How much do you need to have in Nigeria so you don’t need to work another day in your Life. It’s very easy to come up with a random number, but what if I told you there is a formular that can help you calculate to know how much you require today, so you wouldn’t need to work another day for Naira.
Knowing how much you should be aiming for is based on a formula which will help you see the possibility of you achieving it. Based on research most Nigerians would have to work all their lives to make a living and this is all based on many factors which is beyond the scope of this topic.
How much do you need;
Firstly let’s start with how much you will need if you want to make a decent living irrespective of the whichever state in Nigeria you are in; for example let’s say you in lagos, and you will need 200k as an individual per month for expenses; that will include food, rent, cloth, transportation and other bills. Now this may differ based on where you are located in Nigeria.
Using the rule of 25.. this is how it works;
Monthly Expenses X 12;
200k X 12 = N2.4m
Then; multiple 2.4m by 25
2.4m X 25 = N60m
So, N60m is what you require to not have to work another day in your life, because you know why?
If you invest N60m to get just 4% yearly interest will give you N2.4m, which is exactly the same amount of money you need for your yearly expenses.
Yes, I know the questions that’s on your mind now will be.. what about inflation, because my N60million investment will worth less in 5-10 years time. Yes good question but the thing is you would have to invest in assets that will fight inflation on a yearly basis.
Examples of these asset could be investing in;
1. High Yields Saving Accounts
2. Stocks outside Nigeria – Dividend Stocks.
3. Cryptocurrency
4. Real Estate
And of course each of this listed has its own risk, so it will be advisable you speak to a finance adviser or do your own research before investing.
Understanding how the 25% rule works gives you an understanding of how much at least to have an finance free life and also help you see the possibility of you not having to work all your life to make a living.
