Being a creator sometimes means that your income may not be stable. Regardless of the number of brand partnerships you get, sponsored posts, or even digital products you sell. Some days may seem slow.

Hence, achieving financial freedom means taking advantage of any legit money-making opportunity you see and investing your money the right way.

In this article, we’ll share how to invest your money as a creator to avoid risks and costly mistakes.

To Build Long Term Wealth, You Need To Invest

The rich want to get richer, and the poor want to get rich but everyone has a unique financial situation and can only go as far as they intentionally can. Despite your status, the one thing that can take you from point A to point B is investing.

But investing is not a game of chance. It largely depends on your preferences, financial situation, and goals.

Here’s a six-step process to help you figure out how to invest your money as a creator;

• Have a financial goal
• Do your research
• Work with investment experts to avoid mistake
• Open an account and fund it
• Be patient, Investment is not a get-rich-quick-scheme

Let’s explain each of these points in detail to help you understand how to invest.

1. Have a financial goal

To invest your money, you’ve got to first have a financial goal. What do you want to achieve financially? When do you want to achieve it? How much risk are you willing to take to achieve your financial goals?

Since investment is a long-term plan, you need to be sure it’s a step that brings you closer to your goal.

There are majorly two types of goals;

Long-term goals: As the name implies they are typically longer than regular goals. Think of a 5-10-year plan and discover what you want to achieve within that time. do you want to invest ahead of retirement? Do you want to buy your dream vacation home? Do you want to create a trust fund for your future kids? These long-term goals help you know which investment options you can take.

Short-term goals: These goals are usually less than five years and are typically urgent. It could be having a large emergency fund, or taking the next vacation. Money for short-term goals shouldn’t be invested because they usually don’t yield large returns given the short time frame.

For this article, we’d focus on the long-term benefits/goals to help you make better decisions on how to invest your money as a creator.

2. Do your research

Take the time to research and understand the investments you’re considering. Whether it’s stocks, bonds, mutual funds, ETFs, real estate, or any other asset class, familiarize yourself with how it works, its potential risks and rewards, and its historical performance.

Of course, the past performance of an investment asset doesn’t guarantee future results but it can provide valuable insights into the investment’s track record and help you avoid costly mistakes.

Most importantly, be aware of any fees or expenses associated with the investment. Some asset fees can eat into your returns over time, thereby invalidating your efforts. Ensure you compare associated fees across various investment options you’re considering to see how they impact your returns.

3. Work with investment experts to avoid mistakes

If after your research, you’re still unsure how things work, you can work with investment experts or managers to help you manage your portfolio.

As a creator, you want a fund manager with affordable fees, a variety of investment options, and a relatively low investment amount. For this, we recommend Risevest.

Risevest is a digital dollar asset manager that connects Nigerians to foreign investment opportunities through products such as Fixed Income, US Real Estate, and US Stocks.

Several stock investment options exist in Nigeria, but they only offer stock options. This means you have to identify the stock, buy it, and manage it yourself.

But with Risevest, all of that is done for you and you only pay a management fee of between 0.5% and 1% depending on your total investment and returns earned.

What makes Risevest an ideal option for you as a creator is that you can invest in stock options with as low as $1. And since your income may not be fixed compared to a regular 9-5 worker, you want to take advantage of all the affordable opportunities you have.

Also, funding your account is easy. You can either fund through bank transfer or through your bank card which you can also save and link to your Rise account. This way, you don’t have to enter your information every time you want to fund your plan.

You can learn more about how Risevest helps you make your money rise.

When you signup on Risevest, fund your account, and watch any of the Creator Stories episodes on YouTube, you stand a chance to win a $10 bonus. But it’s only for the first 100 people. So get signing!

4. Open an account and fund it

Just like you have various bank accounts for savings, current, or fixed deposits, you need an investment account to invest.

In Nigeria, you mostly have investment stock options which require shareholder accounts issued by the broker you’re investing with. This account gives you access to available stock options. This way you can fund your account and manage your portfolio.

However, as a creator, it’s possible you may have little or no knowledge about how to manage an investment account. In that case, it’s best to work with fund managers who have a track record of generating returns. This way, all you have to do is fund your accounts and choose any of the investment options recommended to you.

If you’d prefer to let experienced fund managers handle your investments at an affordable fee of 0.5% to 1% of your total investment and returns, we recommend using Risevest.

Risevest is a digital dollar asset manager that connects Nigerians to foreign investment opportunities through products such as Fixed Income, US Real Estate, and US Stocks.

So you don’t have to figure things out by yourself. They’d invest and manage your money in a global portfolio of dollar investments.

5. Be patient, investment is not a get-rich-quick-scheme

Investing is one of the few ways to build long-term wealth. But to enjoy its returns you have to be patient. It’s a journey you have to wait out, which is why experts recommend you stick to your long-term financial goals as they have a higher success rate.

Money for your short-term goals shouldn’t be invested, as they may yield little to no return within the short time you put it. More so, investment is not a get-rich-quick-scheme; it’s a long journey that requires discipline, perseverance, and a focus on your financial goals.

“As an investor, you need to have a long-term mindset to allow your investments to yield adequate returns,” says Simisoluwa, Finance manager at LEAP Africa.

Additionally, market timing rarely yields the desired results. Successful investing is about spending longer time in the market and allowing your interests to grow and compound over time.

So the longer you stay invested, the more significant its impact becomes.

One way to be very patient as an investor is to invest extra money you don’t need immediately. That is, after doing your routine budgeting and planning, invest the extra money you have which you may not necessarily need.

This way, you can easily forget about it and let your investment do its thing – to rise. Also, you wouldn’t make hasty decisions based on emergency needs because you already have an emergency fund to cater for that.

When Should You Start Investing?

Yesterday. The next best time to invest is now. The earlier you invest, the more time your money has to grow.

People who invest at a young age are typically more likely to grow their wealth, become financially independent, and reach retirement sooner than those who don’t. 

Here’s a typical example from Risevest,

Let’s say we have two individuals who started working at age 20 and retired at 60; person A starts investing $500 right from her first paycheck while person B decides to hold on for ten years, investing $500 monthly from age 30.

At retirement, person A will have $2.8 million at an annual compounding rate of 10% thanks to a 10-year headstart while person B will have $ 1 million. There’s an almost $ 2 million difference in their investment value even though there’s only a $60,000 difference in capital invested.

Luckily with investment platforms like Rise, you can invest with as low as $1 and continually increase it as your income increases. For some, it’s easier to save because there’s no risk associated with it. But you cannot save yourself to wealth.

A healthy balance of both saving and investment is your sure ticket to achieving financial freedom and building the life you want for yourself.

Tips For Investing

• Start investing early. The earlier you start investing, the more time your money has to grow.
• Not every news requires a reaction. Financial markets can be volatile, with prices fluctuating daily due to various factors. In situations like this, stay focused on your goals and trust your fund managers. More importantly, resist the urge to react emotionally to short-term fluctuations.
• Periodically review your investment portfolio to ensure it remains aligned with your goals and risk tolerance.
• Invest only what you can afford to lose.
• Spread your investments across different asset classes to reduce risk.
• Do your research but know when to ask for help.
• If you don’t understand how it works, then don’t invest.

Conclusion

Building wealth through investing is a gradual process that requires time, discipline, and patience.

While the allure of quick riches may be tempting, the reality is that sustainable wealth accumulation typically occurs over years or even decades.

Patient investors understand that wealth-building is a marathon, not a sprint, and they are willing to stay the course, even during periods of market turbulence or temporary setbacks.