How To Build Wealth: 5 Simple Ways To Build Your Fortune

Wealth-building is a process that generally takes time. Although the idea of becoming an overnight millionaire is appealing for many, the only real way to get rich overnight is via speculation, an inheritance or a lottery win.

Ironically, the best way to build wealth “fast” is to chart out a prudent path toward long-term gains. The quicker you can save and invest, the faster your money will compound, which is the true magic behind building wealth. Here are 10 ways you can grow your net worth as rapidly as possible without taking on undue risk.

Successful people invest time, energy, and money in improving themselves. A man told me once, "The best way you can help people in need is to not be someone in need." Help yourself out so you are in a position to help someone else out. This means investing in yourself to become great at something.

I invested in sales training when I was 23. That made my income-producing ability skyrocket. Investing in yourself is the best investment you can make.

1. Find a job in the right vehicle: The rich are able to get in with the right company where there is opportunity for growth. My VP of sales Jarrod Glandt started working for me over seven years ago for $2,500 a month. He wasn't making anything but he was in the right vehicle. He grew his skill set and was able to multiply his monthly income many times over because he knew I was looking to expand.

Too many people just look for a job. You need a job, but you need the right vehicle. All companies live from this thing called revenue. Get commissions rather than just a salary and you will finally be in control of how much you earn.

2. Get great at what you do: Commit to being great, not just average. Any industry can be a painful profession for average and bottom performers, but massively rewarding for those that are great. Those that live, breathe, and eat their profession, those that are obsessed, become great.

I have never met a great who wasn't all in and completely consumed by their trade. Have you? The fact is, if you aren't great, you are average. The rich get great.

3. Get multiple, connected income streams flowing: You won't get rich without multiple flows of income. That starts with the income you currently have. Increase that income and start adding multiple flows.

You want what are called symbiotic flows. Do not just add disconnected flows. Instead, find other ways you can add income to the job you already have. My video guy does advertising for me — and after proving himself, he started making advertisements for those connected to me. He didn't start a doughnut shop.

Too many people go from one flow to a second flow, resulting in two flows that do nothing. Your flows should always be connected.

4. Hit $100K, then invest the rest: First, try to save $100,000. Why? You need to prove to yourself that you can go out and get money. If you have only $10,000 saved, your only priority should be increasing your income so that you can save more.

Saving $100,000 shows that you have an ability to make money and then to keep it. Most people can't do either of those things.

5. Buy a Rental Property

One of the key ways to build wealth fast — and over the long term — is to earn passive income. And one of the best ways to generate passive income is to own one (or several) rental properties. With a well-managed rental property, you’ll receive a steady stream of income every month, with little additional effort required on your part. 

While you’ll have to find tenants to move in and will have to deal with occasional maintenance issues, your income will essentially be on auto pilot. Unlike your mortgage payment, your rents will continue to rise over time, meaning your tenants will be paying some or all of your mortgage while you watch your properties appreciate in value.

Run Side Hustles

Even if you have a job, you don’t have to only rely on your paycheck. You can run a successful side hustle to increase your income. You can turn your talent or hobby into monetary value during your free time.

There are many lucrative side hustles you can run online as long as you have internet access. These include:

• Working as a virtual assistant
• Freelance writing and editing
• Copywriting
• Online tutor, coach, consultant
• Web design, app development, coding, etc.

Other side hustles that don’t need internet access include:

• Part-time professor at a local college
• Part-time gym instructor
• Freelance bookkeeping, tax preparation, tutoring
• Becoming a shopper
• Part-time driver for a ride-sharing or delivery service

Once you can earn and save, then you can start building wealth. I'd recommend multi-family real estate if you are conservative like me. I never looked to get rich quick, but I did look to get rich.

6. Create a budget

Creating a budget and sticking to it is crucial if you want to know how to build wealth from nothing. 

Using that regular income source we just spoke of, now you need to create a budget to take control of how you are spending your money, usually set on a monthly basis.

A budget is a financial plan for a defined period that contains estimated income and expenditures for that period.

Every household and/or individual needs to create at least a monthly budget to identify your expected income and estimated expenditure. Living without a proper budget is like sailing without a compass, and you can guarantee that you’ll get lost in the seas of financial missteps. 

A popular budgeting technique is the 50:30:20 rule. In this technique, you can formulate a budget where 50% of income goes to essential expenses (rent, mortgage, food, healthcare), 30% to non-essentials like shopping, vacation, entertainment, and 20% to savings and investments.

Why is budgeting important? 

One main reason is that by understanding how you spend your money, it’s easier to identify the things that can be cut: the lower your expenses, the more you can add to your savings and investments. 

By identifying and cutting unnecessary and avoidable costs, you can build wealth faster. It’s that simple.

7. Build an emergency fund

Now that you have learned how to save a significant part of your income, the next course of action to build wealth from nothing is to create an emergency fund. 

An emergency fund is like self-funded insurance. It’s money you set aside for unexpected expenses like car repairs and unforeseen circumstances like job loss or pandemic-induced lockdowns.  

When unexpected expenses and unforeseen circumstances arise, there are ways to make matters worse: incur debt and/or sell your investment(s). 

You pay interest on debt, and when you sell your investment(s), you lose both the amount you sold and the interest from the market exposure it could have earned if you didn’t sell.  

Therefore, to avoid those two scenarios, we recommend you learn how to start an emergency fund right away. An emergency fund should hold between three to six months of your monthly expenses. Also, ensure those funds are in a savings account where you can easily access them when the need arises. 

Like insurance, an emergency fund won’t make you wealthy, but it will prevent you from selling your investments or incurring debt during emergencies. 

Live Within Your Means

You’ll never generate any wealth at all if you spend more than you earn. To set yourself up for a lifetime of prosperity, it’s important to create a strict budget and stick to it. Make sure that in addition to all of your unavoidable expenses, you’ve got a significant line item for saving and investments. Every month that you can come in under budget, you’re adding to your pool of lifetime wealth.

Don’t Be Too Conservative

Although being too speculative is a sure-fire way to risk all the savings you’ve worked for, being too conservative can be equally damaging in terms of limiting your wealth. Taking some risks in your financial life — from investing a bit more aggressively to starting your own business — is a necessary component if you want to generate outsized levels of wealth. 

If you put all of your money into Treasury bills, for example, you’ll actually generate a negative real return after taking taxes and inflation into account. Owning some stocks, real estate, your own business or even some cryptocurrency are ways to gain exposure to higher potential returns on your investments. Just understand that while speculation has a role in generating wealth, it also brings additional risk to the table.

Building wealth is not a rocket science process. With dedication and discipline, you can grow your wealth fast. Before starting on this journey, it’s important to equip yourself with financial education. That alone should catapult you through the other steps seamlessly and eventually build wealth.

Many people overlook retirement accounts when it comes to building wealth. You’ll not only save for retirement but also grow your wealth over time.

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Professional Tips on How to Save $4000 in a Year and Grow your Savings

Do you live from paycheck to paycheck, use credit cards to keep up with your bills, and feel that you cannot afford to buy anything you want?

Feeling that you don’t make enough money to save anything is a sign that you would benefit from taking a proactive approach to saving. Having a savings account will bring you peace of mind and help you manage your finances more efficiently.

It will also help you spend less money on your living expenses because, when a financial emergency arises, you won’t have to borrow the funds to cover the crisis and then pay them back with interest.

Saving money could also allow you to take a well-deserved vacation, put together a down payment for your dream home, or buy a new car.

Regardless of what you need money for, you can save up enough if you make a few changes to the way you handle your finances. You might think that the only way to save up money is to make sacrifices.

Not even close! Saving money doesn’t have to be hard. You can still have an enjoyable lifestyle when you’re putting money away. The key to saving money is to be smart about your finances.

In this action guide, you’ll discover how to save a few dollars each day. The changes may look insignificant, but small savings add up!

Following these tips will help you save $4,000 in a year. Sooner than you think, you’ll have a hefty savings account and find even more ways to save money as you get the hang of it!

Step 1: Take Control!

Budgeting and money management don’t have to be complicated. You just have to find a system that works for you, and these tools will make managing your finances a lot easier.

Track Your Habits

Tracking your spending habits can take a while because you’ll want to see where your money goes for at least a month.

The immediate benefit of tracking your spending is to identify the recurring expenses that you could easily avoid.

You could save from $3 to $15 a day depending on your habits:

1. Do you pick up a cup of coffee on the way to work?

Make coffee at home and buy a travel mug.

You could easily save $3 or $4 a day.

2. Do you only read a few articles from each daily newspaper or magazine you purchase?

Look up the free versions of these publications online and save $4 or $5 a day.

3. Do you buy fast food every day for lunch or to feed your family?

Feeding a family of four at McDonald’s costs at least $10 to $15 if you choose the most affordable menu items.

You could easily save this money by buying groceries and cooking meals in advance.

Try these tools to get an idea of where your money goes and to easily identify expenses that you can avoid:

1. Mint is a free app that tracks what you earn and spend.

This app organizes your expenses into different categories so you can get an idea of how much you spend on groceries, clothes, entertainment, and more.

2. BudgetSimple is another free tool that tracks your expenses.

This tool is especially useful because it automatically generates suggestions to show you where you could cut down on spending.

Establish a Budget

Once you’ve tracked your spending to see where your money goes, you can create a customized budget that works well for you.

The key to creating a budget that works for you is to find a method you like using. There are many online tools designed to create a budget that corresponds to your needs. These apps require you to enter your income and link your bank accounts to automatically track your expenses for you:

1. You Need A Budget, also known as YNAB, is one of the most popular budgeting apps.

This free tool organizes your expenses by categories, helps you put money aside, and generates a budget based on your current expenses.

Then You Need A Budget website reports that people using this tool started saving an additional $200 a month on average.

2. Pocket Expense and BudgetSimple are tools similar to YNAB.

The main features are the same but you might find that the interfaces of these tools are more convenient.

If you’re not a fan of tools that automatically create budgets for you, there are some apps you can use to manually allocate where your money goes.

This approach is inspired by the old practice of placing cash in different envelopes. GoodBudget and Mvelopes are two good online apps that make it easy to create a budget in this way. Budgeting is definitely worth it, and these 21st-century tools make budgeting easier than it has ever been.

Sticking to Your Budget

Establishing a budget is the easy part. Spending accordingly can be more difficult.

Following these three rules will help you stick to your budget and save $200 a month or more:

1. Assess how much you need to cover all your recurring expenses.

Put enough money aside as soon as you receive your paycheck.

An app like Mvelopes or other online tools can help you allocate these funds.

Your bank may even provide a tool in their online banking app.

2. The money that is left after you cover all your expenses is not for splurging!

Spend a reasonable amount on things you love because you worked hard and deserve a reward, but it’s important to make saving some of this money a priority.

3. Use Level Money or a similar app to keep your spending under control on a daily basis. This app shows you how much money you can spend over the month, week, or day.

Get into the habit of checking this app whenever you feel like buying something you don’t really need to decide whether or not you can afford to splurge.

Sticking to a budget requires discipline, but you can still live comfortably even while living frugally.

Follow these rules to ensure you pay important bills and avoid spending too much on impulse purchases. Establishing a budget that works for you and sticking to it could help you save $200 a month, or $2,400 a year!

Step 2: Don’t Let Financial Institutions Charge You For Their Services 

Avoiding Banking Fees

How much do you spend on banking fees?

Banking fees can seem trivial, but these expenses add up over time.

There is no need to pay for these fees when free options are available.

If your bank is currently charging a monthly fee for their services, find out why.

In most cases, banks will charge you a monthly fee only if your average balance is under a certain number if you don’t make enough transactions or don’t receive enough via direct deposit to qualify for a free account.

The average monthly cost of a checking account is $7 at a bank and $2 at a credit union.

Opting for a free alternative could help you save $84 or $24 a year.

If you cannot avoid a monthly fee at your bank, get a free checking account elsewhere. Some banks will even offer a signup bonus when you open a new account!

If you cannot find a free account that corresponds to your needs or would rather not open a new bank account, a good option is a service offered by American Express called Bluebird.

Bluebird gives you the possibility to receive direct deposits and use the money to pay bills, withdraw money from an ATM, or write checks without paying any fees.

Overdraft protection is the only service you should be paying for if your bank doesn’t offer free overdraft protection.

Did you know that the average American spends an average of $225 a year in overdraft fees?

This money could be easily saved by taking a few minutes to sign up for this service.

Avoiding Payment Processing Fees

How do you pay your utilities and other bills? Depending on the payment method you use, you might be wasting money on payment processing fees.

Even if these fees are only $2 or $3 for each transaction, this is money you could be saving. On a yearly basis, you could be paying around $100 a year in such fees. Follow these tips to avoid payment processing fees:

1. Use online banking to schedule automated payments directly from your bank account.

This way, you can avoid paying the fee most utility and insurance companies charge you when you pay with a card. Automated payments are also a good way to avoid paying late fees.

2. Always compare your payment options and ask about fees.

Scheduling automated payments from your bank might not be the best solution for all your bills.

For example, insurance companies often charge a monthly fee to process your payment regardless of how you pay your premiums.

Consider paying your insurance premiums in one lump sum on a yearly basis to avoid paying this fee.

Avoiding Credit Card Interest and Late Fees

Do you use credit cards for bills or daily expenses?

Take a look at your account to get an idea of how much you spend on interest and other fees. If you feel that your credit cards are costing you too much, contact the company and ask them to reduce your fees, or shop around for a better option.

Transferring your balance to a different card can be a good option if you qualify for a lower APR or for a card that doesn’t compound your interest on a daily basis.

It’s important to understand how interest is calculated on your credit card accounts. Most cards compound interest daily and use your average daily balance.

This means carrying a higher balance will result in higher fees.

You can easily avoid this by making a higher payment than usual if you make a large purchase with your credit card.

Use these strategies to reduce the amount of money you spend on credit card fees:

1. Always pay more than the minimum monthly payment.

Each payment goes towards the interest first, then towards the balance on the account. If you only make the minimum payment, your payment will cover the interest, but will not lower your balance by much.

Making larger payments will help you pay off your balance more quickly and eliminate having to pay as much interest.

The best method to avoid interest is to pay your entire balance each month. So whatever you charge in a month, pay it off that same month.

2. Schedule automated monthly payments to avoid late fees.

Most credit card providers also provide you with an online tool you can use to check your balance and make payments.

You could save roughly $350 a year by avoiding banking fees, overdraft fees, and payment processing fees!

Step 3: Become a Smart Shopper

The best approach to smart shopping depends on how you and your family live, how much time you can spend on shopping and cooking, and on what you enjoy.

Try different strategies to figure out what works for you and your family. Adopt these simple habits to save on groceries and other household expenses:

1. Use coupons and discounts to save on items you would usually buy.

You’ve probably seen couponing TV shows or websites where people save hundreds of dollars each week with coupons.

The truth is that this type of extreme couponing is incredibly time-consuming and tedious. Follow these tips to save money with coupons without any hard work:

The golden rule of couponing is to never purchase an item just because you have a coupon.

Rather than saving a few dollars or cents, you’re spending to buy an item you would otherwise not buy.

Subscribe to the newsletter, mailing list, or download the app of the grocery stores where you usually shop. Check these sources on a weekly basis to look for items on sale and clip coupons for items you usually buy.

Avoid spending hours looking for online coupons or going through hundreds of paper ads.

Download apps to automatically look for coupons instead.

Grocery IQ is an excellent choice if you use a grocery list since this app will automatically look for coupons for the items you intend to buy anyway.

You can also use The Coupons App to scan barcodes on products and look for coupons or to find all the deals offered at any nearby stores.

2. Plan your meals ahead of time and make grocery lists.

These simple habits will help you stick to a budget every time you go to the grocery store and could also help you adopt a healthier lifestyle.

Apps like Pepperplate, Ziplist, or Plan to Eat helps you find new recipes, save the ones you like, plan your meals for the entire week, and automatically create grocery lists for you. Use Supercook.com to find simple recipes based on the ingredients you have at home.

This could become your go-to solution whenever you’re about to take your family to a fast food restaurant because you’re low on groceries. If you’re short on time to cook during the week, set aside some time during the weekends to make large 
quantities of your family’s favorite foods and freeze meal-size portions.

This works great for chili, casseroles, and other dishes. You’ll have easy lunches and dinners to just heat and eat throughout the week. Eating out is fun! You don’t have to completely eliminate this expense.

Determine a reasonable budget for taking your family to their favorite restaurant once a week.

3. Shop at several locations.

Try different grocery stores to determine which one has the best prices or selection.

Find several alternatives for your regular household items.

Go to the grocery store once a week to buy items such as fresh produce, dairy products, meat, and nonperishable items. Look at the per-unit price or check the quantities or weight to determine which products are the best values.

Stock up on discounted items only if you will use them in your meal plans. Visit the dollar store once a month.

Stock up on dish soap, cleaning products, sponges, shampoo, soap, toothbrushes, toothpaste, glassware, school supplies, and wrapping paper.

You would normally pay between $2 and $4 for these different items at a grocery store, so going to a dollar store for some bulk shopping is worth it.

Shop online for household items and nonperishable items.

You will get access to a wider selection and have the option of buying large quantities at discounted prices.

Consider getting an Amazon Prime membership to get free shipping and lower prices on some household items.

Buy used items from online auctions, online consignment stores, or local thrift shops. This is a great way to save on clothes, toys, electronics, and décor items for your home.

You can even find used furniture on sites like Craigslist. Shopping for clothes at eBay, Goodwill, or online consignment stores could help you cut your clothing budget in half!

If you have children, this strategy could save you a lot of money. Plan in advance before making big purchases such as a new TV, computer, or video game console. This will give you time to put money aside and compare your options.

You might want to wait for Black Friday or Cyber Monday to get low prices on these items if you don’t want to buy them used.

Gas is another recurring expense.

Gas prices vary a lot and it’s difficult to determine the best time to gas up. Try using an app called GasBuddy to track and compare gas prices at different gas stations in your area.

The amount you can save by being a smart shopper really depends on your needs, how many people you’re shopping for, and how much time you can afford to spend on comparison shopping.

Step 4: Get Rid of Unnecessary Expenses and Spend More on Things That Matter

You could save a lot by eliminating some unnecessary expenses. Consider these examples:

1. Reduce your cell phone bill.

Try these tips:

Shop for a family plan if you need more than one line.

Cancel your contract and switch to a service that will bill you only for what you use. This could help you cut down your phone bill to $20 or $30 a month if you don’t use it a lot.

You may have a landline bundled with your internet service. Use this line, instead of your cell phone, whenever you’re at home.

Wait until you are home and can use your own Wifi network if you need to go online and don’t have unlimited data on your phone.

Shop around for an affordable Smartphone. Your own provider might not have the best price.

2. Cut down your cable bill.

There are more affordable options to watch TV. The downside is that you’ll get fewer channels or shows to choose from.

Buy an antenna to watch TV for free over VHF and UHF signals and try different online streaming services to determine if these could be a good alternative for you. Exploring alternatives is worth it since the average monthly cable bill is $64.

3. Save on your entertainment costs.

You can save a lot by taking your family for a bike ride or by organizing a football game in the backyard instead of taking them to the movies or the arcade.

There are plenty of free things to do that will help everyone get more exercise and have a great time!

4. Avoid anything that is individually packaged.

Buy food items in bulk and make your own snacks and to-go meals instead of stopping at a fast-food restaurant, gas station, or coffee shop.

5. Think twice about buying a name brand.

Spending more to get a name-brand product is worth it if the product meets high-quality standards and will last longer or work better. However, spending more to get name-brand items that are not any different from cheaper options is a waste of money.

On the other hand, there might be some things you are not spending enough on, which results in more expenses in the long-term.

Consider these examples:

1. Health insurance.

Purchasing more coverage could help you save in the long-term.

Raising your premiums to get a lower deductible and co-pay is worth it if your family visits the doctor a lot.

2. Car maintenance.

Repairs and preventative maintenance can go a long way towards lengthening the longevity of your vehicle.

Learn how to do an oil change and perform other simple maintenance and repair tasks to save money.

3. Home maintenance.

Investing in new window panes, better insulation panels, and newer appliances could lower what you spend on utilities.

If you’re renting, talk to your landlord about making a few improvements to help lower your bills.

4. Quality products.

Some products such as tools, razors, cookware, or furniture will last longer if you purchase slightly more expensive products from well-known brands.

5. Organization products.

Keeping your pantry and household supplies organized will prevent you from purchasing items you already have.

Spending money on items that will help you get rid of an expensive bad habit or that will help you track your finances can save you lots of money.

You could save $64 a month by ditching cable and at least $20 a month by looking for a more affordable phone service provider, which roughly translates to $1,000 a year!

Step 5: Trick Yourself Into Saving

All the tips you have read so far will help you reduce expenses.

However, you will not actually save money until you transfer it into a savings account. Saving is a lot easier if you make it a habit and set up automatic savings systems. Follow these tips to put money aside without any stress:

1. Try an app like Digit.

This tool automatically takes money from your bank account and puts it aside.

You choose the amount you would like to save each week.

This is perfect if you’re busy and don’t even want to think about putting money into a savings account.

2. Schedule automated transfers from your bank account to a savings account.

If you would rather not trust a tool like Digit with your information, you can always use your bank’s online platform to schedule an automated weekly

transfer to your savings account.

3. Identify your two or three most expensive habits and get rid of them.

This could be smoking, going to Starbucks, buying some snacks, or spending money to get extra lives in Candy Crush Saga.

Put the money you would normally spend on these things into a savings account.

4. Make saving money a game!

Set some weekly or monthly goals and reward yourself when you reach these goals. Using Digit or another system to put $5 aside every week means you would end up with $260 in a savings account by the end of the year!

As we mentioned earlier, it can be helpful to have a specific goal in mind when you’re setting up a plan to save money fast. Sometimes this goal can be as big as getting married or buying a house; other times, it can be smaller in scope.

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What Does Financing a Car Mean and How Does It Work

Financing a car means taking out a car loan that you repay over time or it means you are taking out a loan from a financial institution or vehicle dealership that you pay back at a given interest rate over time. When you take out a car loan, you agree to pay back the amount you borrowed, plus interest and any fees, within a set period of time. Shopping around and comparing loan offers could save you significant money in interest and fees.

Sometimes it seems like buying a car is a Catch-22 situation: You need money to buy a car but you need a car to get to work so you can earn money to buy one.

That’s why financing a car taking out a loan to pay for a car is common. You can think of a car loan as its own separate purchase it comes with a cost, which you pay through any interest and fees the lender may charge.

In this article, we’ll define what financing a car means, how it works, the smartest way to go about it, and whether vehicle financing is a good idea. The options for getting financing for a car along with any requirements will also be discussed. We’ve researched and compiled the top auto loan companies so you can compare vehicle financing options should you decide to get one.

Let’s take a look at how car financing works, how your credit can affect your loan terms and what to think about when trying to decide if financing a car is a good idea for you.

How Does Financing a Car Work?

“Financing a car” involves buying a vehicle with a loan rather than paying the full cost upfront. Over an agreed amount of time, you pay back the principal or the value of the car through monthly installments along with any fees and interest. Together the interest and fees you pay when financing a car make up the finance charge, which is the cost of taking out the loan.

The amount you pay monthly is determined by the value of your vehicle minus the money you put down, the given APR, and the loan term. Your APR makes up the interest payments and fees and is the main contributing factor to the price of your loan. Primarily your credit score influences the interest rate you get but other factors such as the age of the vehicle also help determine this.

If you plan to finance a car, you’ll need to shop and apply for a car loan. If you’re approved, you’ll make monthly payments until the loan is paid off. Each payment you make will be split into the following two parts: The principal payment, which goes toward paying back your loan balance
The interest payment, which pays interest due

Part of your payment may also go toward certain loan fees, like late payment fees.

Once you repay the loan in full, your lender will usually send a lien release document (depending on your state) to the state transportation agency. The car’s title will then be updated and transferred to you.

How Long Can You Finance a Car?

Terms for financing a car range from 12-94 months depending on whether you are financing a new or used vehicle. However, in most cases, the terms for most purchase loans for vehicles are around 72 months. It is also important to note that some lenders may not offer the longest and shortest-term options in this range.

Financing a car could be a way to take advantage of dealership incentives and car manufacturer specials, such as 0% financing or rebates. But keep in mind that you’ll typically need to get a car loan through the automaker’s finance company to qualify for these offers.

When you’re financing a car you can trade it in at any time to a dealer, but you still have to pay off the balance of the loan. Usually, the amount left over is covered by the trade-in value of the vehicle, but this depends on the age of the car and its condition among other factors.

If you need a set of wheels and don’t have the cash in hand to pay for it, financing may be your only option. Be sure to pay attention to how much you finance versus the value of the car you’re buying. If you don’t make a down payment and finance the entire cost of the car, you could find yourself owing more than your car is worth within a year or two.

Options for Financing a Car

Getting financing for a car is usually straightforward and can be done through various vehicle dealerships, online lenders, credit unions, and banks.

Each of these options fits into two different categories which include:Dealership Finance: Financing through a dealership involves signing a contract and getting a loan through their network of loan providers. It is often considered the easiest option and can save you money through their manufacturer car-buying programs. However, these often come with varying credit requirements and terms so you may be unable to take advantage.

Direct Lenders: This form of vehicle financing is done directly through banks, credit unions, and online lenders. Getting offers directly from loan providers allows you to compare offer terms and get preapproved. It can also give you leverage to negotiate when looking for a car at dealerships.What

Credit Score do you Need to Finance a Car?

There is no specific credit score needed to qualify for financing a vehicle, but some lenders have minimum requirements. While some loan providers may not have credit score requirements some may instead have income minimums. Each loan company has different ways of calculating whether you should get a loan and factors like income, credit, and vehicle type may be weighed differently in the process.

It’s generally a good idea to take some time to build your credit before applying for car financing — if you’re able to wait. If your credit scores are low, you may receive fewer offers than someone with good credit. And if you’re approved for a loan, you’ll likely get a higher interest rate than someone with a better credit score.

People with credit scores over 780 paid an average interest rate of 4.01% on their new-car loans, while those with credit scores of 500 or less paid an average rate of 14.3%, according to Experian’s report. This could translate to a major difference in how much interest you pay over the life of your loan.

Let’s say you got a five-year $20,000 car loan. Here’s how your credit could affect how much you pay in interest.

You’d pay more than $8,000 in interest on your loan with the 14.3% interest rate. That means your $20,000 vehicle would actually cost you more than $28,000.

Get Together The Required Paperwork

When financing a car there are four main requirements:

Proof of Identity: You will need to verify your identity with a government-issued ID which can include your passport, driver’s license, and birth certificate.

Proof of Income: In order to ensure you can make payments on time, documents like recent pay stubs, current bank statements, a recent W-2 form, or other statements. If you are self-employed, the last two years of your tax returns can also be used for proof of income.

Proof of Insurance: Like all auto loans or vehicle financing ventures you will need proof of the minimum required car insurance in your state. Getting this is typically easy, and you can call your car insurance company to get a binder to show you have the proper coverage.

Proof of Residence: To show proof of residence, you may provide your driver’s license, utility bill statements, insurance bills, mortgage or lease statements, and bank or credit card statements.

In some situations, you may need additional information such as your social security number or vehicle purchase documents in order to finance a car. If you are financing a used car you’ll need the original title document before you can move forward with an auto loan.

Get Rates From Auto Lenders

Lenders may not offer the same APRs and loan terms when you’re financing a car, so compare rates from auto loan providers. There are plenty of vehicle financing options, from dealerships and banks to companies that specialize in auto loans.

When getting quotes from auto loan providers you must know the differences between being prequalified and preapproved when financing a car. Prequalification offers an estimate of your rate, but because potential lenders only do a soft credit check, the rate could change after you apply for a loan. Preapproval comes after a hard credit check and almost guarantees financing at the terms outlined in the preapproval offer.

Preapproval can lead to a slight decrease in your credit score, but it allows a serious shopper to calculate the monthly car payments for the life of the loan. FICO counts all hard credit checks relating to your car loan as a single inquiry for up to 45 days, so rate shopping won’t impact your credit more than once.

Pick The Best Auto Lender For You

Everyone has different needs when it comes to financing a car. While some may avoid auto lenders with higher interest rates, others would be satisfied with any provider that’s willing to finance their vehicle.

When choosing an auto lender, keep the following factors in mind:APR: The lower the APR listed in your contract’s disclosures, the less you’ll pay to borrow money.

Term length: Your loan term can vary considerably in length. Having a long-term loan typically means you’ll pay less per month but more over the full amount of time.

Down payment: Making a significant down payment can save you money on interest when financing a car. The minimum down payment–if any–is determined by each auto lender. You may be able to use the trade-in value of your old vehicle toward the down payment on a new vehicle.

Tips for Financing a Car

Below are some tips to keep in mind if you decide to finance a car through a purchase loan:Get preapproved: Getting preapproval for an auto loan gives you leverage and a better understanding of what you can afford. What you are offered helps you find out what to rates and terms to expect from a dealer and gives you perspective on what is a good deal for your financial situation.

Put down a sizable down payment: Conventional wisdom suggests that putting down at least 20% of the vehicle’s value is a good idea. The higher your down payment is, the lower your monthly payments and interest rates will be.

Don’t buy vehicle add-ons immediately: Dealerships will try to sell you a number of things including gap insurance and extended warranties at extremely high prices. While these can be good investments, there is no need to buy them as soon as you get a loan and it is better to take your time and compare options.

Get a shorter loan term: If you can afford it, getting financing a car with a shorter loan term length allows you to have lower rates and pay less in the long term.

Finance a car you can afford: Generally it is recommended by financial experts to not pay more than 10-15% of your take home pay on car payments. Also, considering purchasing a used car can save you a lot of money as well.

Just as you might shop around for a car, you’ll want to shop around for a car loan. The interest rate and loan term you’re offered may vary by lender — shopping around could help you find the best rate and terms for your budget.

Applying for prequalification with different lenders and getting prequalified can help you see estimated loan rates and terms without a hard inquiry appearing on your credit reports. But remember that getting prequalified isn’t a guarantee of loan approval — your loan terms may change after you submit your loan application and the lender runs a hard credit inquiry.

As you consider each loan offer, don’t just focus on your monthly payment. Look at the total cost of financing, too. For example, it may be tempting to choose a longer loan term to lower your car payments, but you could end up paying much more in interest over the life of the loan. Finding the best financing for your needs can take some strategy and time. But in return, you could save hundreds or even thousands of dollars.

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10 Financial Tips for Young Adults Make a Smart Move Now

When you’re young, it may seem like there’s no need to save money — you can always do it later, right? However, while it might seem easy to live your life from paycheck to paycheck for the time being, starting to save now will prepare you for the future and protect you in case of emergencies.

Getting your financial footing can be a challenge when you’re young, especially if you have student loan payments or a new mortgage make you feel penniless. Putting aside just a bit of your money in the bank can make a huge difference — but there’s more you can do than that.

In this article, we’ll cover 10 tips for young adults who want to start their financially-independent years on the right foot.

1. Educate Yourself

Take charge of your financial future and read a few basic books on personal finance. Once armed with knowledge, don’t let anyone take you off track, whether a significant other who encourages you to waste money or friends who plan expensive trips and events you can't afford. Research professionals like financial planners, mortgage lenders, or accountants before utilizing their services.

2. Start Saving Early

When you’re not earning much, saving may seem like a big challenge, but setting aside a few bucks a week can still help down the road. You can use your budget to determine how much money you’ll be able to put into savings every month.

If you’re looking to invest, check if your employer offers a 401(k) account. If they do, calculate how much you can afford to contribute from your salary and steadily increase it as you earn more.

3. Learn to Budget

Once you’ve read a few personal finance books, you will understand two rules. Never let your expenses exceed your income, and watch where your money goes. The best way to do this is by budgeting and creating a personal spending plan to track the money coming in and going out.

Tracking expenses, like your expensive morning coffee, can provide a valuable wake-up call. Small changes in your everyday expenses are under your control and can impact your financial situation. Keeping monthly expenses, like rent, as low as possible can save you money over time and put you in a position to invest in your own home sooner than later.

4. Minimize Debt

A budget is one of the most helpful tools to strengthen your finances. Although the word can seem scary, knowing where your money goes throughout the month is one of the most empowering facets of financial literacy. For example, reviewing your expenses can reveal an unused streaming subscription, weekly restaurant trips and an old gym membership. Addressing these expenses can net you a quick $100 a month in your budget, allowing for more saving and investing.

On that note, managing your debt is vital to your finances. For instance, student loans and credit cards can spiral out of control, putting you further behind your financial goals. Instead of letting interest payments eat up more cash, it’s best to create a debt repayment plan. There are two popular approaches to debt repayment: snowball or avalanche.

The snowball strategy means paying off your smallest debts first. Once you repay your smallest debt balance, you can apply this payment to your next smallest debt. This way, you gain momentum with each payment. On the other hand, the avalanche approach means attacking the debt with the highest interest rate, the logic being that interest makes debt more expensive over time. This way, you get rid of the costliest debt first, allowing you to apply an increasing amount of money to your debt’s principal.

Remember, debt is the inverse of an investment. An investment grows based on a rate of return, and debt grows because of interest. Therefore, it’s key to get your debt under control before you start investing significant amounts of money.

5. Keep Track of Your Spending Habits

A budget gives you a foundation for tracking your spending. In addition, a habit of spending less than you make will help unusually high spending become apparent. So, it’s best to give your finances a quick review every two or three months. Specifically, you can review your bank and credit card statements to see if you can reduce any expenditures in the future.
6. Start an Emergency Fund

Once you get into the habit of saving money, you will stop treating savings as optional and start treating it as a required monthly expense. Many accounts offer the power of compound interest, such as a high-yield savings account, short-term certificate of deposit (CD), or money market account.

Surprise expenses can derail the best-laid spending plan. For example, your budget might be chugging along for several months before you need a $700 car repair. Then, suddenly, your investment contributions are out the window, and it can be hard to get back on track once the emergency is over.

To combat this situation, start an emergency fund along with your investment fund. You can build it up over time in your savings account. A good rule of thumb is to have three to six months of expenses in an emergency fund. This way, a broken furnace or surprise medical bill will be a minor bump in the road instead of a crisis.

7. Separate your needs from wants

Many graduates make the mistake of immediately getting a new car and making other big purchases once they land a job. However, making large purchases is about more than being able to make monthly payments; it’s also about being able to pay your debt.

To help you limit accumulating debts, be sure to live within your means and understand how delayed gratification works — it’s a lot cheaper to save up and purchase things in full rather than using credit or loans for each purchase.

8. Monitor Your Taxes

When a company offers you a starting salary, calculate whether that salary after taxes meets your financial needs and savings goals. Many online calculators help you see your after-tax salary, such as PaycheckCity.com, and chart your gross pay (total earnings) and net pay (earnings after taxes and other deductions or take-home pay). In 2022, an annual salary of $35,000 in New York netted $28,270 after federal and state taxes, or about $2,356 per month.3

In the U.S., low-income earners are taxed at a lower rate than higher-income earners—the higher your salary, the higher the tax rate. A salary increase from $35,000 to $41,000 a year looks like an extra $6,000 per year or $500 per month, but the tax rate will be higher, so it will only give you $4,227, or $352 per month.

In addition, your retirement accounts have unique tax implications. For example, a traditional 401(k) uses pre-tax dollars, lowering your tax burden while you work. However, you’ll pay income taxes when you withdraw money from your account during retirement. On the other hand, a Roth IRA uses money the government has already taxed, and you’ll pay zero taxes on income from this account when you’re retired. Therefore, tax planning while you’re young can help you optimize your finances.9. Save for Retirement

You might think it’s too early to think about retirement — after all, you just graduated college, right? But remember that the sooner you start saving, the sooner you’ll be able to stop working and start enjoying your life. No matter how young you are, plan for your retirement now. With the power of compound interest, when you start saving in your 20s, you will earn interest not only on the principal you deposit but also on the interest you earn over time, and you will have what you need to retire someday

Look into company-sponsored retirement plans so you can set aside pre-tax dollars and have the company match your contributions — it’s practically free money

10. Guard Your Health

Healthcare is one of the fastest-growing expenses in the United States. You can lower your chances of spending huge sums of money on hospital bills by making sure that your health stays in tip-top shape.

This means eating well-balanced and nutritious meals, regularly exercising, having regular check-ups, and monitoring any conditions you may already have.
If you’re uninsured, don’t wait to apply for health insurance.

If employed, your employer may offer health insurance, including high-deductible health plans that save on premiums and qualify you for a Health Savings Account (HSA). If you’re under the age of 26, you may be to stay on your parent’s health insurance, an option that has been allowed since the 2010 passage of the Affordable Care Act (ACA).

Many young adults make financial mistakes. Some will encounter bigger problems than others, but that’s okay. It’s important to understand that help is available to get you back on track if needed. 

You don’t need an MBA in Finance or specialized training to become an expert at managing your finances. By following these ten tips above, you will be on the path to financial security. Start right now. The younger you are, the more your savings can grow.

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15 Fintech App Ideas for Startups to Consider in 2023

The adoption of technology in the banking and finance industry has changed the landscape by 180 degrees. Fintech, aka the amalgamation of finance and technology, has not solely added convenience to the ecosystem, but has also made it more secure, quick, and profitable. It has offered a new set of opportunities, cater to the needs of the unprivileged audience, and even bring a significant effect on other businesses.

Many people are on the hunt for ways to take control of their financial stability. Lucky you, I’ve got the inside scoop on the top fintech app ideas that you can consider in 2023. So buckle up and get ready to take the financial world by storm.

Now, I see that the demand for Fintech and Banking apps will never decrease. You ask, why? Well, Fintech apps changed how people manage money nowadays. Whether it be for easy budgeting, investing, or expense tracking, the demand will always be thrusting high. After all, money matters.

1. Budgeting Apps

Budgeting is the first term that comes to our minds when we talk of finance. I am sure you agree with me on this. So why don’t you hop into this space and opt to build a basic budgeting app? A user-friendly app that will make the entire process of budgeting smoother.

Here’s what you can offer with this app:

Create personalized budgets
Set financial goals,
And track expenses

All on one single platform. How cool is that as one of the considerations for fintech app ideas?

Okay so here’s a list of basic but relevant features that you can provide to build an exclusive fintech app:

2. Personalized Budgets: 

With customized categorization of expenditures for rent, food, and entertainment, users can track expenses to avoid overspending. Sounds like something that the market would like?

Offer financial guidance: Nowadays, people are not always well-versed in managing their finances. Hence, offering free financial guidance to manage their money sounds like a very viable feature.

Provide finance management resources: Well-informed articles, videos, and customized tools can help users in learning money management. Definitely a user magnet.

Basic app security: Security via protected access and encryption ensures trust among your users. This is a vital one and you know that!

To sum up, these features will make your financial management game strong. Along with, it will even impress the most penny-pinching accountants.

3. Investment and Trading App

Investment and Trading exploded in popularity in recent times. This can be either for the internet, or Elon Musk or simply an interest in securing their future – via diverse ways to make money.

With the rise of online trading platforms and mobile apps, investing has become more accessible than ever before. Social media and online communities spawned an advanced breed of traders and investors, who share their strategies of smart trading. Thank you internet, by the way.

I made a list of what you can offer with this app:

Real-time Market Data
Investment Advice,
Portfolio Tracking

Whether you’re a seasoned pro or just getting started, these apps offer the ultimate tools to take your investment rocket high. So why not summarize these data points through an app?

Now, here are some key pointers on the advantages of developing an investment app:

Simplify the investing process: Investments can be daunting! So, having a user-friendly interface can guide users through the investment process, step by step. 

Offer a range of investment options: Accessibility to a range of investment options can help users to choose their preferred scheme. Don’t you agree?

Provide educational resources: Users may require guidance when it comes to Investments. So, loading related articles, videos, and tutorials that can help them, is a definite advantage. You see the point, right?

Monitor investment performance: It’s not just about the numbers. The app may provide detailed performance to make precise decisions. Who doesn’t want that?

By doing so, you can build your app around the core features, basically following the MVP approach here. This will also streamline the use case for the early adopters. Remember, less is more – and the possibilities with it are endless!

4. Personal Finance Management App

As we step into 2023, the need for a personal finance management app has never been greater. With the ongoing economic uncertainties, it’s crucial to have a clear and organized picture of finances. A personal finance management app can help you do just that – by providing a comprehensive overview of your accounts, expenses, and investments, all in one place.

These personal finance app ideas, built on the rulebook of how to develop effective personal finance apps, are also offering them an ease to connect all bank and credit card accounts to automatically get the data updated, along with payment reminders. And the best part, the data is displayed in a visually appealing format, which adds to their convenience.

Here’s what you can offer with the app:

Taking Control of your financial future
Sticking to a Budget,
Paying off debts.

Here are some of the features that a standard personal finance management app can offer:Account tracking: Synchronization of each account in one app, including bank accounts and investment portfolios – will make account tracking much easier.

Financial Goals: Users can set their financial targets to speed up their savings process. Who doesn’t want to save time?

Net Worth: By providing an overall calculated net worth, you can help them understand their assets and liabilities in a better way.

Check this out: (Total Assets – Total Liabilities= NetWorth).Personalized advice on repayments: With personalized recommendations based on spending patterns – Users can opt for faster repayments. Cool! right?

A personal finance management app may be the solution that people are searching for! Whether they are looking to save for a big purchase, pay off debt, or build a nest egg for the future. Your app can give them power.

5. One-Stop Bill Payment App

A One-Stop Bill Payment App can be a great option for fintech app ideas, don’t you think? It will streamline bill management for users – a great idea to consider. Don’t you agree?

No one likes to keep toggling from one app to another! So, a One-Stop Bill Payment App can serve as an umbrella in this case. Here, the users can pay all their bills in one place, with just a few taps. How cool is that?

Lets see what you can offer with the app:

Set up automatic payments
Schedule payments in advance
Notifications on payment deadlines.

Now, allow me to jot down a few marvelous features for to include in such a app: Streamline Bill Management: Managing monthly bill payments can be streamlined in an efficient manner. 

It’s like a one-stop kiosk to pay all the bills.

Multiple payment options: Offering flexible payment options: one-time, recurring, and payment plans is a charm for users! You are with me on this, right?

Dispute charges: Bill errors made by service providers are problematic! So, users can easily dispute their charges within the bill payment app. How stress-free is that move?

Payment History Tracking: With payment history and downloadable payment receipts, users can optimize their finances more precisely. A win-win situation, right?

Such an app not only saves time and money, but also reduces stress. So why not give it a try? Start simplifying your user’s life today with an all-in-one bill payment app!

6. Crowdfunding solutions


Crowdfunding is also emerging as one of the most successful fintech startups ideas to go with.

These digital financial app solutions are proving to be one of the best alternate funding models for Entrepreneurs. They are helping them with raising funds for their new or existing enterprises via collective efforts from different individual contributors and venture capitalists.

Currently, there are a limited number of crowdfunding platforms such as Indiegogo and Kickstarter and the concept itself is popular across the US and UK regions only. However, it has been found that these digital solutions are getting traction in the market, and are predicted to have a market of USD 28.8 Bn by the year 2025.

7. Insurance App

In 2023, there will be a growing demand for apps that help users manage their insurance policies and claims. According to EY, more than 32% of policymakers pay their insurance online ever since the pandemic began. See the catch already?

So what all can you offer with the app:

Policy Management
Claims Filing
Premium Payments.

For some people, insurance can be a confusing subject. That’s where your app comes in to simplify the process and make it accessible to everyone. Here are some key features that your insurance app may have:Policy Management: Management of insurance policies, coverage, expiration dates, becomes hassle-free.

Claims Management: Possible streamlining of insurance claims without the stress of paperwork.

Payment Management: Payment transactions for insurance premiums takes place within the app.

Education and Resources: Understanding Insurance can be difficult! Educating users on policies and claims is possible via the app.

An Insurance app can offer numerous benefits to both users and insurance companies. So you have two different bases of target audience. See?

For users, it provides a convenient and user-friendly way to manage their insurance policies. And for insurance companies, it can help them streamline their business operations. It’s an all-rounder anyway. 

Another fascinating application idea that one can invest and earn money is payday loan application. Through this financial application, you can provide their app users with a specific sum as a loan in their crises like bill payments, hospital expenses, or EMIs.

App users simply need to add data about their work and connect the bank account. The application monitors the working hours, so users can cash when they need to. Also, your application will deduct the cash once the users will get the paycheck. 

Here are a portion of the proposed features to include in Payday loan application: Take a particular sum as a loan with just a few clicks
No hidden fees or charges
Alerts and notifications of forthcoming payments
Safe and secure protection of bank details

8. Cryptocurrency Wallet App

As we enter 2023, the world of cryptocurrency is rapidly evolving. New opportunities for innovation are arising using the blockchain technology. And with Decentralized finance (DeFi) and non-fungible tokens (NFTs) – the need for a crypto wallet is now more crucial than ever.

Core features that you can include with the app –Securely store digital assets,
User-friendly Interface to support buying and selling,
Support multiple currencies and token types.

A cryptocurrency wallet app will allow your users to securely store, manage, and trade their digital assets. It should provide a user-friendly interface to smoothly manage digital assets – all in one platform.

Sounds complex? No issues, I’ll elaborate on a few of the pointers that you can look out for:Real-Time Updates on Currency Prices & Market Trends: this feature will enable users to make informed decisions on buying and selling.
Support Multiple Currencies and Token Types: Multiple currency support will allow users to store and manage cryptos efficiently.

Seamless Integration with Other Financial Apps and Services: you can enable this feature, to allow smooth transaction of cryptos via DeFi platforms.

Support for Storing and Managing NFTs: With the rise of NFT storing, the users can easily buy, sell and keep their NFTs without any hassle.

So, whether you’re buying, selling, or simply holding onto your crypto. A reliable Crypto wallet app can help you stay on top of your game. And that’s exactly what you can provide to the market!

9. Loan Lending App

Loan lending apps are becoming more popular than ever. With the rise of digital banking and mobile payments, it’s no surprise that loan lending apps are on the rise. But what makes them so appealing?

Instead of waiting for weeks to get approval, borrowers can receive a decision within minutes. Loan lending apps use algorithms and machine learning (ML) to assess creditworthiness quickly and accurately.

Here’s what you can offer with the app:Loan approvals within minutes
Calculate Credit Scores quickly
Offers a platform for P2P transactions.

Now, I’ll be stating some of the fascinating features of loan lending apps that you can offer to your users: Customized Loan Options: this feature will make loan amounts, Repayment terms, and Interest rates, possible. That too as per the user’s concerns. What a champ!

Offers Transparency: Users can easily view loan status, repayment schedule, and interest rates, having greater control over finances. Hail Machine Learning!
P2P Integration: Lenders can access a platform to find the right candidate for loans.

Currently, loan lending apps are quickly gaining popularity, and for good reason. These apps provide borrowers with a fast, simple, and convenient way to access the funds they need. The loan application process is streamlined, with no stacks of paperwork or lengthy waiting periods.

In fact, borrowers can receive loan approvals within minutes! So, why wait anymore? Let the cash roll in.

Are you bursting with more brilliant ideas that align with fintech apps? Don’t hold back, take the plunge and delve deeper into these possibilities! And if you’re keen on gauging the market potential of your idea (which I would recommend). Why not have a chat with us?

10. Financial record maintenance

Keeping the payment receipts, tax invoices, and other financial records can be a troublesome errand for many. Thus, to make financial record maintenance an easy job for busy individuals, designing such applications can fill in as a great financial business idea.

11. E-mortgage apps

This is another new fintech app startup idea that arose after the COVID-19 pandemic. Getting a mortgage was hard for people, so now electronic loan applications have made the loan application process easy and simple so that individuals can get contactless loans rapidly without much hassle.

However, by following the aforementioned steps, you can cut down hassles in your path and get into the list of top fintech startup 2023 in no time. So, keep implementing them.

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Top 13 Small Business Startup Ideas in Nigeria 2023

Apart from curbing unemployment, starting a business could lead to financial freedom. But starting is always a challenge. Many Nigerians have little or no capital to start a business. Worse still, they have no idea of a lucrative business to start.

If you have saved 100k or thereabout, and you are looking for the best profitable business idea in 2023, then you’ll find many options in this article.

1. Snail Farming

The first untapped business in Nigeria on this list is snail farming. This business is a relatively new agribusiness that makes a lot of money. Snails are easy to breed, as it requires little investment since their feed can be sourced locally.

The cool thing about this business is that Nigerian (Giant Africa) snails are in high demand in the global market. That means snails can be sold within Nigeria or exported abroad where they can be sold at higher prices.

Although it may take time for snails to reach the stage of consumption, the profit from this business is massive. A medium size snail could cost anything from 700 Naira and above in most parts of the country.

2. Mini Importation/Exportation

Mini importation is one of the most profitable new business ideas in Nigeria that can be started right from home. Just like dropshipping, it involves buying products from suppliers. However, instead of shipping the products to the buyer, you’ll have them shipped to you here in Nigeria and sell them offline or online.

With mini importation, you can buy products for extremely cheap prices from China, have them shipped to Nigeria and sell them for a good profit. This business is very profitable as you can buy a pair of shoes for N1000 from China and sell it for N3000 Naira in Nigeria.

With the current war going on between Russia and Ukraine, the price of importation and exportation just went up the roof with people finding it very difficult accessing things from their various native lands.

You may think there isn’t much to export in Nigeria, but you would be wrong. Shipping materials are one of Africa’s most profitable foreign trades.

Exporting raw goods to other nations, such as cocoa, green vegetables, vegetable oil, yam, cassava, palm oil, or crude oil, is sure to make you wealthy. These commodities are in high demand outside the country.

3. Palm oil retailing business

If you would not see this business as dirty, it is indeed one of the best businesses to start in Nigeria with 100k.

Palm oil has always been one of the most valuable food items in all Nigerian homes.

Unknown to many, this business is one of the most profitable in Nigeria today.

You can make a 400% profit from selling stored palm oil when it’s in season. But you need to be able to buy when it is in supply and know the exact time to resell.

“I started this business close to 16 years ago. When I started it, I discovered, it was a very good business, it was better than all the businesses I had tried my hands on earlier. In good seasons, you can make 3 times the price or more. It is the business that I used to sponsor three of my children in the higher institution”.

What you need to start this business

Your hundred thousand naira or more to purchase your first 3-5 25-littles bottles of palm oil. The more money you are able to invest, the better.

You need to know some households or a small market where you can sell your palm oil once it time to sell.

Alertness and knowledge as to when it is the right time to buy and resell.

4. Catering services

You can start your low-cost catering services with your kitchen cooking equipment. You only have to spend little money on the few things you might need that you do not have. Offer your services to events, meetings, individuals, birthdays, and other several occasions, which can be done as cook and delivery services.

So you can see you don’t need a physical space to start. In the beginning, try out with friends and families; as your business expands, you can increase your offers and buy more cooking equipment like food trucks, delivery bikes, or commercial kitchens.

5.Cleaning services

If you used to clean apartments or offices for a daily wage and are good at it, why wouldn’t you start your own business? All you need is staff to work for you or with you and cleaning products. Thus, you can offer cleaning services for office spaces, houses, and apartments. This service doesn’t come cheap these days.

Many homes and businesses will need your services, so you can start alone, and as your business grows, you can employ people to assist you with a heavy workload.

Here are a few cleaning tools you might need to kickstart

1. Sponge

2. Microfibre cloths

3. Cleaning detergent

4. Bucket

5. Mop, dustpan, and broom

6. Spray bottle

7. Scrub brush

6. Pharmaceutical wholesales business

Next to feeding, people care about their health. People of all ages need to take one medication or the other at certain times.

This makes the pharmaceutical business one of the most lucrative businesses in Nigeria in 2023.

The most profitable aspect of the pharmaceutical business manufacturing. But considering that starting that line requires millions of money, you can play at the level where you supply to pharmacies and patient medicine store.

There are some fast-moving drugs like antimalarial drugs, painkillers, antibiotics, etc. These are very good pharmaceutical items to start with.

The profit margin could sometimes double, depending on how well you are able to get good prices from distributors or manufacturers.

What you need to start a Pharmaceutical supply business

Your N00k capital or more
Ability to look for pharmaceutical stores and market them effective to become one of their suppliers
Little knowledge of the business terrain and fastest-moving pharmaceutical brands/products.

6. POS business

This is another guaranteed good business you can invest with your 100k in Nigeria right now.

Mobile banking makes life easier for millions of Nigeria who find it uneasy to use physical banks due to the stress associated with it.

If you get your location right, you can make up to 10,000 naira in profit in day without incurring any expenses.

For example, you can make up to 200 naira on a 10,000 withdrawal. Some even withdraw far more with the mobile money.

Now imagine that you make 50 of such transactions of N200 in a day, that’s 10k per day which is 300,000k per month.

That’s by far more than what an average 9-5 employer earns in Nigeria.

What you need to start this businessTo start a POS business, you will need to go to any bank of your choice and request POS, and they will tell you the requirement. Then, with as little as N30,000, you can begin your POS business.
You need to register with a mobile money company in order to get your terminal (POS machine). You need to provide basic information about you such as your email address, ID card, phone number, etc. to register.

What you need to start POS business in Nigeria:You’ll pay a certain cost for the terminal, usually around 30k or less.
You will need to set up a location. A residential area or market is preferable. Make sure a bank is not near your location.
Get a small wooden kiosk or an umbrella and pay for rent for the space if it’s not yours. Your rent should not be more than 5k-10k a month max.

7. Perfume oil business

One of the cheap business ideas to start in Nigeria is perfume business. With as little as N5000, you can start a perfume business. Buy in small quantities from wholesalers and resell to customers. Do proper research about the products you will be getting since someone else is producing them. Do market research to ensure that your potential customers will be interested in the products or fragrances.

Consider dealing with a reliable supplier who will supply the best perfumes to you at the best price.

8. Interior Décor

Millions of houses are built in Nigeria every year that would need to be decorated. Apartments get rented out and tenants have to beautify their spaces.

This makes interior décor a business of all seasons and one of the best businesses to start with 100k in Nigeria.

Although some people start with as much as a million naira or more, but you can start on a very small scale with your 100k or more.

You can rent a small space with that amount and look for a distributor or manufacturer who can give you some products while you pay them once you are able to make sales. Better still, save up to 300k and get some good cash-me-down.

What you need for this business

Knowledge of the trade
Your capital

A small space to display goods and potential customer base

9. Event planning

Every day in Nigeria, people always have one event or the other, especially during the weekends and festive periods. Therefore, starting an event planning business will make lots of money. Event planning business is another unsaturated and untapped business in Nigeria. This business involves finding people who have events, then helping them plan it by suggesting and finding the best location, mc, rental service, etc.

You need to have a passion for organizing and coordinating events to offer your services to businesses and individuals for events such as weddings, birthday parties, and corporate events. Since it’s a low-cost business idea, start by planning small events for your friends and family.

And as your business grows, you can invest in equipment such as tents, tables, and chairs. But for now, stick with rental services. You can become an event planner at no cost, as all you need is to know in-depth what event planners do, and offer the service. There are lots of professional event planners who you can learn from before getting started.

Untapped businesses could make you a lot of money in Nigeria, as there are usually businesses with high demands. If you looking to start one, I believe this post has enlightened you more by providing 25 of the best ones you can venture into in Nigeria.

As always, if there is anything I didn’t touch on in this post, feel free to let me know in the comment session.

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12 Tips for Running or Growing a Successful Business

When you first launch your business, your main goal is to establish your brand and start growing. Unfortunately, this doesn’t happen overnight. Growth is an ongoing process that requires hard work, patience and dedication. There’s no special step or secret way to surpass other businesses in the industry or achieve immediate success.

Running a successful business takes passion, dedication, and strategy. The passion and dedication can only come from within you. The strategy, however, can be learned. Once you obtain the necessary permits and licenses, get incorporated and offer a legitimate product or service, you’re a business owner — on paper, at least. But keeping a successful business up and running is a different story.

You’ll run into roadblocks that can threaten business viability if you overlook critical administrative tasks like bookkeeping or maintaining relationships with high-quality suppliers. In fact, the top reasons for new business failure include a lack of marketing strategy, having no plan for how to scale the business to meet growing demand, or offering a poorly conceived product or service with a too-small total addressable market (TAM).

According to stats published in 2019 by the Small Business Administration (SBA), about 20% of startups fail in the first year, while half go under within five years. There are, however, proven ways to reach growth milestones that can catapult a business to success.

With that in mind, Here are some tips and tricks for keeping the lights on so you can avoid being just another statistic:

1. Hire the right people.

Before you can even think about your company’s growth trajectory, you need to have a solid staff to help you achieve your goals.

Your goals are essentially your definition of business success. There are various approaches you can take to defining them. In the context of business success, however, the SMART system is probably the most appropriate. These initial goals are just to get you started. As you start getting close to achieving them, you’ll set yourself new ones.

“Hiring the absolute best people you can is a surefire way to ensure fast growth,” said Christian Lanng, CEO and co-founder of business software provider Tradeshift. “It’s all about having the right team.”

When you have hardworking employees who are dedicated to your company’s success, your business will be better equipped for continued growth. In addition, delegating tasks to focus on important work will free up your time and energy, allowing you to perform at your best and cultivate a collaborative work culture.

2. Stay organized.

Proper documentation, time management, and automating repeatable tasks can mean the difference between boom and bust. 

Keep accurate records of business finances: Record every transaction (customer billings and vendor payments) into the proper account at least once weekly and keep an eye on the bottom line. Keep copies of all invoices, cash receipts and cash payments for bookkeeping and tax purposes. 

Set (and keep) deadlines: Stay on top of administrative tasks using project management software — this lets you set deadlines, assign tasks to employees and upload documentation to a central repository.

 
Plan ahead: Plan your social media campaigns in advance using social media scheduling software. Use email marketing automation to follow up with new leads. Use Slack, Zoom and Microsoft Teams for quick communication with your team. If something can be explained in an email, you don’t need to have a meeting about it.

3. Create a written plan

Your why is your starting point and your goals are your first milestones. Your business plan sets out the path you believe will take you from your starting point to those milestones. Write down your plan in as much detail as you can, then conduct a thorough SWOT analysis on it. Ideally, ask someone you trust for an independent second opinion.

If you identify weaknesses and threats in your plan, then try to address them before you even start your business. If you can’t, then start addressing them as soon as you possibly can afterward.

In particular, make it a priority to deal with anything which may limit your ability to make and receive payments. For example, if you’re setting yourself up as a limited company, apply for a business bank account as soon as your incorporation is confirmed. Likewise, if you’re planning on using a payment processor get your account(s) set up as quickly as you can. You’ll probably have to go through some kind of verification process before you can actively use the account(s), and you may need time to familiarize yourself with the system.

4. Reduce your risks.

Risk is an inevitable part of starting and growing a business. It’s impossible to control everything, but there are many ways to limit internal and external threats to your company and its growth. One important resource to help you accomplish this is your business insurance provider.

“Small businesses need to manage their growth to avert disruptions that can bring business to a grinding halt,” said Mike DeHetre, senior vice president of underwriting and insurance at Preferred Mutual. For example, “the theft of employee data, customer records, and product designs can destroy a small business, generating significant costs and eroding customer confidence and loyalty,” he said. “Not every business owner’s policy covers data breaches or other cyber losses. Small businesses should be prepared by seeking insurance products that help them recover, including those that cover the cost of remediation and lawsuits.”

As your small business grows, you may add space or equipment, create new products or services, or increase your operating and distribution footprint. Therefore, DeHetre recommended reviewing your policy periodically to ensure you have the right coverage.

“It’s easy to forget this step amid rapid expansion, but you don’t want to find out that you’ve outgrown your coverage just when you need it the most,” he said.

5. Protect your intellectual property.

Intellectual property consists of the intangible assets — trademarks, copyrights and patents — that differentiate your ecommerce business from any other. 

For a small business, this means protecting things like designs, business ideas and trade secrets. If a competitor tries to copy your product, they can erode your market share and damage your reputation. If you decide to register a trademark or apply for a patent, it’s best to seek an attorney’s help to make sense of the legalese and avoid making minor mistakes (eg: omissions in descriptions or drawings, missing deadlines) that can result in your request being denied. 

6. Invest in yourself.

In the early stages of your business, you’ll likely see a very lean profit margin (or no profit at all), so any money you make should go directly to helping your business grow.

“A startup’s ability to invest in itself [helps] accelerate growth,” Lanng said. “In those early years, it’s critical to make sure that you’re redirecting any revenues back into the company. It’s vital to invest early and heavily in order to grow quickly.”

While it might be tempting to pocket all of your profits, it’s better to invest in your business’s growth so you can reap bigger benefits later. Determine which parts of your business need more attention. For example, do you need to hire more workers, expand your marketing efforts, or secure additional funding? When you find a crucial area that needs improvement, give that area your financial support.

7. Always think ahead.

While agility is an important quality for a startup, you can’t fly by the seat of your pants when you’re running a business. Planning your next step — in anticipation of all possible scenarios — is the best way to stay grounded and secure as your business evolves.

Thinking ahead is broad advice, but it can be as simple as reviewing all ongoing contracts, like comparing rates with the best credit card processors and seeing if you can negotiate a better deal.

8. Boost your customer service.

In most industries — especially retail — businesses compete on the customer experience rather than the product. Make it easy for your customers to get in touch with a real human on social media, messaging apps, email or even by phone.

Remember, a small business should be accessible. There is no excuse to present like a faceless corporation. If orders take time to fill or you’re creating a custom item, keep your customers informed of the process and manage their expectations accordingly.

If customers do complain, use active listening to understand their pain points, investigate the root cause and offer a resolution that matters to them.

Another great method of growing your business is to focus on providing superior customer service. When you exceed customers’ expectations, they are likely to tell their friends, family and followers about your business.

When you go the extra mile, such as by offering discounts if a customer has a poor experience or following up to ensure a client was satisfied with your product or service, you establish a reputation for great customer service. [Make sure you have the best business phone system for your customer service team.]

9. Deliver unforgettable experiences.

Great customer service increases the lifetime value of your customers and helps attract and retain new customers. In fact, 86% of consumers say a good customer experience can turn them from one-time buyers to loyal customers.

Also, manage people’s expectations. You’re a small business with limited resources and scalability. You probably can’t offer 24/7 customer support or a two-day turnaround on a custom item. What you can do, however, is resolve issues expediently, deliver a consistently great product and provide personalized support.

 
10. Practice corporate social responsibility.

Consumers want to buy from businesses that are passionate about causes that help make the world a better place. Whether you donate to cancer research or support a nonprofit such as a homeless shelter, look for ways to contribute meaningfully to the causes you support, and share that with your customers.

You could publicly express your support to underserved communities, donate to various organizations, offer your time to fundraisers, and provide sustainable products to help the environment. There are many ways to be socially responsible as a business; find a few that work for you.

11. Research your competitors.

Although it might not elicit immediate growth, researching your competitors is one of the most important first steps in launching your business. Ask yourself who your competitors are, what they’re doing (that you’re not doing) that works for them, and how you can differentiate your business from theirs. The answers to these questions will help you form a more productive business strategy that defines the areas of your business that require more attention.

How to measure business growth

There are a few factors to examine to gauge your business’s growth. Depending on your goals, you may prefer one factor over another, but analyzing them in context with one another can give you the clearest picture of how well your business is scaling.

Revenue: Revenue is a go-to metric in establishing business growth; after all, it’s the amount of money your company is bringing in. Revenue growth over time can be good, as it generally means you’re making more sales or higher-value sales. However, it’s important to balance revenue with expenses, because making more often means spending more.

Profit: A more important indicator than revenue is profit, which is what your company has netted over the course of a given period. When it comes to profit, a positive growth rate is great, but it doesn’t always tell the whole story. If your profit margin is healthy, even a flat profitability year over year might not be bad. But for new businesses, quick profitability growth should be a key focus.

Market share: Market share describes how dominant your business is in its space compared with competitors. For new companies breaking into an industry, growing market share rapidly is a major concern. Without gaining a significant foothold against your competitors, it will be hard to drive sales to grow revenue.

Customer acquisition: One of the best ways to grow market share is by focusing on lead generation and sales volume. By getting your brand in front of potential customers and then converting them to make a sale, you can grow your company’s market share and revenue at the same time.

Customer retention: Acquiring new customers helps you gain market share only if you retain those customers, so focusing on customer retention and improving this metric over time is also key to monitoring the growth of your business.

Team size: Growing your team is a significant expense, but the size of your team also represents how much you can do. Balancing a team that can meet operational needs with the payroll budget is a key challenge for every entrepreneur, so monitoring the growth of your team over time is particularly important.

Successful small businesses are run by passionate entrepreneurs who also possess strong business acumen. To maximize your chances of success, keep accurate records of all transactions, cut costs wherever possible (without sacrificing product quality) and focus on providing an outstanding customer experience. Successful businesses offer products and services that ease a pain point, solve a problem or serve a passion. 

One of the most helpful things a business owner can do is write a business plan. This document lets you define the scope of your business needs, startup costs and the target market.

In this way, would-be entrepreneurs can evaluate the viability of their business idea without sinking time and money into starting a business that will not succeed. 

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