Tag: wealth (page 1 of 2)

Beyond Money: A Guide to the 5 Types of Wealth

Your wealthy life may be enabled by money, but in the end, it will be defined by everything else.

This quote is from a book by Sahil Bloom. The title is 5 Types of Wealth: A Transformative Guide to Design Your Dream Life. I love this book for two reasons.

Firstly, because of the quote above.

The second reason is that it recognises that there are no fixed timelines on which you can change, fail, learn, grow, and adapt. Everyone’s seasons and definitions of balance are unique.

Quote by Naval Ravikant

Quote by Naval Ravikant

For instance, how you approach your early twenties is probably different how you lived (or live) your late twenties.  Your twenties might have been your foundation-building season. And then your thirties then become your compounding season.

If you are already moving fast, your thirties may already be your family-building season.

Or that is what your forties will be for. There’s no predetermined guide for this journey. That’s why life is so beautiful.

Now let’s come back to why I mentioned Sahil’s book.

The 5 Types of Wealth

Sahil Bloom believes there should be a new scoreboard when measuring wealth.

There must be Time Wealth, Social Wealth, Mental Wealth, Physical Wealth and Financial Wealth. He believes these are the five pillars to living a truly wealthy life. And I agree with him.

Let me tell you why.

Beyond Money: 5 Types of Wealth

Beyond Money: 5 Types of Wealth

#1: Time Wealth

This is the freedom to choose how to spend your time, who to spend it with, where to spend it, and when to trade it for something else.

Time wealth means having enough free time to do things you enjoy. It’s when you don’t feel rushed or too busy. People with time wealth get to choose how they spend their days.

If you disregard your time wealth, you become trapped in a loop of busyness, running faster and faster but never making progress.

#2: Social Wealth

The connection to others in your personal and professional worlds is your social wealth.

Social wealth is having good friends and family who care about you. It’s the depth and breadth of your connection to those around you. The more people who love and support you, the more social wealth you have.

When you neglect your social wealth, you will lack the weighty relationships that provide lasting satisfaction and joy.

#3: Mental Wealth

This is the connection to a higher-order purpose and meaning that motivates and guides your short and long-term decision making.

Mental wealth is having a happy, calm mind. People with mental wealth can solve problems without getting too upset. They can stay positive even when things get hard.

If you disregard your mental wealth, you live a stagnant life with self-limiting beliefs, low-purpose activities, and continuous stress.

#4: Physical Wealth

Your health, fitness and vitality are your physical wealth.

Physical wealth is having a healthy body that works well. People with physical wealth do not get sick very often. They always feel strong.

They always have energy to run and play.

When you neglect your physical wealth, you are at the mercy of the natural physical deterioration that robs you of enjoyment, especially in the latter half of life.

#5: Financial Wealth

This is simply your financial assets minus financial liabilities.

Financial wealth is having enough money for what you need and some of what you want. People with financial wealth can easily buy food, clothes, and have a safe home. They also have money saved for later, so there are no worries about paying for things.

If you disregard your financial wealth, you live a life of continuously matching inflows and outflow, a never-ending chase for more.

Let’s unpack this.

The Old Definition of Wealth was Limited to Only Money

The problem is we are told to “hustle” for financial wealth, but never taught to balance the other four.

Neglecting Social Wealth creates loneliness, isolation and burnout. When you also always sacrifice your Time Wealth for Financial Wealth every time, your Physical and Mental Wealth often suffer. Others wait until they lose their health to start appreciating Physical Wealth.

Sometimes, we focus too much on getting money (financial wealth). We then forget about the other kinds of wealth that make life good. For instance, without a healthy body and mind, it’s difficult to fully enjoy and cultivate the other areas.

5 Types of Wealth

5 Types of Wealth

All 5 Types of Wealth are Important for a Happy Life

Having all five types of wealth makes life better and more satisfying.

When you have enough time, you can do what you love or rest without feeling bad. Having good relationships gives you people who help when things are hard and who share your happy moments.

A healthy mind helps you bounce back from problems and think clearly. A healthy body gives you energy and lets you live longer to enjoy life.

Together, these help you do more than just get by. You can live well, feel connected to others, and have purpose.

Learn to Convert Wealth from one type to another

The wealthy life comes from knowing when and how to make these wealth transfers.

Sometimes, the wisest move is to convert Financial Wealth into Time Wealth by outsourcing tasks that drain your energy. Or maybe you’ll trade some Social Wealth by declining a few invitations to boost your Mental Wealth through solitude and reflection.

You can also focus more on a specific type of wealth for a specific season of your life.

In your twenties, building Financial Wealth might take precedence. Then your forties might be the season to cultivate deeper Social Wealth. The key is recognising which wealth type needs your attention during each life season, without completely neglecting the others.

Ask yourself – which of the 5 types of wealth do you need the most? Which ones are you neglecting right now?

Cultivate all the Five Types of Wealth

By consciously cultivating all five types of wealth, you build a robust and resilient foundation for your life.

You gain the freedom to enjoy your resources (time wealth), the support to navigate challenges (social wealth), the clarity to make meaningful choices (mental wealth), the energy to pursue your passions (physical wealth), and the security to live without constant financial worry (financial wealth).

Overcoming the problem of focusing on only one form of wealth leads to a life that is not only prosperous but also deeply satisfying and sustainable.

From Zero to Investor: 3 Investments for Beginners

Inflation is silently erasing your future wealth every day.

When you leave money sitting in a traditional savings account with a bank, it only earns 3-4% interest. Meanwhile, inflation runs at 15-20%. That means the ₦1,000,000 in your savings account today will only buy you ₦840,000 worth of goods next year.

After five years, your million naira will be worth less than ₦500,000 in today’s terms.

Your only solution is to invest.

However, the common problem regarding investments is the fear of loss.

Many people are paralysed by the fear of losing money, which prevents them from ever starting to invest. Fear of loss in investing is like being stuck in quicksand. The more you panic and resist, the deeper you sink.

However, suppose you educate yourself and understand the nature of the risk (the quicksand). In that case, you can find stable points (knowledge) to pull yourself out and eventually reach solid ground (successful investing).

Investing is like Planting a Money Tree

Investing is like Planting a Money Tree

Educate yourself to manage risk, rather than avoid it.

Investments for beginners start with education. Knowledge is your shield, and understanding is your sword. Arm yourself well before entering the financial battlefield.

Beware of information overload when searching for investments for beginners

Investment websites, financial news, constant market updates…

It’s easy to get lost and make impulsive decisions based on fear or hype. Beginner investors are feeling overwhelmed by the flood of information. There are blogs, YouTube videos, X posts, and financial jargon like “dividends,” “bull markets,” or “blockchain”.

The fear of choosing the “wrong” investment amplifies this problem and can force you to keep your money idle in a low-interest savings account, losing value to inflation.

To overcome these hesitations, here are three major investments for beginners you can make right now and the direct steps to undertake these investments:

1. INVEST IN U.S. STOCKS

Warren Buffett got wealthy through this investment.

He transitioned from buying stocks of companies in his country at a young age to owning major shares and eventually owning some of these companies.

Buffett got wealthy for two reasons. The stability of the United States (U.S.) economy was the first reason. And then his consistency, discipline and due diligence.

For U.S. Stocks, think about companies like Apple, Microsoft, or Amazon.  Even a small investment in these giants can yield significant returns over time.

HOW CAN YOU INVEST IN U.S. STOCKS?

Today’s technology makes it possible to buy and sell U.S Stocks as a Nigerian.

For instance, I use a mobile app called Bamboo. Bamboo is a platform that allows you to use your Nigerian (or foreign) bank details to access these shares of U.S. Companies. There is also Trove, but I haven’t tried it out.

As a beginner, start with fractional shares.

Many platforms now allow you to buy a fraction of a share. This makes it accessible even with limited capital. So, instead of waiting until you can afford a whole share of a high-priced stock, begin with what you have.

You don’t need 1,000 shares of a top tech stock of a company in the USA to begin your investment journey. Start with 3 and grow from there.

Do your research and due diligence, too. You might find a more secure, faster and convenient way to buy U.S. stocks if your research is done right.

2. INVEST IN MUTUAL FUNDS

A mutual fund is a form of collective investment where money from many investors is pooled and invested in various securities (such as stocks, bonds, treasury bills, etc.) under the supervision of a fund manager.

In simpler terms, Mutual funds can be imagined as pizza slices where you are able to get extra value (in this case, profit) usually exclusive to the table of the wealthy.

I love mutual funds because of their stability, diversification and relatively competitive returns.

Invest in Index Funds, too.

An index fund is a type of mutual fund or exchange-traded fund (ETF) that tracks a specific market index, like the S&P 500. A Nigerian can now invest in an S&P 500 index fund through a platform like Bamboo or Trove, gaining exposure to 500 of the largest U.S. companies.

Generally, investing in mutual funds reduces individual stock risk and saves you the time and effort of researching and managing individual securities.

HOW CAN YOU INVEST IN MUTUAL FUNDS?

You can always purchase mutual funds from licensed and authorised asset management companies.

For instance, I invest in mutual funds through Anchoria Asset Management Limited. There is also Stanbic IBTC and Zedcrest.

As usual, I advise you to gather knowledge and seek guidance before purchasing mutual funds.

3. INVEST IN CRYPTOCURRENCY

This is the most futuristic and arguably a debatable investment path on this list.

Think of cryptocurrency as the digital frontier of finance. It’s exciting and full of potential. But crypto is also with its own set of unknowns and risks.

For example, Bitcoin is a currency based on complex digital technology and solely traded on the Internet.

For a start, explore established cryptocurrencies like Ethereum or newer, promising projects with strong underlying technology.

HOW CAN YOU INVEST IN CRYPTOCURRENCY?

In the past, I used mobile apps like Luno and Trust Wallet to buy and store my cryptocurrency.

And the returns were really impressive. Personally, I am still sceptical about how these digital currencies operates. So what I do now is to buy a small amount of crypto in Naira, withdraw the capital after a few months and leave the remaining volume in my crypto wallet.

Better safe than sorry. Maybe you can try this method too.

I have also found a safer, faster and better platform – Coinveto. The founder, Ofoegbu, is my friend, and I have bought cryptocurrencies from him and recommended his services to others for over three years. Great guy.

You can check the platform too.

The most important thing is… You must embrace technology and the role it is playing in modern society.

Technology is accelerating rapidly, entering virtually all sectors of the economy. And Money is one of them. So, endeavour to balance both your knowledge and experience before venturing into any investment.

Treat your investments as a diversified garden

Think of your financial portfolio as a garden that needs constant attention and care.

U.S. stocks from big companies are like reliable fruit trees that provide regular harvests (dividends). The sturdy trees that grow slowly but provide shade and stability to your garden are the mutual funds. Then, you have some exotic plants (cryptocurrencies) that can either thrive dramatically or wither unexpectedly.

Each plays a role in the overall health of your garden.

Be a good gardener. Your investment portfolio will always need regular review, rebalancing, and sometimes, complete restructuring. Be the investor who knows how to adapt to these conditions.

Investments for Beginners must go this route

Investments for Beginners must go this route

How to Go from Zero to Investor.

You don’t have to start big.

Start small because these methods far surpass leaving your money in the bank. What people also don’t realise is that your financial confidence compounds like money. Every small win gives you courage for a bigger step.

Your first ₦6k might not double, but your belief in yourself will.

For example, if you earn ₦120,000 monthly, commit to investing ₦6,000-₦12,000 consistently each month across your chosen platforms. Bamboo for U.S. Stocks, SEEDs by Anchoria for mutual funds, or Coinveto for Cryptocurrency.

Don’t overanalyse until you are paralysed.

Pick one platform. Invest a small amount. Learn from action, not just research.

Diversify like a Chef, not a gambler.

Start by allocating 50% of your investment contribution to stable stocks (e.g., S&P 500), 30% to mutual funds, and 20% to crypto. Then rebalance quarterly or yearly.

This is how investments for beginners work.

What if You Lose Money?

All investors lose money.

The key is losing small to learn and earn big. Never be discouraged by short-term fluctuations. Rather, focus on long-term growth. Investing is often a marathon, not a sprint.

Most beginners quit because they expect instant profits. Investing isn’t gambling. It’s planting seeds and nurturing them with patience.

You wouldn’t dig up a mango seed after 2 weeks and complain it hasn’t turned into a tree, would you?

Invest your time, knowledge and then your money in these investments.

Investments for Beginners

Investments for Beginners

Ponzi Schemes: Use This Checklist to Avoid Financial Ruin

Ponzi schemes keep leading people to financial ruin.

In April 2025, CryptoBridge Exchange, a fraudulent investment scheme known as CBEX, was believed to have bankrupted its believers and subscribers by 1.3 trillion naira.

Most people who did not join this scheme believed its participants were gullible and not street smart.

It reminded me of the previous Ponzi schemes I have been involved in, both the successful and the failed ones.

There are lessons to learn here. Please read to the end.

My First and Successful Experiences with Ponzi Schemes

In 2016, I invested money in MMM Nigeria.

I was still an undergraduate then. MMM Nigeria promised each investor a monthly return of 30% on their money. Their model was simple. You became a member of their forum by investing as little as 15,000 Naira. That money gets paid directly to another member. At the end of your 30-day cycle, you get paid by other members who recently registered.

On 13 December of that same yearthe scheme was frozen. Accounts blocked. And the founders disappeared without a trace.

This was my first experience with a Ponzi Scheme. But it was not my last. Other schemes (like Twinkas, Givers Forum and a few others) replicated this business model:

Invest and tell other people to invest on their platform. Get your returns on the same platform. Then the platform ‘crashes’ a few months later.

It was not one of my proudest moments participating in those Schemes. It was a ‘Rob Peter to Pay Peter’ type of investment. But the profits paid my bills and food while in the university.

The Ponzi Clock

The Ponzi Clock

What are Ponzi Schemes, and how do they work?

Imagine you have a Shop that sells Plantain chips.

People give you money to buy plantain to make more chips, so you can eventually give them back more money than they gave you.

That’s how a real business works!

Now, imagine a fake plantain chips shop run by a tricky person. This person tells people, “If you give me some money, I promise to give you back even MORE money very soon!”

But here’s the secret: this tricky person doesn’t sell any plantain chips or do any real work to make more money.

Instead, when the first people want their extra money back, the tricky person uses the money that NEW people give them to pay the first people.

It looks like everyone is making money, right?

The first people are happy because they got more money back, and they tell their friends to join in! So, more and more people give their money to the tricky person.

This is called a Ponzi Scheme.

It’s a big money game where the early players get paid with money from the later players.

A Ponzi scheme is a tricky scam where someone promises to give people a lot of money if they invest with them. But instead of really earning money, the scammer just uses new investors’ money to pay the old investors.

But here’s the problem: eventually, the tricky person runs out of new people to give money.

When that happens, there’s no more money to pay anyone, and the whole thing falls apart.

The tricky person often disappears with all the money, and most people lose everything they put in.

So, a Ponzi scheme is a fake way to make money that relies on tricking new people into giving money to pay off the old people. It’s not a real business, and it always ends with most people losing their money.

My Last Experience with Ponzi Schemes

In 2020, A friend introduced me to a Customs officer who was into “forex trading”.

The customs officer offered a 100% return in 90 Days with monthly payouts. I cannot remember the full details, but my friend was in his third month of investment and was about to withdraw his principal and reinvest only the profit earned.

My plan was simple.

I did not ask questions. I did not ask which trading strategies this customs officer/forex trader employed. All I wanted to do to earn a profit, recover my principal and keep “cashing out”

Long story short, I lost one-third of my money because the business stopped paying me in the third month.

I eventually discovered that the forex trading business was simply money invested in MBA Forex. This was a Ponzi Scheme that crashed in 2020, just like MMM in 2016. Same Script, different actors.

This was my last experience losing money to any Ponzi scheme, and I will tell you why.

The Risk is not in the investment. The Risk is in the investor

Two people invest in the same thing. This could be a stock, a business, crypto or even a Ponzi scheme.

One person learns first, stays calm, and invests wisely. The other just guesses, follows the crowd, and panics when things go down. The investment didn’t change — the people did.

Here is a breakdown of what happens.

Person number 1 does their homework. They learn about the company, understand what it does, and don’t put all their savings into just that one company. They’re careful and think long-term.

Person number 2 hears from a friend that this company is offering a profitable investment. They don’t know anything about the company, but they put all their money into it, hoping to get rich quickly. When the investment goes bust, this money is gone for good.

This was never about Ponzi Schemes.

The Risk is in the Investor

The Risk is in the Investor

Now, look at these other examples and their key lessons:

Example 1: The “Money Doubling” WhatsApp Group

Someone adds you to a group chat that promises to double your money in 48 hours. You see payment screenshots flying everywhere.

People are hyped. You send ₦50k, hoping to get ₦100k back.

In this scenario, Scammers create FOMO (Fear of Missing Out) to cloud your judgment. If it’s real, it will still be real tomorrow.

Key lesson: Never invest money based on urgency or pressure.

Example 2: The Pastor’s Investment Club

A trusted church leader promotes a “divinely inspired” investment opportunity. Because he’s respected, no one questions it.

People sell land, borrow money, and throw in their savings.

In this scenario, respect does not equal financial expertise. Always verify, not just believe.

Key lesson: Separate trust in people from trust in their financial recommendations.

Example 3: The Crypto Pump Group

You join a Telegram group where admins tell everyone to buy a certain coin. The price shoots up. You join in.

3 days later, the coin crashes. Admins vanish.

Key lesson: run away if you’re getting investment advice in emojis and hype language.

Stop ignoring the red flags of Ponzi schemes because you want ‘free money’

The Red Flags of Ponzi Schemes

The Red Flags of Ponzi Schemes

Risk comes from not knowing what you are doing – Warren Buffett.

The real risk isn’t the thing you put your money in. It’s how smart, prepared, and patient you are with it. A smart investor can do well even with a normal investment, while a risky investor can lose money even with something that seems safe.

The return of money is more important than the return on money.

When it comes to money, getting your original money back safely is the most important thing.

If you focus only on trying to make a lot of extra money (the return on money) very quickly, you will take bigger risks. These risks could lead to you losing all your original money (the return of money).

Think of it like this:

Getting your money back (return of money) is like making sure your house is safe and sound. Making extra money (return on money) is like adding cool decorations to your house.

Decorations are nice, but having a safe house to live in is way more important!

So, while making extra money is good, the first and most important thing when you invest or lend money is to make sure you’re going to get your original money back.

If you don’t get your original money back, then any potential extra money doesn’t even matter!

Smart Investing

Smart Investing

How to Avoid Financial Ruin with Ponzi Schemes (Or any Investment Opportunity)

After my lessons in 2016 and 2020, there are six questions I now ask before investing.

Before putting money into any opportunity, I now run through this checklist:

  1. Transparency Test: Can I easily understand how exactly this investment makes money?
  2. Expertise Verification: Do the people running this have verifiable credentials and experience?
  3. Regulation Check: Is this investment registered with and overseen by appropriate financial authorities?
  4. History Analysis: What is the track record of this investment or company beyond testimonials?
  5. Independent Verification: Can I find information about this opportunity from sources not connected to the people selling it?
  6. Withdrawal Clarity: How exactly can I get my money out, and are there any restrictions?

If I can’t get clear, satisfactory answers to ALL these questions, I don’t invest.

It’s as simple as that.

These principles extend far beyond just avoiding Ponzi schemes. The same critical thinking protects me from “Get rich quick” business opportunities, dubious crypto projects and even everyday purchasing decisions.

The Too Good to Be True Test

The Too Good to Be True Test

The discipline of questioning what seems too good to be true has become a valuable life skill, not just a financial one.

This is very important.

What if you’re currently in what might be a Ponzi scheme?

Don’t panic, but act quickly.

Stop adding any new money immediately. Try to withdraw your principal investment as soon as possible. Document everything too, from communications, promises, to payment histories.

Don’t let loyalty or hope delay your exit. Also, be prepared for the possibility that you may not recover everything.

What if you’re considering a new investment?

Apply the Questions Checklist above rigorously.

Then set a maximum amount you’re willing to risk. Ideally, this should be no more than 5% of your investment capital. Establish clear exit criteria before you enter and verify through multiple independent sources.

In the world of investment, boring is often beautiful. Consistent, modest returns from legitimate activities will build wealth far more reliably than chasing spectacular promises.

“Don’t be the fool who ‘cashes out’ others. Be the one who walks away with your dignity and your money.”

The most successful investors don’t need excitement – they need results.

I hope this helps.

Godspeed and Cheers.