If you took time to take stock of your expenses in the month of March, you may notice that at least a third of the monies spent might not be accounted for especially on those ‘little-little’ items. The ones we think do not matter and as such we do not need to have a budget for. Such as spontaneous treats for ourselves and children, new weaves/ extensions for our hair, perhaps due to prompting of friends or hair stylists, aso-ebi, cosmetics recommend by a friend as ‘the life-saver’. It could be weight loss programs we start and don’t complete, evidenced by the tins of shakes and pills in a corner in our homes to mention a few.
Some of us ladies see making investment decisions as a huge task that requires us first having huge sums or money before approaching the experts. In some cases, a few of us are quick to invest our funds in businesses with little understanding of how it works. When these investments go bad, we become more repulsive towards investing and use it as an excuse not to imbibe the investing culture.
Looking at the importance of being financially proactive by supporting our spouses in the running expenses of the family, it is essential that we mothers/ intending mothers take the responsibility of investing an affordable portion of our income, between 5% to 10% on a monthly basis in assets that would generate guaranteed returns.
A way of doing that is by investing in vehicles with compounded interest which gives the opportunity of earning interest on principal and accrued interest. For instance, if you invest N25,000 monthly at 10% interest per annum, at the end of 5 years you would have about N1,790,000 as your accumulated investment which would definitely solve your future financial needs; money which you ordinarily would not have if you did not apply caution when purchasing those insignificant or unaccountable for items.
As role models to our children, we need to help them inculcate the habits of saving by opening an investment accounts for them and encouraging them to make their contributions from allowances and monetary gifts received from friends and relatives. Eventually, they will learn to be financially prudent and wise in their spending.
- Review your current financial priorities and allocate your funds accordingly
- Set aside an affordable portion of your income (recommended savings 5-10% of earnings)
- Create an account with compounded interest
- Start with the little you have
- Make a direct debit on your income account
- Watch it grow
photo source: destinyman