Tough Times don’t Last, But Tough People do…

Are you an investor trying to keep your head above the waters of this economy?

Our smart investment tips are designed to help you make sound investment decisions in this tough economic clime. Please see below;

  1. Borrow less

Think twice about taking on more debt, focus on business opportunities that do not require more capital than you can afford.

  1. Learn Something New

There just might be a more rewarding way to go about your business. Make it a goal to learn something. For instance, you might want to look up the difference between mutual funds and bonds.

  1. Master your emotions

Don’t make your most important decisions under duress. Think about it again and again, be sure it is the wise financial move to make.

  1. Diversify your investments

Spread your risk by investing in different asset classes (equities, property, commodities, bonds and cash)

  1. Reduce operational costs

Reduce your overhead as much as possible. A good way to do this is to consolidate your brokerage accounts so you can negotiate lower management fee.

  1. Get quality Financial advice

Be careful who you are listening to and from whom you are getting investment advice. Get informed quality financial advice from ARM Securities.

  1. Create multiple streams of income

Scarcity and inflation are opportunities in disguise, find that thing you can exchange for value or engage in a passive investment such as a Money Market Fund.

  1. Avoid volatile sectors

A good risk appetite might not favour you at a time like this. Channel your resources to sectors that deal in goods and services that cater to necessities of living.

  1. Build strong relationships

Build relationships that ensure you are in a network of people who challenge your thinking and provide a well of valuable information from which you can tap.

  1. Have an emergency fund

It is important to stay liquid at a time like this. Do not invest all your money, leave something to fall back on.

  1. Invest in income producing assets

This is a good time to build a dividend portfolio. However, not all assets are income producing. Contact ARM Securities for tips on how to build a profitable portfolio.

  1. Creatively solve problems

Not all challenges require money to solve them. Look within before you look without, there just might be an efficient but less expensive way to solve that problem.

Do you require expert financial advice or would like to know more about our investment portfolio management and stockbroking services, talk to us today.

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.

The post How we think about money- Busting Money Myths (1) appeared first on Realising Ambitions.

Source: Articles

Financial Education- the missing link

Financial Education- the missing link

Education, in every sense of the word begins at home. Home is where we learn our first words, it is where we find our identity, it should also be where we learn the rudiments of managing and growing money. While our children might learn high level accounting in the walls of Ivy league schools or discover the tenets of business management as graduate trainees, it might be detrimental to wait till then to introduce them to the realities of financial responsibility. Especially if we desire to successfully prepare them for the legacy we are building for them.

Financial literacy refers to the set of skills and knowledge that allows an individual to make informed and effective decisions with their financial resources. It is hence not enough to provide the resources, we must also teach our offspring to be masters of money. Our forefathers got it right to some extent, they taught us to save in the clay or wooden piggy banks we grew to cherish, we must however take it a step further. Not only must our children learn to save, they must learn to invest. Gone are the days when a good job or business and hard work was enough to cater to our needs. The successful ones today are those who have learnt not just to work to make money, but to make money work for them.

While it is essential that we provide for our children as much as we can, it is also important that they learn to grow what they have into more.

Financial goals..

It begins with setting financial goals. Our children need to learn the discipline of setting targets and meeting them. Together, pinpoint an item or experience they desire, evaluate its cost, and agree on a timeframe to raise the amount needed. With the help of investment calculators, you can figure exactly how much must be set aside monthly or weekly and make a commitment towards it. This will give the child a sense of purpose.

Bank vs Mutual Fund..

Of course, financial freedom begins with the discipline of consistent saving. What makes the big difference is how the saving is done. While your children will learn that they can preserve their money in a bank, it is even more exciting to watch their money grow in a mutual fund. Mutual funds like the ARM Money Market Fund offer competitive interest rates without any risk to the capital. You can open a Money Market Fund investment for your child with as little as 5000 Naira. From the comfort of his or her phone, your child can top up that investment with the agreed sum to be saved or even the extra change left from his/her weekly allowance. Together you can access their dashboard on the ARM Wealth planner and view the amount invested so far and accrued interests. When the target is met, the funds can be redeemed online from the same Wealth Planner portal.

Long term investments…

While mutual funds can cater to short term financial goals, children need to learn the wisdom of identifying and maximising investment opportunities. After mastering the art of consistent investing, they must learn not to expend the accumulated resources on immediate wants but to tie down funds in instruments that can become assets. From the comfort of your home, you can help your child purchase shares, stocks, or even bonds from the ARM Stocktrade portal. With the avalanche of research and market insight available on the portal, you can teach him/her to recognise opportunities and trade successfully in the stock market. Especially at special periods like birthdays and celebratory seasons when children receive financial windfall, such monies can be invested in financial instruments and your child can monitor the growth of their investment online. This supersedes merely buying shares in their name.

Once they have mastered the discipline of consistent investment early in life, say from their teenage years, they will find it extremely easy to grow their finances as they advance in life. A child educated financially will understand the need to open a Pensions account from his very first job. He will also be able to understand the many benefits of Insurance and estate planning, thus preparing for a life of financial freedom and success in every facet of life. Financial education is indeed the link between a dependent child and an independent financially free adult.

Investment calculators as well as explicit information regarding mutual funds, stocks, bonds, estate planning, pensions, and insurance are available on the ARM WebShop. Visit www.arminvestmentcenter.com to explore the possibilities.

 

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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