2019 Christmas Money Matters

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The Christmas festive season is here with us again. And almost everyone around the world is in a festive mood. This is peak season for airports among many other forms of travel because many people are travelling home for Christmas or going on holiday to celebrate Christmas in style. I believe even money lending institutions are also very busy as they disburse loans to individuals who are putting it into business during this peak season while others are going to be using it for the Christmas festivities.

Now, the major issue would be….Can you afford the Christmas holiday vacation or are you being pushed into going on a vacation just because your fiends are doing it.

If you haven’t saved for the Christmas holidays then, it is only prudent not to go into debt during this festive season. These are temporal matters that requite a contented heart more than emptying the pockets.

It’s only going to be a week after Christmas before new year comes and then the year 2020 commences with a lot of demands on family , job, business etc and you’re gonna money for that.

For the sake of your financial stability, remain debt free, focused but celebrate with friends and family for Christ to be born in our hearts. Merry Christmas!!

Taboo words- Salary, Debt, Savings and Credit score in Finance

It is rather odd how a conversation on money would be going on very well until you mention the taboo words – Salary, debt, Credit score and savings. If you try to delve deeper, people will now have excuses…. Oh, I am sorry guys, it’s already 5pm and I have a book club meeting….I just received an urgent message from my mom, I’ve got to go…Oh my! I have just remembered that I left my kitchen tap open, my kitchen must be flooded, see you guys…

Those that are brave enough to remain and go on with the conversation may be the few that have a six or seven figure salary, those that have financial freedom, those that have deep insight into these financial terms or those that will always lie about their figures 😉

Well, I have to admit that it wasn’t easy for me at first. I had all sorts of bad debts, very low credit score, meagre salary and to add salt to injury no form of savings at all…. That was so reckless of me 😦 Anyway, thanks to the financial insight I have now, I can now proudly have a healthy conversation on these taboo topics.

This doesn’t mean that I have reached the highest heights of financial freedom but I believe I am going up the ladder with each small but cautious step.

I want to share with you reasons why you need to open up and talk about these dreaded finance topics that are unwillingly spoken about. I believe that you can learn from my past mistakes and make better financial decisions.

1.Live within your means

Sweetie, you do not have to keep up with the Kardashians. You should cut your coat according to your cloth. I was in a group of female colleagues with whom we would go for a cup of coffee together after job and another friend of ours owned a clothes shop. As we passed by to say hi she would always mention of this new arrival of jackets, jeans, office wear, shoes etc and my wealthy colleagues would quickly jump in excitement to fit their sizes. Of course, I wouldn’t want to be left behind and look poor. This was out of my budget but anyway, I would brush off this guilty feeling of going out of the budget. And then came that statement from a colleague… Hey gal, you have worked yourself to be bone, you deserve to reward yourself gal!!!.. That statement always knocked out the senses out of me immediately and I would find myself asking for three pairs of a type of a shoe in three different colours.

Often, I would try to make impressions by paying coffee for these wealthy colleagues just to fit in. That was stupid, right? It’s important, not just in finance, but in life, to be who you are and the world will adjust to fit into your lifestyle.

More insight on this, here

2. Ask for directions from people who have been to where you want to go.

Continue reading “Taboo words- Salary, Debt, Savings and Credit score in Finance”

How to save for a financial goal easily.

Do you really want to save for something so badly? Have you ever wanted so much to save for something so much that you wonder how other people do it? Have you actually gone ahead and tried saving but on the way you gave up and used the little money you had saved on something else that was rather extravagant?Today, you are going to learn how easy the art of saving for your goal is and you are going to achieve all those goals that you have once wished to but have never known how. You have maybe been a victim of just saying something and assuming that you have set a goal. You have said things like This year, I am going to save for a car….Next holiday I will travel to the Bahamas… All you do is say but in the actual sense you have not set a goal. Once you set a goal it is also important to visualize the dream. Figure what this goal is .In this case, I am assuming that you have already set your achievable goal, set up a timeline and put up a plan on how you are going to do it. By doing this you have already calculated all that you need in order to realize your goal -you have monetized your goal. This means that if you want a car, you have the picture in mind of the type of car you want – will it be okay for the purpose you are buying it for? Can you afford it? (is your goal achievable?) ;the estimated market price of the car by the time you are going to be buying it; the cost of insurance;will you need financing? If so from which company; Would you want it new or used? By when should you have achieved your goal? In a but shell your goals should SMART ( Specific, Measurable, Achievable, Relevant and Time-based) https://www.thebalancesmb.com/elements-of-a-smart-business-goal-2951530Today we are looking into the magic of how to achieve this SMART goal.

1.Visualize the goal.

I know this sounds crazy but I want to tell you that it ain’t crazy at all. When you visualize that SUV that you want to buy and actually make a visual board where you pin this picture of the SUV you I tend to buy, and have a look at it every now or every morning when you wake up, trust me this dream becomes a magnet to that SUV. How? Every time you consciously look at the picture, you are putting ideas into your subconscious mind which in turn helps you come up with the how of doing it. You don’t want to lose focus – Yes, that’s how. Think of how your lifestyle is going to change – envision it…what do you see? Which specific SUV are you driving? Is it a Range rover? This visible trigger will motivate you towards saving for your dream. Inspire yourself with videos or books or websites , like this one 🙂 , that encourage you to dream on as they give you tips on the ways of going about achieving a goal. Try it….it works.

2. Believe in yourself.

I know you expected very difficult financial words on this but I told you that it was going to be easy. What do I mean by believing in yourself? We have tried saving before and it may not have worked out and you thought to yourself… Nuh, this is not meant for people like me… It is, Bro. Saving is meant for people like you.. People who have the audacity to dream. You need a mind change. You need to challenge yourself. So take courage brother, saving you are going to do.Apart from self discouragement, we have our peers who will always seem to know it all about us. The Oh no, you cannot achieve that… Look at so and so, the tried it but it did not work… Avoid such people…Run sister, run away from these people because all they do is feed your mind with negative vibes. Remind yourself constantly about your important goal. Remember, you have to stay focused!!

Continue reading “How to save for a financial goal easily.”

What is Financial Services?

Financial services

Financial services are services that are provided by the organizations that deal with management of money- they are provided by the finance market.

They are professional services that involve investment, lending and management of money and assets.

Financial services are economic services provided by finance industries like banks, insurance companies, credit unions, saving institutions etc.

Financial services include:

1. Banking services.

These services provide financial services in two distinct types of banking services which include commercial banking and investment banking. Commercial banking involves services like issuance of checkbooks, provision of personal and commercial loans and other credit facilities, provision of ATMs etc. Investment banking involves services like capital markets, brokerage services, private banking etc.

2. Insurance services.

These financial services include provision of insurance brokerage, finance and insurance (FI), Reisnsurance, and insurance underwriting among others.

3. Foreign Exchange Services.

Foreign exchange platform

Financial services provided in this category include provision of electric funds transfer (wire transfer), remittance (ability to send money back to the home of an migrant worker) and currency exchange.

4. Financial Exports.

These are the offshore financial services. They involve provision of financial services to a foreign firm by a domestic domestic firm due to insufficient domestic finances in the foreign firm’s country.

5. Investment Services.

These include:

a) Custody services – Here a financial institution is able to hold securities on behalf of another client.

b) Fund management- For example, the hedge fund management which involves overseeing investment of the pooled capital from accredited investors in a variety of assets.

Financial services are many. They are not limited to only what has been mentioned here the scope is wide

New year Resolutions

‘New year resolutions’ is not a new concept to us and if we look at this term closely we realize that we tend to use it during the early days of a new year. Majority of us tend to forget this term as soon as they finished writing it on their diary.  We tend to make resolutions that we do not follow. If so, was there need in the first place to make those resolutions?

It is of importance therefore to come up with a way of ensuring that we keep track of our set resolutions by probably having a checklist that will help us mark against our goals the much that we have achieved.

Among your other important resolutions like health and many others, financial resolutions are equally important because they improve your economic outlook. It is therefore, only prudent to restate your last years financial resolutions and check against each one of them whether they resolutions were met or not. If not, what made the situation so. Were they achievable?  If they were but weren’t achieved the it is here that you ought to devise a plan on what tactics to change or acquire just as you would do for a health resolution – should you keep dieting or should you choose to add exercises into the plan.

Some if the new years financial resolutions that you must have include:

1.  Paying your debts.

I know it doesn’t feel easy but it can be very easy depending on how you chose to see it. You may chose to make minimal pay outs to a debt accounts as you also pay more to the account having the biggest debt balance. Anyway that shall be tackled in another page.

2. Draw a realistic budget.

You can draw a budget and adhere to it

I know this has been everyone’s new years resolution but really, do we ever take time to draw realistic or sound budgets? In order to draw a good budget one has to understand  that  expenditure should never exceed the income. It is actually very important that a budget should leave some surplus cash that is not allocated to any expenditure.

3. Save!

This should be an item in your budget. Without a saving plan it is almost impossible to go by your budget because you cannot budget for some eventualities which may happen out if our own volition.

4. Come up with a sound retirement plan.

Yes, some may not need an IRA because they have a retirement scheme at their place of work but it doesn’t hurt to have your own individual retirement account. It’s even more important to have one if you are self employed.

5. Update your goals

I know the financial resolutions are many and endless but as you draw them update your goals and as we mentioned earlier find a way of ensuring that you can track your set guidelines to ensure that you follow the resolutions closely.

With that said and done, we can only expect a very financially healthy individual come the end of the year. Financial health is the gateway to all other forms of health.