Having a retirement plan and investing adequately to this effect is a very essential thing to do. Unfortunately, many Nigerians seldom invest towards retirement due to some factors ranging from poverty to high cost of living and lack of knowledge about the importance of financial planning.
Understanding the issue
Let us consider the high cost of living in Nigeria for a moment. Millions of Nigerians merely survive on their salaries, struggling on a daily to meet their basic needs. This situation makes it extremely difficult for people to save money let alone invest.
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But there could be a way to get around the situation. According to Tomie Balogun, a renown financial literacy advocator and Co-founder of Midas Capital NG, Nigerians would find it less difficult to invest in their future if only they are willing to prioritise it just as much as they prioritise their bills.
Balogun revealed this recently in Lagos while speaking during the third edition of AXA Mansard’s Out of The Box, a financial roundtable that was organised by the insurance and asset management company.
“Investing in your future would be less difficult if it becomes part of your bills to pay- @TomieBalogun. The third edition of “Out of The Box” had Tomie Balogun, our amazing guest who is a leading expert on how to start, manage and grow investment clubs… Time to stop spending money impulsively and put your money to work for you.”
This is a very important financial advice from Balogun and it basically entails planning your revenue properly. Imagine you imbibe the habit of spending your money on investment packages the same way you spend it on groceries and clothes. The difference here is that while the money you spend buying call credit and internet subscription will never return to you, the one you spend on your pension and life insurance will become useful again when you are aged and unable to work.
More important advice
Balogun also advised that it is high time Nigerians stopped spending money impulsively. There is no doubt that many people in Nigeria (especially young adults) spend money anyhow, sometimes without a budget. The money people expend on unnecessary gadgets and other perishable luxury items could be properly invested towards future retirement.