Saving, Investing or Trading? How to Actually Make Your Money Work in Nigeria

Last week, we broke down how shares move in the market and why “Free Float” matters when you’re buying or selling stocks. (If you missed it, catch up here.) 

But that got us thinking, what if you’re not even sure if you should be buying shares yet? 
What if you’re still figuring out what to do with the extra cash sitting in your account after you have sorted out your debts, set a basic budget, and there’s even a little money left after rent, data, and food. Congratulations, you’re now faced with one of adulthood’s biggest (and best) questions: 

“What should I do with this money?” 

Before you let it chill in your bank account where inflation can quietly shrink its value, let’s talk about smarter moves. Because in today’s economy, the only thing worse than not having money is having money that’s doing nothing. 

So, what are your real options? In Nigeria, the three main money moves you can make are:

✅ Saving

✅ Investing

✅ Trading 

Each has its own level of risk and reward, and choosing the right one depends on what you want from your money. 

Looking for peace of mind? You’ll approach this differently than someone chasing the next big win. 

Let’s break it down.

Saving – The Calm, Collected Approach

Saving sounds basic, but in this economy, it's powerful. It’s your safety net when life pulls a fast one, unpaid salaries, medical bills, car expenses, or rent due when your account says, "not today." 

You probably already know the idea: stash some money away regularly. But here’s how to make it effective: 

✅ Automate it with SaveIN or PlanIN 

Set up automatic transfers from your main account to a savings plan on InvestNaija. That way, you won’t “accidentally” spend it on shawarma and soft life. 

✅ Give your money a purpose 

Saving is easier when you name the goal: emergency fund, rent buffer, December travel. If you need ₦300k in 6 months, save ₦50k/month. That’s it. 

✅ Use products that beat basic savings accounts 

Don’t keep your money in bank accounts that pay you peanuts. Use InvestNaija’s SaveIN for competitive returns or PlanIN for long- term goals with better returns. 

 

💡 Pro Tip: Once your emergency fund hits 3–6 months of expenses, start exploring investment options to grow beyond the basics. 

Investing – The “Grow Your Money While You Sleep” Move

If saving is safety, investing is strategy. You’re putting money into assets that grow over time: stocks, real estate, mutual funds, infrastructure debt, or fixed income products. The idea? Compound growth. 

But investing isn’t a sprint. It’s about planting seeds and letting them grow over time—even if the soil (ahem, the economy) is volatile. 

Where to Start? 

• 📈 Mutual Funds – Like Chapel Hill Denham’s Money Market Fund. Perfect for beginners who want a mix of steady growth and safety. 

• 🏦 Fixed Income Funds – These focus on bonds and low-volatility assets. Great for cautious investors who still want growth. (Nigeria Bond Fund) 

• 💼 Infrastructure Debt (NIDF) – Want your money funding roads, energy, and telecoms? Invest in long-term, real-sector projects through the Nigerian Infrastructure Debt Fund. Available on InvestNaija. 

Who is this for? 

✅ You have mid- to long-term goals (e.g. retirement, buying land, relocating). 

✅ You want your money to fight inflation and come out stronger. 

✅ You don’t panic when returns aren’t instant. 

 

💡On average, Chapel Hill Denham funds have delivered consistent returns above 13%–18% annually, outpacing traditional savings accounts. 

Trading – The Wild Child of Finance

Ah yes, the high-risk, high-reward cousin of investing. Trading is fast, volatile, and definitely not for the faint-hearted. 

Instead of buying for the long haul, traders buy and sell assets (like stocks, crypto, forex) in short timeframes, sometimes in minutes or hours. The goal? Buy low, sell high, and pocket the difference. 

But let’s be honest: In Nigeria, many retail traders treat trading like gambling. It’s either 🚀 or 💀. 

If you’re thinking about trading… 

Ask yourself: 

❓Can I afford to lose this money and still sleep well? 

❓Do I understand market trends and news events? 

❓Am I doing this for fun or financial stability? 

Trading isn’t bad in itself, but it requires skill, discipline, and a plan. Most beginners lose more than they make, especially without a clear strategy. So, if you’re going this route, start small and stay informed.  

 

💡 Note: InvestNaija promotes long-term investing and capital preservation. That’s why we typically recommend trading only for experienced investors who understand the risks involved. But if you're just starting out and still want to benefit from the long-term growth potential of the stock market, you don’t have to sit it out. The Chapel Hill Denham Paramount Fund gives you exposure to expertly managed, growth-oriented investments, without the stress of picking stocks yourself. 

We're here for wealth that lasts, not fast wins that disappear. 

 

How to Choose What’s Right for You 

Before you jump in, ask: 

• 📅 What’s your timeline? (Next month? Next year? Retirement?) 

• 💸 What’s your risk appetite? (Can you handle loss for higher gain?) 

• 🎯 What’s your goal? (Security, growth, quick returns?) 

Here’s a cheat sheet:

👉 Not sure what your risk appetite is? We’ve broken it down for you here so you don’t have to guess.

Final Word: Mix and Match. Just Start. 

You don’t have to choose just one. You can save, invest, and trade (if you’re ready)—just make sure each move is tied to a purpose. 

• Use SaveIN and/or PlanIN for peace of mind. 

• Use Chapel Hill Denham funds to build long-term wealth. 

And use common sense if you're chasing quick flips. The key is to do something with your money. 

Because if you’re not growing it, someone else is using it—and the likelihood is that they’re not thinking about your future.