CAIRO: Contrary to popular belief, today’s youth understand the value of money. They understand that a luxurious car costs more than half a million pounds, that renting a tiny flat in an upscale neighborhood costs around LE 7,000 a month, that a not-so-casual dinner date will end up costing a minimum of LE 200; speaking nothing of mobile phones that can easily cost one month’s salary.
From teens to 20 somethings, this generation of expensive consumption, power-hungry, cash-driven youth are very aware that money doesn’t grow on trees, which explains the late nights up in bed brainstorming get-rich schemes.
From the quirky and the risky to the sensible and safe, getting rich may be simpler than you think. The Egyptian stock market, which is performing beyond anyone’s expectation, is currently the trend among men in their late 20s to mid 30s.
“The stock market is all I think about, said Amr Samra, 32. “Guys like me are constantly thinking about whether to buy or sell instead of their jobs. Sometimes I can’t sleep nights because I’m stressed. I’m telling you it’s addictive, but if you hit it, you can hit it big.
While most youth may argue that they do not have the money to make investment in the market worthwhile, experts say that you can start trading with as little as LE 100.
The key is, according to financial consultants, to buy stocks at low prices and sell them when the price increases. Another trick, they say, is to diversify your portfolio – put your money in different stocks.
“The key to successful long-term [investment] is to put your money in solid, safe stocks, such as blue chip companies, said Mostafa Ali, a stockbroker. “For young investors, resisting the temptation to sell stocks because the market is down or because you suddenly decided you need the cash for a vacation, is also very important.
For the frail-hearted, savings is a more stable piggy bank. While not the ideal solution for those who want to cash-in fast, the interest of savings can amount to a hefty lump of cash in the long run.
With interest rates now reaching seven to eight percent, a LE 1,000 savings account will make LE 70 interest in one year if left untouched. Though meager, if all remains the same, after 10 years, that simple rate will amount to LE 1,700 in the bank; not a bad sum for a zero-risk venture.
“I actually prefer to make extra money the old-fashioned way; with savings, said Sara Hamdy. “I know it’s a paltry sum in the end, but I’m not expecting to make millions on savings. If I want to make that much money, I’ll earn it at my job. In the meantime, it doesn’t hurt to make a little extra on the side.
For those who prefer to roll their sleeves up and get themselves knee-deep in their investment ventures, nothing hits the spot better than starting a joint business or partly financing a start-up.
While starting or financing a full-fledged company is an impossible option for most youth, pet projects can turn into money-churning machines.
“I love to make jewelry, said Malak Khaled. “I have an eye for it. I would go to Khan Khalili and buy silver beads and stones and put them together with the help of a local jeweler. After friends started admiring her designs, Khaled started making necklaces and bracelets for friends, which she sold for a 50 percent profit. While not exactly a business, Khaled is one of a few innovative 20-somethings who were able to use their talent to make money.
Another amateur money scheme, albeit illegal, is the making of music and video CDs and DVDs. Thanks to high tech software, 15-year-olds are able to burn and sell CDs (which are on a decline as a business thanks to the widespread use of iPod’s) and DVDs for a tidy profit.
“My cousin loves to watch all these [TV] series, so he downloads them, said Moustafa Samra. “Since he already has them, all he does is burn them on a CD and sells them for LE 15 to friends at school – he even started marketing them to my friends. For LE 2 per CD, that’s around an 80 percent profit.
While nothing beats a paycheck from hard work, the ambitious, creative and sometimes illegal schemes and plots, in which today’s young generation invests, must be applauded and admired, if nothing but for their mission to acquire their first million by 30.
