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Real Estate with 'Tosin, Egbeda, Lagos (2026)

Name: Real Estate with 'Tosin
Address: Egbeda, Lagos, 234, NG
Telephone: +2348034955739

25/04/2022

Simple Interest vs Compound Interest, What You Should Know.

Everyone works with money every day. Balancing your monthly spending or building your budget may require basic arithmetic. And when you start saving, planning for retirement, or need a loan, you will need more mathematics.

Simple Interest

Simple Interest is interest calculated on the principal portion of a loan or the original contribution to a savings account. For example, if you borrowed ₦100,000 from a friend and agreed to repay it with 5% interest, the amount of interest you would pay would just be 5% of ₦100,000: ₦100,000 (0.05) = ₦5,000. The total amount you would repay would be ₦105,000 (the principal plus the interest).

One can easily compute simple interest by multiplying the interest amount with the tenure and the principal amount. Simple interest doesn’t consider the previous interest. It is simply based on the original contributed amount.

Borrowers derive more benefit from simple interest as there is no power of compounding, i.e. there is no interest on interest. However, investors might lose if their investments are based on simple interest.

Formula for Simple Interest

To compute simple interest, multiply the principal amount by interest rate and the tenure. Bear in mind that tenure can be in days, months or years.

S = P*I*N

P = Principal amount

I = Interest rate for the period

N = Tenure

Example:

To understand how simple interest is being computed, let’s take the example of Jennifer who invested ₦1,000,000 in a fixed deposit for a tenure of three years at a 3% interest rate. Using the formula of simple interest, we can calculate the interest Jennifer will earn from the investment.

S = 1,000,000 x 3% x 5 years

S = ₦150,000

For her investment, Jennifer will receive ₦150,000 interest at the end of five years (investment tenure). The bank or the financial institutions pays Jennifer an interest of 5% for using her deposited amount for its operations during the tenure of her investment (three years). Jennifer will receive ₦1,150,000 after the three years duration.

However, if a loan or investment is only for a few days or months, the interest rate must be converted into a daily or monthly basis.

Compound Interest

Compound Interest is the interest on a loan or deposit that accrues on both the initial principal and the accumulated interest from previous periods.

Compound interest is simply when the money you earn starts earning money. Compound interest earns interest on previously earned interest. It is the easiest way to become wealthy.

The bank or financial institution decides on the frequency of compounding. Compounding could be daily, monthly, quarterly, half-yearly or yearly. Accrued interest amount is also subject to the frequency of compounding. Hence, investors benefit from compound interest more than borrowers.

Compound Interest Formula

Compound Interest is calculated by multiplying one plus interest raised to the power of the compounding periods with the principal amount.

A = P (1 + r/n) nt

Where:

A – Compound interest

P – Principal amount

r – Rate of interest

n – Number of compounding periods

t – Number of years (duration)

Example:

Suppose we deposit ₦1,000,000 in a bank account offering 3% interest, compounded monthly with 5 years duration. How will our money grow? Let’s use the above formula to calculate our interest;

Investment – ₦1,000,000

Interest – 3% per annum

Tenure – 5 years

Compounded – quarterly, therefore, the compounding periods are 4

= ₦1,000,000 (1.16118)

= ₦1,161,184.14

The compound interest in this case is ₦1,161,184.14. The interest at the end of the investment tenure is ₦161,184.14. Hence, with higher compounding periods, the interest will also be higher.

Conclusion

According to Albert Einstein, he referred to compounding as the 8th wonder of the world. With compounding, you can make your money work harder for you. The interest that accumulates earns more interest in the long-term. Also, the longer you stay invested, the higher will be the return from an investment. Hence, it is advisable to start investing early to benefit from the power of compounding.

Money Africa

25/01/2022

A plot of Land with a 4bedroom foundation on it is available for sale.

This property is located in a highbrow area of Ibadan (Akala Express Way, off Challenge New Garage)
It's less than 10mins drive from the junction. Road is tarred.

Titles are Deed of Assignment and Survey plan.
7m

05/01/2022

What are your goals for the year?

Happy New Year!

Are you tired of that greeting?

It is just five days into 2022, so it is still a new year. For many, adjusting back to the work routine is a bit difficult. Can we have a few more days of rest?

Many organisations take either the last few days of the outgone year or the first few days of the new year to plan.

What is your plan for 2022, especially your personal finance plan?

There are valid excuses for not wanting to plan. Who cares about structure? You Only Live Once (YOLO), they say. Even YOLOing in itself is a plan, since it is focused on only enjoyment.

Maybe your experience with planning is that you have to constantly tweak them. In extreme cases, others abandon the plans totally. So why bother?

That is enough reason to have a plan. Uncertainty does not suspend competing bills. It actually means one has to be a bit more prudent when it comes to allocation. So, let's go back to planning.

Sometimes it seems all we do is survive, especially in Nigeria. We just want to sort things out today and leave the rest to take care of themselves tomorrow. We often forget that all the tomorrows will add up to a year. Then the years will add up to decades. And the decades will lead to retirement. What then will you do?

Let’s start with what we know is certain (as long as one has life). You will need to spend money. You (mostly) or someone else will have to earn an income to take care of those needs. Inflation will keep eroding the value of money—sometimes fast, sometimes slow. You need to invest to surmount that erosion of value. How you will navigate this will depend on your plan for 2022 and beyond.

I believe I have been able to convince you of the need to plan.

What are the components of a good plan? It should be SMART—Simple, Measurable, Achievable, Realistic and Time-bound. Let's take each letter one after the other.

S–Simple. Simplicity is key and also pragmatic. Attention spans are shorter these days, and the information we have to absorb keeps increasing. All you need to plan for are the various tomorrows that will make up the years you will live. How much do you need now? How much do you estimate you will need in the future (factoring inflation)?

M–Measurable. Having plans that can be measured is also key. Money can be quantified. In earning and spending, you can apply the same.

A–Achievable. Remember the words, "To thyself be true." Most things, including your financial goals, will not happen overnight. They are a product of experience, systems and compounding.

R–Realistic. Two things move from zero to 100 real quick: cars and (some) people’s tempers. Setting unrealistic goals will leave you disappointed and in an even worse place than when you started. Start small and then pick your pace. What is your present reality and what are your next few steps?

T–Time-bound. We can try to fight it (dyed hair, nips and tucks). We have a finite amount of time on earth, broken into a finite number of years. No one knows their exact duration on earth.

So in setting your financial goals, you must take the finite nature of life into consideration. We have 365 days in 2022. Four days have already been used. What will you do with the rest?

Money Africa

01/01/2022

I wish you a year full of God's wisdom and guidance in all that you do

Your plans will work out and your joy full
All that you hold dear will be preserved

Amen

I look forward to doing business with you

Welcome to 2022 ❤

29/12/2021

Looking Back

In exactly two days from now, 2021 will be over. How did you fare financially? Good? Bad? Mixed?

Here are a few steps on how to conduct a review of one’s personal finances for the year.

The first step is to work out your opening and closing balances.

The starting point is income. Did you end the year earning higher or lower? Why did you earn higher or lower? The kind of income also matters. Is it income from your job, business or investments?

The same applies to your assets and liabilities. Did they increase or decrease? You can have all this data on an excel sheet, which will serve as an investment tracker.

If you are unable to lay your hands on the needed records for the start of the year, that is okay. You can start with the figures you are able to find. Those will serve as year-end numbers and you can then begin 2022 on a fresh note. You can update this excel sheet either on a monthly or quarterly basis.

In reviewing the year, you must strike the balance between being true to yourself and also being kind.

If reviewing your own personal finances makes you feel uncomfortable, the question is why?

2021 has been a challenging year. If things did not shape out exactly as you wished (or you feel so), that is perfectly fine. You have another 365 days ahead of you to aim for the skies and work towards that.

If your finances are in a much more buoyant state compared to the start of the year, that does not mean you should rest on your oars. There’s always room to do better.

Money Africa

26/12/2021

On this special day, we bring you good tidings.

May your hearts and homes be filled with happiness, and your days with renewed hope.

From all of us at Oxford International Group

23/11/2021

Do you have a Money Circle?

A few weeks ago, I hung out with a couple of friends. We had not seen each other for well over a year. Blame it on the C virus and time. I know it seems weird, but Lagos traffic makes it really hard to catch up on weekdays and weekends.

After the food and drinks, and tossing a few kids in the air, we got down to business. We had been running a small group of investments in the last one year. While there were updates by email, nothing beats that face-to-face conversation. A few hours later, we were done. Agenda was set for the last quarter of the year, and we were back to amapiano and small chops.

Prior to now, it had never occurred to me that consciously or unconsciously I have always had a money circle around me—friends with whom I have either done business with or invested jointly over the years.

Do you have a money circle? Or, are you an island when it comes to taking actionable steps about money? Initially, you may have no need for one. Eventually, we all need to scale up, including scaling wealth. It is hard to do that alone.

Don't get me wrong, it's not all rosy. We have invested in ventures in which money was lost. Such ventures had to be shut down abruptly. Through it all, I am a much better investor. It has also made me better at managing issues in our community and firm. I tell my colleagues that money isn't just about numbers. It is a product of people’s blood, sweat and in some cases, tears.

So as you relax this coming weekend discussing Ole Gunnar Solskjær and Manchester United’s woes or what Owambe (party) to attend, also have money conversations.

Tap brains. Keep an eye on what’s happening in the economy. You would be shocked at what that friend who is perpetually clowning or in my case “pressing laptop and phone all day” knows.

PS.

Amapiano is South African music that is the latest buzz (do people still use that word?) in Nigeria. Small chops are finger foods such as meat pie, samosa, and little pieces of beef. Anything light and easy.

Money Africa

03/11/2021

Here are 5 tips to help you better manage your finances.
Looking for a financial partner to grow your finances through safe and high-yielding investments in Real Estate, Agriculture, Finance, Dredging and Oil & Gas?

Contact +2348034955739
We are the right partner for you.
[email protected].

25/10/2021

Question

Please put me through on how to go about compound interest investments.

Answer

Interest is the extra amount you get on the money you invested (capital). There are two types of interests: simple interest and compound interest.

Simple interest is based on the amount you deposited (capital), while compound interest is based on the principal (capital) amount and the interest that accumulates on it in every period.

This means that with compound interest you are able to get interest on the interest you get monthly.

For example if you are earning 10% interest on 10,000 naira monthly, you would get 1,000 naira interest and if you add it to the capital that would be 11,000 naira. In this case, the simple interest is 1,000 naira.

If you then reinvest the 11,000 naira you would get 12,100 naira by the end of the second month. This is the power of compounding.

Compound interest investment simply means that instead of spending the interest you get monthly on your investments, you reinvest the interest and the capital so that you can earn more in the long run.

Question

How do I get the money to invest?

Answer

There are different ways to get money to invest.

Some people would use the money that they earn while some would borrow money to invest. Please do not borrow money to invest except you have an alternate source of income, and can repay it from there if the investment fails.

Before you do any of them, you need to know what you are investing in.

Are you investing in a low-, medium- or high-risk asset?

Cash, fixed deposit, sovereign treasuries (i.e. bonds or treasury bills) have low-risk.

Real estate and corporate debt have moderate-risk.

Equities (stocks), commodities and currencies have high-risk.

Agritech and cryptocurrencies have very high risk.

Note that the higher the risk, the higher the returns and vice versa.

This would help you answer some of your questions.

It is not advisable to borrow money to invest in a high-risk asset or an asset you are not sure about. What then happens if something goes wrong with the investment? Not only would you be at a loss, you would also be in debt.

If you want to use the money that you earn, you should learn to budget.

A budget is having a plan for your money that would help you make the best use of your money. It puts the power of your money in your hands. This plan could be weekly or monthly.

When creating a budget, you should create space for spending, savings and investments. This would help you have a fallback (i.e. savings), in case your investment goes wrong

Question

I have 1 million naira and I want to keep it for a trip with my girlfriend in June next year. Is it better to hedge against inflation with naira investment or with crypto?

Answer

Inflation is the general increase in the price of goods and services over a period of time.

To hedge means to protect oneself against something.

What type of naira investment are we talking about?

There are various naira denominated investment assets (stocks, bonds, etc.). The more important question is: does my investment store the value of my money?

The inflation rate in Nigeria as at September is 17%. But the long run inflation is 12%.

Long run inflation is the projected inflation rate relative to the economy’s growth rate.

Therefore, to hedge against inflation with naira investments, the interest rate on your investment should be above 12%.

Considering cryptocurrency is a high-risk investment, it is important to first think about your risk tolerance.

We would advise that you split the money into the two investments. More of the money could go into the investment with lower risk as you already have a plan for that money. It wouldn’t be good if you lose the money and you are not able to fulfill your wish.

Money Africa

22/10/2021

Question

I need advice on the best stock to buy.

Answer

As we know, investing in the stock market is a high-risk investment, which is why you need to do a thorough research before buying any stock.

Everyone has a different perspective of what is best for them, so you need to think about what is best for you.

How long do you want to invest for? Long or short term?

How much do you have to invest?

What industry are you interested in?

Is this your first stock?

You need to answer all of these questions, to know what stock to actually buy.

After answering all of these questions, you can then pick between a growth stock or a dividend stock. Which do you think would suit your decision?

Growth stocks are those that usually grow faster than its peers in the industry or the market at large. Companies with growth stocks are in their growth stage. They do not pay dividends.

Examples of companies with growth stocks are Tesla, Amazon, Facebook, Shopify, Square, Alphabet and so on.

Dividend stocks are, however, less risky as it comes with regular payment and it’s with more established companies.

Examples of dividend stocks are those from AT&T, Coca-Cola, IBM. This is not investment advice in any way.

Question

I have ₦300,000 and I have plans to start a photography business. Do you think I should use the money to get a camera, or should I invest it in crypto?

Answer

You need to think about the risk of both investments.

Are you sure about getting returns from your photography business? If yes, how soon will it take to recoup the invested capital?

How soon do you want to start the business?

Would ₦300,000 be enough for you to start your photography business?

Also note that cryptocurrency is a very high risk investment, which means that there is a possibility that you could lose the money.

You could divide the money and invest in less risky assets to get enough money to start your business.

Question

Can I buy Bitcoin now?

Answer

Bitcoin, the biggest cryptocurrency by market cap, hit an all-time high on Wednesday.

The coin climbed as high as $67,000, beating April’s record of $64,000.

This increase was due to the launch of the first Bitcoin Exchange Traded Fund (ETF) in the US (ProShares Bitcoin Strategy ETF - BITO).

An ETF is like a basket of different investments assets sold as a single investment asset.

It is like a candy jar mixed with different types of candies. Buying one candy jar means you are buying all of the candies in that jar.

This helps with diversifying your investment portfolio.

Bitcoin ETFs would track the value of Bitcoin and trade on traditional market exchanges rather than cryptocurrency exchanges.

This allows investors to buy into the ETF without going through the complicated process of trading Bitcoin itself.

To answer your question, it is best to have a long term view when it comes to investing in Bitcoin. If you regard Bitcoin as an investment, and believe that it has more room to run, you can decide to cost-average, that is, buy a specific amount periodically.

Please note that Bitcoin is an extremely volatile asset class. Because of its back-and-forth swings, it is best to invest only money you can afford to leave for the long term.

Money Africa

Real Estate with 'Tosin

25/04/2022

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29/12/2021

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