We all know salary raise is an increase in the amount of money you earn for doing your job. Most good companies typically give a 2% to 5% raise per year. While other companies don’t. You will be stuck in same salary for a long time.
If you live in Nigeria you will know that inflation is a regular thing. It’s only in Nigeria that “Things go up and don’t come down”. I’m referring to prices of goods and services in Nigeria. Price of goods in Nigeria increase every time. You can buy an item for 100 naira in the morning and buy it 150 naira in the afternoon. Inflation has affected the price of what you bought previously.
Inflation in Nigeria in the last 5 years has averaged 11 to 15%. So if you got a 5% increase in your salary, am sorry nothing changed. It’s not even enough to cover up for inflation. The sad part about this is that some salary earners still got their taxes increased. Their house rents get increased and the cost of living also increased.
Technically speaking you are not getting any raise but rather you are moving and hustling backwards.
Well if you have been investment oriented from the start and you have been investing 25% of your salary every month, because even if you invested 25% of your Salary or not, you will still survive. So imagine investing 25% of your salary every month in something like shares, Bond, ETF or Cryptocurrency for the past 5 years instead of spending it on some guilty pleasure like smoking, or alcohol or womanizing or going to parties, trust me you won’t feel the country’s inflation. It’s not as easy as it sounds but it’s worth it, being a Nigerian that has lived off investment since he graduated from college, trust me I know how it feels.