How To Invest To Earn Extra Amount Monthly?

By Ola Emmanuel

Craig McCaw, born August 11, 1949 was the second born of his parents. A renowned communication entrepreneur and savvy investor, he found himself saddled with the responsibility of rescuing his father’s business at a tender age.
While Craig’s father was on the saddle, he was known, throughout the period of his career, to have bought and sold dozens of radio and television stations; and incurring huge debts in the process. All the four children were involved in the company as employees but Craig soon overtook the other three; and becoming a leader in managing the company.
When Craig’s father died, his mother was forced to liquidate the family businesses one by one to pay debts and taxes owed by the man; leaving a small cable system company. Craig had to take over the management of the business as a college student; and subsequently expanding the cable business and steadily switched into the new and untested field of cellular telephone service. As an investor, he had to borrow huge amount of money, and taking a risk that the portable phone would become a success. By the end of the 1980s, McCaw's Cellular One had become the best known brand in the telecom business; building a national network that had successfully put its competitors far behind.
As is known with investors, McCaw sold the cellular business to AT&T for $11.5 billion, only to embark on a more ambitious investment by embarking on a global ICT venture.
The story of Craig McCaw explains the ‘never-say-die’ attitude of a typical investor who is confronted by failing economic situations. When good investors’ income yields become inadequate, they don’t just look but rather, they seek how to improve upon their earnings. This is an issue we are going to examine today in this piece.
In the face of rising costs of living, it is necessary that everyone saddled with responsibilities improve upon his or her ability to earn. When a question is simplified, it demystifies what may ordinarily appear unworkable. So, in today’s piece, to earn at least N20,000 extra every month is to find ways to earn additional N30 every hour. One of the readers of this column sent me this question two weeks ago. As a mark of honour and respect to the person, I have removed few words from the question: “How much do I need to invest to fetch me at least N20,000 monthly? It has to be monthly because I am a parent with children”. My discussion with the person (after I got the question) warrants that I do this piece.
In a situation where more money is required to get same quantity of value (a product or service), the simple logic is for one to earn more money to enable one neutralises the effect. Where this is not possible, standard of living falls and quality of life is reduced. Being conscious of the need to earn more is about taking deliberate actions to capture the money you have been overlooking or which you don’t know exist, or which you don’t know are yours to take. To those who were at the Ibadan Investment Summit, it was a swell time as they enjoy my paper on how one can locate and possess the hidden incomes that are begging for attention.

Investment Option To Achieve The Target:
However, if this target is to be met through the option of money investment, say investment in shares, a lump sum of N1.15 million will achieve the goal if it can make 21% yield per annum. But where one cannot get the lump sum to invest at the beginning of the year, a monthly investment may be the next alternative. So how much do one needs to invest every month to achieve the target?
To achieve the goal, let situate it on these facts. The first investment will be possible after one has earned money at the end of first month. Also the 12th month income will not make any yield since it will be earned at the end of the period. So, it is 11 instalments that will earn effective rate of 0.0175% (21% per annum) in the possible number of months. Therefore, to make a money gain of N240,000 in a year (average N20,000 monthly), one should be able to make N105,104 investment every month. A better approach is to earn hybrid of incomes through maximisation of one’s potentials.

Why You Need To Increase Your Earnings:
I had mentioned it before on this page that since inflation determines the value of money one can get, it will be fool-hardy if one fails to increase earnings on his money above inflation rate. Money that cannot attract yield higher than the inflation rate is not good money. An investment that can’t return higher rate of interest cannot be seen as good one. For your money to be meaningful, it must earn above inflationary rate, say minimum four per cent higher.
So you need to increase your income? There are many ways to achieve this besides the one ideitified above. For instance, you may have to explore business opportunities around you and take up those that compliment what you are currently doing. What you need to do is figure out what you are good at. Why not find ways to monetize your skills, hobbies, or passions.
Till next week, enjoy my Pen, and stay financially fit.


Ola Emmanuel is the Publisher of Oak Magazine. A practitioner in the areas of Financial Fitness, Human/Business Development, Entrepreneurship and Academic Excellence. Contact: 08023257707; www.oakmagonline.com oakmagazine@yahoo.co.uk