Connect with us
nairametrics

Financial Literacy

How you can shop on a budget this Christmas season

A visit to some of the major shopping hotspots in Lagos, revealed just how much Nigerians are willing to splash money all in the name of Christmas

Published

on

Christmas, shop, How are you shopping this Black Friday? 

It’s the Yuletide season once again. And as always, millions of Nigerians are busy preparing to celebrate, enjoy, and be merry. A major part of the preparation is shopping. Over the past few days, many have been shopping as if January does not exist. A visit, over the weekend, to some of the major shopping hotspots in Lagos for instance, revealed just how much Nigerians are willing to splash money, all in the name of Christmas.

Without a doubt, shopping for Christmas is a good thing. It is good for the companies, traders, and the economy. It is also good for the consumers themselves. After all, they’ve all worked so hard throughout the year and deserve to treat themselves as the year comes to an end.

But there is also the need to exercise caution when shopping during this season. The reason for this caution cannot be overemphasised. No financially literate and investment conscious person should ever shop with reckless abandon.How are you shopping this Black Friday? 

 

This brings us to the importance of shopping on a budget. What exactly does it mean to shop on a budget? Well, it basically entails listing out your shopping priorities, bearing in mind your financial strengths and weaknesses long before buying anything at all. Shopping on a budget also requires that you duly plan out your expenditure in advance and be determined to stick to that as you shop.

GTBank 728 x 90

Shopping on a budget is a very important financial literacy tip which many Nigerians are either unaware of, or fail to live by. Many young Nigerians especially have the bad habit of buying things on impulse, particularly at times like this. But the truth is that you cannot afford to spend your money recklessly unless, of course, you have loads of disposable income waiting to be spent.

Having said that, it’s now time to cut to the chase about how to shop on a budget; shall we?

[ALSO READ: Recovered $104 million Abacha loot was spent on the poor, says FG (Opens in a new browser tab)]

GTBank 728 x 90

The first thing to do is to create a budget 

The first thing you must do when trying to shop on a budget is to actually create the budget. Your budget, in this case, is a list of all the things you wish to buy. List them all out and put their estimated costs after which you calculate the total costs. This helps you to be sure that your list is within the scope of what you can afford.

I know, you are probably thinking, “But everyone always makes a list of the things they wish to buy na.” Well, first of all, not everybody. And some of those who do often fail to prioritise their list and as such, end up buying more than their bank accounts can actually afford. The ability to prioritise what is on your list is a very important step when shopping on a budget. And to do that, it is recommended that you focus mainly on what you need over what you want.  This has always been the best trick to saving money. Even the best homemakers, like Mrs Idowu who spoke to me as part of my research on this, agree.

Therefore, as you shop this Christmas, learn to focus on the things you need the most, and less on the “wants” you can do without.

Go shopping with your list

Now that you have your list, the next thing is to embark on your shopping spree (if at all it can be called that) with that list handy. And before you think it’s uncool to go shopping with a list, just know that you cannot be too big for that. Come on, we are talking about saving money here. Do not make the mistake of thinking you can remember everything because you’d be surprised when you end up buying everything in the store! Having the list will not only serve as a reminder, but also as your caution — preventing you from buying what you didn’t plan to buy.

Shop where the prices are regulated 

Moving on, it is important to consider shopping in stores, supermarkets or malls where the pricing system is standardised. The importance of this is to enable you avoid all the uncertainties of unregulated prices. Now I understand that the drama of haggling is an interesting aspect of shopping in Nigeria. But it is also unnecessary and stressful, not to mention that you can actually end up paying more or even buying less quality products after all the haggling in the market. This is unlike what you would experience in a standard shop such as the ones you know. Instead, you get to enjoy the convenience of walking down clean rows of aisles while picking out the products that you need from well-organised shelves. Price tags are on every product, and these prices often match with what you already have on your list.
marketing strategies

Make cash payments 

Lastly, you should really consider shopping with cash as against your ATM card. The rationale behind this is to avoid overspending your budget. So let’s assume your budget for your Christmas shopping is N50,000, withdraw the amount and then leave your card at home, before heading to the shopping mall with the cash. Do not be carried away by the fanciness of having to swipe your card on the POS machine, unless you want to end up swiping away all your money. However, if by all means you must shop with your card, then it is advisable that you go with a card tied to an account without a lot of money in it.

Fidelity ads

Hopefully, you’ve learnt a few shopping hacks that will help you shop without overspending. Always bear in mind that the key to successfully sticking to your shopping budget is obeying all the rules.

Do have a lovely Christmas shopping. And may you have enough money in your bank account come January, for investments and other purposes.

 

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs. He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor. Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan. If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Personal Finance

How to improve your investing habit

Valuable tips to help you improve your investing habit and make more money.

Published

on

investor, Steps to investing, Steps to developing a growth plan for your business, Breaking down the biggest misconceptions young people have about investing , Here’s how your business can grow revenue in tough conditions (PART 1), Here are ways to find the right investor for your business, How to build up your investment knowledge, This simple advice could help solve your investment challenges 

The best route to financial freedom and wealth is by saving and investing your funds. With the rising inflation rate in the country, money saved in the bank is useless and would depreciate with time. The best thing to do as a smart person is to invest your money and sleep while your money works for you. Investment entails more than just knowing about the stock market and investing, it involves having a healthy investing habit. It takes a lot of study and growth to imbibe these habits. Keep reading for tips on how to improve your investing habit and make more money.

Keep at it 

A good investor doesn’t start today and stop tomorrow. You have to be consistent with your investment plan and learn not to eat all your returns. Reinvest your interest and keep investing till your last breath, that is how you make more money. When Albert Einstein was asked what man’s greatest invention was, he said ‘compound interest’. According to him, “compound interest is the eighth wonder of the world, he who understands it, earns it; he who doesn’t pay it.” Imbibe the art of reinvesting today and keep at it.

READ: 10 Actions That Can Make You a Succesful Investor

Have a plan

‘A goal without a plan is a wish.’ Having defined your financial goals, you should come up with a plan on how to achieve your goals. Gone are the days when you just invest blindly. To improve your investing habits, learn to plan ahead. Decide what to invest in, look out for the risks involved in your investment, calculate your interest rates and see if it would benefit you, and track your investment.

READ: Studying after COVID-19: How education will be changed in 2021

GTBank 728 x 90

Spend more time on research 

“It has long been the prevalent view that the art of successful investment lies first in the choice of those industries that are most likely to grow in the future and then in identifying the most promising companies in these industries”
An excerpt from the book, “The Intelligent Investor; The Definitive Book on Value Investing” by Benjamin Graham, updated by Jason Zweig.
The importance of research cannot be overemphasized. As a smart investor, you should do thorough research on the industries that have great potential and would give you better results. You should also do in-depth research on the risks involved in investing in specific industries. Arm yourself with enough data before investing.

Learn from your mistakes 

There is no successful investor that has not made a financial mistake or lost money due to some sloppiness. However, what makes you a better investor is the ability to learn from your mistakes and move on. This rule applies to all facet of life so it shouldn’t be new to you. If you make an error in your numbers or make some huge mistakes, pick yourself up and try again.

READ: MTN Nigeria records gain, investors profit up by N42 billion

GTBank 728 x 90

Wait on it 

You can not be an investor and not know how to be patient, disciplined and eager to learn. One of the habits of successful investors is patience. You have to learn how to let go of your funds and let it come back to you when it is ready. Also, the market won’t always be proposing huge returns or favourable investment plans; your patience will go a long way in helping you survive situations like this.

READ: Fidson reports over 500% increase in profit for 2019

Be a copycat but also think for yourself 

Do research on successful investors, find the ones that have the philosophy that aligns with you and follow their steps. You cannot know it all. You should also learn from their mistakes along the line; that is the key to becoming better than them. You must also be able to harness your emotions and think for yourself as an investor. Don’t underestimate the power of your intuition.

In addition to the tips listed above, below is the Buffet approach to investment, extracted from “The Warren Buffet Way: Investment Strategies of the World’s Greatest Investors” by Robert G. Hagstrom.

Explore the Nairametrics Research Website for Economic and Financial Data

  1. Never follow the day to day fluctuations of the stock market.
  2. Don’t try and analyze or worry about the general economy.
  3. Buy a business, not its stock.
  4. Manage a portfolio of businesses: Intelligent investing means having the priorities of a business owner (focused on long-term value) rather than a stock trader (focused on short-term gains and losses).

We wish you well on your investing journey.

Fidelity ads

Continue Reading

Personal Finance

6 things you must not do with your money

Money can go as fast as it comes, but you might just get to keep it for a long time if you follow these tips.

Published

on

Coming across this, you probably thought to yourself “what an interesting topic, I wonder what it has to say”. Well, we are right there with you. There are a lot of things you shouldn’t do with your money and even without reading further, you can probably outline about 20 things, (go ahead if you’d like to).

Trust me you’d have fun doing that because it was quite fun coming up with this list and we’d like to present to you the top 6 things we believe you must not do with your money. Have a fun read.

DO NOT BE UNINTENTIONAL WITH YOUR MONEY

Intentional living is important and it is something that has caught on over the years. To be intentional means to be deliberate in your actions and decisions. Basically, what you must understand from this is that you should not be impulsive with your money, whether in your spending, savings, and investment decisions, you must be deliberate. There is a popular saying that goes “failure to plan is planning to fail”.

It is necessary to always have a plan/budget for your money. Never leave your money to chance. Be intentional, be deliberate, and do not be passive with your money plans. To get started, you can focus on three steps; have a vision, create a plan, set limits. You can decide to be intentional with your impulse buying as well. When you create a plan and set limits and you do not go over that limit, even when you decide to splurge, you would still be on track to achieving your goals.

GTBank 728 x 90

DO NOT MAKE LARGE PURCHASES WITHOUT CONSIDERING THE FULL COST

Part of being intentional with your money is to avoid large purchases if possible. Things like buying a car or land/homeownership should not be taken lightly. Even if you can afford the down-payment at that time, you have to consider the other charges and fees attached. If you can meet up with maintenance and servicing then, by all means, go ahead. Otherwise, it’d be best to review that decision. One way to achieve such purchase though, if your current earnings aren’t sufficient to support an extravagant purchase is to have a savings or budget plan for it.

Even if you cannot afford a financial advisor, there is a good number of mobile apps that would help you make such a savings plan. If you are the type of person that whenever you come upon ‘windfall’ or unexpected income, you’re already thinking of how to spend it extravagantly, you need to have a change of perspective. Before you think of buying that private jet or getting that car, you need to ask yourself if you are fully capable of maintaining it. Making rash purchase decisions can lead to regrets later.

GTBank 728 x 90

DO NOT CASH YOUR PAYCHECK RIGHT AWAY

With the advancement in technology, most employees have the option to have their earnings paid directly into their bank accounts, rather than collecting cheques or cash. But no matter the form you collect your money; you must make provision for part of that money to be saved. Do not spend it immediately. You can automate payments such that a percentage of your monthly income goes directly into your savings account.

This helps to avoid the temptation of dipping into that fund because, “if you don’t see it, you won’t spend it”. Some companies provide retirement savings plans for their employees, a system whereby a portion of their salaries are deducted and paid directly into their retirement account. One such plan is the 401k, of which the Nigerian alternative is the Nigerian Pension Scheme, governed by the National Pension Committee (PENCOM).

(READ MORE: Cashless goes nationwide)

DO NOT PUT ALL YOUR MONEY IN ILLIQUID INVESTMENTS

While investments are fun, and a good way to build wealth, it is important to diversify and have variety. Remember the saying, “do not put all your eggs in one basket?”. The difference between liquid and illiquid investments is simply this; the ability to exchange something for cash. So the rate of liquidity is determined by how easily an investment can be converted to cash. Do not tie up your money by investing in illiquid investments. Your investment portfolio should be diversified.

Fidelity ads

DO NOT SHOP EMOTIONALLY

The fact that we are biological beings does not mean we should not make logical decisions. Do not fall prey to ‘retail therapy’. Retail therapy is a term that is used to describe the action of shopping to improve one’s mood. It is also referred to as “comfort buys”, often acquainted with individuals who buy during periods of depression and stress. You are allowed to get emotional and you are also allowed to deal with that emotion, but talking to a sales representative or clerk just to make you feel better is not healthy.

Their job is to make sales, not your welfare. This is not intended to paint anyone in any sort of way but rather, to educate you. Instead of making that trip to the store or browsing that online catalogue, it would be better for you to call up a trusted friend or family member and talk with them. You’ll thank me for it.

DO NOT SIGN A CONTRACT YOU DO NOT FULLY UNDERSTAND

A contract is an agreement between two people that is legally binding. Four essential elements that make a document legally binding are; an offer, an acceptance, an intention to form a partnership, and a consideration that usually involves money. It can be oral or written. When it is oral unless recorded, there is no solid proof that an agreement was made, but, once it is written there is enough proof.

So before you go ahead and sign that piece of document, you must be fully aware of the terms and conditions of your agreement. Yes, a contract may, however, be considered invalid for specific reasons, but the bottom line is that you should avoid any situation that would put you in any money problem. It is more rewarding to get professional advice than implicate yourself unknowingly.

With all that’s been said, the crux of the matter is that you must be intentional with your money. Only then, can you plan, only then can you learn from your mistake, only then can you track your money movements, be deliberate, make decisions and take actions with a purpose. Develop a relationship with it (a healthy one of course), get to know your money, go on money dates and your financial health will bless you for it.

Coronation ads

Continue Reading

MSME

FG says 174,574 successfully register for N75 billion MSME survival fund in 48 hours

174,574 persons have successfully registered for schemes under the Nigeria Economic Sustainability Plan.

Published

on

FG releases new details on MSMEs support scheme, budgets N200 billion for loans, FG says 174,574 successfully register for N75 billion MSME survival fund in 48 hours

The Federal Government has disclosed that a total of 174,574 persons successfully registered for the N75bn National MSME Survival Fund and the Guaranteed Off-take Stimulus schemes under the Nigeria Economic Sustainability Plan, within 48 hours.

The disclosure was made by the Minister of Industry, Trade and Investment, Ambassador Mariam Katagum, during a media briefing on the update of the schemes, on Thursday, September 24, 2020.

Mariam Katagum, in her statement, said: “As at 8.30 am this (Thursday) morning, total successful registrations stood at 174,574 with the following states having the highest applications as follows: Kano, 19,895; Kaduna, 13,575; Lagos, 13,640; Katsina: 8,383; Federal Capital Territory, 8,085.”

She stated that the registration for the MSME Survival Fund commenced on September 21, 2020, at 11 pm, and within 24 hours, approximately 138,000 individuals had logged on, created profiles and completed the first stage of registration with Kano, Kaduna and Lagos as lead states.

(READ MORE: Nigeria’s external reserves up by 7% in 21 days, currency speculators to lose over N10 billion)

GTBank 728 x 90

Going further, Katagum said, “All successful applicants received SMS and email verification with a list of requirements for the second stage of application which would commence on October 1, 2020. Applicants will be required to upload details supporting their applications which will be verified and if successful, approved for disbursements.”

The minister further disclosed the states that recorded the highest numbers of applications within the first 24 hours of registration; these are Kano, which recorded 16,880: Kaduna, 11,438; Lagos, 10, 530; Katsina, 7,354; and Bauchi, 6,622.

Explore the Nairametrics Research Website for Economic and Financial Data

GTBank 728 x 90

She also stated that registration for other tracks would start next with the hospitality industry coming on September 25, 2020, by 10 am; payroll support (others), September 28, 2020, 10 am; while artisan/transport grants would start on October 1, 2020.

Nairametrics had two days ago reported the opening of the portal for its N75 billion Micro, Small and Medium (MSMEs) Survival Fund and Guaranteed Off-take schemes with effect from 10 pm on Monday, September 21, 2020.

READ: Delivering mass housing as a path to Nigeria’s economic recovery

These two MSMEs initiatives namely MSMEs Survival Fund with payroll support track and the Guaranteed Offtake Scheme which are at the core of FG’s N2.3 stimulus package in the Economic Sustainability Plan, were introduced by it as part of the efforts to help businesses overcome challenges posed by the Covid-19 pandemic.

Fidelity ads
Continue Reading
Advertisement
Advertisement
Advertisement
ikeja electric
Advertisement
Patricia
Advertisement
FCMB ads
Advertisement
Advertisement
IZIKJON
Advertisement
Fidelity ads
Advertisement
first bank
Advertisement
bitad
Advertisement
deals book
Advertisement
financial calculator
Advertisement
deals book
Advertisement
app
Advertisement