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Financial Literacy

How to land an 8 figure job in 2021

If you are interested in getting an 8 figure job in 2021, here’s your perfect guide.

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The highly anticipated 2021 is here and running its course already. After a tumultuous 2020, which saw many people around the world loose their job or had their salary slashed; there would be a lot of job hunting in the days to come.

With the unemployment rate put at 27.1% in Q2 2020, you can be sure that the vacancy space will be filled with intense competition. However, there is a space where few play – at the 8 figure salary level.

READ: A look at how much Nigerian banks paid their staff in 9-month 2020

It’s somewhat like a tradition to write down what you aim to achieve in a new year; but in reality, the playing field becomes uneven when it comes to achieving them.

Our jobs are a significant part of our lives and most times, our life goals revolve around them. We all work to earn the best that we can so as to live our best life.

READ: Legit ways to make money with your phone

If you are interested in getting an 8 figure job in 2021, here’s your perfect guide.

Landing an 8 Figure Job in 2021

Making a giant leap into earning such an amount is not easy. To start with, if you do not have a good amount of experience, don’t expect a miracle to happen. You have to start small, especially if you intend to hack the corporate world rather than entrepreneurship.

Strategically gather experience that would qualify you for an 8 figure job. No employer will employ a professional with zero years of experience and pay him or her 8 figures.

READ: NIS generates N39 billion in 12 months, may lose 2% to on-going probe

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Which jobs pay 8 figure salaries?

Jobs that pay 8 figure salary are mainly managerial level positions (CEO, CTO, COO, etc). Rarely would you get a minimal experience job with a salary that high. That being said, a few of the highest-paid professions include the following:

  1. Petroleum Engineering: Oil is one of the most profitable industries worldwide and the most profitable in a country like Nigeria. Some professionals who work in the oil industry comfortably earn 8 figures, especially those offshore who are generally petroleum engineers.
  2. Surgery: It’s no secret that surgeons are highly paid. This is due to their specialty in certain areas of medicine.
  3. Law: Quite a number of experienced lawyers earn 8 figures; however, it depends on the organisation and position.
  4. Programming: With the country and the whole world going digital, programmers’ importance and demand are extremely high. They are also paid good money for it. Just like the new saying goes, “tech is the new oil.”

READ: 5 Things you must do to get a promotion in 2021

Other high-paying professions include, but are not limited to, Chartered Accountancy, Airline Companies (Pilot), Civil Engineering, etc.

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How to land an 8 figure job in 2021

If you intend landing an 8 figure job in 2021, then you must fit the necessary criteria:

  • Get a bachelor’s degree.
  • Postgraduate and professional certifications to boost your chances.
  • A wealth of experience and knowledge in the industry and specific job role.

READ: Why you must plan for retirement, even as a student

How to position for an 8 figure job in 2021

  1. Start by establishing yourself as an expert in your field: People don’t buy products, they buy brands. The same rules apply to seeking a job. Build your brand and market yourself as an expert in your industry. Create a niche for yourself and have a voice in your field. You can do this by speaking at conferences, making posts on social media or job sites like Linked-in, owning a blog, or writing a book, and picking up freelance jobs. Doing this would help you gain exposure and recognition to top recruiters and head hunters. Also, your brand perception would mean that they would consider you for managerial positions. Recruiters always want the best and most prominent or well heard of, at the very top managerial positions.

READ: Tayo Oviosu, the journey from Software Engineer to Pagatech

  1. Expand your skillset actively: The trick about landing an 8 figure job is that you must be ready when it comes, because such opportunities don’t come often. Start now, prepare like you are already in contention for the job. If you have a superior, walk up to him and ask to learn more about your field. Request permission to tag along on new projects, and don’t be afraid to take on new challenges.
  2. Develop leadership skills: At the very top, although your expertise is important, something that is arguably valued more is your leadership skills. This is because you’d not be doing a majority of the groundwork but rather managing those doing it. Hone your skills by mentoring entry-level employees or lead a training seminar. Also, take up positions in professional associations or non-profit organizations outside your workplace.
  3. Set your precise goals: Before you start looking out for opportunities, create a detailed list of prospective places you will like to work at and actually earn 8 figures. You can also do extensive research on the company to ascertain their ability to pay what you desire.
  4. Go out there and take risks: If it fits your billing and you want it, go for it. It is essential that you go outside your comfort zone and even apply for jobs that might be a step higher. Do not focus on your shortcomings, but rather look at what you bring to the table. Know how you can add value to the company and show them you are a problem solver.

READ: Okada ban: Here is what MAX boss said about alleged N25 million licensing fee

Bottom line

Getting an 8 figure job is not a straightforward path and it requires intentional efforts to put yourself in the best position for it. Despite how much of a stretch it seems, it is not impossible. As long as you are willing to develop yourself and grow to what they expect of you, be sure to get a call sooner or later.

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MSME

How SMEs can access capital in Nigeria

Despite the global consensus that SMEs are crucial to economic development, access to funds remains a militating factor against the sector’s growth.

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Entrepreneur, Multiple businesses, Nigeria partners UAE to boost SMEs , US technology company deploys software to ease business process in Nigeria, Experts outline what SMEs must do to attract funding, investors in 2020 , Simple ways to prioritize customer service for your small business, What was SMEs must do to survive the coronavirus outbreak , What was SMEs must do to survive the coronavirus outbreak, FG rolls out N2.3 trillion survival funds for MSMEs; see criteria 

The significance of SMEs for any country, especially Nigeria, cannot be overemphasized. It is, therefore, not surprising that SMEs constitute one of the bedrocks of economic development in the country. This makes it a sector that should be given utmost priority by the government.

To get started, the government needs to make funding more accessible to small and medium enterprises at low interest rate. Reason being that they need capital to thrive and nurture their businesses. Despite the global consensus that SMEs are crucial to economic development, access to funds remains a militating factor against the growth of SMEs in both developed and developing nations of the world.

The federal government of Nigeria with the support of the World Bank and the African Development Bank have tried in the past to assist SMEs through various credit schemes and loans structured to fund Small and Medium Enterprises, some of which are World Bank SME loan scheme, African Development Bank Export Stimulation Loan scheme; CBN Rediscounting and Re-financing Facility, National Economic Reconstruction Fund, Bank of Industry and the Graduate Employment Loan Scheme initiated by the National Directorate of Employment.  Moreso, there are other ways that SMEs can be funded which are through Bootstrapping, loans from banks, moneylenders and grants from government institutions and non-governmental institutions.

                                                         SME Funding

Bootstrapping73%
Financial Institutions2%
Others0.21%
Source: Nigerian Institute for Social & Economic Research

According to NISER findings, about 73% of SMEs raised their funds through Boostrapping (personal savings), about 2% obtained their funds from financial institutions, while 0.21% obtained their funds from other sources.

Here are some ways that SMEs are can access funds in Nigeria.

Accessing loans from banks

Banks (Commercial, Merchant & Development banks) offer credits to Small & Medium Enterprise in Nigeria. Before giving you a loan, they need to ascertain that you are creditworthy, and your business would have gotten to a particular stage. Also, you need to know that before applying for a loan, your small-scale business must conform with the goals and interest of the financial institution you want to apply to. Other things banks put into consideration before disbursing a loan are a well-written business plan, a financial record, collateral, and a guarantor. Nevertheless, many financial institutions are sceptical about giving SMEs loans because of the associated risks. Some prefer to pay the fine imposed for not meeting the target of giving SMEs loans than run the risk of being exposed to them.

Funding from Small and Medium Industries Equity Investment Scheme (SMIEIS)

Another source of funding for SMEs in Nigeria is the Small and Medium Industries Equity Investment Scheme (SMIEIS) Fund. This type of funding is designed to finance SMEs through venture capital. This initiative is from the government and its aim is to advance SMEs to drive industrialisation, poverty mitigation, sustainable economic development, and creation of employment. Venture Capital financing provides funds as a loan to SMEs with the idea of converting the debt capital into equity in future. Venture capital may be regarded as an equity investment where investors expect significant capital gains in return for accepting the risk that they may lose all their equity. To be eligible for equity funding under the scheme, a prospective beneficiary shall have the following:

  • Be registered as a limited liability company with the Corporate Affairs Commission and comply with all relevant regulations of the Companies and Allied Matters Act (2020) such as filing of annual returns, including audited financial statements.
  • Be in compliance with all applicable tax laws and regulations and render regular returns to the appropriate authorities.

Grants from non-governmental organisations/foundations

Business grants are another source of funding and they are mostly given by NGOs and foundations. These grants can be accessed by individuals, firms/company, business, or corporations to develop their businesses or scale up operations. One of the best ways to get finance for business or ideas is getting a grant. While a loan is a good alternative, a grant is far better than a loan. It gives you the peace of mind to build and grow your business or idea. It is like getting “free money.” There are many organizations that offer grants in Nigeria, Africa and worldwide. Some of these organizations are the Tony Elumelu Foundation, Bank of Industry, YouWIN, AYEEN financial grant, etc.

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Bootstrapping

This is a situation where business owners resort to funding their businesses with their savings and revenue without the support of venture capitalists or bank loans. Apart from personal savings, financial support for businesses, especially at the startup stage, can also be sourced from relatives and friends.

Getting loans from microfinance schemes/moneylenders

Due to the rigorous processes and high interest rates demanded by commercial banks, Microfinance banks were established to assist small businesses in securing loans. SMEs are eligible for Microfinance loans if they meet the requirements stipulated by the bank.

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In conclusion, SMEs constitute the driving force of industrial growth and development in the country. The government should focus on and nurture the sector by making funds at low-interest rates more accessible to players in it to help them thrive.

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Financial Literacy

How to invest for retirement

Planning for retirement means planning to reduce obligation in the future by investing today.

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How not to worry about money in retirement

“If you plan to retire in five years what should you be doing today?” That’s a question I got last week, and talking with the client, a lot came up which I have decided to share.

First off, What is retirement?

Nigeria’s public service has an official retirement age of 60 or thirty-five years of unbroken active working service, but in financial planning, retirement is a financial, not a chronological event. Retirement can occur when your passive income can meet your non-discretionary expenses.

You start to plan for retirement the day you start to earn an income. Your retirement plan will centre on how to generate passive income and reduce expenses. In Financial Planning, Four distinct stages are usually described in a so-called Lifecycle Chart. These are the Accumulation, Consolidation, Spending, and Gifting stages. Chart 1. Financial LifeCycle seeks to segment investing priorities, recommended asset allocation, and risk profile in a chronological timeline as the person gets older. I will take each of these stages and explain how they are linked to your retirement plan.

READ: How to choose the right Pension Fund Administrator (PFA)

Chart: Financial Life Cycle

Early years: Use Your Time and Make Money, (Accumulate)

The first stage is called the Accumulation stage. Imagine a 22-year-old who has just graduated and is a management trainee. He typically has a low credit score and assets and income are also substantially lower. What he has in abundance is time. So it’s important to deploy his time in the best way to make money. Hence in the accumulate stage, the goal is to generate cash flow either from a job, multiple jobs, working longer hours, saving, cutting unnecessary expenses, etc.

The key measure in the accumulation stage is the Savings Rate which is essentially how much of income earned or generated has not been spent. On average, the participants in the accumulation stage have fewer dependents and maintenance needs which should theoretically make it easier to save.

READ: This thread exposed everything that’s wrong with Nigeria’s VAT

Mid Years Use Your Money To Buy Assets (Consolidation)

In the consolidation stage the focus shifts from saving to investing. At this stage, the income earned and credit scores have improved. This is when the talk of buying a home or starting a business takes concrete shape because, at this stage, those dreams can be funded. Hence capacity to take on debt is improved, and debt is used to invest in assets like a home. Remember debt is simply front-loaded consumption, which means we are taking our future income to invest today, intending to repay with future income generated from today investment.

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The key measure in the consolidation stage is the Rate of Return which is essentially how much has been generated from the investments made.

READ: How to choose the right Pension Fund Administrator (PFA)

Spending & Gifting Phase; Use Your Assets To Generate Cash Flow and Time (Spending and Gifting)

Why is it called the spending phase? Because that’s what the individual is doing, spending down accumulated investments. The spending will include buying annuities or perhaps relocating to another city, your dependant’s college needs, etc. At this stage, typically very few are still earning “new” income but are rather spending from the return of prior investments.

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The key measure in the spending stage is the Withdrawal Rate which is essentially how much of investment can be withdrawn as cash annually to ensure we do not outlive our investments.

READ: How interest rates impact your wallet

Retirement is All About Passive Income

Passive income, which is the income we are making from investing from the accumulation and consolidation stage is now sufficient to generate income and reduce expenses to meet our expenses in the spending/gifting stage.

To give an example, assume we took a mortgage to buy a house in the Consolidation Stage, in the Spending stage, we pay no rent, thus we save cash, which reduces our Non-Discretionary Expenses. In essence, retirement is planning to eliminate your future expenses to the point where you need less income when you retire.

What Should You Invest In Before Retirement Or In Retirement?

Our objective is simple, Income. In retirement, we invest solely to make income to meet our spending needs, Risk profile is also very low because there are fewer recovery options if your investments sink.

The retirement portfolio is an income-generating portfolio that will be overweight in fixed income products. First, determine what the risk-free rate is. In Nigeria, we can take the yield on a ten-year FGN bond as a guide, this means we can have a target of 10% as our huddle rate for the long term. Thus I will recommend an 80/20 portfolio with 80% going to Fixed Income consisting of long term bonds, REITs, and other top-grade commercial paper.

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However what happens if we lock in our funds for 10 years at 10% and rates jump to 20%, meaning a loss to our portfolio.  To avoid this risk we can create a bond ladder, where we break down the bulk sum and duration of our total bond investment outlay. Let us assume we have N10m in cash to invest, instead of one single lot investment of N10m, we split into 5 equal investments of N2m and place for 6, 7, 8, 9, and ten-year maturities. This means by the 5th year the first N2m will mature, if rates are higher, reinvest, if rates have fallen then reevaluate.

READ: 10 Side gigs to venture into while working a full-time job

What about Equities

Yes, equities also pay a dividend. In buying equities, we must ensure we are only buying stocks that pay a dividend above our huddle rate of 10% which is the 10-year FGN bond rate. Which Nigerian stock meet that huddle rate?

  • Lasaco
  • Zenith
  • GT bank
  • United cap

In closing, let us summarize. Retirement is not chronological age. The event occurs when our passive income pays our bills. Planning for retirement means planning to reduce obligation in the future by investing today. Investing in retirement is income-based with a huddle.

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