Why you need an Endowment Policy (even while you are Pre-Rich)
We’re all constantly thinking of new ways to save money, especially when it comes to saving towards a particular target. We use apps, banks, and even in 2021, our pillows. Do you know what these all have in common? Your money is somehow still right in front of you, tempting you at every turn. Without a great deal of discipline, you’ll break into your savings and never reach your goals. According to independent surveys by She Leads Africa, 73% of young women in our audience said that their top money goal right now is financial independence. In another survey, 58% of women highlighted their top money goal as ‘saving and investing for my future’. Now if you earn a decent, steady income but you’re always breaking into your savings, when are you going to achieve financial independence, or even save towards your future? Luckily, there’s a more efficient way to save towards your goals that you’ve probably not heard of in the past- an endowment policy. Never heard of it? Well, you’re in luck, because that’s what this article is all about. So, what is an endowment policy? An endowment policy is a plan to help you meet set financial targets and obligations at a particular date in the future. You set a goal, pay periodically towards that goal and your policy provider pays you your set target amount plus a pre-fixed interest sum on your target date. With an endowment policy, you’re able to put money aside with a trusted institution and get a specified amount back at your target date. An endowment policy could also double as an insurance plan as in the event of death, accident, or illness (in the terms covered by your plan). Your target amount is paid to you…even before the target date. Why should you get an endowment policy? You’ve been trying to save for yearsss: You’ve tried a bunch of methods and nothing is working. It’s definitely time to try an endowment policy. You want to be accountable: Endowment policies are a great way to plan towards your goals. You’ll have a specific target amount to save monthly towards your goal and the payment plan keeps you accountable. You want to stay focused: With a target date and a target sum, you can keep your end goal and payday in mind and actively work towards it. You’re not spending the money you’re saving on something else. Your money is safe and secure till the agreed date. You’re saving towards a specific goal: Could be a master’s, a car. your kids’ education or even a wedding! Get the funds you need when you need them…with no excuses. You have money: No, that’s not a typo. If you have money and a plan for your future, you SHOULD get an endowment policy. Other benefits… Tax relief: Some endowment plans qualify for tax relief so the amount of tax you have to pay is reduced. Your estate is covered: In the event of death, your target sum is paid back to your estate and the policy terminates. Back-up funds in case there’s an accident: If you ever have a serious accident, you’ll have your target sum to fall back on even before the set target date. Fall back plan in critical illness: If you get critically ill? We know hospital bills can be a pain. You’ll have your target sum to fall back on and help you pay your bills! Where do you start? A good example of an endowment policy is the Leadway Target plan. You can contact Leadway Assurance right now via DMs and they’ll put you on all you need to know!
4 Ways To Become A Financially Literate Mogul In 2021
Every two to four business days, I come across very questionable advice on how to be “financially literate” on the interwebs. I almost want to ask the person giving the “advice” if they believe what they are saying or if it is just vibes. See, not everyone is giving you advice is they have fact-checked, taken time to think through or practice. We have to learn how to filter what we hear about managing our hard-earned money, especially in a Panoramic. So, in this piece, we’ll be discussing- What it means to be a financially literate mogul. How you can increase your financial literacy without any of the shenanigans online. Sign up to get your FREE finance worksheet! So, what does it mean to be a financially literate mogul? A financially literate mogul has a basic knowledge about managing personal finances and building wealth. If this is you, it means you have an understanding of how to Create and stick to a budget Set realistic financial goals Pay your bills Track your expenses and income Save your money Navigate the basics of loans (personal, debt, mortgages, etc) Invest your money Now that all this has been listed, reflect on what you understand through PRACTICE and what you need to get better at. Want FREE finance-related content, resources and updates? Click here! Here are some No-BS ways to become financially literate. Read – Books, Magazines, web articles, newsletters, Facebook posts, Tweets, IG posts- read as much as you can about finance from trustworthy sources. Read sources that speak about finance in a way that is relatable to you. While some sources are very helpful in the advice they offer, the context that they operate in might not provide you with the insight you need. With reading comes fact-checking so Google what you do not understand or need more information on. Use Finance Tools And Apps- As much as we want to learn, we may not be able to do so all by ourselves. This is where apps and tools come in handy. These days, thankfully, there are apps and tools for almost every aspect of finance- be it saving, budgeting, tracking expenses or investing. Some finance apps even have learning centres and blogs to help you stay updated. Find one that incorporates the aspects of finance you want to improve on and commit to using it. Take A Financial Literacy Course- Sometimes, what we need is a course to help us step up our money game. If you are clueless about where to start on your finance journey or how to stay consistent, consider taking a financial literacy course. Find a course that breaks down what you need to know and gives take-home assignments. This will help you practicalize your learning and stay accountable. [bctt tweet=”Sometimes, what we need is a course to help us step up our money game. If you are clueless about where to start on your finance journey or how to stay consistent, consider taking a financial literacy course.” username=”SheLeadsAfrica”] Join A Community Of Money-Minded Moguls- There is nothing as uplifting as being a part of a community of people with similar goals. When you belong to a group that shares your goals and has your best interest at heart, you remain motivated. The added accountability and access to resources can also not be underestimated. Find a community or group of friends and become an active member. [bctt tweet=”There is nothing as uplifting as being a part of a community of people with similar goals. When you belong to a group that shares your goals and has your best interest at heart, you remain motivated.” username=”SheLeadsAfrica”] Key Takeaway Learning about finance takes constant practice. There is always room for improvement so do not beat yourself up about what you haven’t learnt. Approach learning about finance with an open but cautious mind and you will be surprised by how much you will grow. Join our community of young African women to get FREE finance-related content, resources and updates.
Want to Join an Investors Club With a Low Budget? Here’s what you need to know
Ever heard of the term Plutophobia? Plutophobia is derived from Pluto (wealth) and Phobia (fear) is the fear of wealth. Yes, it is actually a thing that there are people who are afraid of being rich. It sounds funny, I even feel like laughing out loud as I type this, but looking at it deeply makes it not so funny. Like, how can someone be afraid of being wealthy when we all know that money answereth all things? (We are well aware of immaterial wealth but for the sake of this article, all mention of wealth refer to money and all the riches that come with it). There is also something called Chrometophobia. Chermato (money) and Phobia (fear) which is the fear of money. The key triggers of phobias are external events which might be heredity or life experiences. You might have heard time and time again that investment is not for the rich only. But then, you don’t know how exactly to invest with a low budget. What if I told you that you do not need huge amounts of money to invest in portfolios that can give you beautiful rewards. All you need is to have the right information and go where the opportunities abound. Before you invest, first decide if you are willing to invest either for a short term or a long term. This will enable you to look in the right places, thereby saving time and being decisive from the onset. Pay attention to the following before your first investment: Beware of “too good to be true” offers. Examples are investments that offer high returns just after two days. Understand the risks that come with the investment you are taking up. Do your own proper research. Always get the second opinion from friend, family or an investments expert. Ensure that there is physical paperwork stating all the terms of investment. Now that you have the information on what to do before you invest. Here are some investment opportunities you can start investing with as low as N5,000 monthly: Mutual funds Money market funds Real estates Treasury bills via i-invest app Agriculture Invest in a friend or family’s business with properly drafted contracts There are also private investment opportunities where you get up to 10% monthly on commitments from as low as N50,000 Remember that you won’t get rich by hoarding money in your savings account or leaving them in a piggy bank. It is by investing. A change in mindset would help you navigate away from societal misconceptions about being wealthy as a woman. It would also help you overcome the fear of charging your worth for services you render or the good you sell. And as time goes on, you will see yourself making the money that you were long due to make, but afraid to ask for. Like I mentioned earlier, decide on the type of investment you want and why you want it then go for a suitable opportunity. Now that you are well informed about investments and how it can help you become wealthy, do you still hold any reservations about it? How are you improving your spending habits this month? Click here to join the SLA #SecureTheBag challenge.
3 Reasons why you are an impulsive spender and what to do about it: Lydia Chinery – Hesse
This September, we’re out here on these streets trynna secure the bag. If you’re an impulsive spender, this one is for you. As a financial advisor working with Holborn Assets, Lydia Chinery-Hesse has helped clients put measures in place to control their spending while increasing their savings and growing their wealth. She has been working with various nationalities to help them plan their financial future by giving them transparent, objective and honest advice. Lydia helps them visualize their personal (and business) goals and structure a plan towards achieving them. Earlier this year, she created a Facebook group called Love Yourself Financially, a community of global women who are dedicated to being the boss of their finances. Their goal is to be financially secure and free – which has a different meaning to each member. The Scenario You’ve just finished a successful meeting and decide to take a short walk through the mall, for some window shopping. Before you know it, you’ve spent money shopping for more clothes you don’t need! It’s 4:15 pm and you’re absolutely famished. While you could wait another hour to get home and eat some leftovers from last night’s home-cooked supper, you decide to order food that would cost the same amount as your groceries for the week. Even if you haven’t found yourself in one of these situations before, you’ve definitely spent money impulsively in one way or another. Why is this? Why are we so impulsive? More importantly… What can we do about it? Here are the three main reasons for being an impulsive spender, and a few ways you can improve your spending habits. 1. You’re using a credit card Studies show that when we pay using our credit card, we’re more likely to spend money. With a credit card, your thinking will be more along the lines of “out of sight, out of mind”, as you don’t see the money ‘leaving’ your wallet. Conversely, when we spend with cash, it hurts a little, and you tend to think twice before spending it. What should you do about it? • Until you get to a point where you have significantly improved your discipline in this area, ditch the credit card. • Ditching the card means spending cash only. • Withdraw your cash allocation for the week, and carry only what you need on a daily basis. 2. Because money should be spent If you’re able to spend money impulsively, consider yourself fortunate to have the money to do so. That being said, just because you can, doesn’t mean you should. As an impulsive spender, It’s likely you’re not tracking your expenses by writing them down or through an app. If you did, you’d be less likely to spend mindlessly as you’d always be aware of what you’re spending on and how much you’re spending. What should you do about it? • Before you’re about to buy something, you want, pause. Wait a day, a week, a month or longer to determine if you really need it. Chances are you don’t. • Track your expenses, create a budget and live by it. • Get an accountability buddy. When you’re itching to spend, call a friend you trust who will talk to you straight. • Meal prep. Don’t give yourself an excuse to buy a meal. • Try no-spend days a few times per month. In addition to all of these, it’s worth considering…what else could you be doing with that money? This brings me to my last point: 3. You are not thinking long-term Living for today will most likely mean scrambling or struggling in the future. Perhaps it would be wiser to live according to this African Proverb, “For tomorrow belongs to the people who prepare for it today”. What should you do about it? • Set your savings goal and reward yourself for achieving them (without spending money – be creative!) • Save towards future plans. Put some money aside monthly towards that goal, whether it’s a vacation, car purchase, etc. • Be intentional about your long term goals. This begins by figuring out how much you’ll need to either live comfortably in retirement or to reach financial security (where passive income pays for your expenses). Once you have that figured out, work backward from there to determine how much you should be saving (and investing) in order to reach your target. It takes some self-reflection and being honest to admit that there are areas in which we need to be more disciplined in order for the impulsiveness to end. How are you improving your spending habits this month? Click here to share your story with us.
Five benefits of vacation work during the holiday season
So the holiday season is here, and whilst everybody is in a tizzy over year-end functions, pre Christmas plans, decorations and basically bawling over the holiday season… You or perhaps someone you know, maybe thinking well now that the semester has come to an end; what to do? Quite the temerity it must be; deciding whether to lounge around and have a jam all summer, or work towards building your portfolio to be industry ready. In as much as the season may leave many of us with a lot FOMO as a result of Instagram lifestyles, we need to stay the course in our personal journey towards achieving the goals we have set for ourselves. It is never too late to jump back onto the bandwagon! Decisions… Decisions… What to do? Christmas is generally a season where everyone is spending copious amounts of money, sometimes even to their detriment. And the social media platforms are an absolute field trip for the type of lifestyle one should be engaging in, consumerism is a monster unleashed. As a student, graduate, or a job hunter, your best bet would be to look up any vacation work that may be offered by corporations or NGO’s. This will not only aid in keeping you from spending money which you (or your parents) don’t have, but it will propel you a few steps closer to the career you want to find yourself in. What is better time there to start actualizing your dreams and aspirations than the Christmas season with all its good cheer and positive vibrations? Benefits There are undoubtedly a plethora of benefits when it comes to taking up vacation work, however, here is a narrowed down five points to bring the thought home: 1. Vac work will aid in establishing whether the career field of choice is the right one. It is always better to know before making a long commitment to a particular trade service, whether or not it is what you want to be doing for the rest of your life. Nothing brings more clarity than having a real-time experience of a work environment to further solidify your stance. 2. Extra flow of income, if it is a paying gig. Vac work may not always have a monetary benefit if it does, however, that means Christmas spoils for yourself and some money to put towards the savings account. In the instance that it is not a paying gig; there is a lot that could be made up for that in the form of experience. It would be important in this instance to ensure that wherever you’ll be taking your vacation job, there are individuals who are open to and willing to mentor and guide you. 3. New experiences and encounters. This is self-explanatory, having a chance to experience new things generally is always a plus. At no extra cost to you, nothing brings about rejuvenation and perspective like exposure to a way of being that is different to yours. 4. Showcasing a level of responsibility to the parents. Parents want to know that their children are ready to take up adulting and the responsibilities that come with that. Nothing spells grown up more than taking charge of one’s life and journey. 5. A sense of accomplishment. Nothing brings on a booster more than a sense of achievement. No matter how small the feat or how insignificant the milestone may seem; but to you, it is a step in the right direction. You can always be proud of yourself for doing the work of being a better version of you. You were born for this… Do you boo! You are able to do everything you set your mind to. You just ought to get up and show up in your life. It is important to hold yourself accountable for the life you want to live. It is equally important to ensure that no Christmas splurge fest formed against you shall prosper. Time to enjoy the holidays, hone your craft and Merry Christmas!
Pensions, Savings, Trusts, Insurance. What is This All About?
With so many investment products on the market, we understand that it can become quite overwhelming and confusing when trying to make the best investment decision for your financial goals. But, fret no more! We’ve produced a pensions, savings, trust, insurance guide that will help you make the In-Telligent Choice and be on your way to financial freedom. Pension A pension scheme is a type of savings plan that helps you save money for later life. It has favourable tax treatment compared to other forms of savings, which is an added advantage. How it Works? You save a little of your income regularly during your working life so you can have an income when you retire or decide to work less (at retireable age). There are several types of pension schemes. Some may be run by your employer, others you can set up by yourself. Saving in to one scheme doesn’t mean you can’t save into another or use other tax-efficient savings plans. When the time comes for you to start enjoying your pension, there will be several options available to you. These may include being able to take a tax-free cash sum and the added security of being able to receive a regular income, now that you are not working full time. Savings Saving is income designed not to be immediately spent. Methods of saving include putting money aside in, for example, a deposit account, a pension account, an investment fund, or as cash. Saving more than just an account, it is also a deliberate act to reduce expenditures in your life. In terms of personal finance, saving generally specifies low-risk preservation of money, as in a deposit account, versus investment, wherein risk is higher; in economics more broadly, it refers to any income not used for immediate consumption. To be considered financially secure, an individual or household should save at least six months’ worth of expenses. For example, a household that has N20,000 per month of expenses should have at least N120,000 in savings (N20,000 multiplied by 6 months). To reach this amount, it is recommended that 10- 20% of net income should be saved until the appropriate amount of savings is reached. Trusts A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. A grantor establishes a trust fund to provide financial security to an individual, most often a child or grandchild, or organizations, such as a charity or other nonprofit organization. A trust fund contains cash, stocks, bonds, property or other types of financial products. The recipient of a trust fund must typically wait until a certain age, or until a specified event occurs, to receive a yearly income from the fund. Prior to this, a single trustee, or a group of trustees, manages the fund in a manner appropriate to the trust fund’s specifications. This usually includes some allowance for living expenses and perhaps educational expenses, such as private school or university. Insurance Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An entity which provides insurance is known as an insurer, insurance company, or insurance carrier. A person or entity who buys insurance is known as an insured or policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and must involve something in which the insured has an insurable interest established by ownership, possession, or preexisting relationship. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. The amount of money charged by the insurer to the insured for the coverage set forth in the insurance policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster. For more information about investment products and services, contact United Capital Plc. Web: www.unitedcapitalplcgroup.com Phone: +244-1-280-7596 Email: customerservice@unitedcapitalplcgroup.com Twitter: @UnitedCap Facebook: Facebook.com/UnitedCapitalPlcGroup United Capital Plc is a leading Investment Banking Group providing capital financing solutions to governments, companies and individuals across Africa. We are well positioned to play a strategic role in helping Individuals achieve their strategic objectives through our robust suite of financial and investment service offerings. Sponsored Post