How We should think about money- Busting Money Myths (2)

How We should think about money- Busting Money Myths (2)

In the previous edition, we discussed popular money myths that have governed our financial philosophy and hampered our desire for financial freedom.

It is important to realise that money is basically a tool and the results it yields depend largely on how we use it.  Financial decisions, little or great, must be well informed and thought-out, factoring the future, near and far. By taking control of your finances, you can work towards financial freedom, regardless of your background or status. The following are critical factors to consider in shaping our philosophy about money and positioning ourselves for financial growth.

  • How many income sources do you have?

You need to have revenue before considering financial growth. The first key factor to consider is your income source. How consistent is your income? Are there opportunities for extra income worth pursuing? An extra income source is always a plus on the journey to financial freedom.

  • Are you living above your means?

If you are spending as much as you are earning, you are living above your means. To attain financial freedom, you need to segment your revenue to leave room for savings alongside catering to your needs. Warren Buffet advices that we spend only what is left after we have saved.

  • Do you have achievable financial goals?

What are your financial goals? To buy your own home or raise capital to start your business? Whatever it is, ensure that your goals are SMART – Specific, Measurable, Attainable, Realistic and Timely. It is also wise to have a trackable plan towards achieving your goals.

  • Do you have a financial plan?

Everyone should have a financial plan, both short term and long term. A financial plan helps you manage your finance by giving you a clear picture of what you have, what you need and what you will do to get what you need. If you require further knowledge about financial plans and how to create one, contact us to speak to a professional financial adviser.

  • What is your attitude to debt?

Except in situations where it is tactical and strategic (for the purchase of an asset), borrowing is often a pit as it deducts from your future revenue before it even arrives. As much as possible, work towards managing your finances without resorting to loan, especially personal loans.

  • What is your attitude to investments?

Savings is good and is essential for anyone pursuing financial freedom. Investments are however one step ahead of savings your money is not only preserved but also grown. Depending on your risk appetite, financial plans and goal, invest in asset classes comfortable for you.  You could consider treasury bills, stocks, bonds, mutual funds or even real estate.

  • What is your retirement plan?

It is never too early to start preparing for retirement, especially if you hope to retire rich. Setting aside a sum every month to your pension is an investment in the future. Where possible, consider Additional Voluntary Contributions for increased retirement savings and reduced tax load.

  • Are you covered?

As you advance in life, financially and otherwise, it is important to consider insurance options available to you. Insurance helps guide against unnecessary loss in the face of unplanned circumstances and ensures our families are protected, should anything happen to us. As your assets and wealth increase, estate planning is an option you should consider. Wills, Trusts, and other estate planning instruments leave your assets and loved ones protected without hampering the growth of your investment.

Conclusively, financial freedom is attainable and worth striving for. Give it a try this new year, change your orientation about money and choose to become the master of your money, deliberately putting it to use. You will be amazed at the growth you will record as the year progresses.

Should you require further information, write to us at [email protected] or connect with us on social media- Facebook, Twitter, and LinkedIn. You can also call 0700 CALLARM (0700 2255 276) or visit our Investment Center nearest to you.

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Source: Articles

4 reasons to get life insurance

4 reasons to get life insurance

The topic of getting life insurance is one you may not want to talk about. But because it is important that you ensure the financial security of people that depend on you, it is worth dealing with.

First, let us break down why you need one.

If you’re a breadwinner, you need a life insurance

Let’s be real, if you are the main financial backbone in your family and anything happens to you, your partner, children and anybody else that depends on you, will probably suffer financially. This is one of the major reasons people get life cover; to ensure a safety net for their loved ones in the face of unforeseen circumstances. With the rising cost of education, you can ensure that your kids will still be able to get the education they deserve should the worst happen.

It is not anticipating bad omen. It is simply facing reality and planning for it.

Got loans?

This is one that you might not have thought about. What becomes of your family if you have taken a loan or got a mortgage and something happens to you and there is no one to pay it off? Proceeds from your life insurance policy can be used to settle these loans ensuring that if the worst happens, your family doesn’t have an additional debt to deal with.

Single but responsible

Now, being single doesn’t mean you don’t have anyone that depends on you financially. It could be an elderly parent, sibling or relative. Having a life cover will make sure that these people you care about will be taken care of regardless of your presence, giving you and them peace of mind.

If you need to take care of future medical expenses

If you can’t predict the future, then you never know what may happen. A life protection plan comes in handy in the event of injuries, accidents or terminal illnesses which may prevent you from working. It saves you and your loved ones from unplanned and expensive medical bills.

While life insurance protects your family in the event of uncertainty, there are also lots of other benefits to getting one. Haven’t already taken out a life insurance? It’s not late.

Get in touch with us today via [email protected] to discuss your options.

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