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While it is important to have a financial plan, every individual has to determine how their financial life will turn out.
TheNewsGuru brings you some Nimi Akinkugbe’s financial management tips to help individuals manage through hard time and even in the bloom.
Create a budget
Where does your money go? Set goals, learn to control and track your monthly expenses, pay yourself, and be in control of debts. Know how much comes in, and most importantly know and track how much goes out.
Manage debt
Good debt and bad debt. Good debt is borrowing to grow your financial future. Bad debt is borrowing to buy expensive belongings. Pay off debts. Do not boycott creditors. Bring debts under control.
Saving
Saving is setting money aside for short term expenses. Individuals need to understand the power of time and the power of compounding in saving. Saving from a young age has a compounding effect over time.
Investment
You are your greatest asset. Who are you? What are your values? Where do you see yourself some years from now? There is no job out there, what are you doing to improving on yourself? What are you good at? Singing? Dancing? Good at computers? Identify your god-given talent and maximise it for good use. Identify your kids talents on time and maximise them on time without pressuring kids to do what they are not cut out for. Individuals should grab the opportunity of entrepreneurship and know and exploit their “side-hustle”. Investing is a conscious decision for the future. You do not need huge amount of money to begin. Start small but just get started. Most important, diversify investment across sectors and across currencies.
Invest in relationships
Do not spend time with people that drain you. Spend time with people that motivate you. Do not be distracted by what others are doing.
Responsibility and independence
With privileges come so many disadvantages. Unemployability can come from being too convenient. Individuals should learn to be responsible and learn to be independent from an early stage in life..
Money and relationship
After the wedding comes the marriage. The choice of your spouse is the most important decision you can ever make. Do not feel pressured. Find the right person with the right values.
Your children and your money
Give your children the best education you can afford not the one your neighbour can afford. Teach your children early about money. Children can earn money differently than you give them when you teach them about money early enough.
Finally, life is not measured in naira and dollars; plan, save, invest and give. And after you have built wealth, protect your properties with insurance.