Take an inventory of what you currently have before making new purchases. Also, to prevent wastage, centre your shopping list on shelf-stable food items.
The 5 Keys to Successful Investing - An OVERWOOD Thread
Investing improves your odds of reaching financial freedom. If you pay attention to these principles as you make investment decisions youโll be more likely to achieve your goals.
1. Do your research
Before investing, you should have done thorough research to have some knowledge of what youโre investing in. Know where your money is going and what youโll get in return. Invest in only what you understand.
2. Donโt take unnecessary risks
How much can you afford to lose? Use this question to guide and review your investment decisions. Investors with more time can recoup from losses but if youโre nearing retirement, you should adjust your risk tolerance.
โDo not save what is left after spending; instead spend what is left after saving.โ
โWarren Buffett
The best way to get ahead financially is to save. Itโs another salary week, follow these steps to help you reach your future goals:
1. Add up your monthly income
Before paying yourself first, you need to figure out how much to pay yourself. Sum up your monthly cash inflow net of taxes. This first step ensures every income source contributes towards your financial goals.
2. Budget your expenses
Have a plan to spend. Your budget should tell you where your money should go. Prioritize needs over wants & ensure you always include variable expenses in your budget to avoid debt. Subtract monthly income from expenses to know how much money is leftover
How to build an investment portfolio for each age-group.
- An OVERWOOD thread
1/ The most important rule of investment is the need for portfolios instead of individual investments.
Portfolios enable you to be more strategic with investments while reducing the possibility that you would lose everything to a single bad investment.
2/ HOW TO CREATE A PORTFOLIO
1. Start by dividing your principal into 3 segments.
- Segment 1: Conservative fund (very safe).
- Segment 3: Balanced fund.
- Segment 2: Aggressive fund (more risk).
2. Assign percentages to each segment based on life stage.
1. Stop incurring more debt.
Getting out of debt will be harder if you keep incurring more. Avoid debt by all means.
2. Build an emergency fund
Unexpected or unplanned expenses might be the reason you are in debt; an emergency fund will take care of such unplanned expenses.
3. Increase your monthly payment.
To get out of debt faster, try to increase your monthly payments if you can pay more than the minimum.
4. Automate your payments.
Set up a regular automatic payment towards your debt. This way, youโll never forget and you'd pay it off faster.
Ade and his wife, Bola have always wanted to save for their son, Kunle's future education, but they have never quite been able to make it happen. They made attempts to start a child-savings plan but each time, a more pressing issue crept up. 1/5
Bola, an elementary school teacher, lost her job during the recession. For two years, the family was getting by on Adeโs civil servant income. Every time Bola raised the issue of saving for their son's education, Ade would say, "we would deal with that in the future." 2/5
As the years went by, the cost of education in Nigeria increased and Kunleโs parents struggled to keep him in school.
After many years of toiling and incurring debt to pay for their sonโs education, Kunle made straight Aโs in his SSCE with a desire to study Law. 3/5