Are you a student or a young entrepreneur looking to make your money work for you? The Bamboo app has become a popular tool for young people in Nigeria and Ghana to start their investment journey, even with a small budget. Forget get-rich-quick schemes; this guide is all about building real, long-term wealth.
Bamboo is an investment app that gives users, especially those in Africa, access to the U.S. and Nigerian stock markets. It lowers the barrier to entry with its fractional investing feature, which allows you to buy a small part of a stock rather than a full share, making it possible to invest in companies like Apple or Tesla with as little as N15,000.
How to Use Bamboo App to Earn Money?
The Bamboo app is primarily a wealth-building platform, so the core ways to earn are through smart, disciplined investing. Here’s a breakdown of the key methods, tailored for a young, budget-conscious individual.
1. Investing in Stocks and ETFs for Capital Appreciation
This is the most common way to earn. Capital appreciation means your investment grows in value over time. For example, if you buy a fraction of a Google share for $50 and its price goes up to $60, you’ve made a $10 profit.
- For the Student: Start with an amount you can afford to lose, like a portion of your weekly allowance or a small part of your side-hustle earnings.
- For the Young Entrepreneur: Instead of keeping all your profits in a savings account, you can allocate a portion to a diversified portfolio on Bamboo. This can help your business earnings grow even when you’re not actively working.
Bamboo provides access to over 3,000 U.S. and Nigerian stocks and ETFs. ETFs, or Exchange-Traded Funds, are a great choice for beginners because they’re like a basket of different stocks. Buying a single ETF lets you own small pieces of many companies at once, which spreads out your risk. This is a perfect strategy for someone who wants to invest but doesn’t have the time to research individual companies.
2. Passive Income through Dividends
Dividends are a portion of a company’s profits paid out to its shareholders. Think of it as a reward for owning a part of the company. Not all companies pay dividends, but many well-established ones do.
- How it Works: When you buy a share of a dividend stock, you will receive a cash payout, usually every quarter. This money is paid directly into your Bamboo wallet.
- Passive Income for Students and Young Entrepreneurs: This is a fantastic way to create a passive income stream. The money you earn from dividends can be reinvested to buy more shares, a process known as compounding. Over time, this can significantly accelerate your wealth growth without you having to do any extra work.
3. Earning with Bamboo Fixed Returns
For those who are very cautious and want a low-risk option, the Bamboo Fixed Returns product is a great choice. It’s a dollar-denominated investment that offers a fixed annual return.
- How it Works: You lock your money for a specific period (like 90 days or 365 days) and get a guaranteed return on your investment. It’s a great alternative to a traditional savings account, as it can offer higher returns and protect your money from local currency devaluation.
- Student-Friendly: This is an ideal way for students to save up for a specific goal, like a new laptop or semester fees, with the confidence of a guaranteed return.
Also Read: What does the bamboo app do? Your Simple Guide to Investing
Also Read: 4 Easiest Way on How to Use Bamboo App to Earn Money?
4. The Bamboo Champions Referral Program
While not a core investment strategy, this program can be a great way to earn some extra cash. Bamboo rewards you for referring new users to the platform. You get a bonus when someone signs up using your unique referral code and meets the program’s requirements. This can be a useful way to get some starting capital for your investments.
Getting Started: A Step-by-Step Guide
- Download the App: Find and download the Bamboo app from your app store/play store.
- Sign Up and Verify: Use your government-issued ID (like your NIN or BVN) to create and verify your account. This is a crucial step for security.
- Fund Your Wallet: Deposit money into your Bamboo wallet. The app allows you to do this in your local currency, and it’s then converted to U.S. dollars.
- Explore and Invest: Browse the list of stocks and ETFs. Start with small, manageable investments and build your portfolio over time. Remember, consistency is key!
Important Things to Remember
- Start Small: You don’t need a lot of money to begin.
- Do Your Research: Use the app’s educational resources to learn about different investment products.
- Risk is a Factor: All investments carry risk. The value of stocks can go down as well as up. Never invest money you can’t afford to lose.
- Stay Informed: Keep an eye on market trends and news that might affect your investments.
By using the Bamboo app, you can start building a solid financial future today. Whether it’s for passive income or long-term wealth, the platform provides the tools to get started.
List of Popular ETFs and Dividend Stocks Good For Beginners
A great strategy for young investors is to focus on ETFs and dividend stocks, as they offer a balanced approach to growth and passive income. ETFs provide instant diversification, while dividend stocks can generate a steady cash flow. The following are some popular and beginner-friendly options.
Popular ETFs for Beginners
ETFs (Exchange-Traded Funds) are perfect for beginners because they are a bundle of many different stocks or other investments. This means you don’t have to research and buy individual stocks, which significantly reduces your risk.
- S&P 500 ETFs (like VOO, IVV, or SPY): These track the performance of the 500 largest U.S. companies. They offer broad market exposure and are a core holding for many long-term investors.
- Total Stock Market ETFs (like VTI): This type of ETF gives you exposure to the entire U.S. stock market, including large, mid-sized, and small companies. It’s a simple, single-fund solution for a diversified portfolio.
- Nasdaq 100 ETFs (like QQQ): This fund focuses on the 100 largest non-financial companies on the Nasdaq stock exchange, with a heavy emphasis on technology. While it can be more volatile than S&P 500 funds, it offers higher growth potential.
- International ETFs (like VXUS): To diversify beyond the U.S. market, you can invest in a fund that holds stocks from companies around the world.
Popular Dividend Stocks for Beginners
Dividend stocks are shares of companies that pay out a portion of their profits to shareholders on a regular basis. Look for companies with a history of not just paying, but also increasing their dividends over time. These are often large, stable companies.
- Consumer Staples (e.g., Procter & Gamble, PepsiCo): These companies sell products people need regardless of the economic climate, making them more stable.
- Financials (e.g., JPMorgan Chase, U.S. Bancorp): Many large banks have a long history of paying dividends.
- Utilities (e.g., Southern Company): Utility companies often have stable, predictable earnings, which makes them a reliable source for dividends.
Remember to always do your own research and never invest money you can’t afford to lose. The goal is to build a portfolio that aligns with your financial goals and risk tolerance.
This video provides a great overview of the only 3 ETFs that one investor would choose if they had to start their portfolio over in 2025. The Only 3 ETFs I’d Buy If I had to start over in 2025
