Good Money Management Tips to Protect your Future
The pandemic has admittedly done a number on some of us and our money. It came unexpected and nobody knows how long until a vaccine is found. Though some of the countries are slowly moving towards opening their economies, our pockets have undoubtedly felt the pinch. If you’re an avid spender on things you ‘absolutely must have’ or enjoy going rampant on sales or specials, well, then grab a cuppa and notebook. We’re about to get real about some of our nasty (or savvy) money habits and look at some hacks to help us navigate towards a money relationship that is as healthy as our laid edges. What does smart budgeting look like? It is up to you to decide how you’re going to split your funds, take time out to make a tally of the activities you have planned with your girlfriends, the commitments you have agreed on with bae and the spoils you’ve got up your sleeve for the tiny humans- or just some funds for the everyday needs. Let’s not forget that we’re intentional queens. So this includes that stash you’ve set aside for intentional self-care Saturday or Sunday. If we’re to piece this puzzle together, we need to unbox it first. Let’s see what this looks like: Budget planning From a horizon perspective, have a 3-month or 6-month projection in terms of what it is that you would like to do. Think about how much accessibility you’d like in terms of the cash component of your budget. Tracking your monthly spend Take stock of the accounts you have, transactional, savings or any investment accounts you have in your arsenal (retirement annuity or shares). Pay yourself, honey! Set aside some money for your savings/investments, your future self will thank you. Shed some of that debt weight, sis. If you can inject a little extra towards your credit agreements, go for it, this will help ease the strain of the interest rate and you can pay the debt off faster. Then look at how much you spend on average per month, and if you can make changes and reduce the spend list. If you can do this? Kudos to you! This means you’ll have more cash flow available. Checking (and improving) on your credit status A considerable part of being savvy is knowing exactly where you stand financially. How you can gear yourself up for the power shift, is to know what you have and what offers are available to you. This is not only so that you improve your credit score for creditors, it is so that you can make an informed decision about your money moves. Here are 2 sites in South Africa that offer a free credit status for you, check them out: Transunion ClearScore If you’re outside South Africa, you can find similar sites in your country. Is there value in having a Money Coach or a Financial Advisor? Whether you’re mulling over the idea of purchasing property, getting a car or investing, you should always be thinking about how you can get more bang for your buck. You can keep yourself on track and accountable by having someone to help you make the right decisions based on your current reality. Having someone in the know helps to eliminate the pain points of navigating the terrain. Your coach or advisor will assist with your financial ABC’s. Before you look for an advisor, you need to know what you want out of the relationship. Have an idea of what your state of monetary affairs looks like. Doing this groundwork means you will be able to get the most out of your initial session. Start documenting what it is you’re looking for. Do not be afraid to ask questions- there can never be a silly question when it comes to how to manage your funds better. Being smart about your expenditure is especially important in the current context and it shouldn’t take a pandemic for us to get this right. Either way, we’re thankful for the grace of learning through lived experience. The benefit of having a coach or advisor is that the pressure is removed from you and you get to have a professional as your sounding board. They’ll offer guidance and help unlock your financial prowess or potential. Stay pushing to arm yourself with the knowledge you need to plan for your future. Continue to share your money experiences with your girlfriends. Eventually, we can shift the conversation from being inactive participants in our financial lives to owning the narrative. Disclaimer: This article is for information purposes only and geared towards motivating a more hands-on approach to your money habits. This is derived from my experience personally and as someone who works in the Financial sector. For a tailored financial or a specific needs analysis, you should contact a financial advisor or money coach.
SAFE SPACE WEBINAR WITH TOLULOPE FABOYEDE: HOW TO INVEST (SEP 18)
It’s time to get your finances in check! So you’re one of the people who finds themselves drifting off thinking about how to build wealth with their monthly income? Don’t just sit there daydreaming, here’s a chance to actually do something about it! Or maybe you think you need to have a ton of money to start investing, think again. This and other investment myths are some of the topics we’ll be covering in our webinar titled Safe Space – A No BS Guide on How to Invest.. On September 18, 2020 at 5PM WAT/ 6PM CAT/ 7PM EAT, Tolulope Faboyede of FSDH Asset Management will be taking you through everything you need to know to build wealth and invest. What’s more? You’ll be able to get started after the class! Here are some of the topics we’ll cover at the webinar: How to design and execute an investment plan What to look out for when building your investment portfolio How to evaluate your financial situation Compounding interest: What it is and how to evaluate it Common myths about investing Register below to access the webinar! Webinar details: Date: Friday, September 18, 2020 Time: 5PM WAT/ 6PM CAT/ 7PM EAT Location: Click here to register for the webinar on Zoom About Tolulope Tolulope Faboyede is a Business Development and Wealth Management expert at FSDH Asset Management Limited. She holds a Bachelor of Science in Economics from the University of Lagos and has completed a CFA Institute Investment Foundations Program. Tolu has over 12 years experience in the Nigerian Financial markets and has attended various professional courses and training in Portfolio and Wealth Management. She has worked with several individuals and companies to grow their wealth.Tolu is passionate about providing financial literacy to both individuals and corporate organisations.
Investing in African Women Entrepreneurs: Highlights from Social Capital Markets (SOCAP18)
There is an immense opportunity for economic growth and social impact by investing in Africa women According to McKinsey, the female economy is the world’s largest emerging market, with the potential to add $12 trillion to global GDP by 2025. Furthermore, according to the Global Entrepreneurship Monitor, Sub-Saharan Africa has the highest rate of female entrepreneurship globally, with approximately 26% of female adults engaged in entrepreneurial activity. Ghana is producing more female entrepreneurs than any other country, with 46% of businesses being owned by women. However, due to several gender-specific challenges, the African Development Bank estimates a $20B financing gap for African women causing the growth of these businesses to suffer. This year’s annual Social Capital Markets (SOCAP18) Conference, a convening for over 4,000 actors in the development, social entrepreneurship, and impact investors held in San Francisco, discussed the importance of driving investment capital towards social good. Many actors came together to advocate for a greater African presence at this event, as a result, SOCAP18 invested in bringing on partners, such as my company Baobab Consulting, to ensure that African voices were heard and received the appropriate business and strategy advice to make the most out of the conference. Not only was Africa a focus this year, but SOCAP also picked Gender and Markets as a theme with its own track. The community has discussed these issues long before the #MeToo movement, but this year, an entire track was dedicated to hearing from women entrepreneurs, investors and other actors actively working to push the agenda to drive investments to women. To combine these two themes, I organized a panel called “Women’s Entrepreneurship in Africa: The Key to Sustainable Development.” We had two female entrepreneurs, one male, and one female investor, all originating from the continent. The discussion focused on explaining the landscape for African female entrepreneurs and encouraged the audience to value and respect the inputs of women as they build their investment and social impact portfolios. Both Margaret Nyamumbo, Founder of Kahawa1893, and Salem Afangideh, Founder of Thrive African Girl, gave their perspectives as female entrepreneurs. They highlighted the need to value local talent, compensate African women for their expertise, and spread the right narrative to represent them. Salem highlighted that so often, investors will expect the entrepreneur to educate about the African context, but they should be doing their own due diligence to establish mutual respect and build trust. Margaret highlighted that the way in which people are represented matters, and that African women entrepreneurs must build a positive narrative surrounding their work and the opportunities they are creating. James Thuch Madhier, Founder and CEO of the Rainmaker Enterprise, and the only male represented on the panel, told stories of his life as a refugee in South Sudan. “My mother brought me up during the war and we survived because she was entrepreneurial. My entire female ancestry were great leaders so I am proof of the value of African women,” he said. At SOCAP, James was one of the many men present who embodies the #HeforShe mentality, and it is clear women entrepreneurs do have allies, even in a competitive funding ecosystem. A highlight that sticks out comes from Pauline Mbayah, an impact investor and Director, Strategy and Partnerships at the African Enterprise Challenge Fund based in Nairobi. She advised the audience that, “The continent has hope, the continent is on the move, and opportunity exists. We ask [foreign] investors to work with people on the ground to make new opportunities, and match-make your money to opportunities that already exist.” Another takeaway from her is that building smart partnerships with women entrepreneurs on the ground is the best way to invest your money and receive both financial and social returns. Beyond the panel, SOCAP also offered scholarships for African women entrepreneurs to attend the conference. There was an array of talented women, from Ivy Appiah from Ghana, who makes high quality black soap products which are sold across Ghana and Nigeria, to Charlotte Magayi, Co-Founder of Mukuru Clean Stoves, which enables young mothers from low-income households to keep their children safe, save on fuel consumption, and reduce household air pollution in urban slums. As women entrepreneurs, we face a different set of challenges that our male counterparts will never have to face. But one takeaway from SOCAP is that there is a support system seeking to empower women, especially those from Africa, to attract investment and scale their businesses. I look forward to pushing forward their stories and carving spaces across the world to showcase them. Got an article you’d like to share with us? Click here.
How to plan your finances and investments – The Worksheet
What would you like your income statement to look like? We don’t need to tell you to stop spending and start saving, you already know that. Whenever you go an a spending spree, you’ll definitely feel a pang of purchasing remorse, and even feel much worse when your bank statement arrives at the end of the month. You don’t necessarily need a banker to help you manage your expenses, it is impossible to save and invest, if you don’t have the surplus to save and invest. So how do you create capacity, manage your obligations, and achieve your financial goals? This worksheet will inform you of your funding needs and help you reach your investment goals. Topics this guide will cover: Identifying your investment goals Financial questions every woman asks themselves Personal income statement With the aid of this worksheet generated from our webinar with Samke on managing your personal finance and investments you’ll be able to identify your financial inflows and outflows and also strategize towards planning your finances. To have access to this worksheet, fill the form below to join our community and also get access to amazing weekly contents from us. [ninja_forms id=113]
Facebook Live with Mapalo Makhu: Planning your personal finance and investments (Mar. 28)
Are your expenses greater than your revenue? You may have all the designer cloths and bags right now, but if your bank account balance is flashing red, then now is the time for you to start investing and planning towards your future. Join us for a Facebook Live session on Tuesday 28th March, with one of South Africa’s finance experts – Mapalo Makhu, founder of Woman & Finance. She’ll be talking extensively about planning your personal finance and investments. [bctt tweet=”Join @WomanAndFinance to discuss personal finance and investments on Facebook Live (28 Mar)” username=”SheLeadsAfrica”] Some of the the topics we’ll cover: What you need to understand about investments 3 financial questions every woman should ask herself Planning a budget Top 3 things to look out for when selecting an investment advisor Identifying your investment goals (safety, income and growth) Date: Tuesday 28th March 2017 Time: 1pm Lagos// 2pm Joburg// 3pm Nairobi Where: facebook.com/sheleadsafrica/ About Mapalo Mapalo is a financial planner, wealth coach and founder of Woman&Finance , a platform that empowers and educates women to make the best financial decisions for their current and future selves. Having completed a Bcom finance degree from the University of Johannesburg and recently obtaining her post graduate diploma in financial planning, Mapalo created Woman&Finance to educate and inspire women to take charge of their finances and make the best financial decisions for their current and future selves. Woman&Finance was established with the goal of giving power back to women and showing them how to have control when it comes to managing their personal finances.
Twitter Chat with Alina Vinogradova: The importance of programming for African start-ups (Nov. 24th)
African start-ups are coming up across the continent, but the investments and programming needed to ensure their growth aren’t always there. What needs to happen for the number of investments and programming for African start-ups to increase? What should investors and venture capitalists be doing to increase the strength of the African start-up space and what can entrepreneurs themselves be doing to attract the right kinds of investments? Given She Leads Africa’s accelerator program and our recent Demo Day, SLA is working hard to address these questions. Along with our partners from VC4Africa, Work in Progress, and others, SLA is working to ensure African entrepreneurs have the tools & resources they need to reach their goals. Join SLA & Alina Vinogradova of VC4Africa on Nov. 24th, for a discussion on the importance of programming for African start-ups, whether it’s accelerator programs, incubators, pitch competitions or anything else that exposes African start-ups to investors and mentors. In particular, we will focus on why we need more programming focused on African women entrepreneurs and encouraging their growth across the sector. Follow She Leads Africa on twitter and use the hashtag #SLAChats to ask your questions and participate in the discussion. Topics that we’ll cover: The toughest barriers to African entrepreneurs accessing finance, investors & venture capitalists The importance of platforms where female African entrepreneurs have direct access to investors Closing the gender difference in access to finance for African entrepreneurs What African women should keep in mind when seeking out financing for their start-ups Twitter chat details Date: Thursday Nov. 24, 2016 Time: 12pm London // 1pm Lagos // 3pm Nairobi Location: Follow She Leads Africa on twitter and use the hashtag #SLAChats Help us spread the word: [bctt tweet=”Join @SheLeadsAfrica & @VC4A for #SLAChats on Nov. 24 on the importance of programming for African start-ups” via=”no”] About Alina Vinogradova Alina develops and manages startup support programs implemented by VC4A as part of larger donor-funded initiatives, such as Work in Progress! Project or World Bank’s Pan-African Accelerator. She builds out VC4A’s network of strategic partnerships with various African startup ecosystem players and is constantly looking for fit between organizations, their objectives, and the goals of the VC4A community. Alina holds MSc in Business Economics from Baltic State Technical University in St. Petersburg and an MBA from Amsterdam Business School (UvA). Prior to VC4A she spent over 10 years working in various commercial roles in the private sector in both emerging and developed markets, with B2B marketing, sales & business development being her core expertise areas.
Ask a Financial Advisor – Volume 2
Financial independence starts with careful planning. If you want to be a millionaire in the future, you have to do the work today. We’re excited to present the second installment of our Ask A Financial Advisor column. Financial experts from United Capital have once again taken questions from our community and answered with real advice. Volume 2 of Ask A Financial Advisor features advice on starting and maintaining a saving plan as well as saving for future goals. How can I start the process of investing my money? Right now, I know nothing and would like to educate myself before doing anything. What are some trusted sources and beginner tips? – Naome Jeanty It’s great that you want to educate yourself prior to getting on the investment ladder. There are loads of resources available to one on the internet, so please do as much research as you can. The best way to create a life that is not dependent on a paycheck is to start investing early in your life and these are our top three tips – 1) invest at least 20% of your savings on a consistent basis. 2) take calculated risks, especially when you are young 3) start investing for retirement as soon as you have a steady income from paid employment or an on-going business venture. I earn N134,000 and I look forward to getting a landed property and also a car by this time next year. How can I save to meet up with this target? Thank you. – Toyin As with starting any project, it’s important to define clear goals -which you’ve done already. You do however need to prioritize these goals such that you are able to differentiate between routine expenses, short term and long term savings goals. Use the SLA Savings calculator and remember that an emergency fund is key. This is where it comes in handy to set up a Private Investment Trust. And when you do need to borrow, let it be for investment purposes i.e. purchase of land etc. How do I start and MAINTAIN a savings plan. I currently live paycheck to paycheck when debts have been ignored. I want to put money aside, I’m currently paycheck to paycheck (bills paid, rent paid etc) but at the cost of ignoring some debts. (Owe family and friends money…I can’t afford to pay them back at the moment). – Gloria Determination here is the key, both to getting out of debt and maintaining a consistent savings plan. The first step is to determine what you can actually save after taking out your routine expenses, i.e. food, transportation etc. Then the next step is ensuring that you actually do save. A great way to going about this is to set up a direct debit order on your salary account or main business account which ensures that a designated sum is debited at regular intervals i.e. monthly, quarterly etc and moved into an investment vehicle such as a Private Investment Trust. If you’d like to get your questions answered by a financial advisor from United Capital, submit your questions by clicking here.
Ask a Financial Advisor – Volume 1
Financial independence starts with careful planning. If you want to be a millionaire in the future, you have to do the work today. We’re excited to kick off our brand new column called Ask A Financial Advisor. Financial experts from United Capital are taking questions from our community and providing real advice. Read on for our first series of answers covering topics such as investing as a fresh graduate, real estate as an investment property and how to start investing even when you feel like you don’t have any money to spare. Hello. I would like to ask about the best place and way to invest my money in Nigeria presently, some say federal government bond buying, but am not so clear nor sure. I mean am not so super rich and just 3yrs out of college but I think the little money I make part if it invested would go a long way. Pls kindly help a sister out. Gracias! – Abimbola Investments when being done on a relatively small scale, are safer when carried out under the umbrella of a professional Fund Manager/ Trust Company. That way, the minimum requirements for say an FGN Bond or any other instrument will be met through the pool of funds being managed by the company. Also, the risks involved will be shouldered by the company and you will be privy to professional wealth advisory services suited to your investment objectives. What can one invest in that requires minimum money? I’m a single mum and I feel I’m living hand to mouth, I’d like ideas on what I could invest in and how that will require minimum money that could potentially accumulate or grow. – Nikita You can invest in a contributory scheme with a minimum annual contribution of N60,000.00, which will come to N5,000.00 per month. If you were to set up a Private Investment Trust, your contributions will be pooled with other contributors’ funds and invested in profitable investments which the N5,000.00 would ordinarily be insufficient to partake in. The result of this is a healthy mix of stable returns as well as minimum -risk investments which will be affordable to you and simultaneously accumulate in the long term. Every month I seem to just break even and in some cases I am over budget. How can I save money whilst breaking even on my budget? – Sharon You need to decide on a percentage of your income to save every month, we would advise 10%-15% for a start. Once that decision is made, you can invest in a contributory scheme which requires you to make contributions per month. A Standing Payment Order (SPO) given to your banker to automatically credit your contributions to the Fund Manager/Trust Company will ensure you do not begin to overspend before the contributions are made. This will improve your financial discipline and at the same time ensure you have accumulated a tidy sum which would have yielded a stable return in the medium to long term. With the rising cost of living, buying property is virtually impossible. Although I qualify for a small amount, should I rather buy an investment property (property that I will rent out and never live in) or wait until I can afford a place of my own and buy one for myself? – Kendi Buying property is a highly capital intensive venture and may not be advisable if you do not have the liquidity. It would rather be advisable to invest your funds in REITs (Real Estate Investment Trusts) through a professional at a minimal fee, so that you can accumulate the funds until you can afford the property of your choice, whilst still enjoying some benefits of real estate investments through the underlying assets of the REIT. If you’d like to get your questions answered by a financial advisor from United Capital, submit your questions by clicking here.