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Financial skills everyone should master (2)

Here are the other financial skills that will help you navigate the complex world of money management.

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Financial skills everyone should master (1), 5 skills not taught in school but must be learnt

Here are the other financial skills that will help you navigate the complex world of money management.

Save money each month

Another great habit to form is to regularly put money into your savings account each month. You can even have your savings automatically withdrawn from your checking account and put in your savings account via automatic transfer. Set a goal to save 10-15% of your income to put toward your long-term goals each month.

Protect your savings

If you find it easy to dip into your savings account when you are running short, you need to find a way to protect your savings. Your emergency fund needs to be easily accessible so that you can cover unexpected expenses right away, but you can move the rest of your savings to accounts that are more difficult to access.

Financial skills everyone should master (1)

Build a support network

It helps to have friends that can support your financial choices. Although you likely will not spend a lot of time talking about your financial choices, it is good to have friends that like to hunt for deals or that encourage you to save money when needed.

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Some friends may want you to constantly spend money while others are more supportive of you to reach your goals. Building a good financial support network can help you reach your goals more effectively.

Negotiation

Negotiation is a key skill to master to get the best deal when buying or selling something, or even getting the best salary and benefits when accepting a job offer. Most people do not like to negotiate. It is easiest to pay the asking price or accept the amount offered from a buyer or employer. But if you become skilled at negotiation, you can end up with lots more money in your pocket.

[READ MORE: Financial skills everyone should master (1)]

Here are some skills that successful negotiators master:

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  • Be willing to walk. Successful negotiators are willing to walk away if they can’t get a good deal. Willingness to walk away gives you the confidence to ask for what you really want and drive a hard bargain. Often, you’ll learn things in deals that don’t work out that help you get a better deal in the future.
  • Be reasonable. Good negotiators understand the market value of what they are negotiating and can understand the deal from the other party’s perspective. If you seek an unreasonable deal, you are likely wasting everyone’s time and won’t end up with anything.
  • Be perceptive. Good negotiators pick up clues from the other party to determine what kind of offer they would accept and use this information to negotiate the best deal possible.

Separating needs from wants

Separating needs from wants is a key personal finance skill. There is almost no limit to bigger, better, and newer stuff that you could decide to buy. The best way to make spending decisions is to become disciplined at distinguishing needs from wants.

I like to think about the consequences of not buying something as a tool to distinguish needs from wants. For example, if I don’t buy the new shoes I am considering, will I not be able to go to work? At some point, new shoes can become a need, but if your old shoes are still doing everything you need your shoes to do, then new shoes are a want.

Continuous investment

People who are financially successful do more than reduce spending and save money. They take the next step and invest money that they free up through smart spending decisions.

This investment mentality is what allows the small amount of money you avoid spending to grow into real wealth that can change your lifestyle and allow you the freedom to pursue your interests. Regular saving over time adds up — even with small investment amounts. Continuous investment requires discipline to keep investing money for the future rather than spending it now. Savvy investors assess what kind of investments to buy and manage their investment portfolio based on economic trends and the performance of their investments. The most important factor in being a successful investor is to make regular investments over the long term and let your wealth grow.

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Bargain hunting

Frugal people are known for having good bargain-hunting skills. Making a purchase is a challenge to find the way to spend the least amount of money to get what is needed. Bargain hunting usually involves using coupons and shopping around to find the best price.

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Sometimes buying a used item rather than a new item is the best bargain – you can save 50% or more buying used instead of new. Items such as tools or vehicles that are useful for years make good purchases, but technology products often become obsolete so fast that buying new can be the best deal.

Buying at the right time can be a key to finding bargains. Keep an eye out for bargains at store closing sales and clearance sales for items you know you will use later. An important part of bargain hunting is deciding on the best item to buy. If you can figure out the least expensive item that meets your needs, and then find the best price on that item, you are on your way to mastering bargain hunting skills.

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[READ ALSO: Nigerian Millennials have figured where to invest their money]

Financial skills everyone should master (1)

Reuse

There is an old saying, “Waste not, want not” that summarizes the personal finance skill of reuse well. If you don’t waste anything, you will have plenty and not want for anything.

Once you learn the basic financial skills and implement them in your life through these tasks, you can expect a certain level of improvement. If you keep at it, you will surely find yourself moving towards a successful and secure financial future.

1 Comment

1 Comment

  1. Jude Aneke

    November 15, 2019 at 10:10 pm

    Thanks

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Business

The FG in partnership with the private sector will continue to support MSMEs – Osinbajo

Osinbajo has stated that the FG in partnership with the private sector would continue to provide interventions to boost the growth of small businesses.

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Solar, FG to slash import duties on tractors, buses, others in 2020 Finance Bill, Nigeria will not issue Eurobonds, says Vice President Yemi Osinbajo, FG guarantees mortgage loan to low income buyers at low interest rate, FG inaugurates gold refinery project in a landmark event

Nigeria’s Vice-president Prof. Yemi Osinbajo during an MSME stakeholders’ meeting, disclosed that the Federal Government in partnership with the private sector would continue to provide interventions to boost the growth of small businesses across the country.

According to a press statement issued by Laolu Akande, the VP made this statement on Monday at the first meeting of MSMEs stakeholders for the year 2021.

Prof. Osinbajo said the Government would continue to support innovation and interventions to deepen the involvement of new and existing MSMEs in the nation, this he said would help to improve the economy and create more employment opportunities for Nigerians.

He stressed further that the implementation of the Economic Sustainability Plan Survival Funds has sent positive economic signals. In a bid to complement the gains in this space, the Government needs to scale up interventions in the MSMEs sector.

In this vein, Osinbajo urged stakeholders in the public and private sectors at the virtual meeting to be innovative in the interventions planned for small businesses across the country, so as to consolidate on the gains recorded in the MSMEs space in the past few years.

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What they are saying

Prof. Yemi Osinbajo, during the MSME stakeholders’ meeting, said:

“We must continue to be innovative in the interventions that we plan for MSMEs because small businesses are the engines of growth of any economy, in the areas of wealth creation and employment opportunities, MSMEs are very important.”

Continuing, Prof. Osinbajo said:

“We really have to think out of the box in our engagements going forward. We need to change the way we do many things, we need to look for ways of multiplying our efforts because the challenges in this space are greater than what we have been able to achieve so far. Of course, we have done a lot, but looking at the numbers in need, you will find out that there is a lot more to be done.”

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What you should know

  • The Federal Government’s MSMEs Survival Fund grant scheme, which includes Payroll Support, Artisans and Transport support tracks, is a component under the Nigerian Economic Sustainability Plan, NESP.
  • The Survival Fund scheme was designed to cushion the economic effects of the COVID-19 pandemic especially on the most vulnerable small businesses, is a conditional grant to support vulnerable MSMEs in meeting their payroll obligations and safeguard jobs in the MSMEs sector.
  • The scheme is estimated to save not less than 1.3 million jobs across the country. However, 283,023 Nigerians employed by MSMEs across the country have benefited from the Payroll Support Scheme. This leaves millions of Nigerians out of the consideration of the scheme.

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MSME

283,023 Nigerians employed by MSMEs have benefited from FG Payroll Support Scheme

The FG has revealed that over 200,000 persons have so far benefited from its Payroll Support Program.

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Nigerian MSMEs suffer negative impact of COVID-19

The Federal Government of Nigeria has disclosed that 283,032 Nigerians employed by MSMEs across the country have so far benefited from the Payroll Support Scheme of the Federal Government.

This disclosure was made in a tweet shared via FG Survival Fund’s official Twitter account.

What you should know

  • The Payroll Support Program by FG under the Survival Fund initiative was created to provide an adequate buffer against the impact of the COVID-19 on the stream of income of MSMEs.
  • This, however, is an offshoot of the Survival Fund initiative, established to support and protect small businesses from potential vulnerabilities brought about by the COVID-19 pandemic.
  • In line with the mandate of the programme, the government will support MSMEs with staff salaries for 3 months.
  • It is important to note that the COVID-19 pandemic and other regulatory actions of the Federal Government affected the core segments of SMEs, as well as the revenue and income vehicles of Small businesses in Nigeria.
  • According to a survey by NBS, it became public knowledge that the total number of Micro, Small and Medium Enterprises in the country was about 41.5 million, as of December 2017, with significant employment contribution running to millions.
  • In the light of this, it is plausible to say that the Payroll support programme is not inclusive enough, as the recent move by FG to support MSMEs leaves millions of MSMEs and their employees out of the radar.

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Personal Finance

7 Reasons why you need to start getting thrifty

By growing your savings, you can have a comfortable life whilst working towards financial freedom and an early retirement.

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10 ways to save and make more investments

Do you earn a comfortable salary? If yes, then yay! Life’s good.

But even a Warren Buffet or a Jeff Bezos still knows the value of being thrifty. It is a sure way of staying worry and stress free, regardless of any financial crises that might take you unawares in the future.

READ: How to land an 8 figure job in 2021

Advantages of Thriftiness

You must understand that thrifty is not the same as stingy. Oh no. It’s something entirely different, and even more so, should be sought after.

On the one hand, stingy means being miserly, refusing to make your life easier and hoarding the resources you possess.

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READ: 5 Things you must do to get a promotion in 2021

However, to be thrifty entails managing your money habits and learning to save. This could include:

  • Spending less on non-essentials.
  • Getting better value at a low cost
  • Avoiding borrowing to satisfy leisure purposes (such as buying a car, funding an extravagant wedding, going on pleasure trips, etc.)
  • Borrowing only when in dire need or for investment purposes, and so on.

READ: The best free budgeting tools to help you manage your finance

Without much ado, let’s get right to the benefits:

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1. You Become Resourceful

You develop a keen sense for accomplishing more with less – a useful trait, you might admit, in any individual, be it man or woman.  

In a world of hardship and increasing scarcity, we all must learn to value what we have and use them wisely.

As the saying goes, “He who spends his money carelessly tends not to have it for long.”

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READ: Investors’ demand for Nigerian stocks climb, as portfolio investment gains N223.4 billion in 4 months

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2. You Understand What Matters and What Doesn’t

Often times, we might get carried away by what our peers are doing and try to mirror these trends.

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But don’t forget to cut your coat to your size. Bother less about impressing your friends. Nor should you allow yourself to be swayed into purchasing things you don’t really need (which may even cost you more money in the long run).

READ: How to avoid debt despite economic challenges

Practicing thriftiness enables you live within your means. You analyse your lifestyle and measure your spending habits to suit your earnings.

You give priority to more important things like taking care of your family, living a comfortable life, and investing for your future.

3. You are More Prepared in Times of Emergency

Spending wisely means you will have something to fall back on in case of an emergency. If you always empty your account and live from paycheck to paycheck due to bad money habits, you will find yourself in a prickly situation should you lose your job or face some other unforeseen event.

READ: Personal Finance Culture: The 4 Cs of Financial Success 

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4. You Have a Happier Relationship With Your Spouse

Money problems are some of the top causes of marital strains. Therefore, being financially responsible makes you better able to carter for your family and prevent getting into squabbles with your spouse.

5. You Worry Less About Incurring Debt

Spending wisely implies you won’t face the unpleasant situation of borrowing to carter for your basic needs. You sleep better at night knowing Mr. Ade won’t come banging on your door come morning, demanding you pay him back.

READ: To become a millionaire, set these benchmarks

6. You Invest More

Being thrifty helps you increase your savings, which you can then use to make profitable investments. You therefore get closer and closer towards achieving financial freedom and retiring early.

READ: Nigerians react as port haulage cost reportedly increases to N1.3 million

7. You Become More Disciplined

Managing money wisely makes you a better person all round. You may ask how. Here are a few ways:

  • You take better care of your health since you know falling sick will cost you.
  • You feed better by cooking your own meals rather than eating out.
  • You maintain your personal belongings, including cars, work tools, clothes, etc., and ensure they last longer.
  • You keep your living space tidy by not accumulating clutter – You purchase only the things you need, and sell or give away items you no longer use.
  • You are able to pay off your debts promptly and give yourself a good reputation.

READ: Christmas and budgeting: How to control your spending during this festive season

Conclusion

Being thrifty means you use your money and resources wisely. It ensures you don’t live from paycheck to paycheck and that you have something to fall back on during a rainy day.

By growing your savings, you can have a comfortable life whilst working towards financial freedom and an early retirement.

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