Striking the balance: Leveraging investment and insurance as a Gen z

Adulting 101: How to Juggle Risk and Reward Like a Nigerian Boss.

Let’s face it, Nigeria’s economy is like the weather – unpredictable and with this climate change; downright dramatic. Building your financial future here can feel like walking a tightrope. But fear not, fellow adulting warriors! Today, we’re cracking the code on achieving financial Zen by mastering the art of balancing investment and insurance. Buckle up, because we’re going to learn from the swag of a Lagos entrepreneur named Judith.

Meet Judith: E-commerce Queen by Day, Financial Ninja by Night

Imagine this: Judith, a 27 year-year-old e-commerce whiz, is crushing it online.

But even with a booming business, she knows one thing – adulting requires a safety net. She wants her boss moves to pay off in the long run, but also needs protection from life’s occasional curveballs (medical bills, anyone?). This is where the whole investment vs. insurance battle comes in.

Why You Can’t Just Pick One (Sorry, Can’t Have Your Cake and Eat It Too)

Just focusing on investments alone is like leaving your phone unguarded in Lagos traffic – very risky business. One accident (a business disruption or a surprise medical bill) and you can say “sayonara” to your financial goals. But going all-in on insurance while neglecting investments is like putting your money in a guarded piggy bank – safe, but not exactly growing wings and flying you to first class.
Here’s why Judith knew she needed both, like Akara (Bean cake) and Pap:

• Nigeria’s Economy: A Rollercoaster Ride – Ups and downs are the norm, so you must be prepared for both sunshine and rain (figuratively, and maybe literally too).
• Limited Safety Nets? No Problem! – With a strong insurance plan, you become your own safety net. Adulting level: pro max.
• The Rise of the Nigerian Middle Class – Judith’s crew is all about building wealth, and that means having a plan that protects and grows their money.
• Inflation: That Sneaky Thief – Prices keep going up, so you must invest in assets that outrun inflation, while also having insurance for those unexpected costs.
• Long-Term Dreams Deserve a Plan – Whether it’s early retirement or dream vacations, Judith needs a mix of investments that grows her money and insurance to keep things stable.

How Judith Became a Financial Superhero (Spoiler Alert: It Wasn’t Magic)

Here’s the nitty-gritty of Judith’s financial masterplan:

1. Goals & Risk? Check and Check! – First things first, Judith figured out what she was aiming for. Short-term needs like emergencies got the insurance love, while long-term goals like business expansion got the investment spotlight. She also figured out her risk tolerance – basically, how much risk she was comfortable with. This helped her pick the right investments and insurance for her style.

2. Planning Like a Boss – With the help of a financial advisor (think Adaeze “Lionheart”), Judith crafted a personalized plan that was as flexible as a Lagos bus driver (and okay, maybe a little less chaotic!). This plan could adapt as her life and goals changed, because adulting is all about rolling with the punches.

3. Diversification: Don’t Put All Your Eggs in One Basket – To spread out the risk and maximize gains, Judith invested in a variety of things like stocks, mutual funds, and maybe even some real estate. The exact mix was based on her risk tolerance and goals, but the key is not to have all your money in one place.

4. Insurance: Your Financial Armor – Judith knew protection was key, so she got essential insurance policies for:
o Health: Because medical bills shouldn’t break the bank.
o Life: To ensure her family’s well-being, no matter what.
o Business: To safeguard her e-commerce empire from unexpected disasters.
o Car: For those oh-so-Lagos traffic bumps (and maybe a fender bender or two).
She also reviewed her coverage regularly to keep up with inflation and her changing needs. Think of it as constantly upgrading her financial armor.

5. Double Duty Insurance: Protect and Grow – Judith discovered some insurance products that offered both protection and growth potential, like annuities. These were like little financial seeds that would sprout into a steady stream of income when she retired. Basically, she was getting paid to be protected – pretty sweet deal, right?

The Takeaway: Adulting Doesn’t Have to Be a ScamThe Takeaway: Adulting Doesn’t Have to Be a Scam

By planning strategically, Judith achieved the perfect balance between investment and insurance. This financial Zen allowed her business to flourish while keeping her future secure. When it comes to adulting, there is only one word that can be used to describe Judith – fierce.
Would you like to learn more about Coronation’s Insurance and Investment products?

Reach out to us via email on contactcentre@coronationinsurance.com.ng or crc@coronationam.com.

Alternatively, you can send a WhatsApp message to us on Coronation Conversation at 234 816 318 9875.

We can’t wait to hear from you!

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