Stock market

How investing in shares, mutual funds can help you become financially independent

By Aminu Mohammed

The inspiration for this article came from a short Facebook post by Bashir Abubakar Gazaki, who advised young people to invest their money in shares of good companies to attain financial independence. His followers’ lack of financial awareness caught my attention, as evidenced by the comments below the post, where many people asked him to explain the stock market. 

It is not surprising that personal finance is not taught in universities. I learned about stock investments through books such as “The Richest Man in Babylon” by George Samuel Clason, “Rich Dad Poor Dad” by Robert Kiyosaki, and “Rich Dad’s Guide to Investing: What the Rich Invest In That the Poor and Middle Class Do Not.” I read these books shortly after graduating from Ahmadu Bello University, Zaria. 

The books gave me insight into why some people, despite working for many years, still struggle in life. The inspiration from these books led me to purchase my first share during my service year in Adamawa state. Similarly, a fellow corps member from the southwest who knew the stock market advised me to invest in good companies.

Invest money in assets Instead of liabilities 

Investing your time actively and your money passively is an excellent way to secure your financial future. Passive income refers to the money you earn from your assets, such as property, shares, mutual funds, Treasury bills, etc., while you sleep. Unlike your job, assets generate income for you, whether you work or not. So, it’s crucial to avoid wasting your money on liabilities and start investing in assets.


If you earn a salary or own a business, it is best to save at least 10 per cent of your income and invest it wisely. Investing in shares doesn’t require a large sum of money. Suppose you know about stock trading. In that case, you can invest in the United States stocks or the Nigerian stock market, even if you start small with a low amount.


However, it is understandable that many individuals are scared of investing their money in the stock exchange, given the capital market crisis in 2008, where several people lost a significant portion of their funds. I have experienced losses in the stock market myself, particularly with the shares I bought in the defunct Oceanic Bank and Bank PHB. But I have also gained from stocks like Dangote Sugar, GTBank, and Zenith Bank. Life is all about risk; sometimes, we win, while other times, we lose due to unforeseen circumstances. But that shouldn’t stop us from exploring new investment opportunities, no matter how little.

Investigate companies before Investing

Investing in the stock market is a business that requires a long-term strategy and patience rather than a quick way to get rich. Having a good understanding of the companies you invest in is crucial. According to Warren Buffet, the Chairman of Berkshire Hathaway, one of the most successful investors in the world, the best way to achieve greater rewards is to think long-term. Buffet recommends holding stocks for at least five to 10 years to accumulate wealth. However, some traders still profit by trying to beat the market daily.


If you are hesitant about investing directly in stocks, you can consider mutual funds, designed for people who want to minimise risk but have lower returns. You can contact your local banks, such as First Bank, GTBank, UBA, Stanbic IBTC, and others that offer asset management services. These companies manage various types of mutual funds under the guidance of experts.


As a salaried worker, unforeseen circumstances such as job loss or a downturn in business can be devastating. Therefore, it is important to have a safety net in the form of investments to help you recover in case of any unforeseen circumstances.

Consult a stock broker before buying any Shares

It is important to conduct thorough research and seek expert advice before investing in shares. Look for stocks with strong fundamentals and invest in them wisely. Diversifying your investment across different sectors and companies is recommended to maximise your returns.

It is crucial to emphasise that individuals with little knowledge about the stock market should educate themselves on basic financial concepts before investing in shares. The companies mentioned in this article are for illustration purposes only and to encourage young people to take control of their financial future through smart investments. Investing in shares is not a quick way to get rich, and seeking professional advice before investing is highly recommended.

I wish you the best as you strive towards financial independence and personal growth.

Aminu Mohammed wrote this article from Ingolstadt, Germany. He can be reached at gravity23n@gmail.com.