A former Group Head, Corporate and Investment, Citibank, Hetty Ugboh, has tasked students to diversify their income resources efficiently across various investment portfolios such as shares, bonds, real estate and many more in order to grow their income and create multiple sources of income.
Ugboh said at the Africa Institute for Leadership and Public Administration (AILPA) and covered by Nairametrics, a financial literacy seminar for Post Graduate Diploma students of the University of Lagos. The seminar was organised to teach the PGD students about personal financial planning at a period the cost of living is projected to increase within the country.
The seminar came at a period the government began to increase taxes and expand the tax bracket, which is expected to affect the purchasing power of Nigeria and the cost of living, so having an advisory on financial planning in order to navigate the complex society in Nigeria has become sacrosanct.
Ugboh said there is a need for people to set personal financial goals and that setting a goal will get the individual to a certain extent even if the set goal is not achieved at its timeframe.
“Your goal must be clear and smart.”
Making an income out of income: She put her 30-year experience in the banking and investment world to use by counseling the PGD students on various investment opportunities that could position them for growth in the short to long term period. She advised that Nigerians need to start transforming their income into another source of income.
[READ MORE: AfDB approves $22 million loan to boost SMEs operations)
She said, “It is important to invest one’s income on assets that generate revenue rather than liabilities that disguises as assets, as no paying job is guaranteed forever. Nigerians should adopt the habit of having more than one source of income; Earned income (salary), Passive income (money from work not personally involved in after initial investment) and Portfolio income (stocks, bonds, etc).”
She also shared developmental stages of how finances should be used. Ugboh listed the following;
- 25-30 years – Work to save
- 30-40 years – Save to invest
- 40-50 years – Invest to consolidate
- 50 years – Consolidate to enjoy
