How we think about money- Busting Money Myths (1)

How we think about money- Busting Money Myths (1)

Money is one of the few things everyone never stops thinking about. We are either thinking of how we need it, how to get it or what to do with it. Our world view, orientation to life and many other factors contribute largely to our perception of money. It begins with watching our parents handle their finances to the books we read and the experiences that shape our life. Largely, many of us have come to believe popular money myths and have taken financial decisions based them.

Which of these myths do you agree with?

–          If you earn more you will be rich

–          My partner will always take care of me

–          Inflation is not a significant problem

–          Women are not good with numbers

–          Money can’t buy happiness (neither can poverty)

–          If you work hard you will be rewarded financially

–          Having money means having fewer worries

–          Financial matters are too complicated to understand

–          Financial planning should be left to the experts

–          Credit makes purchasing easy

–          Money is the best indicator of success

They are not altogether untrue but they are also not credible enough to form the basis of the financial philosophy from which we take financial decisions.

For instance, the assumption that earning more will culminate into wealth is probable until you consider factors like inflation and increase in family size/cost of living alongside increase in income.   While many married women, perhaps even men, rely on the joint force of their spouse’s income combined with theirs to make financial projections, occurrences like job loss, loss of affection or even like divorce or demise easily change the tide.

Recent experiences in the country have more than proven that inflation can quickly reduce the value of money, making a sum that would have been abundant less than enough. Women all over the world are successfully steering the financial wheels of large organisations, easily debunking the myth that women are poor money managers. Can money buy happiness? That depends largely on what happiness means to you. Whether money can reduce your worries or not is a function of the kind of worries you have. Your definition of success determines the possibility of being an indicator of how successful you are. While many have built conglomerates on borrowed funds, many have also dug their way into burdens of endless debts.

We could go on about the myths and it will only get clearer that these assumptions are hardly the foundation for financial freedom. Issues regarding finances are not too complicated for everyday people to decipher neither should we make financial decisions haphazardly.

In the next edition of these series, we will pinpoint critical factors to consider in our relationship with money, with regards to achieving our financial goals.

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

Established and Unmarried…planning your retirement.

Established and Unmarried…planning your retirement.

Once upon a time, being unmarried was considered a disadvantage, however many single people have gone ahead to lead respectable and established lives. While a person may stay unmarried for several reasons, be it by choice or due to unplanned circumstances, planning your retirement as a single person does not have to be a cumbersome process. There are some key things you should consider in your quest for a secured future as you approach retirement.

  • Who is your Next of Kin?

If you were previously married or never married, there is a possibility that either your spouse or one of your parents is named your Next of Kin(NOK). Either ways, there is a need to review your NOK to ensure that it alludes to someone who is agile and responsive enough to play that role, should the need arise. See the full duties of a NOK here.

  • Do you have an RSA Will Beneficiary?

You might also want to consider setting up an RSA Will which clearly states who should benefit from your pension fund should anything happen to you. Your NOK is not automatically entitled to access the funds in your pension, you need to set up a beneficiary for that purpose.

  • Have you saved enough for tomorrow?

In the case where you have mostly been dependent on your spouse financially, now is a good time to take charge of your finances in preparation for the future. To save faster, we recommend that you set up an Additional Voluntary Contribution to supplement your monthly pension contribution.

  • How responsive is your PFA?

To put all these in place, you need a reliable and accessible PFA. Your relationship manager at your PFA will guide you into choosing the right payment option for your emolument. If you do not have a PFA or would like to move your account to ARM Pension, talk to us today.

  • Other Investment opportunities

Perhaps your late spouse left you an inheritance, you could consider reinvesting the funds to yield more for you. Real estate, mutual funds and stocks are good investment opportunities to consider.

Should you require further information regarding any of the points raised above or general information about your Pension, send an email to [email protected] or call +234 (1) 2715000/ 0700 CALL ARM (0700 2255 276).

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Source: Blog

Not again, not this month!

Not again, not this month!

This month did not quite start on a high. Five long weeks of August left you wondering if September would ever come. Your salary had not even settled in your account when ‘Happy school fees week’ posts reminded you of the school teller sitting in your bedside drawer. If only you had saved consistently in your Money Market Fund, it would probably have been enough to settle the school fees.

On your way to work, you hear the OAP lament on the radio that the government can’t be right, recession is not over. Hmm, this recession matter, if the government is seeing a silver lining, maybe it is time to buy FGN Bonds or Treasury Bills. So, you log in to ARM STOCKTRADE and discover there a few gainers on the stock market, you make a mental note to buy bonds and maybe a few shares when salary comes.

Three weeks into the month, ASUU calls off the strike finally. You wonder if the education system will ever thrive again. If you have your way, your children will school abroad. They are only in primary school though, still a long way off. Yet, you wonder how much you would have in 5 years’ time if you just drop 15k into an account every month. Wait, isn’t that what the ARM Education Plan is about? Mostly. Except that you get an interest and it converts to insurance if things don’t go as planned? Sounds good actually.

That night, in bed, you realise what the real problem is. You want to save, you know you should invest but you hardly get around to doing it. It’s almost pay day and already you can see it happening again. All the tiny-tiny expenses rearing their heads, the little foxes that mess up your plans.

Not again, not this month.

So you set up a Direct Debit mandate on the ARM Wealth Planner. There! such a simple step and your monthly savings are guaranteed.

September now has a new meaning. It will be remembered as the month you took charge of your life.

 

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Source: Blog

Ten points to note before investing in stocks

Ten points to note before investing in stocks

Stockbroking can be a profitable investment avenue largely misunderstood by many.  With the digital age and ease of online investing, questions abound about how it works, who should invest in stocks, what kind of stocks to buy, when to sell and whether it should be considered for short or long term investing.

To answer some of these questions and shed more light on the science of trading in stocks, let us consider nine points everyone should note before investing in the Stock Market.

  1. You are buying more than just shares, you are buying into a company
  2. Buying a stock makes you a shareholder which means as the company profits, you profit as well. If the company does not profit, you also do not profit.
  3. A stock’s price is determined by the company based on their industry, economic environment, customer base and political climate.
  4. Before investing, it is wise to research into the organisation you are interested in as well as other stock market updates within your reach.
  5. Your gut feeling or perception is important in stock broking. Never rely on it alone, always get expert investment advice as well.
  6. Have an investment plan that will guide your investment choices. Ascertain whether or not you want to invest long or short term.
  7. Never invest all you have at once. Always have some money reserved for opportunities that come up.
  8. Shares should not constitute all your assets, diversify your investments.
  9. Monitor your stocks, even if it is a long-term investment. The stock market is dynamic and ensuing developments might affect you in the long run.
  10. Always go through the right channel when investing in stocks. Speed of execution, availability of advice, update speed and information supply are some of the things to consider when selecting a stock broker.

With all the above checked and confirmed, you are ready for a rewarding stock trading experience. Sign in to ARM Stocktrade, and enjoy the ease of investing from the comfort of your home, via any internet enabled handheld device. With real time updates and access to research reports, you have everything you need to make favourable stock trading investments.

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Source: Blog

Life drops from my kitchen tap

Life drops from my kitchen tap

My kitchen tap is perhaps the most used tap in the entire house. Hence, when I noticed it did not completely stop running after I turned it off, I was not bothered. What can a few inconsistent drops of water really do in the scheme of things?

Until a few days later when the water tank emptied much quicker than expected. Is it possible that those inconsistent drops had an effect? To double check, I left an empty bowl under the closed tap and went off to work. I was beyond surprised to find the bowl full and running over. Little drops of water indeed make a mighty ocean.

The little episode at the tap got me thinking about the little drops of many things I had disregarded over time. Like the little drops of money I had squandered on unnecessary things, like that time I got aso-ebi for a wedding I was not even attending.  Or my weekly movie ritual, totally convinced 2000 Naira cannot turn around the economy of my life.  Or the little drops of valuable time I had wasted all those months I refused to save, assuring myself that not saving this month will not change anything.

It hit me that if my closed tap could produce enough water to fill an empty bowl over time, I can squeeze out funds to save regardless of the hardness of the times. A closed tap is dry, just like the current financial climate is. With consistency, I can meet my financial goals regardless of the times.

I could not leave room for excuses or happenstance, I immediately set up a direct debit to my Money Market Fund. Direct debit will help me save consistently. The amount I have stipulated will automatically be transferred from my bank account to my Money Market Fund every month on the date I specified. No more procrastination, no more excuses, welcome consistent saving.

What are your financial goals? Get closer to achieving them by setting up a direct debit order. A direct debit order is a sure way to ensure nothing interrupts your savings plan.

Click here to talk to a financial advisor.

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Source: Blog

Let’s talk about your salary!

Let’s talk about your salary!

When you realise it’s payday and salary is just around the corner. Wawu!

Then you remember all the things you are supposed to pay for and that aso ebi you bought on credit

You start calculating and you watch your salary finish before it even arrives

When the salary finally comes, there’s no joy

You are already broke on the 28th, when the month is not yet over and you still have a whole month to the next salary

There goes your plan to save this month

But it does not have to be that way, what if you learnt to save before you spend?

And actually start working with a monthly budget. It’s easy, see how it is done

To be safe, decide on the amount you want to save and set up a direct debit of that amount to your Money market fund account

Of course, if you are blessed with extra change, you can still save it here

This way, you are no longer broke all the time and you even have money working for you. Issa big boy, yeah?

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Source: Blog

Neymar and Mbappe’s club transfer millions

Neymar and Mbappe’s club transfer millions

The 25-year-old FC Barcelona star player Neymar da Silva Santos Júnior, is in the football club transfer news for all the juicy reasons. Paris Saint-Germain have paid the £199million buy-out clause in his contract with Barcelona and take him to Ligue 1 for the 2017/18 season. This transfer is already sealed, making it the highest football club payment ever to be made for a player.

Riding alongside this financially monstrous deal, is the rumoured buy-out of Monaco teenage ‘wonderboy’ Kylian Mbappe by Real Madrid for a staggering £160 million club transfer. The news broadcast is buzzing with the transfer news and Nigerians have already whipped out their calculators to find out the hourly, daily and weekly breakdown of these huge amounts.

Nigerians don’t want N30 billion in their accounts…

No way! How can they when some ‘small boys’ are getting paid jaw-dropping amounts yearly for playing football. They are not carried away anymore by Davido’s N30 billion croon, they are now after the bigger bucks.

The breakdown of Neymar’s new transfer fund has left many Nigerians wishing their parents had forgotten about education and had put them in a football academy instead. Some even want to reduce their ages and pursue a football career, all in a bid to get a bite out of the scrumptious package the high paid footballers enjoy.

Even if your earnings are not as robust as Neymar’s, you still need to plan towards a financially free future. Here are a few tips to help you plan.

Decide to stay out of debt: When you make up your mind to spend reasonably, you can control your expenditure while still meeting basic needs and enjoying guilty pleasures from time to time. All these begin with a consciousness of priorities and a clear vision of a financially free future.

Lay out a financial map: By understanding exactly how much you earn and realizing that it may not always be so, you can set the wheels in motion to prepare or hire someone to prepare a financial map that detail your earnings (net income preferably), expenses, debts (if any) and investments. If there are debts, list them from smallest to biggest, and attack the smallest ones first while making minimum payments on the rest. You must avoid consolidating loans and similar methods of getting out of debt.

Keep lifestyle in check: Avoid living a financially loud life. Instead look for ways to ensure consistent earning even upon retirement by investing wisely.

Once you learn to prioritize, plan and have your spending under control, life before and after retirement will be a financially enjoyable one.

 

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Source: Blog

Steer Clear of Bad Debts …live within your means

bad debts

Nobody wants to deal with bad debts, but unfortunately, it is a very common phenomenon. You’d be surprised to find out how many people you know struggle to manage their bad debts but with a change in attitude and the right strategies in place, a debt-free lifestyle is achievable.

Make up your mind to stay out of debt: Many people fall into debt because they spend above and beyond their means, living from salary to salary with barely enough to pay the bills. They can’t afford to pay for hang outs on Fridays, the new clothes that go with it, or the movie after. Yet, they continue to spend towards these outings every weekend.

The honest, painful truth is that if you don’t have the money for these things, you should not be doing them. Learning to be satisfied with your limitations is difficult but it is the critical first step to achieving a debt-free life.

Lay out your financial map: Understand exactly how much you make; your net income preferably. Understand how much it costs to run your life. Write down every expense and see where your money is going. List your debts from smallest to biggest, and attack the smallest ones first while making minimum payments on the rest. Avoid consolidating loans and similar methods of getting out of debt.

Keep your lifestyle in check: Don’t go on a spending spree because you got a new job. Look for ways to earn extra money and pay pf any existing debts you may have.

Once you learn to live within your means and have your debt under control, life will be much easier, and hopefully you’ll never return to the dreadful waters of too much debt.

“Debt is like any other trap, easy enough to get into but hard to get out of” – Henry Wheeler Shaw

Stay tuned on this blog for more tips.

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Source: Blog