Christine Sesay: Make the right financial choices, choices that you can live with
When Christine Sesay decided to study mathematics, her parents were not enthused, as they believed she would never find a job in Africa in this career field. Christine however did not want to part with her love for Mathematics so she convinced her parents to allow her pursue a career in Accounting and Finance which was an easy sell as they were very supportive of her decision. Upon attaining a Masters in Finance, Christine went on to work with a construction /maintenance company in Dublin as an Account Assistant, then an accountancy practice where she progressed from the Real Estate accountant to the Financial Controller over a 4-year period. At this time, she wanted to move back to Africa but there were not many jobs available so she had to take an Assistant financial controller role with an Irish Organization in Niamey. Within 4 months, she was working in the capacity of the Financial Controller managing €5 million projects then progressed to take charge of all operations within a year. While working on a nutrition and livelihoods project in Niger, Christine was shocked by the abject poverty that people lived and her desire was to change the situation. But as there was a security situation in Niger, she had to move back to her birth country Sierra Leone where she started Africa’s Moneypreneur to bring about financial freedom to all Africans. She believes that individuals would be more interested in talking money and finances when it is made easy and fun. As a determined and driven leader who is passionate about wealth management, she wanted to make sure that her African brothers and sisters started taking money seriously. When she started the financial literacy blog, she hosted a few events for women but no one attended as they were not interested. To overcome that challenge, she moved on to open a facebook page where she featured different women and hosted 12-days of Christmas challenge. These different pieces created traction and landed her some features on a few publications addressing the different areas of finance, a workshop on business finance tips for teenage mothers at the Aberdeen Women’s Center, teamed up with SheVestor for their training materials and wrote several articles in magazines mostly locally in Sierra Leone. Christine hopes to teach others how to implement effective financial strategies that support the lifestyle they aspire and deserve. [bctt tweet=”Christine Sesay’s “@AMoneypreneur” seeks to challenge Africa’s views about money & Poverty, and help individuals enjoy life” username=”SheLeadsAfrica”] What are your views about Africa and money? Do you believe our way of thinking has forced us into poverty? Like most things in life, if we are not educated, we will tend to misuse it. Financial education is a major part of life in the western world as people are aware that until they make conscious decisions about what they want for their lives and start early, it will be difficult to live fulfilled lives. For example, it’s almost second nature to see that after a man has worked for many years, he could have nothing saved up a pension for retirement. Instead of enjoying old age, they are forced to work for longer and sometimes end up dying miserably. There are also choices that are being made in terms of choosing to make the right choice now, with the future in mind. Personally, I started early! While studying finance, I learned how the multiplier effect works on finance saved over long periods. I made conscious efforts to have pension funds and also started a college fund for my kids (nope they are not here yet!). How can we become financially free? Would you say being financially educated is the first step to financial freedom? There are quite a number of areas that could be covered when we talk about financial freedom. I think even before we get educated, there is the need to have a shift in mindset. The way we think about our finances. People consciously paint a picture of how they want to currently lead their lives and what the future needs to look like. Charting the course of your life, like anything else helps you decide what decisions you may need to make now. Once that picture is clear, then seek financial education. Make the right choices, choices that you can live with. Avoid looking at what others have done and try to emulate those choices. Your risk appetites and pocket sizes may differ. Why do you believe Africa needs a platform to challenge our views about money and poverty levels? I find that at the moment we are comfortable. People are happy to continue working, spend without the future in mind and hope that a family member will eventually foot their bills. Things are changing and as we are emulating the behaviors of others cultures we also need to develop our own culture when it comes to financial planning. At Africa’s Moneypreneur, we want to be at the forefront of those changes. We currently use our platform to: Provide financial advice for youth, start-ups and Women-owned business in Africa Developing communities for youth and women to engage them in making informed financial choices Sharing success stories relating to women in finance and in business Discussing personal stories relating to work-life balance and family, travel etc. to give a personal touch Introducing current events relating to the brand areas, like finance and pop culture events, Lifestyle etc. Embracing African roots and culture as it relates to finance management With these efforts, we hope that the next generations of African families can help pull Africa out of poverty. [bctt tweet=”Knowing exactly what you spend your money on is important to have a solid financial plan and a healthy attitude towards your finances – Christine Sesay” username=”SheLeadsAfrica”] How do you intend to make discussing money and finance fun? What are you currently working on? I think the first thing we need
Quick Maths (4): How to build up an emergency fund for yourself with FSDH Asset Management
Save for the rainy day… it might take a little longer for the sun to shine! Welcome to the final part of our Quick Maths series by FSDH Asset Management, where we’re giving you simple personal finance tips you can master, to achieve your financial goals. In the last three series, we showed you how to generate income to start your business, how to diversify your income and how to get the best out of your net income and now we want to teach you how to save for the rainy day. What do you have saved for the rainy day? Nothing? We can plan for a lot of things in life, but sometimes, the unexpected just happens. These are the times you face bigger-than-expected bills, but having an emergency fund can make it easier. An emergency fund is money kept aside in case there are emergencies or problems in the future. Now, listen! An emergency fund isn’t for your everyday needs or special wants, so leave your sinful indulgences out of it, and no! flash sales are not emergencies either. We partnered with FSDH Asset Management Ltd to bring you this guide to help you understand why you need to have an emergency fund and how to start building up your emergency fund(s). [bctt tweet=”Having an emergency fund prepares you for the unexpected expenses yet to come – @fsdhcoralfunds” username=”SheLeadsAfrica”] Topics this guide will cover: What is an emergency fund? How much money should you have in an emergency fund? The difference between emergency funds and investments Ways to set aside emergency funds After reading this guide, you would be one step closer to achieving your financial goals. If you want to keep slaying in your finances, be sure to read up on our previous quick maths series, you’ll be glad you did! FSDH ASSET MANAGEMENT LTD – FSDH AM is a wholly owned subsidiary of FSDH Merchant Bank Limited. They are one of Nigeria’s leading asset management and financial advisory firm. FSDH AM is versatile in financial transactions and investment strategies that meet the need of investors in an emerging economy like Nigeria. They recognize that today’s investors need the services of dedicated and expert professionals to provide them with intelligent investment counsel. Therefore, their strategies are dedicated to preserving investors’ wealth while maximizing the value that they receive. Once you’re through with this guide, visit FSDH Asset Management Ltd to know more and get all your pressing questions answered. Getting access to this guide is easy: just fill out the form below to join our community and get access to this guide. This is the final part of our series but you can get all three series here. By joining our community, you also get to enjoy our AWESOME weekly content as well.
Quick Maths (2): How to diversify your funds with FSDH Asset Management
Money is a tool…Use it wisely! Welcome to the second part of our Quick Maths series. We’ll be sharing with you financial terms, tips, and tricks to get you ahead of your financial game. In the first part, we discussed various ways for you to generate capital to start your business. In this downloadable guide, we highlighted high-level options you can explore to get capital. Catch up on part one by downloading it here. Now, let’s talk about diversifying money. It’s important to keep tabs on your money, know where each penny is going, and how it will bring you more money because today’s economy is not smiling at all. In this guide brought to you by SLA, in partnership with FSDH Asset Management Ltd, we’ll be showing you different ways to save, protect your savings, and why you shouldn’t have all your eggs in one basket. If you’re wondering how to improve your finances, this guide will help you with some practical ways to get started. Topics this guide will cover: Diversification for low-income earners How to diversify within an asset class It doesn’t matter whether you are a salary earner or a business owner, as long as you have financial goals that you’re looking to achieve, diversifying can help you reach those goals. Roll up your sleeves, tie your hair in a ponytail, grab your pen and journal and get down to work! To keep getting your finances all the way to the top, make sure to follow up on the next guide. FSDH ASSET MANAGEMENT LTD – FSDH AM is a wholly owned subsidiary of FSDH Merchant Bank Limited. They are one of Nigeria’s leading asset management and financial advisory firm. FSDH AM is versatile in financial transactions and investment strategies that meet the need of investors in an emerging economy like Nigeria. They recognize that today’s investors need the services of dedicated and expert professionals to provide them with intelligent investment counsel. Therefore, their strategies are dedicated to preserving investors’ wealth while maximizing the value that they receive. Once you’re through with this guide, visit FSDH Asset Management Ltd to know more and get all your pressing questions answered. Getting access to this guide is easy: just fill out the form below to join our community and get access to this guide, remember this is only part 2, there’s more to come – so stay updated. By joining our community, you also get to enjoy our AWESOME weekly content as well.
Quick Maths (1): How to generate income to start a business with FDSH Asset Management
Smart moves early in life can pay BIG long-term….. Now, what’s the point in looking good and slaying when your bank account isn’t smiling back at you? Listen. This is the year to SLAY 100%, and we’re ready to show you how to make money moves the right way. So, are you ready to cash out like Cardi’s got nothing on you? We are partnering with FSDH Asset Management Ltd to share with you a 4 part downloadable guide to enable you to boost your finances. We want to make sure that every Motherland Mogul is prepared to master the money world. [bctt tweet=”Learn how to generate funds to start your business with @FSDHCoralFunds. Click here for more: bit.ly/FsdhGuide1″ via=”no”] Topics this 4 part series will cover: Seed Money: How to generate income (capital) to start a business. Diversifying: Different ways to save and protect savings (for low and high-income earners). Bottom Line: How to use your business net income to your advantage Emergency Funds: Why you must have some investments. Now let’s talk about you. You’re about to start a business but you need capital to begin? Girl, we’ve got you! In this first downloadable guide, we’ve done some Quick Maths for you, highlighting how you can generate capital for your business or launch your new project. First, you need to understand that money does not come for free, as a MotherlandMogul, you have to know what your options are, and work towards them. After reading this first downloadable guide, you’ll understand what moves to make to get closer to your money goals. But what’s next after you get that capital and the bills start rolling in? We have more juice coming your way. To continue learning basic principles that will lead to a happier and healthier financial you, get prepared for our next guide. Because girl, we’re going deeper. FSDH ASSET MANAGEMENT LTD – FSDH AM is a wholly owned subsidiary of FSDH Merchant Bank Limited. They are one of Nigeria’s leading asset management and financial advisory firm. FSDH AM is versatile in financial transactions and investment strategies that meet the need of investors in an emerging economy like Nigeria. They recognize that today’s investors need the services of dedicated and expert professionals to provide them with intelligent investment counsel. Therefore, their strategies are dedicated to preserving investors’ wealth while maximizing the value that they receive. Once you’re through with this guide, visit FSDH Asset Management Ltd to know more and get all your pressing questions answered. Getting access to this guide is easy: just fill out the form below to join our community and get access to this guide, remember this is only part 1, there’s more to come – so stay updated. By joining our community, you also get to enjoy our AWESOME weekly content as well.
8 money tips from African finance experts
[bctt tweet=”We share inspirational finance tips from 8 African finance experts to get you going” username=”SheLeadsAfrica”] Where has all the money disappeared to? This is the age where financial literacy for women is needed more than ever! Whether you are just starting out in your journey to be financially savvy or already an expert, these tips from African finance experts can be a quick reminder and will also inspire you to continue on the journey to financial freedom. Take control “…don’t relinquish the financial health of your life or home to your partner; always give your input and direction. Single ladies don’t postpone your wealth creation activities until after you are married (which is not guaranteed) or have kids (which is also not guaranteed). Start creating a legacy NOW. Set up your own family trust, establish and define your own investment philosophies. Every individual is ultimately responsible for his or her financial health and outcome. You can’t blame anyone else later in life if you are in financial distress”. – Samke Mhlongo-Ngwenya, Founder Justsamke.com The time to start is now! “Lots of people in their 20s don’t save or invest because they are waiting to get a better job or start a business to earn more money but the truth is most millennials spend 30-50 percent of their paycheck on entertainment while they claim they are too poor or too young to save and invest but the reality is by the time you get to your 30s you realize you wasted a golden opportunity… time! It’s better to start putting a little aside when you have minimal responsibilities and take advantage of the power of compounding interest. You have to find a balance between having fun and having funds. Sometimes It’s okay to miss out to stack up”. –Arese Ugwu, Author “Smart Money Woman” Take responsibility “You worked so hard for your money; you owe it to yourself to ensure you protect it”. –Nimi Akinkugbe, Author “A-Z of Personal Finance” Say no to overspending “In order to build wealth and actually accomplish your money goals, you have to keep your spending under control. Start by tracking your spending in a detailed way – one way to do this is by keeping spending journals where you write down every transaction you make every day for 30 days (reviewing your spending each evening). This exercise will not only show you trends of where your money is going but it will keep you conscious of how and when you are spending”. –Bola Onada Sukonbi, Certified Financial Education Instructor [bctt tweet=”Being financially conscious is not easy, it is hard work, but it can be done – Mapolu Makhou” username=”SheLeadsAfrica”] Be a budget freak “A useful tool is to budget. Create a budget and live on a budget”. – Omilola Oshikoya, Life and Finance coach Know The Difference “…there is a huge difference between savings accounts and investment accounts. Knowing this will help you plan better for the future, help you choose the correct financial products and set you on your way to financial freedom”. –Nicolette Mashile, Founder Financial Literacy with Nicolette Mashile Don’t do it alone, seek professional help “…use an experienced fund manager, portfolio advisor, investment advisor or whatever you call it to manage your entire equities. They have access to tons of historical data. And with their skills coupled with advanced analytical tools, they are able to advise on rates and purchase of equities to maximise the full potential of your returns. Also note that, the experienced middleman will advise you on risks and diversification plans.” –Abeena Brigidi, Investment Analyst Finally, I leave you with the words of Mapolu Makhou, Founder Woman and Finance, “being financially conscious is not easy, it is hard work, but it can be done. Nothing good ever comes easy! Stay committed”.
Why review your business accounts?
[bctt tweet=”The bookkeeping records are the mirror that you look into to know how your business is performing” via=”no”] The ultimate goal of a business is to make money for the entrepreneur. On the way to attaining this goal, there are many things that you must do in your business which includes, producing the service or product, selling, managing your customers and keeping financial records. Record keeping sometimes referred to as bookkeeping is an integral part of a business and these records are the mirror that you look into to know how your business is performing. Once you have your records in place, the next important step is to use them to improve your business. This entails pouring through the numbers to understand the patterns and trends that the records reveal. For you as an entrepreneur, there are two reasons why you want to go over your business accounts; To check that they are accurate; reviewing your accounts allows you to make sure they give a fair reflection of the state of your business, which will help to highlight any weaknesses and areas for improvement, for example, you will be able to note the missing records, vouch estimates used and even assess how stock is being managed. To compare performance; when accounts are compared with previous years or with your competitors, they can show unique trends and help you learn from other businesses in a similar position to yours. Business accounts should be reviewed at least every quarter. [bctt tweet=”Reviewing your accounts allows you to make sure they give a fair reflection of the state of your business” via=”no”] What to look out for There are some important things to look out for when reviewing accounts. On the income statement check whether the business has made a profit in the year and whether revenue or costs has gone up or down compared with the previous year? The balance sheet will tell stories about how much money is in the bank. Remember, from the Cash is King article, we discussed why money should be available. The balance sheet will also gauge whether cash levels are moving in line with profit? On the balance sheet, you will be able to note if the stock level is reasonable and also whether there are any big payments due soon in terms of loan repayment or large invoices. When analysing business accounts, ensure there is nothing that is obviously missing and use ratios to help you to compare and contrast the performances of businesses. Comparisons can be made internally with past performance or budgeted results or externally with competitors or industry averages. It is good practice for the accounts to be independently reviewed and you can one or more of the following people to do this on your behalf: Any person other than yourself An accountant or An auditor In our ‘Reviewing Financial Accounts’ guide, you’ll find a section on key ratios for analysing business performance. It will provide you more information on how to go about reviewing your accounts. Download our guide on reviewing financial accounts here.
Bookkeeping for dummies
[bctt tweet=”Bookkeeping is an important skill to have when you’re starting your business” username=”SheLeadsAfrica”] One thing that you quickly learn when you start your business is that you’ll have to handle every aspect of it; from marketing your products, hiring your employees and most importantly getting a handle of your accounts. It is therefore important that you get a good understanding of the basic set of accounts for any business, how they relate to each other and how the different actions you take are represented in your books. The more your business grows the more complex it becomes and at that point, you might want to consider getting yourself some professional help. In this Forbes article, the writer talks about what you need to know about the 10% of start-ups that succeed. One of the things he talks about is making sure you understand the ‘’boring’’ stuff about your business. It is so easy to get carried away by the more interesting aspects of your business and forget to handle the less interesting but many times the most important aspects of your business. One of these is the accounting. What we are going to do here is to give you a basic introduction to the business accounting concepts that you need to understand as you run your business. Don’t be worried about whether or not you have an accounting degree, these are things you can do with your eyes closed. [bctt tweet=”Every business transaction is an exchange of one thing for another” username=”SheLeadsAfrica”] Double entry: All business transactions have a double effect on the accounts Every business transaction is an exchange of one thing for another. This is the basis of accounting, the idea here is to get an all rounded picture of where your money is going and keep yourself from small mistakes. As a boutique owner, you sell an outfit (inventory) in exchange for cash. This simple transaction has a double effect of increasing the amount of cash in your business while reducing the count of inventory. Very simply put that is double entry affecting your cash account and your inventory account. The accounts are interrelated At this point, we are basically building up on the double entry concept by creating an account for every element of your business. If for example, you did not sell the outfit for cash but for credit, then you’ll want to keep an account of the person to whom you sold the outfit to until you get the money in cash and then close off that account while increasing the amount of actual cash that you have. Every time you use your cash for something new then create an account for whatever aspect of your business is affected by that transaction. If it is an account that you already opened then you just keep building on that account. Balance the accounts You’ve probably heard this phrase before, what it simply means is that after some time you’ll want to know how your accounts look. Say every month or every week when you want to know where your business stands you’ll make sure that for every account you opened both sides have an equal amount. For example, your inventory account had a balance of $1000 when you started off, every time you sold something that balance reduced. Let us assume that at the end of the month your inventory reduced to $250, you’ll continue selling it off at the beginning of the next month so to balance your account the $250 will simply be considered as inventory carried forward. [bctt tweet=”Bookkeeping grows more technical as your business grows & there are many apps you can use to do this” username=”SheLeadsAfrica”] These are the basic accounting ideas that you need to understand. Bookkeeping, of course, grows more technical as your business grows and there are many applications that people employ these days to do this, however, the idea remains the same. In the next article in this series, we’ll help you understand the important accounts when doing bookkeeping for your business. We’ll talk about differentiating between cash and profit, understanding the incoming statement as well as the balance sheet.
Tight Money: The Cash Flow Guide
First goal in the quest to being a #MoneyMakingMogul? Master your cash flow. How you handle your cash flow could make or break your business. But if you aren’t sure exactly what “cash flow” means, this guide is where to get started. Before we reached out to the financial whizzes at Standard Chartered Bank Kenya and they broke it down for us, we didn’t know what business cash flow was either. Get you this guide to understand the importance of mastering your business’s cash flow. Topics this guide will cover: What is cash flow? What are the stages of the cash flow cycle? What do you do if you can’t pay all your creditors on time? Can we get an amen on the last point though? Better get your hands on this guide before your creditors go all Rihanna circa BBHMM on you and your business. This guide will get you started on managing your cash flow. Once you’re done with it, check out the next guide in the series for a downloadable cash flow analysis sheet. Don’t forget to read up on when to time your cash flow! Getting access to this guide is easy: just fill out the form below to join our community and get access to this guide, as well as AWESOME weekly content.
Show Me The Money: The Cash Flow Guide
Balance and position…your cash flow of course 😉 Now you know what the cash flow is and understand the intricacies of the whole process, so what next? Strategies to manage it of course. In this guide brought to you by Standard Chartered Bank Kenya, we’ll reveal strategies for managing your cash flow. After reading this guide, you’ll be top of your game at showing the money to your business. Topics this guide will cover: Cash flow management strategies, How to keep the cash flowing and How to determine your cash flow position. There’s a bonus for you in this guide; a printable cash flow analysis statement that will help you take charge of your monthly cash flow. We hope, no we’re sure, that after going through this series you’ll never have another emergency “this business has no funds” meeting. Getting access to this guide is easy: just fill out the form below to join our community and get access to this guide, as well as AWESOME weekly content.
A stitch in time: The importance of timing in managing business cash flow
[bctt tweet=”#MotherlandMoguls be aware that poor cash flow management could ruin your business” username=”SheLeadsAfrica”] A stitch in time saves nine…whoever said that was right. The saying is a warning against procrastination. Putting off doing important stuff until it is more convenient is never a great strategy in personal life and especially in business. When it comes to your business, it needs to have a minimum amount of cash to remain afloat. Maintaining liquidity requires intentional effort and coordination to ensure that you meet this requirement. Poor cash flow management has been known to floor businesses. At the root of the famous Enron scandal was the management of cash flow. That is why #MotherlandMoguls who are their own #Bosses need to pay attention to it. Managing your business cash flow There are three major warning signs you need to pay attention to when managing your cash; Slow Collection: When your sales are not moving as fast as you expected them to or you are not making sales at all. Excessive short-term debt: “Short term” usually refers to debt that is due in 90 days or less. The larger this figure is, the higher the chances that your business is cash strapped. Overtrading: Making sales is a good thing; the problem is having more credit sales which means that the cash your business should have is stuck with your customers. Sometimes what happens is that businesses ignore some warning signs and fail to respond to them on time which leads to bigger problems. One of the most important things to do here is to monitor and coordinate when money comes in and when it goes out. The moment you recognise a situation that is likely to put your business at cash flow risk, deal with it at the earliest opportunity. This is one of the lessons that Julia learned. [bctt tweet=”Timing is everything when it comes to managing cash in a business” username=”SheLeadsAfrica”] A business at standstill We met Julia in one of our Financial Education workshops. Julia runs a small milk delivery business and she was having a few challenges with her cash flow. A majority of her customers bought her milk on credit which she let them have for a period that was not specified. When we met her, her main problem was that she was not able to pay her milk suppliers because she didn’t have enough cash on her. Some of her customers owed her for more than two months and the fact that she could not pay for the milk meant that her business was at a standstill. Julia also rents a storage unit where she stocks up her milk; she was in arrears for one month and was about to throw in the towel when we met her. Lessons from Julia Timing is everything when it comes to managing cash in a business, you must be sure about the dates when major payments (out and into the business) are expected and when. Some of the tips we gave Julia for her business were: First to consider taking a loan as she tries to stabilise her cash position Not to rely on her sales to make basic payments such as rent and wages since Julia might not always meet her sales targets. Rather she should have savings that she can dip in when the going gets tough. This savings can be built slowly over time when business is good. Not to order excess milk if she doesn’t think she can sell it. To compare the credit terms of different suppliers and pick the one that works best to her advantage. [bctt tweet=”One way to ensure money moves through your business is by saving up to make basic payments ” username=”SheLeadsAfrica”] A couple of months later, Julia who had decided to continue her business reported that her business was doing much better as she had found another supplier who had better credit terms. She also instituted stricter credit terms with her customers. If your business is cash-strapped consider taking on some of the tips we have given and you just might end up with a smile on your face like Julia did.