margin that can be extended to investors and influence their buying power. Investors must understand and adhere to their broker&#8217;s margin rules to avoid margin calls and potential asset liquidation.</p>



<h3 class="wp-block-heading" id="h-account-equity-and-maintenance-margin"><strong>Account Equity and Maintenance Margin:</strong></h3>



<p>The equity in the account, which is the total value of assets minus any liabilities or borrowed funds, directly impacts buying power. Additionally, brokerage firms impose maintenance margin requirements, specifying the minimum level of equity that must be maintained in the account to continue holding leveraged positions. Falling below the maintenance margin threshold can trigger margin calls and reduce buying power.</p>



<h3 class="wp-block-heading" id="h-market-volatility-and-risk-management"><strong>Market Volatility and Risk Management:</strong></h3>



<p>Market volatility and fluctuations in asset prices can significantly affect buying power. During periods of heightened volatility, brokerage firms may adjust margin requirements or restrict certain trading activities to mitigate risk exposure. Investors must factor in market volatility and employ prudent risk management strategies to safeguard their buying power and portfolio value.</p>



<h3 class="wp-block-heading" id="h-regulatory-changes-and-economic-conditions"><strong>Regulatory Changes and Economic Conditions:</strong></h3>



<p>Changes in regulatory policies, interest rates, and economic conditions can indirectly impact buying power. Regulatory reforms may alter margin requirements or borrowing costs, affecting investors&#8217; ability to leverage their positions. Likewise, economic downturns or recessionary trends may prompt brokerage firms to tighten margin lending criteria, constraining buying power and <a href="https://money.rise.capital/blog/i-look-for-investment-opportunities-that-can-beat-the-prevailing-inflation-rate-of-the-naira-my-name-is-busola-and-this-is-how-i-make-my-moneyrise/">investment opportunities</a>.</p>



<h3 class="wp-block-heading" id="h-buying-power-vs-purchasing-power-nbsp"><strong>Buying Power Vs Purchasing Power&nbsp;</strong></h3>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://money.rise.capital/wp-content/uploads/2024/05/buying-power-vs-purchasing-power-1024x576.png" alt="Buying power vs purchasing  power" class="wp-image-3320" srcset="https://money.rise.capital/wp-content/uploads/2024/05/buying-power-vs-purchasing-power-1024x576.png 1024w, https://money.rise.capital/wp-content/uploads/2024/05/buying-power-vs-purchasing-power-300x169.png 300w, https://money.rise.capital/wp-content/uploads/2024/05/buying-power-vs-purchasing-power-768x432.png 768w, https://money.rise.capital/wp-content/uploads/2024/05/buying-power-vs-purchasing-power-1536x864.png 1536w, https://money.rise.capital/wp-content/uploads/2024/05/buying-power-vs-purchasing-power-1568x882.png 1568w, https://money.rise.capital/wp-content/uploads/2024/05/buying-power-vs-purchasing-power.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p>Buying power and purchasing power are not the same thing. Buying power is the amount of securities you can purchase with a given amount of money, whereas purchasing power is how much a unit of currency will buy, such as how much you can purchase with one dollar.</p>



<p>Buying power is vital in investing, representing the financial capacity available to investors for acquiring securities. It comprises readily available cash reserves and the borrowing capacity of margin accounts, enabling investors to swiftly execute trades and bolster their investment portfolios.&nbsp;</p>



<p>In contrast, <a href="https://www.investopedia.com/terms/p/purchasingpower.asp">purchasing power</a> extends beyond investment, encompassing consumers&#8217; ability to purchase goods and services. It is Influenced by various economic factors such as income levels, inflation rates, and consumer confidence; purchasing power reflects broader economic dynamics and consumer behavior, offering insights into overall economic health.</p>



<p>Understanding buying power is essential for investors seeking to navigate the complexities of financial markets effectively. With sufficient buying power, investors gain the flexibility to capitalise on market opportunities, diversify their portfolios, and manage risk efficiently. Furthermore, buying power empowers investors to optimise their capital allocation strategies, balancing risk and reward to achieve their financial goals.</p>



<p>While buying power is indispensable for investors, purchasing power holds broader implications for economic analysis and policymaking. As a gauge of consumer sentiment and economic health, purchasing power influences consumption patterns, production levels, and overall economic growth. By monitoring trends in purchasing power, policymakers and businesses can anticipate market dynamics, stimulate economic activity, and foster sustainable development initiatives. Thus, while buying power guides investment decisions, purchasing power plays a pivotal role in shaping macroeconomic trends and driving economic progress.</p>



<h2 class="wp-block-heading" id="h-conclusion">Conclusion</h2>



<p>Understanding buying power isn&#8217;t just about knowing how much you can spend—it&#8217;s about making informed decisions to grow your investments wisely. By grasping the intricacies of buying power, you can tailor your strategies to match your risk tolerance and investment goals. This means seizing opportunities when they arise and recognising when holding back is prudent.&nbsp;</p>



<p>It&#8217;s crucial to remember that while buying power offers growth potential, it also comes with responsibilities. Prudent risk management involves diversifying your portfolio, staying informed about market trends, and being prepared to weather fluctuations. With diligence and a clear understanding of buying power, investors can confidently navigate the markets, steadily working towards their financial aspirations while mitigating risks along the way.</p>


Understanding Buying Power: A Guide for Investors


<p>When it comes to investing, there’s only one thing we can be sure of: no one can predict what will happen in the market.</p>



<p>Despite the countless investment concepts, books, and data available, we aren’t very good at predicting when the market will go up and down. For example, in 2007, Goldman Sachs&#8217; chief investment strategies predicted that 2008 would be a great year for the economy and that the S&amp;P 500 would climb 14%. In 2008, a severe economic recession hit the stock market—and the world—and it took several years to recover.</p>



<p>What we are saying is that no matter how many data points, geopolitical analyses, expert opinions, and astrological charts we have to work with, history shows we&#8217;re not very good at predicting the future. The world is complicated, forces are unseen, and markets are volatile.</p>



<h2 class="wp-block-heading" id="h-why-are-we-telling-you-this-nbsp"><strong>Why are we telling you this?&nbsp;</strong></h2>



<p>Our advice to investors has always been to expect rough patches in the market, don’t be surprised by them, and stick to your plan. But we also know it’s hard not to panic when the market moves erratically. You’ll want to buy more when it skyrockets—and you’ll want to<a href="https://money.rise.capital/blog/the-stock-market-is-at-an-all-time-high-should-i-double-down-or-sell-everything/"> sell everything </a>when it goes down! This is what is known as emotional investing.&nbsp;</p>



<p>Emotional investing occurs when investors make decisions based on strong emotions, such as fear, greed, euphoria, or panic, rather than rational analysis and evaluation. This can lead to impulsive and irrational choices that may not align with the<a href="https://money.rise.capital/blog/my-name-is-simisoluwa-and-this-is-how-i-make-my-moneyrise/"> investor&#8217;s long-term investment goals</a>. These investing choices are more reactive since the investor bases them more on market volatility and swings than on fundamental analysis and study.</p>



<p>Emotional investors also make choices based on what others are doing, such as purchasing a specific stock if others are doing the same (herd mentality). Impulsive judgments based on short-term market changes are indications of emotional investing, which ignores basic principles, including asset allocation, risk tolerance and diversification.</p>



<h2 class="wp-block-heading" id="h-mistakes-people-make-when-they-invest-emotionally"><strong>Mistakes People Make When They Invest Emotionally</strong>.</h2>



<ul>
<li><strong>Trying to time the market</strong>: Emotional investors often try to predict when to buy or sell investments based on their emotions. They may buy when prices are high due to excitement or sell when prices are low due to fear. However, predicting short-term market movements is difficult and can lead to poor investment outcomes. Emotional investors may miss out on potential gains by selling during <a href="https://money.rise.capital/blog/stock-market-downturns-might-be-good-for-you-heres-why/">market downturns</a> or buying at inflated prices during market peaks.</li>
</ul>



<ul>
<li><strong>Reacting to market news</strong>: Emotional investors tend to make impulsive investment decisions based on news events, especially negative ones. They may react quickly to sensationalised headlines or short-term market fluctuations without considering the <a href="https://money.rise.capital/blog/heres-why-you-should-avoid-the-exchange-rate-noise-and-focus-on-your-long-term-investment/">long-term results of the investment</a>. This reactive behaviour can result in buying or selling without considering the fundamentals of the investment.</li>
</ul>



<ul>
<li><strong>No diversification</strong>: Emotional investors often put their money into a single stock or industry due to emotional attachments or FOMO (fear of missing out) on the investment. This lack of diversification in investor portfolios increases the risk of losses if the specific investment performs poorly. A well-diversified portfolio spreads investments across different assets and can help reduce the impact of one investment’s performance on the overall portfolio.</li>
</ul>



<ul>
<li><strong>Ignoring fundamental analysis</strong>: Emotional investors overlook the importance of analysing a company’s financial health, earnings potential, and market position. Instead, they may rely on rumours, grapevine, or emotional biases when making investment decisions. This can lead to investing in companies without strong fundamentals or missing out on solid investment opportunities.</li>
</ul>



<h2 class="wp-block-heading" id="h-how-to-avoid-emotional-investing"><strong>How to Avoid Emotional Investing </strong></h2>


<div class="wp-block-image">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="258" height="196" src="https://money.rise.capital/wp-content/uploads/2024/05/Emotional-Investing-Risevest.png" alt="Emotional Investing Risevest" class="wp-image-3307" style="width:395px;height:auto"/></figure></div>


<ul>
<li><strong> Automate Your Investing decisions</strong></li>
</ul>



<p>One of the easiest ways to keep emotions out of your investing decisions is to make your decisions before emotions get involved. Automating investments by making regular contributions to your plans or setting up automatic withdrawals if you’re already retired can help simplify the process and remove emotions from the equation.</p>



<p>One benefit of automating your investment decisions is that it instilsinstills discipline in your financial strategy. By setting up regular contributions to your investment accounts or automatic withdrawals for retirement, you establish a consistent pattern of saving and investing. This disciplined approach can help you stay on track towards your financial goals, regardless of short-term market fluctuations.</p>



<p>Moreover, automation can serve as a form of psychological insulation against the noise and hype of the financial markets. When you automate your investments, you&#8217;re essentially committing to a predetermined plan, which reduces the temptation to react impulsively to market news or fluctuations. This can be especially crucial during times of market volatility when emotions are running high and investors may be prone to making irrational decisions.</p>



<p>Additionally, automation can save you time and effort by streamlining the investment process. Instead of constantly monitoring the markets and manually executing trades, you can set up your investment strategy once and let it run on autopilot. This frees up mental bandwidth that you can allocate to other important aspects of your life, whether it&#8217;s advancing your career, spending time with family, or pursuing personal interests.</p>



<ul>
<li><strong>Block the Noise</strong></li>
</ul>



<p>When a financial or economic crisis hits, the barrage of information can be overwhelming, and it&#8217;s easy to get caught up in the panic and frenzy of the market. However, it&#8217;s crucial to maintain a level head and stick to your long-term investment strategy. Remember, market downturns are a natural part of the economic cycle, and they often present opportunities for those who remain disciplined.</p>



<p>Instead of reacting impulsively to every piece of news, take a step back and assess the situation objectively. Review your investment goals, risk tolerance, and asset allocation to ensure they align with your long-term financial objectives. By focusing on the fundamentals and staying true to your strategy, you can avoid making emotional decisions that could jeopardize your financial future.</p>



<p>Additionally, consider diversifying your portfolio to spread risk across different asset classes and geographic regions. Diversification can help mitigate the impact of market volatility and reduce the overall risk of your investment portfolio. By maintaining a diversified portfolio tailored to your individual needs, you can better weather market fluctuations and stay on track to achieve your financial goals.<br></p>



<ul>
<li><strong> Avoid market timing</strong></li>
</ul>



<p>One common emotional reaction people might have when it comes to investing is in response to a deteriorating economy. If you think the economy is headed for a recession, you might think that you should sell your stocks to avoid losses when the economy is down and then buy them back before things improve. But in reality, this is extremely difficult to do.</p>



<p>Attempting to time the market in this way requires not only predicting economic trends accurately but also foreseeing how the market will react to those trends. However, the market&#8217;s response to economic news is often unpredictable and can be influenced by various factors such as investor sentiment, geopolitical events, and unexpected developments.</p>



<p>Moreover, selling stocks during a downturn means realizing losses, which can be emotionally challenging for you. It&#8217;s natural to feel a sense of panic or fear during turbulent market conditions, but succumbing to these emotions can lead to impulsive decisions that may harm your long-term investment goals.</p>



<p>Instead of trying to time the market, a more prudent approach is to focus on the fundamentals of investing, such as diversification, asset allocation, and a long-term perspective. History has shown that markets tend to recover from downturns over time, and staying invested through periods of volatility can lead to better outcomes in the long run.</p>



<p>Additionally, rather than reacting emotionally to short-term market movements, you should stick to your investment plan and rebalance your portfolio periodically to ensure alignment with your risk tolerance and financial objectives. By staying disciplined and avoiding knee-jerk reactions, you can navigate market downturns with greater confidence and resilience.</p>



<ul>
<li><strong>Focus on your Long-term plan</strong></li>
</ul>



<p>It&#8217;s crucial for you to understand that market volatility is a natural part of investing. While the overall trajectory of major indices like the S&amp;P 500 may appear as a steady climb over the years, closer inspection reveals periods of significant fluctuation. These fluctuations, or &#8220;hiccups,&#8221; as you aptly described them, are not anomalies but rather predictable occurrences in the market cycle.</p>



<p>For instance, historical data on the S&amp;P 500 highlights regular downturns of around 5% twice a year, dips of approximately 10% every couple of years, and more substantial corrections of about 20% every three to five years. These fluctuations can unsettle you, leading to emotional reactions such as panic selling or impulsive buying.</p>



<p>However, as a smart investor, you adhere to a well-defined long-term plan that anticipates and accommodates market volatility. Instead of reacting emotionally to short-term market movements, you stay focused on your investment goals and maintain a disciplined approach.</p>



<p>One effective strategy for navigating market volatility is dollar-cost averaging. This method involves investing a fixed amount of money at regular intervals, regardless of market conditions. By spreading out investments over time, you can mitigate the impact of market fluctuations and potentially benefit from buying assets at lower prices during downturns.</p>



<p>Additionally, diversification plays a crucial role in managing risk within your investment portfolio. By allocating assets across different asset classes, sectors, and geographical regions, you can reduce the impact of adverse events affecting any single investment.</p>



<p>In essence, while market volatility may cause temporary setbacks, investors like you who adhere to a well-thought-out long-term plan, remain disciplined, and employ strategies like dollar-cost averaging and diversification are better positioned to weather fluctuations and achieve their investment objectives over time.</p>



<h2 class="wp-block-heading" id="h-conclusion"><strong>Conclusion</strong> </h2>



<p>In conclusion, investing with your head, not your heart, is the cornerstone of successful wealth management. The unpredictability of the market underscores the importance of maintaining a disciplined and rational approach to investing, especially during periods of heightened volatility.</p>



<p>Emotional investing, driven by fear, greed, or herd mentality, can lead to costly mistakes and derail long-term financial goals. Instead, investors should focus on strategies that mitigate emotional biases and promote sound decision-making.</p>



<p>Automating investment decisions, blocking out market noise, avoiding attempts to time the market, and adhering to a well-defined long-term plan are essential components of this approach. By staying disciplined, diversifying portfolios, and focusing on fundamentals, investors can navigate market fluctuations with confidence and increase their chances of achieving financial success over the long term.</p>



<p>Ultimately, the key to successful investing lies in understanding that volatility is inevitable, but with a clear-headed strategy and a steadfast commitment to your financial plan, you can weather the storms and emerge stronger on the other side. So remember, invest with your head, not your heart, and let reason, not emotion, guide your path to financial prosperity.</p>



<p>Ready to start your journey towards financial freedom? Use <a href="https://app.risevest.com/signup?utm_source=blog&amp;utm_medium=mid_post">Risevest</a>, a platform designed to empower investors with the tools and resources you need to build wealth intelligently. With <a href="https://app.risevest.com/signup?utm_source=blog&amp;utm_medium=mid_post">Risevest</a>, you can access a range of investment options, personalized guidance, and ongoing support to help you achieve your financial goals. Take the first step towards a brighter financial future with <a href="https://app.risevest.com/signup?utm_source=blog&amp;utm_medium=mid_post">Risevest</a> today.</p>


How To Avoid Emotional Investing Risevest


<p><img loading="lazy" decoding="async" src="https://lh7-us.googleusercontent.com/9WeBALbn8P0oV0APeegiZzL1Wzy31oPpNFP9Cc_zvLWm3I6DYs8OUs-R3Fa4CiCK5AmlIMJknYxC3V_JZ9aBGZVsWSRTeBqs9ncXtY5URG5z-Qf6YijU8Y2j26rWzKUrV77ZaAohfqxRdle2LrJSeGQ" width="624" height="269"></p>



<p>The exchange rate has fluctuated significantly in the last few weeks, and we know that some of you have concerns regarding your investments and how these changes impact your money. Our goal is to shed more light on how to best consider current realities in order to make the best long-term decisions about your finances.&nbsp;</p>



<h2 class="wp-block-heading" id="h-your-long-term-returns-on-rise-beat-the-exchange-rate-impact"><strong>Your long-term returns on Rise beat the exchange rate impact</strong></h2>



<p><img loading="lazy" decoding="async" src="https://lh7-us.googleusercontent.com/dUdlFyum1_wNXd0Xs6zXv8b8en7pEfSMRBX-l_THcMNmh5VoFyF0MN4CWphcKjou_e9J1dBKP37FIxsO-MMJSbKylzm-V5AiPGHkwxxsuy0lD4-BWhWY0WobY0Ni01MT4PGWC0MHTO7MOQTx6DpYH2s" width="624" height="351"></p>



<p>The first thing to keep in mind is that beyond the impact of exchange rates, your investments are generating stable long-term returns across multiple asset classes. Over time, this will do more to grow your wealth than any temporary fluctuations in the exchange rate.</p>



<p>For instance, between January 2024 and today, users have earned 15.85% on stocks, 3.09% on <a href="https://money.rise.capital/blog/how-real-estate-returns-work-on-rise/">real estate</a> and 2.5% on fixed income assets in USD terms. </p>



<p>Despite the significant drop in exchange rates, users&#8217; returns are still positive. If you stretch this over to the year we founded Rise, returns have been stable and your money has grown so much more than any impact of exchange rate volatility, regardless of the timeline of your USD. Hence, our long term investors are and will continue to be better off.&nbsp;</p>



<h2 class="wp-block-heading" id="h-naira-options-are-available-on-your-account"><strong>Naira options are available on your account.</strong></h2>



<p>For users who funded more recently at higher exchange rates than today, who may be more impacted by the short term volatility and would rather protect their money in naira today, we added a naira wallet to make it easy to shift from USD to naira when exchange rates are volatile. That way, you don’t experience further losses and can wait out any volatility. You also have the option of earning up to 20% returns in naira per annum by leaving your naira in the vault. There is no exchange rate exposure and you still benefit from earning <a href="https://money.rise.capital/blog/user-story-with-chioma/">returns on your investments</a> in your preferred currency. We designed the <a href="https://money.rise.capital/blog/introducing-naira-wallet-on-rise/">naira wallet</a> and vault to help you hedge against such volatility and we encourage you to take advantage of it. </p>



<h2 class="wp-block-heading" id="h-when-in-doubt-use-our-cost-averaging-strategy"><strong>When in doubt, use our cost-averaging strategy.</strong></h2>



<p>For some of us who prefer to invest consistently without having to predict or worry about the timing of exchange rates or returns, our preferred strategy is to use a dollar cost averaging (DCA) method. This is when you have a set amount of money you want to invest each month, just like you pay your other bills. Every month, you take that amount, and fund your preferred investment (whether naira or dollar) on schedule. The <a href="https://money.rise.capital/blog/7-reasons-why-you-should-invest-with-risevest/">gain of this approach is that when exchange rates are lower</a>, you invest a larger dollar amount and when exchange rates are higher, your dollar investment is lower. But for you, this frees you from trying to time the market and instead allows you to make consistent and steady progress towards your long term goals. </p>



<p>The best way to do this is to set up auto-invest on your <a href="https://risevest.com/">Rise</a>, so that you don’t need to manually do the investment each time and instead rest easy knowing that your investments are being handled on schedule every time. </p>



<p>As always, our goal at Rise is to help you make the best of your finances and achieve your long term financial goals, regardless of volatility or short term circumstances. We remain committed to our mission of helping you build wealth over time, and we encourage you to stick to your plans and let time do the heavy lifting.&nbsp;</p>



<p>Thank you for choosing Rise, and if you have further questions or concerns, kindly contact us via the contact session on your app, or send us an email at <a href="mailto:hello@risevest.com">hello@risevest.com</a>.</p>



<p>Love and returns,&nbsp;</p>



<p>The Rise Team</p>


Why You Should Not Let Exchange Rate Fluctuations Interrupt your Investment Strategy


<p>We know you’ve heard of the saying, “buy low, sell high.” And so far this year, the stock market is having a great run. In recent weeks alone, the S&amp;P 500, Dow Jones, and Nasdaq have all touched all-time highs for the first time in two years. So now that stocks are decidedly not low, does it mean it’s not a good time to buy? Should you wait until stocks fall to maximise your returns?&nbsp;</p>



<p>Here at MoneyRise, we thought we’d unpack some data behind all-time highs to help you make sense of this moment.</p>



<h2 class="wp-block-heading" id="h-to-start-we-ll-analyse-why-all-time-highs-make-some-investors-nervous"><strong>To start, we’ll analyse why all-time highs make some investors nervous.</strong></h2>



<p>It is a common principle that to make money in the <a href="https://money.rise.capital/blog/stock-market-investment-or-bank/">stock markets</a>, you have to sell a stock for more than you paid for it. And if prices start out high, it might be harder to do. For this </p>



<p>reason, investors try to avoid <a href="https://money.rise.capital/blog/the-principle-of-buying-stocks-when-others-are-selling/">buying overvalued stocks</a>, which basically means paying too much for what you get (a company’s earnings). And sometimes, entire stock indexes get overvalued, leading to a painful correction or fall, when investors across the board realise that companies aren’t making <a href="https://money.rise.capital/blog/its-not-enough-to-just-invest-in-stocks-heres-why/">enough money to justify their high stock prices</a>.</p>



<h2 class="wp-block-heading" id="h-does-that-mean-i-shouldn-t-invest-in-stocks-now"><strong>Does that mean I shouldn&#8217;t invest in stocks now? </strong></h2>



<p><strong><br></strong>While it sounds like a good assumption, the data doesn’t agree. North American stocks have marched steadily upward over the past century, and some bull markets have run for decades, partly because rising stocks and a booming economy can self-reinforce each other. So, if you’re waiting for a crash before you get in, you could wait for a long time and miss out on big returns. For instance, if you thought <a href="https://money.rise.capital/blog/risevest/">stocks were overheated in 1980 and delayed investing</a> until the next bear market (a 20% downturn), you would have waited seven years and missed out on something like 117% in returns. And even that downturn was a four-month blip in a historic 20-year bull market during which the S&amp;P 500 rose north of 1,000%.</p>



<h2 class="wp-block-heading" id="h-so-all-time-highs-don-t-mean-a-correction-is-imminent"><strong>So, all-time highs don’t mean a correction is imminent?</strong></h2>



<p>History suggests no, at least not usually. Looking back to 1957, when the S&amp;P 500 was created, the index has notched a new all-time high about every 14 trading days, or 7% of the time. Moreover, the S&amp;P has been within 5% of its latest high about 60% of the time and has been in a bear market only 12% of the time.</p>



<h2 class="wp-block-heading" id="h-but-what-if-there-is-a-correction-does-that-mean-my-stock-portfolio-will-be-ruined-forever-nbsp"><strong>But what if there is a correction? Does that mean my stock portfolio will be ruined forever?&nbsp;</strong></h2>



<p>Not if you’re diversified and investing long-term. The New York Times recently pointed out that if you invested in an S&amp;P index fund on October 9, 2007, right before the stock market fell by more than 50% during the global financial crisis, you still would have gained 9.3% annually in the years since then for a cumulative return of 325%, provided you reinvested your dividends. While recognising the unpredictability of the financial markets, it is essential to acknowledge the possibility of downturns, recessions, or even a depression.&nbsp;</p>



<p>Our advice to investors has always been: <strong>expect rough patches in the market, don’t be surprised by them, and stick to your plan</strong>. But we also know it’s hard not to panic when the market moves erratically.</p>



<p>However, a crucial aspect to consider is the historical trend that, over time, the stock market tends to grow in line with the economy’s growth and wages. While this is not a guarantee for the future, historical patterns suggest that, on a longer-term horizon, the market has displayed a propensity to recover and thrive. So as long as you have a diversified portfolio—you own stock across different sectors and different geography— and believe in the long-term prosperity of the economy, then you stand to do quite well.</p>



<h2 class="wp-block-heading" id="h-what-are-we-saying-essentially"><strong>What are we saying essentially?</strong></h2>



<p>There’s risk everywhere all the time. No one knows when the next downturn, recession or depression might occur. However, history has shown that, for most investors, time in the market is more important than timing the market. As such, investment accounts are for longer-term investments, and the key to navigating the uncertainties of the stock market includes maintaining a level-headed, long-term perspective.</p>



<p>At <a href="https://risevest.com/">Risevest</a>, we encourage investors to be committed to investing for a minimum of three years because the markets have a good probability of performing well over that period. As Warren Buffett says: “Why scrap an informed decision because of an uninformed guess?” Don’t panic because you think you’ll know what will happen next week — stay in because you know what will happen in the long term. <a href="https://click.risevest.com/gb0g/9lwzpxjd">Create</a> and fund your Rise stock plan today.</p>


The Stock Market Is at an All-Time High; Should I Double Down or Sell Everything?


<p>Investing is a key aspect of financial planning, and individuals often grapple with deciding where to allocate their funds. The stock market is a popular choice for potential high returns, but the risks associated can be intimidating. In contrast, leaving money in a bank account seems safer. This article explores the factors to consider when deciding between the stock market and saving in the bank, addressing concerns about the perceived high risk associated with the stock market.</p>



<h2 class="wp-block-heading" id="h-understanding-the-fear"><strong>Understanding The Fear</strong></h2>



<p>The stock market is often viewed as high-risk due to its inherent volatility. Prices of stocks can fluctuate rapidly based on various factors, including economic conditions, geopolitical events, and company performance. These fluctuations can lead to both substantial gains and significant losses. For example, in 2009, the U.S. stock market, as measured by major indices such as the S&amp;P 500 and Dow Jones Industrial Average, experienced a sharp decline. The S&amp;P 500 lost about 57% of its value from its peak in October 2007 to its trough in March 2009, representing one of the most substantial <a href="https://money.rise.capital/blog/stock-market-downturns-might-be-good-for-you-heres-why/">market downturns</a> in recent history.<br><br>We also live in a time when financial news is readily accessible, accompanied by ads and finance analysts who amplify concerns about an impending market collapse. Investors can easily hear claims of a significant downturn, which can trigger anxiety and apprehension among them. It is important to recognise that fearmongers have existed throughout history, especially during market highs and lows. However, their track record in accurately predicting downturns is notably poor, as evidenced by past economic crises like the 2008 recession, the bursting of the 2000 tech bubble, and the Great Depression.</p>



<h2 class="wp-block-heading" id="h-but-is-putting-money-in-the-bank-worth-it"><strong>But Is Putting Money in the Bank Worth it? </strong></h2>



<p>While the stock market carries a level of risk, it is essential to understand that risk is an inherent part of any investment. Leaving money in a bank, typically in the form of savings accounts or certificates of deposit (CDs), may seem like a safer option, but it comes with its own risks. Interest rates are incredibly low, and you&#8217;ll probably make less than 4% per annum in a savings account. Additionally, you’ll have to contend with inflation and devaluation, which could affect your buying power as your money sits idly in the bank.</p>



<h2 class="wp-block-heading" id="h-so-what-are-we-saying"><strong>So What are We Saying?</strong></h2>



<p>While recognising the unpredictability of the financial markets, it is essential to acknowledge the possibility of downturns, recessions, or even a depression. Our advice to investors has always been: expect rough patches in the market, don’t be surprised by them, and stick to your plan. But we also know it’s hard not to panic when the market moves erratically.</p>



<p>However, a crucial aspect to consider is the historical trend that, over time, the stock market tends to grow in line with the economy&#8217;s growth and wages. While this is not a guarantee for the future, historical patterns suggest that, on a longer-term horizon, the market has displayed a propensity to recover and thrive.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://money.rise.capital/wp-content/uploads/2024/01/image-1-1024x576.png" alt="Stock Market Investment" class="wp-image-2586" srcset="https://money.rise.capital/wp-content/uploads/2024/01/image-1-1024x576.png 1024w, https://money.rise.capital/wp-content/uploads/2024/01/image-1-300x169.png 300w, https://money.rise.capital/wp-content/uploads/2024/01/image-1-768x432.png 768w, https://money.rise.capital/wp-content/uploads/2024/01/image-1-1536x864.png 1536w, https://money.rise.capital/wp-content/uploads/2024/01/image-1-1568x882.png 1568w, https://money.rise.capital/wp-content/uploads/2024/01/image-1.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p>Downturns are healthy for long-term investors. When the market experiences a pullback, it provides opportunities for long-term investors to <a href="https://money.rise.capital/blog/when-the-stock-market-nosedives-i-buy-more-shares-my-name-is-tobe-and-this-is-how-i-make-my-moneyrise/">buy shares</a> in robust companies at a less expensive price. And over the long term, it corrects itself to reflect changes in the economy and fortunes of certain companies or sectors.&nbsp;</p>



<h2 class="wp-block-heading" id="h-maintaining-a-long-term-perspective"><strong>Maintaining a Long-Term Perspective</strong></h2>



<p>Investment accounts are for longer-term investments, and the key to navigating the uncertainties of the stock market includes maintaining a level-headed, long-term perspective.</p>



<p>At <a href="https://risevest.com/">Risevest</a>, we encourage investors to be committed to investing for a minimum of three years because the markets have a good probability of performing well over that period. As Warren Buffett says: “Why scrap an informed decision because of an uninformed guess?” Don&#8217;t panic because you think you&#8217;ll know what will happen next week — stay in because you know what will happen in the long term.</p>



<p>Why? Because markets, in the long term, have proved to be quite predictable. Check out this depiction of the last hundred years of the Dow Jones Industrial Average.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="576" src="https://money.rise.capital/wp-content/uploads/2024/01/image-3-1024x576.png" alt="Stock Market Investment" class="wp-image-2592" srcset="https://money.rise.capital/wp-content/uploads/2024/01/image-3-1024x576.png 1024w, https://money.rise.capital/wp-content/uploads/2024/01/image-3-300x169.png 300w, https://money.rise.capital/wp-content/uploads/2024/01/image-3-768x432.png 768w, https://money.rise.capital/wp-content/uploads/2024/01/image-3-1536x864.png 1536w, https://money.rise.capital/wp-content/uploads/2024/01/image-3-1568x882.png 1568w, https://money.rise.capital/wp-content/uploads/2024/01/image-3.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>



<p>In conclusion, the decision to leave money in the bank or invest in the stock market is a nuanced one that requires careful consideration. While fears of market volatility and predictions of significant downturns abound, historical evidence suggests that the market has shown resilience over time. By maintaining a balanced perspective, acknowledging the possibility of downturns, and focusing on long-term goals, investors can make informed decisions that align with their financial objectives.</p>


Which Option Is Right for You: Stock Market or Bank?


<p>Hello Riser, </p>



<p>How are you today? We’re halfway into January, and if you’re wondering whether it’s too late to set your new year goals, here’s what Nduka, a retired goal-quitter, has to say. While you laugh at his jokes, ensure you pick up his message. And don’t forget to enjoy the rest of your week.</p>



<h2 class="wp-block-heading">Troubles At The Red Sea</h2>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="576" height="324" src="https://money.rise.capital/wp-content/uploads/2024/01/red-sea-countries-map-1-576x324-1.jpg" alt="Map of the Red Sea" class="wp-image-2454" srcset="https://money.rise.capital/wp-content/uploads/2024/01/red-sea-countries-map-1-576x324-1.jpg 576w, https://money.rise.capital/wp-content/uploads/2024/01/red-sea-countries-map-1-576x324-1-300x169.jpg 300w" sizes="(max-width: 576px) 100vw, 576px" /></figure>



<p>Around the world, a storm is building after decades of calm. Since mid-November 2023, the Houthis, a Yemeni rebel group backed by Iran, have launched dozens of attacks on ships sailing through the Red Sea and the Suez Canal, making it riskier and costlier to use the crucial shipping lane and sending nearly all container traffic south, around Africa’s Cape of Good Hope.</p>



<h2 class="wp-block-heading"><strong>Who are the Houthis?</strong></h2>



<p><br>The Houthis, led by Abdul-Malik al-Houthi, are an Iran-backed group of Shiite rebels who have been fighting Yemen’s government for about two decades and now control the country’s northwest and its capital, Sana.</p>



<p>They have built their ideology around opposition to Israel and the United States, seeing themselves as part of the Iranian-led “axis of resistance,” along with Hamas in the Gaza Strip and Hezbollah in Lebanon. Their leaders often draw parallels between the American-made bombs used to pummel their forces in Yemen and the arms sent to Israel and used in Gaza.</p>



<p>In 2014, a military coalition led by Saudi Arabia intervened to restore the country’s original government after the Houthis seized the capital, starting a civil war that has killed hundreds of thousands. Last April, talks between the Houthis and Saudi Arabia raised hopes for a peace deal that would potentially recognise the Houthis’ right to govern northern Yemen.</p>



<h2 class="wp-block-heading"><strong>Why are they attacking ships in the Red Sea?</strong><br></h2>



<p>When the Israeli-Hamas war started on Oct. 7, 2023, the Houthis declared their support for Hamas and said they would target any ship travelling to Israel or leaving it.</p>



<p>Yahya Sarea, a Houthi spokesman, has said that the group frequently attacks ships to protest the “killing, destruction, and siege” in Gaza and to stand in solidarity with the Palestinian people.</p>



<p>The Gazan authorities say that more than 23,000 people, most of them civilians, have been killed in the Israeli bombing campaign and ground offensive that started after Hamas carried out cross-border raids, which the Israeli authorities say massacred about 1,200 people.</p>



<p>Since November, the Houthis have launched 27 attacks with drones and missiles on vessels in the Red Sea and the Gulf of Aden, which they claim are heading toward or leaving Israeli ports. The latest was on Thursday at 2 a.m. when a missile landed near a commercial vessel, the U.S. military said. Perhaps, the most audacious Houthi operation came on Nov. 19, 2023, when gunmen hijacked a vessel named the Galaxy Leader and took it to a Yemeni port, holding its 25 crew members, mainly Filipinos, captive.</p>



<h2 class="wp-block-heading"><strong>What is the United States doing about it?<br></strong></h2>



<p>The United States and a handful of allies, including Britain, struck back, carrying out missile strikes on Houthi targets inside Yemen early Friday and thrusting the rebels and their long-running armed struggle further into the limelight.</p>



<p>The attack on Houthi bases came a day after the United Nations Security Council voted to condemn “in the strongest terms” at least two dozen attacks carried out by the Houthis on merchant and commercial vessels, which it said had impeded global commerce and undermined navigational freedom.</p>



<p>The task force, called Operation Prosperity Guardian, brought together the United States, Britain and other allies and has been patrolling the Red Sea to, in Mr. Blinken’s words, “preserve freedom of navigation” and “freedom of shipping.” But the problem is that no matter how much the US and its allies reinforce their boundaries, the Houthis aren’t guaranteed to respect them.</p>



<h2 class="wp-block-heading"><strong>What does this mean?</strong><br></h2>



<p>Speaking to reporters in Bahrain on Wednesday, the American secretary of state, Antony J. Blinken, warned that continued Houthi attacks in the Red Sea could disrupt supply chains and, in turn, increase costs for everyday goods. About 10% of global trade transits through Suez, 12% of global oil, and about 8% of LPG gas, but 30% of container shipping goes through the red sea.</p>



<p>The world’s biggest container companies, MSC and Maersk, have said they are avoiding the region, and shipping companies are left with difficult options such as detours to Africa. The detour adds about 30% more miles to the journey from Shanghai to the Dutch city of Rotterdam, and the additional days and fuel required increase the cost of shipping things– not just on Asia-to-Europe circuits but also on Asia-to-US ones. The diversion around the Cape of Good Hope at the bottom of Africa adds about 3,500 nautical miles, over $1 million in additional cost and a delay of up to two weeks. This is inflationary as the contents of every precious shipping container would be more expensive, increasing costs and the possibility of scarce goods and products.</p>



<h2 class="wp-block-heading"><strong>What does this mean for my investment?</strong></h2>



<p><br>In light of these uncertainties and economic challenges, it&#8217;s essential for you to explore reliable <a href="https://money.rise.capital/blog/investing-during-a-tight-economic-cycle/">investment and wealth management options to navigate these economic</a> uncertainties. On Risevest, you can access diversified <a href="https://money.rise.capital/blog/i-look-for-investment-opportunities-that-can-beat-the-prevailing-inflation-rate-of-the-naira-my-name-is-busola-and-this-is-how-i-make-my-moneyrise/">investment opportunities</a>, helping to mitigate risks associated with geopolitical events and economic uncertainties.</p>



<h2 class="wp-block-heading"><strong>The SEC Finally Approves Bitcoin ETFs</strong></h2>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="480" height="262" src="https://money.rise.capital/wp-content/uploads/2024/01/image.png" alt="Spot Bitcoin ETFs" class="wp-image-2455" srcset="https://money.rise.capital/wp-content/uploads/2024/01/image.png 480w, https://money.rise.capital/wp-content/uploads/2024/01/image-300x164.png 300w" sizes="(max-width: 480px) 100vw, 480px" /></figure>



<p>The Securities and Exchange Commission (SEC) officially approved <a href="https://risevest.com/blog/spot-bitcoin-etfs-a-new-era-in-crypto-investment">spot bitcoin ETFs</a> last week. The 11 exchange-traded funds will let Boomers access Bitcoin without needing a crypto wallet. Basically, our parents may soon become Crypto Bros.</p>



<h2 class="wp-block-heading"><strong>Now that it’s real, what does it mean?</strong></h2>



<p>Spot bitcoin ETFs will make investing in crypto more accessible by providing investors with exposure to bitcoin without having to buy it themselves. This also integrates Bitcoin into the traditional financial system. Big players like Fidelity, Ark Investments, and BlackRock were among the first applicants approved by the SEC. Bitcoin is essentially putting on a tie and agreeing to work at its dad’s insurance firm for the summer until the saying “buying a hamburger with crypto” becomes a thing.</p>



<h2 class="wp-block-heading"><strong>Why now?<br></strong></h2>



<p>The long-awaited win for the crypto industry came after a false start on Tuesday when someone hacked the agency’s X account and spuriously said the ETFs had been approved. Crypto investors have been asking for spot bitcoin ETFs since roughly 2013, but the SEC has historically grimaced at the idea of inviting such a volatile asset into the financial system, concerned that a bitcoin ETF could be easily manipulated.</p>



<p>However, Grayscale Bitcoin Trust, which already helps investors buy bitcoin, tried to create an ETF for years and eventually took the SEC to court to force the agency’s hand in approving the fund. In August, a judge ruled in favour of Grayscale. This prompted it and several big-name investment firms to rush to file with the SEC to create spot bitcoin ETFs, and the agency was up against a deadline to decide.</p>



<h2 class="wp-block-heading"><strong>What are the risks involved?</strong><br></h2>



<p>While spot Bitcoin ETFs offer a more straightforward way for traditional investors to access the cryptocurrency market, it’s important to note that the volatile nature of cryptocurrencies poses inherent risks. Bitcoin prices can be subject to sudden and significant fluctuations, and investors should be aware of the potential for both substantial gains and losses. So while you embrace the opportunities presented by this, don’t forget to diversify your portfolio with Rise.</p>



<h2 class="wp-block-heading"><strong>What’s Up At Rise?</strong><br></h2>



<p>Portfolio Report<br>Our Rise portfolio has maintained its winning streak for the second consecutive week by outperforming the S&amp;P 500. We closed the week with a positive return of 1.34%, surpassing the S&amp;P 500, which closed positively at 0.20%. Notably, a significant contributor to our success is Microsoft, a company within our portfolio that achieved the prestigious title of the most valuable company in the world. We are starting the year strong and hope to maintain the momentum throughout</p>



<p>Major banks released their earnings this week, with most of them reporting better-than-expected earnings and profits. A better-than-expected earnings report signifies a healthy banking sector, attracting new customers and contributing to overall economic stability.</p>



<p>As usual, our commitment to delivering value to you remains unwavering.<br></p>


MoneyRise Episode 44: Troubles at the Red Sea


<p>For many, the beginning of a new year is a time of reflection and  renewal and New Year&#8217;s resolutions are a time-honoured tradition, a chance for people to reflect on the past year and set goals for the year ahead. As the New Year approaches, many people start to think about what they want to achieve in the coming year. Some people make New Year&#8217;s resolutions, while others prefer not to set specific goals. However, research has shown that setting and working towards specific goals can be beneficial in many ways. Here are a few reasons why you might want to consider making a <a href="https://money.rise.capital/blog/how-you-can-keep-your-financial-new-years-resolutions/">New Year&#8217;s resolution</a> for 2024:</p>



<ol>
<li><strong>A New Year&#8217;s resolution can help you focus on what&#8217;s important.</strong></li>
</ol>



<p>When you set a specific goal, you are more likely to focus on what is truly important. This can help you prioritise your time and energy, ensuring that you are working towards something that matters to you,&nbsp;</p>



<ol start="2">
<li><strong>A New Year&#8217;s resolution can help you develop new habits.</strong></li>
</ol>



<p>The new year represents a clean slate and a chance to start anew. It&#8217;s a good time to reflect on the past year and identify areas of your life that you want to improve or change. Many New Year&#8217;s resolutions revolve around developing new habits, whether it&#8217;s exercising more, eating healthier, or spending more time with family and friends. By focusing on building new habits, you can make lasting changes to your daily routine and improve your overall health and well-being.</p>



<ol start="3">
<li><strong>A New Year&#8217;s resolution can increase your motivation and self-esteem.</strong></li>
</ol>



<p>Working towards a specific goal can be very motivating. You may feel a sense of accomplishment and pride as you progress toward your resolution. This can lead to increased self-esteem and confidence, positively impacting other areas of your life.</p>



<ol start="4">
<li><strong>It can help you grow and learn.</strong></li>
</ol>



<p>Setting a New Year&#8217;s resolution can also be an opportunity for personal growth and learning. Whether learning a new skill or working towards a major life change, setting a specific goal can help you push yourself out of your comfort zone and try new things.</p>



<ol start="5">
<li><strong>It can also bring a sense of purpose and meaning.</strong></li>
</ol>



<p>Setting a New Year&#8217;s resolution can provide many people a sense of purpose and meaning. Focusing on something important to you can find greater fulfilment and satisfaction in your life.</p>



<h2 class="wp-block-heading">How do you go about setting a New Year&#8217;s resolution? Here are a few tips to help you get started:</h2>



<ol>
<li><strong>Be specific.</strong></li>
</ol>



<p>When setting a New Year&#8217;s resolution, it&#8217;s important to be as specific as possible. Instead of resolving to &#8220;lose weight,&#8221; try setting a specific goal like &#8220;lose 10 pounds by March 1st.&#8221; This will give you a clear target to work towards and make it easier to track your progress.</p>



<ol start="2">
<li><strong>Make your resolution realistic.</strong></li>
</ol>



<p>It&#8217;s important to set a goal that is realistic and achievable. While it&#8217;s okay to aim high, setting an unrealistic goal can set you up for disappointment and make it harder to stay motivated.</p>



<ol start="3">
<li><strong>Plan ahead.</strong></li>
</ol>



<p>To increase your chances of success, it&#8217;s important to plan. This might involve setting intermediate goals, finding a support system, or finding resources to help you achieve your resolution.</p>



<ol start="4">
<li><strong>Be flexible.</strong></li>
</ol>



<p>It&#8217;s important to remember that your New Year&#8217;s resolution is a work in progress. If you encounter roadblocks or setbacks, feel free to adjust your plan or your goal. The most important thing is staying committed and working towards your resolution.</p>



<p>Now that we&#8217;ve explored the benefits of setting a resolution, <strong>how can Rise help you achieve it?</strong> Rise is a dollar investment platform that aims to help individuals achieve their financial goals through various investment options. Whether you are looking to save for retirement, build wealth, or simply grow your finances, Rise can provide the tools and resources you need to succeed.&nbsp;</p>



<p>One of the main advantages of using <a href="https://risevest.com/">Rise</a> is the ability to diversify your investment portfolio. Investing in a range of assets can minimise risk and potentially maximise your returns. This is especially important in today&#8217;s market, where uncertainty and volatility are common. By diversifying your portfolio, you can reduce the risk impact on your overall returns, which can help to smooth out the ups and downs of the market and provide a more stable path to achieving your financial goals.</p>



<p>In addition to diversification, Rise also offers the opportunity to invest in a range of asset classes, including <a href="https://risevest.com/stocks">stocks</a>, <a href="https://risevest.com/fixed-income">fixed income</a>, and <a href="https://risevest.com/real-estate">real estate</a>. This allows you to customise your portfolio to align with your specific financial goals and risk tolerance. For example, if you are saving for retirement, you may want to allocate a larger portion of your portfolio to more stable, income-generating assets such as fixed income. On the other hand, if you are looking to build wealth over the long term, you may want to allocate a larger portion of your portfolio to growth-oriented assets such as stocks.</p>



<p>In addition to offering a range of investment options, Rise also provides tools and resources to help you make informed investment decisions. This includes access to financial advisors, educational materials, and market research, which can help you better understand the investment landscape and make informed decisions about where to allocate your funds.</p>



<p>Another benefit of using Rise is the flexibility it offers. You can choose to invest a one-time lump sum, or set up automatic investments regularly. This allows you to invest at a pace that is comfortable for you and fits your financial situation. Additionally, you can easily monitor and manage your investments through the Rise platform, which provides real-time updates and insights into your portfolio performance.</p>



<p>Finally, Rise provides a secure and user-friendly platform that is easy to navigate and use. The platform is designed with the user experience in mind, with a clean, intuitive interface that makes it simple to manage your investments and track your progress. This can be especially important for those new to investing or who may need to be more comfortable with more complex financial tools.</p>



<p>So make Rise part of your new year&#8217;s resolution, as it can help you achieve your financial goals this year. With a wide range of investment options, educational resources, and a user-friendly platform, Rise provides the tools and support you need to grow your wealth and reach your financial objectives, whether as a beginner or an experienced investor.</p>



<p>Overall, setting a new year resolution can bring numerous benefits and help you achieve your goals. Whether it&#8217;s improving your health, strengthening relationships, or achieving financial success, a resolution can provide the motivation and discipline needed to make positive changes in your life. With the help of a platform like Rise, you can invest your money and work towards your resolution, all while learning about financial planning and making informed decisions about your money. So make a resolution this year and start taking steps towards a better, more fulfilling life.</p>


How Rise Can Help You Achieve Your New Year Resolutions.


<p>Once again, the festive season is upon us and 2023 is about to breathe its last. It’s been a long year for many of us, and Christmas, as usual, is the time for unwinding. It is a time when people splurge on things as a reward for making it through the year. There’s music in the air, enough food to go round, decorations are put up, sales and gift exchanges are happening, and everyone is jolly.&nbsp;</p>



<p>But while it is great to unwind, it is important to remember that January has 59 days and you have financial goals to meet. You don’t want to start the new year broke or in debt. So this week,&nbsp; we’re sharing tips on how to enjoy your December on a good budget and prepare your finances for 2024.&nbsp;</p>



<h2 class="wp-block-heading"><strong>Make a budget and stick to it</strong></h2>



<p>It is important to create a December budget and stick to it. When creating the budget, include everything you would spend money on this December, such as donations, gifts, Christmas decorations, transportation, clothes, drinks, and groceries. The goal of having a December budget is to help you plan your expenses to avoid spending above what you can afford.&nbsp;</p>



<h2 class="wp-block-heading"><strong>Find cheap but great restaurants.</strong></h2>



<p>This is not the time for you to spend ridiculous amounts of money on restaurants or foods. There are cheap restaurants and lounges that offer great food and aesthetics. All you need to do is research, visit food bloggers&#8217; pages on Instagram or TikTok and find restaurants that serve tasty meals at affordable prices.&nbsp;</p>



<h2 class="wp-block-heading"><strong>Organise get-togethers with your friends</strong>.</h2>



<p>Have little get-togethers in the comfort of your home. This is the best way to catch up with friends and family members you haven’t seen in a while. The best part is that you get to have actual conversations and spend more time with them without the wandering eyes of people or raising your voice and straining your ears over loud music. Here’s where it’s financially responsible: you don’t have to pay for much. Everyone brings a snack, drink and game, and there you have it: fun from the comfort of your home.</p>



<h2 class="wp-block-heading"><strong>You can’t attend all the concerts in your city.</strong></h2>



<p>If you make a list of everything happening in December, chances are that the majority of them appeal to you. But that’s not true; a lot of the time, it’s our fear of missing out that pushes us to go to events. It’s more financially responsible to choose a select few concerts and events and stick to them. This will also save you from burning out after.&nbsp;</p>



<h2 class="wp-block-heading"><strong>Invest in thoughtful gifts.</strong></h2>



<p>Homemade presents are great ways to<a href="https://money.rise.capital/blog/the-best-money-saving-tips-for-nigerians/"> save money</a> while creating something memorable. These gifts might not work for everyone on your list, but they’re good options for some. The gifts could be anything from a photo book to a bottle of wine they like. Or cook them a meal, help them around the house or take them somewhere nice for a change. You don’t need to outdo yourself or anyone else to show appreciation. As they say, it is the thought that counts.</p>



<h2 class="wp-block-heading"><strong>Secret Santa helps you to save costs</strong></h2>



<p>If you work in a large organisation or have a large family, buying gifts for everyone can make you spend above your budget. A fun, easy way to get around this is to plan a Secret Santa gift exchange. Everyone draws a name without telling who it is and buys just for that person. Usually, a moderate spending limit is imposed, and the element of surprise at a gift exchange time adds to the fun.&nbsp;</p>



<h2 class="wp-block-heading"><br><strong>Prioritise needs over wants</strong></h2>



<p>We all love a bit of indulgence during the holidays, but distinguishing between needs and wants is key. Prioritise essential needs over extravagant wants. Remember, the season&#8217;s value lies in creating memorable experiences, not in draining your wallet on expensive things.</p>



<h2 class="wp-block-heading"><strong>Take Advantage of Discounts and Sales</strong></h2>



<p>Shopping during the holiday season <a href="https://money.rise.capital/blog/say-i-do-without-breaking-the-bank/">doesn&#8217;t have to break the bank</a>. Keep an eye out for discounts, promotions, and sales. Plan your shopping around these events to maximise your savings. Online shopping can be your best friend, with various platforms offering exclusive discounts during this time.<br></p>



<h2 class="wp-block-heading"><strong>Limit Unnecessary Travel Expenses</strong></h2>



<p>If your plans involve travel, consider cost-effective transportation options. Better yet, celebrate closer to home to cut down on unnecessary travel expenses.</p>



<h2 class="wp-block-heading"><strong>Avoid loans; don’t start January with a negative Balance.</strong></h2>



<p>There is the possibility of the Amapiano getting into your head during the festive season, pushing you to go above your budget. It could also twist your mind into borrowing a few thousands. While Dorime might be sweet, it is important for you to think about how you will meet your financial obligations when they are due, especially January, with 59 days.&nbsp;</p>



<h2 class="wp-block-heading"><strong>Gift yourself a Rise plan</strong></h2>



<p>There are many ways you can flex Detty December without ruining your bank account. And now that we’ve helped you save some money this December, here’s how to make most of it— gift yourself a <a href="https://risevest.com/">Rise plan</a>. Our plans are made up of high-quality US assets like stocks, real estate and fixed income. As a dollar-denominated company, your returns are paid in dollars, hedging your investments against inflation and devaluation and helping you build wealth. With our auto-invest feature, it is easier to stay consistent to your investing goals even when you forget.</p>



<p>Remember, after detty December comes dry January, so ensure you have a clean and happy celebration.</p>


7 Tips On How To Do Detty December On a Budget


<p>The end of the year is usually a season of yuletide,&nbsp; 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.&nbsp;&nbsp;</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.&nbsp;</p>



<h2 class="wp-block-heading"><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 <a href="https://money.rise.capital/blog/the-impact-of-foreign-exchange-policies-on-dollar-investment-in-nigeria/">foreign exchange</a> 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 class="wp-block-heading"><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 class="wp-block-heading"><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>


Ratios
	Q2 2020	Q2 2021
Return on Equity	11.87%	11.73%
Return on Asset	5.08%	5.51%
EPS	$2.05	$2.50
Gross Margin	67.05%	67.21%
Net Margin	35.90%	36.28%