28/04/2026
Our Money quiz yesterday was on what you would do if you have built your income to 40 million, meaning just liquid cash, this is excluding assets. And you urgently need a vehicle, how many percent of that money would you use to purchase the car.
A lot of people choose to use 10% of that money which is 4 million, leaving you with 36 million to invest.
Financially it is a wise choice,except buying a more expensive vehicle is meant to add value to what you do and must in turn yield higher returns. if not please stick to 10% .
Being that you are not using the bulk of your income to buy a vehicle that has other running costs. Like fueling, repair, parts replacement and even more.
Let's say you bought a car for 4m. Remember, before the end of the year you must have spent a minimum of 500k in car repairs, that is if the engine and other costly parts do not spoil.
Let's see what 36 million would give us by the end of the year, say you put that money into a very low risk investment like Money market , and you get paid 16% per annum.
Money market pays interest monthly, so you get ₦480,000 every month, and as a smart investor, you decide to reinvest the ₦480,000 back into Money Market, this means that by the end of the year, you would make the total of ₦48,229,816 instead of ₦41,760,000 just because you are compounding. The whopping 12 million interest.
And lets say you decided to keep compounding even for another 3 years, you would probably have a total of one hundred and twenty one million, seven hundred and sixty thousand, eight hundred and sixty six naria (₦121,760,866).🙄🙄
I actually prefer using an investment calculator, to get these accurate figures and you should too, for when it comes to money, please stop guessing, use a calculator to get a real figure of how much your money can grow.
What I am simply saying is, for every point in time, we should choose growth over depreciation, see how we calculated for how much your car can take from you, and how much your invested income can yield over time.
People pay for this clarity, please don't play with any money education you get, always pounder on it and use the information well.
