Ask the average Nigerian what his or her biggest problem is, and likely answers would revolve around money; whether it is making more cash or spending it wisely, money is such a big deal- and rightly so.
Money problems are real and influence the decisions we make. It is quite normal for people to want more money-after all even some economists exempt money from the law of diminishing utility.
The problem, however, is people erroneously think they need to earn more to afford things they ordinary should.
Across different income class, gender, age and background, these are some of the money issues that keep people up late into the night and of course, how to address them
Setting up a financial plan
People find it difficult to take stock of their wealth and set up measures to achieving their long term financial targets involving detailed savings and investing strategy.
Financial plans are important for securing one’s future and ensuring the sustainability of wealth. Even though setting up a financial plan is not a common practice, it is easier to achieve than most people assume.
To set up a financial plan, ask yourself what your financial goals are. There are two types of financial goals, short and long-term. Short-term goals focus on using your money today, while long-term goals deal with saving and spending for at least five years.
Once you have mapped out where you want to be financially from your present status, you should proceed to draw up a budget that allows you to utilize your resources effectively.
Read More: 10 tips to get almost anything at the best price
Paying (Children’s) school fees
Parents love their children and always want the best for them but paying school fees is one aspect of raising children many parents dread.
Quality education costs a fortune and pooling resources to invest in the future of one’s child(ren) is a big money problem.
However, parents can plan by setting aside a certain percentage of their income every month to fund schooling. The mistake many parents make is waiting until the beginning of a new school term or session before they start making arrangements for settling education bills.
Alternatively certain Banks today have facilities and programs that can allow cash-strapped parents to settle immediate and pressing obligations, though people have divergent views on borrowing from banks.
Parents can also set up investments and trust to sponsor their children’s education. Imagine buying safe securities and assets with yields above interest rate to train your 3-year-old daughter in an ivy-league institution when she turns 17. Plan ahead.
Buying a Car
These days the debate about a car as an asset or a liability is increasingly tilting in favour of owning an automobile. Even though they are relatively expensive-depending on income and brands-the necessity of owning an automobile has somewhat intensified.
To own a car within a reasonable period is very realistic with effective planning. Asides saving to buy a car, there are platforms today that allow people to purchase quality vehicles at an affordable rate. For example Cars45.
Instalments payment, swapping old for new vehicles are services available from dealers which you can take advantage of.
Saving too little or nothing at all
Putting money aside and seeing your resources grow can be exciting, but many people find it challenging.
People often live from hands to mouth and it creates a big concern about their financial state.
Discipline is what is lacking more often than not and a smart way to save might just be leveraging fintechs that allow one automate savings.
These days there is an abundance of mobile applications that one can leverage to save and grow wealth.
Alternatively, you could create an alternative account and issue a standing order to your bank to transfer a certain amount from your main or salary account every month.
