At the age of 18, Obioha Okereke made his first $150 investment. The fact that he wouldn’t be inheriting anything encouraged him to start building his money even more because he was already interested in pursuing a career in finance.
He is 24 years old, a consultant in Seattle, and has a net worth of over $150,000 as well as a portfolio of investments worth over $120,000. My dad talked a lot about generational wealth when I was growing up,” adds Okereke.
He insisted constantly that we would have to build our riches independently because we are African Americans and there is none in the family. Okereke came to the conclusion that the best approach to become wealthy was to save money and invest it in several different accounts.
Still, he has made mistakes along the way. He claims that he has made several unfortunate investments and purchases over the past six years.
Now, through his business, College Money Habits, he assists people in avoiding the blunders he made and achieving financial independence. His best advice on spending, investing, and saving is provided below: —-
Automatic contributions are possible. Every month on the first, Okereke transfers $1,250 to a savings account. He contends that prioritising this above investing is appropriate. Because investing involves putting money at risk, he advises having savings, especially emergency funds.
Make sure that losing money in the market won’t affect how you live or put your standard of living at risk. Automating contributions to savings accounts can help you resist the need to spend money as soon as it enters your bank account.
Start today and continue to be consistent: “Start small, conduct your own research, and always think long term when investing to properly take advantage of compounding and to prevent losing money to frequent mistakes,” he advises. Some individuals believe they lack the resources to begin investing, but I did so with just $150.
Have a plan, follow it, and constantly contribute. In order to “shut out a lot of the noise,” he argues, it is crucial. The majority of what you read and hear in the media and on Twitter is hysteria, in my opinion.
He lost money on “hype companies,” or stocks that received a lot of media coverage and buzz, when he initially started investing. Okereke admits, “I didn’t know what I was doing. “I didn’t realise the value of long-term investing until I landed an internship at Merrill Lynch.”
Learn about delayed gratification by asking yourself, “Is this something I need, or is this something I desire,” before spending money, advises Okereke. as well as “Could I put off buying this?” You might learn how to resist gratification and adhere to your budget by asking yourself these questions.
“I believe there is ongoing pressure to depict a particular lifestyle on social media. But, it’s crucial to adhere to your budget “He claims. “By postponing satisfaction, you position yourself such that your money may do more in the future.”
Okereke acknowledges that he hasn’t always done this well. He had $22,000 saved up when he was 21. He spent $11,300 on a used 2009 Mercedes c300 as a reward for himself. The worst financial choice he has ever made, he always tells people.
“I didn’t do any investigation on it,” the speaker said. “That was nice and I felt it would impress other people,” the author said.
As a result, he was unable to save money while also paying for maintenance and auto payments. Obviously, it’s necessary to enjoy life and have fun now, he says, but financial security for the future is just as crucial.
Thanks to: Grow