Editors Pick
These are ways you can monetise your hobbies
If you play your cards right, there’s a chance that you can monetize it.
A new report by The World Poverty Clock shows Nigeria has overtaken India as the country with the most extremely poor people in the world. It is clear that this situation calls for an urgent intervention – and what better way to snag some extra cash than by working on a side hustle? You may ask yourself, “Do I have a life skill that I am currently only using in my free time?’’ If you play your cards right, there’s a chance that you can monetise it and turn some of your favorite pastimes into a viable income stream.
Here are a few things you can do to monetise your hobbies:
Cooking or baking
If you enjoy cooking, baking or anything of such nature, you have the potential to earn some cash. From starting a blog, YouTube channel, or Instagram account dedicated to recipes, to diving head-first into a business by creating your own food or cooking products.
Another option is to promote yourself as a private chef, where you cook in other people’s homes. If you’re really ambitious, you could even try your hand at catering events. Social media has made this pretty easy and you can promote the business via your Instagram, Facebook, Twitter or even Whatsapp stories.
Writing
Writing and publishing online has the potential to offer you a lot of practical value outside of being a mere hobby. You can use it to further your career and establish yourself as an expert on a topic. You can build a platform for sharing your ideas. The most obvious way to make money from writing, however, is to sell it as a service. Freelancing on various sites and reaching out to blogs for gigs are some of the easiest ways to make money off writing.
Blogging
Blogging is like a combination of writing, web development, marketing, relationship-building, and actually doing the activity you choose to focus on with the blog.
Once you start a blog, it can take a few months to get to the point of monetising it. Don’t focus on that aspect right away. Instead, focus on providing real value to your readers. That’s what will ultimately make your blog successful. Once you’ve built a platform you’re proud of, you can start forming affiliate partnerships or adding advertisements to help cover the costs of development, marketing, and your own time.
The great thing about blogging is that it gives you the flexibility to pursue the activities you’re really interested in. If you love travelling, start a blog about your trips and photos. If you love movies, start a movie review blog. If you’re into fitness, help people build nutrition and exercise plans for their lifestyles, etc.
Driving
If you happen to enjoy cruising around behind the wheel, you might consider turning your love of driving into a moneymaking opportunity. With the advent of companies like Uber, Oga Taxi, Taxify and their many equivalents, now’s the perfect time to get in on the action. You can do a few trips even after your regular work and make some extra money for yourself.
Childcare
If your home is the place where children love to gather and you enjoy entertaining and teaching them, your love of little ones could become a day job. Whether you start your own daycare or buy into a franchise business, the demand for quality childcare will remain strong as long as parents work away from home.
Social Media
In this age of social media and its addiction, you can utilise your love for the various platforms and find a way to make extra cash for yourself, either through helping individuals and businesses manage their social media accounts or by being a paid influencer to comment and promote new products/services.
Direct sales
If you love interacting with people, and learning about new products for fun, dabbling in direct sales could put more cash in your pocket. These days, there are a number of companies whose products you can sell at your own pace and on your own schedule. Find a line you can really stand behind, whether it’s fashion, skin care, or clothing, and start promoting its products at social gatherings, or even online. Better yet, recruit others to sell under you, and you’ll typically get a cut of their commissions as well.
Playing an instrument
If you love playing the piano or guitar, you have several opportunities to monetise that talent. For starters, visit shops or restaurants and see if they’re interested in having you provide live music for customers. If they bite, they may not pay a spectacular wage, but you’ll have the potential to make quite a bit from tips. You can also offer your services as a wedding or party entertainer and if you can’t manage to get paid to play, teach others to do so. You’ll bring in some pretty cool cash as an in-home music instructor, especially if you land a big client.
Animal Care
If you’re an animal lover by nature, you can turn your passion for pet care into an actual business opportunity. You can take somebody else’s dog for a walk, try pet sitting, or help to bathe them in exchange for payment.
Photography
Love taking pictures? Why not get paid for it? If you’re really good, you can try getting hired as a wedding photographer, where you’ll earn quite a lot of money, as photography is a very lucrative endeavor now. Another option is to offer your services as a family photographer and provide in-home or outdoor sessions for those looking to capture some precious moments with their loved ones. Though you’ll probably need to invest in equipment to get your business off the ground, if you drum up a respectable client list, you’ll recoup that money and then some – in no time.
Drawing/Painting
If you are a really good artist or painter, one easy source of income is to draw and paint during your free time. You can do this based on bookings, or at social gatherings where you gradually build your clientele. People who appreciate artworks are usually willing to pay anything to get a good one.
Podcasts/Vlogs
Every day, more people are downloading and listening to podcasts and Vlogs. Take advantage of this trend by profiting from yours. The better it is, the more listeners and followers you will attract. When starting out, your audience will be small but you should take time to create awesome quality content that’s relevant and unique for your audience.
You can make money by selling your own branded merchandise. Popular podcasts/Vlogs also make money through sponsorships. Businesses see the potential of reaching the right people, so if your podcast fits a specific target audience, then you could be making just as much money.
Take The Football Ramble podcast for example, with its huge audience and influence. Betting company, Bet365 is the official partner of the show, as it can see the potential reach.
The final piece of advice is to treat your hobby like a job. If you want it to become your main source of revenue someday, or at least a sustainable second stream of income, then you have to give it the attention it deserves.
Carve out time to work on your hobby, read about the industry, learn about sales and marketing and dedicate yourself to steady improvement. This is how to achieve positive results.
Editors Pick
DEVALUATION: CBN updates website to official rate of N360/$1
The central bank of Nigeria has devalued its official exchange rate from N307/$1 to N360/$1.
Just as Nairametrics reported, the Central Bank of Nigeria has devalued its official exchange rate from N307/$1 to N360/$1. The apex bank has now reflected this change on its website signaling a confirmation. The bank is yet to issue a press release to this effect.
The CBN has now officially devalued by 15% moving from N307/$1 to N360/$1. Depreciation at the “market-determined” I&E window is 5% having moved from N360/$1 to N380/$1
Devaluation: Nairametrics reported yesterday that the Central Bank of Nigeria (CBN) sold dollars to banks at N380/$1 in a move signifying a devaluation of the currency. Banks trading at the Investor and Exporter (I&E) window bought dollars at N360/$1 from the CBN on Friday, March 20, 2020. The I&E window is the official market where forex is traded between banks, the CBN, foreign investors, and businesses. The central bank typically buys or sells in the market as part of its intervention program.
The CBN has updated its website with the official exchange rate.
Nairametrics also got hold of a letter from the CBN to banks informing them of the new exchange rate for dollars flowing from the International Money Transfer Operators (IMTOs). According to the CBN, IMTOs will sell to banks at N376/$1 while banks will sell to the CBN at N377/$1. The CBN will sell to BDC’s at N378/$1 while the BDC’s will sell to end-users at “no more than” N380/$1.
Single Exchange Rate: A report yesterday also suggested that the CBN also planned to move to a single exchange rate policy for determining the price of the dollar. A senior central bank official who does not want to be identified, said, ‘Today we allowed the rate at the importer and exporters (I&E) window to adjust in response to market developments.’
The central bank has now made an apparent u-turn after it had initially that the “market fundamentals do not support naira devaluation at this time” detailing reasons why it did not need to devalue.
Falling oil price: Oil prices fell to under $20 on Friday before climbing back up to settle at $23 per barrel. Nigeria’s Bonny light trades at $26 while the benchmark Brent crude trades at $29 per barrel. In response to the crash in oil price, Nigeria’s announced a cut to its 2020 budget by N1.5 trillion as it faced the reality of a potential drop in its revenues. Nairametrics also has information that state governments are getting jittery about their ability to sustain salary payments as a reduction in their federal allocation “FAAC” is anticipated.
Career tips
Investment options for salary earners
Investment options for the salary earners
#Investing #Entrepreneurs #Investment #Salary #Wages
Recently, one of the readers of my articles asked to know what investment options are open to salary earners. A salaried individual is like everyone else except that he or she has a fixed monthly income. This implies that their investments and expenses have to be managed strictly according to their fixed monthly income.
Since salary is assumed to be the only source of income for the salaried, it is advisable that such an individual fortify himself financially before investing so that adverse investment performance will not have untold effect on him and his family. Therefore, if you are a salaried prospective investor, you need to:
Get life insurance
Most families in Nigeria are single income families so much such that if anything bad happens to the income earner, the family gets shattered, at least financially. Again, given the risks inherent in capital market investments, it is only prudent to have a life insurance as a first step in one’s investment journey. It is very baffling to see many investors very deep into the market, yet they do not have life insurance.
[Read Also: Understanding the risks in bond investing]
Life insurance is and should be a basic part of any financial plan. Life insurance is a protection for loved ones against financial hardship arising from the death of a breadwinner. This is even more important today than ever before with high cost of funeral expenses, college education and medical bills. So, the first investment option for a salaried individual is to get a life insurance.
Prepare for financial emergencies
Life is full of surprises, emergencies do happen, jobs are lost without notices, and even good investment opportunities emerge sometimes suddenly. There is, therefore, the need for a cash reserve to help weather the financial storms and emergencies when they come calling.
Cash reserves do not only provide for emergencies, they also help to ensure that investments are not liquidated prematurely or at inopportune times to cover unexpected expenses. There are no hard and fast rules on what the exact amount of the required cash reserve should be, but most financial experts and planners will advise that an amount that equals about six months of living expenses be set aside.
So, as a salaried person, your next investment should be to have a cash reserve. A cash reserve should not necessarily be in a savings account or under the mattress; it could be in an interest-bearing money market account, money market mutual funds with low to zero luck-up period or another form of very liquid investment that is readily convertible to cash without loss of value.
[Read Also: Understanding the risks in bond investing]
Know your risk appetite
As a salaried and fixed income individual, your risk appetite is most likely going to be low as well as your risk tolerance, although your extended family profile could change all that. You need to know or understand your risk tolerance before you engage in any capital market investment.
Your risk tolerance will and should drive the type of investments you go into. Your risk tolerance depends on your psychological makeup, your current insurance coverage, presence or absence of cash reserve, family situation, and your age among others.
Talking about family situation, it is reasonable to think that a married individual whose children are still in school will be more risk averse than an unmarried person. On the other hand, older people have shorter investment time horizon within which to make up for any losses. the reason for this is because the older you get the less time you have to work to recoup on losses.
In that case the risk tolerance of an older man will be less than those for younger folks. Again, the more cash reserve and insurance coverage you have, the more your propensity to take risk. Now having known your risk tolerance based on the underlying factors, you can then define your investment objectives
[Read Also: Important tips on how to profit in a bearish market]
Set your Investment objectives/goals
Having met those essentials above, you are now ready for a serious investment plan or program. A good investment plan starts with investment objectives. Investment objectives are the force that determines what you invest in. Investment objectives range from capital preservation, to capital appreciation and constant income generation.
Capital preservation as an investment objective implies that you, the investor, aim at minimising the risk of loss by maintaining the purchasing power of your investment. So, if you are risk averse or you will need money from your investment soon for children’s education or for building a house or you are nearing retirement, this should be your objective.
Investors whose aims are to see their investment portfolios increase in real terms over a period of time are better suited for capital appreciation as an objective. This is better for investors that are more risk tolerant and those with more potential to recoup on losses along the way.
If you are already retired or nearing retirement, and therefore depend on your retirement plan supplemented by investment income, you need an investment that generates income rather than capital gains. In that case, your investment objective should be current income generation. It is always good to have investment goals stated in terms of risk and returns.
[Read Also: I-Invest generates over N2 billion transaction in less than 6 months]
Decide on asset allocation
Armed with the knowledge of your risk appetite and investment objective, you are now ready to decide on what to invest in, and how much to invest in any asset class. This takes you to asset allocation decisions. Asset allocation involves dividing an investment portfolio among different asset classes based on an investor’s financial requirements, investment objectives and risk tolerance.
A right mix of asset classes in a portfolio provides an investor with the highest probability of meeting his/her investment objectives. Asset allocation is the most important investment decision an investor can make in a portfolio because it demonstrates an investor’s understanding of his or her risk preferences and return expectations.
It is good to strive for a diversified portfolio. Unfortunately, the Nigerian market does not provide a lot of asset classes for optimal diversification, but diversification can be achieved across sectors or industries within the few asset classes in the Nigerian stock market.
Decide on how to invest
There are different ways to invest in the capital market. You can invest directly by making the stock selections by yourself, thanks to the online stock trading platforms that abound the world over. This implies that you have what it takes to conduct the required research and analysis of the companies whose shares or stocks you wish to buy.
[Read Also: How I Would Invest My Mother’s Retirement Funds]
It also implies that you have what it takes to know when to sell or add to existing positions. Another method is to have someone “do the heavy lifting” for you. In this case, that someone, often times called fund manager or portfolio manager, does the research and analysis and selects shares that suit your investment preferences, investment objectives, risk tolerance and appetite as well as your investment time horizon.
This route is most suitable for investors that lack the knowledge and time for the required research and analysis. If you decide to go this route, mutual funds are the best bet for you.
The Buhari led government has spent about $3.7 billion in foreign debt service since 2015, one of the highest from any democratically elected government. The highest single-year foreign debt service was in 2006 at $1.79 billion.
About 68% of Nigeria’s foreign-denominated debt servicing is in commercial Eurobonds issues over the last two years. The loans range between 5.1% and 9.2% per annum. Nigeria’s external debt stock stood at $27 billion in June 2019.
Rising debt service: The Buhari administration has so far spent about $1.1 billion in foreign debt service this year. In 2018, the government spent about $1.4 billion in debt service, more than 3 times the $444 million it spent servicing foreign debts in 2017. The rising cost of debt service is a direct attribute of the government’s reliance on foreign loans as a means of funding government expenditure.
Debt service since 2003. Source: CBN. Nairametrics Research (C)
Foreign Loans: Nigeria’s fallen revenue following the crash in oil price has allowed President Buhari to rely mainly on foreign loans to fund government expenditure. As of June 2015, Nigeria’s foreign loans were about $10.5 billion mostly made up of multilateral and bilateral loans.
However, by June 2019, total foreign-denominated loans were $27 billion with $10.8 billion made up of Eurobonds. Commercial loans which include Eurobonds and Diaspora bonds make now make up about 42% of total foreign borrowings.
[READ ALSO: Babatunde Fowler attributes FIRS success to technological innovation (Opens in a new browser tab)]
Critics of the government have complained about the government penchant for debts believing that it could put the future of younger Nigerians in jeopardy. Supporters of the government, however, believe the borrowing was necessary to invest in critical sectors of the economy particularly infrastructure.
Recently, Director-General of MAN, Segun Ajayi-Kadir expressed worry about Nigeria’s rising debt.
“….the rising debt profile of Nigeria continues to be a cause for concern, especially the capacity of government to effectively service it and, at the same time, meet the bursting needs and aspiration of the citizenry going forward.”
“Already, our budget projections for 2020 anticipates a debt service sum of 2.45trillion, an amount higher than the 2.14 trillion earmarked for capital expenditure.
“And even though our debt-to-Gross Domestic Product (GDP) ratio, which currently stands at 28 percent, is still below the average in Africa, our revenue-to-GDP ratio remains low.”
The Finance Minister Zainab Ahmed however, believes the current debt profile is sustainable, comparing it to our GDP.
“Currently, Nigeria’s debt is at N25 trillion; that is about $83 billion. And at $83 billion, we are just at 18.99%…so 19% debt to GDP. I hear people say Nigeria has a debt problem. We don’t have a debt problem. What we have is a revenue challenge and the whole of this government is currently working on how to enhance our revenues, to ensure that we meet our obligation to service government as well as to service debt.”
[READ ALSO: Babatunde Fowler attributes FIRS success to technological innovation (Opens in a new browser tab)]
Former Vice President and defeated PDP Presidential aspirant, Atiku Abubakar during the week piled criticism on the government’s borrowing.
“I have said it time and again. The business of government is too serious to be left in the hands of politicians. We must all ask questions because if they throw away the future, it is not going to be their future they are throwing away, it will be all our futures.
“The fact that Nigeria currently budgets more money for debt servicing (N2.7 trillion), than we do on capital expenditure (N2.4 trillion) is already an indicator that we have borrowed more money than we can afford to borrow. And the thing is that debt servicing is not debt repayment. Debt servicing just means that we are paying the barest minimum allowable by our creditors.
What this means: Nigeria’s rising foreign debt profile should be a worry to investors and businesses and must be watched closely. The country’s ability to repay these loans will continue to be harder as it increases especially now that it is costing about 9%. The immediate risk for investors is the exchange rate which could be the first to suffer should the government struggle to repay its loans.
fawnfuentes
August 17, 2018 at 5:30 am
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opara kenneth
August 17, 2018 at 11:11 am
i heard to survive, you need to have 5 multiple stream of income. Im looking getting a blog and a website to venture into affiliate marketing. Though i have jumia and konga, but have made little or no money. Im also looking at forex but dont know how to go about it. kindly assist
filliposaga
August 22, 2018 at 6:26 pm
Hello Opara,
It’s awesome reading that you have dabbled into some side hustles. It gives me great joy, because it takes some level of discipline to do so
However, if you planning to take your forex trading career to the next level, you can contact us at craftingpips.com
Do have a great day ahead
sekigwa
August 22, 2018 at 5:29 am
Great post, i think blogging is the best way to monotize your hobbies, if you combine those you mentioned and blogging could be in a way of making a living.
filliposaga
August 22, 2018 at 6:21 pm
Good day Raheem,
A good article I must confess
Its high time more people start converting their hobbies into money making ventures and make this country of ours great again. I can’t thank you enough for putting this piece together
Will definitely share
Mansa. (@iam_rqb)
August 23, 2018 at 9:13 am
Thank you Filliposaga,
I appreciate the kind words.
TJ
August 24, 2018 at 11:50 am
Looking for the ‘like’ button. Useful write-up.
Goodman Odu
March 16, 2019 at 3:20 pm
Very interesting article from Raheem Adebayo , turning one’s hobby to a money making venture. A lot of people spend valuable time on their enjoyable hobbies, without having financial gain.
With this eye opener, some residual income can be received , while enjoying your hobby.
Thanks.