If you’re afraid of losing money, you’re not alone, most people are. The good news is that investing doesn’t have to be scary when you follow time-tested rules that protect you from emotional decisions, scams and poor planning.

Whether you’re just starting out or looking to sharpen your financial game, here are 5 golden rules every Nigerian should live by when it comes to investing:

Rule 1: Start with a Personal Financial Roadmap

Don’t just jump into crypto or real estate because everyone is doing it. Ask yourself:

How much can I invest without touching my emergency savings?
What’s my goal: wealth building, school fees, retirement?
Do I understand the risks involved?

Write these down and determine how much risk you're actually comfortable with. For example, someone with dependents may be more risk-averse than a single university graduate with side hustle income.

Rule 2: Build Your Emergency Fund First

Before investing, ensure you have 3–6 months of expenses saved. Why? Because life happens — job loss, rent issues, medical bills.

Use tools like:

PiggyVest Safelock
Optimus
Cowrywise

This ensures you won’t be forced to pull out your investments early at a loss.

Rule 3: Diversify Your Investments

Never put all your eggs in one basket. Nigerians learned this the hard way with crypto crashes and failed agric schemes.

Diversify across:

Treasury Bills
Mutual Funds
FGN Savings Bonds
Real Estate
Commercial Papers
Dollar funds (e.g. RiseVest, Bamboo)

A balanced portfolio reduces your risk, especially in unpredictable economies like Nigeria’s.

Rule 4: Invest Consistently

Don’t wait to “save a lot of money” before you start. Consistency is more powerful than size.

Use automated investing:

Invest ₦5,000 monthly in FGN Bonds
Buy $10 of stock monthly on Bamboo
Add ₦2,000 monthly into Cowrywise mutual fund

This strategy is called Dollar-Cost Averaging. It helps you buy more when prices are low and less when they’re high, evening out your risk over time.

Rule 5: Be Patient — Leave Your Investments Alone

The biggest mistake many people make is chasing quick money. In 2016, over 3 million Nigerians lost ₦18 billion to MMM.

Real investing takes time, think years, not weeks.

Your money grows through:

Compound interest
Market cycles
Dividend reinvestments

So stop checking your investment app every day. Let your money breathe.

Investing isn't about getting rich quickly. It’s about building wealth steadily. If you follow these 5 golden rules, you’ll avoid 90% of the mistakes most beginners make.

Start small. Stay consistent. Think long term.

To learn how you can start investing with 10,000 naira the grab this e-book here: https://selar.com/f54299

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