“The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists – Ernest Hemingway.
This aptly projects the current state of Nigeria.
No one needs a soothsayer to understand that there is a global economic challenge; however been a Nigerian at the crucial times takes more than normal thinking to survive.
One has to look for all avenues to create multiple incomes. That been the case, exploring the opportunities provided by financial instrument that may not be common although with proven, tested results. One of such is the BOND.
Two major ways That You Can Make Money from Bonds
- The individual investor can buy bonds directly, with the aim of holding them until they mature in order to profit from the interest they earn.
- They may also buy into a bond mutual fund or a bond exchange-traded fund (ETF).
For instance, Professional bond traders dominate a secondary market for bonds, where existing issues are bought and sold at a discount to their face value.
The amount of the discount depends partially on how many payments are still due before the bond reaches maturity.
But its price also is a bet on the direction of interest rates. If a trader thinks interest rates on new bond issues will be lower, the existing bonds may be worth a little more.
In either case, the owner of the bond receives interest payments, known as the coupon, throughout the life of a bond, at the interest rate that was determined when it was issued.
But what are coupons? A coupon-paying bond pays a pre-determined amount of interest, usually twice a year until the date the bond matures. But a zero-coupon bond is bought at a discount from its face value, and the investor receives the full face value when it matures.
The interest paid on bonds may be pre-set or may be based on prevailing interest rates at the time it matures.
For instance, if you invested $1,000 in a 10-year bond with a coupon rate of 4%, the issuer would send you a coupon (interest) payment of $40 every year. Most bonds pay twice a year, so you would receive two checks for $20 each.
But what is my “Kobo’ advice all about, a glimpse of the current realities of Nigeria’s Economy drives my point home. A family of four is estimated monthly costs are ₦1,132,503.4 without rent.
For the Single, it is estimated that a person estimated monthly costs are ₦318,606.8 without rent. This may sounds weird right?
Again, Rent in Nigeria is, on average, 67.4% lower than in United States. I would not want to boarder you as much, but I intend to create urgency for economic expansion of income into to you, so that you will understand the fierce urgency of tapping into creating multiple incomes for yourself and consider harnessing opportunities around of you most especially through the BOND.
With challenges of unemployment, underemployment starring us in the face as a people the average monthly net salary (after tax) ₦98,280.93, while for you to rent an apartment (like 3 bedrooms) outside of the centre ₦694,028.21, ₦200,000.00-1,500,000.00.
Don’t even think of the high brown areas yet. A single Apartment (1 bedroom) in City Centre 479,350.41 ₦150,000.00-1,200,000.00, whilst 1 bedroom Outside of Centre falls within 313,579.16 ₦ 80,000.00-700,000.00.
For the married or couples, Childcare Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child ₦49,691.67, ₦25,000.00 or ₦100,000.00, But International Primary School, Yearly for 1 Child 849,305.56 ₦300,000.00-3,000,000.00 respectively.
This is alarming and involved a lot of money that traditional means of income cannot gather for.
And because you cannot live without internet connection, no matter how despicable it is right now. Mobile Phone Monthly Plan with Calls and 10GB+ Data cost 5,192.31 ₦5,000.00-7,500.00 Internet (60 Mbps or More, Unlimited Data, Cable/ADSL) ₦21,344.31, ₦13,000.00-30,000.00
For those like “Jollification”, Bottle of Wine (Mid-Range) ₦3,000.00 ₦1,500.00-7,000.00, although Domestic Beer (0.5 liter bottle) goes for 485.05, ₦300.00-714.29, while Imported Beer (0.33 liter bottle) ₦659.59 ₦450.00-1,000.0. But if you must smoke, Cigarettes 20 Pack (Marlboro) 775.00 ₦500.00-1,000.00, you can see it is not a play matter!
Because, you can live without food, “man shall l not live by bread alone” they say. A Meal, for Inexpensive Restaurant 1,500.00 ₦500.00-3,000.00 and Meal for 2 people, mid-range restaurant, three-course 20,000.00 ₦2,000.00-45,250.00. I can go on and on, to established the fact that extra income, this time around through BOND is timely and should be considered.
It is my conviction that the amalgam of information provided, corresponding challenges highlighted will propel you take a look at BONDS as an alternatives to creating wealth.
