| I see so many young men working hard just to | | | | "pay yourself first". No matter how much you owe |
| ensure a future for themselves and being a young | | | | auto-loans or house mortgage debt and no matter |
| adult (at heart) I felt the need to spread this word. | | | | how low your salary may seem, it's wise to find |
| My boss once told me, "you might working hard, but | | | | some amount - any amount - of money in your |
| hardly working". If after working hard for so many | | | | budget to save in an emergency fund every month. |
| years and at the end of the day you don't have | | | | If you're my kind with no inheritance to fall back on |
| anything to show for it. That's a loss you don't | | | | or rich parents to run to, having money in savings to |
| recover from. | | | | use for emergencies can really keep you out of |
| Unfortunately, personal finance has not yet become | | | | trouble financially and help you sleep better at night. |
| a required subject in secondary schools or | | | | Also, if you get into the habit of saving money and |
| universities, so you might be fairly clueless about how | | | | treating it as a non-negotiable monthly "expense", |
| to manage your money when you're out in the real | | | | pretty soon you'll have more than just emergency |
| world for the first time. No Dad or Mum to restrict | | | | money saved up: you'll have retirement money, |
| your spending by limiting your allowance. No trust | | | | vacation money and even money for a home down |
| fund to fall back on during emergencies. If you think | | | | payment. |
| that understanding personal finance is way above | | | | Don't just bury these cash inside your grandfather's |
| your head, you're wrong. All it takes to get started | | | | grave because you feel it will be safer there; put it in |
| on the right path is the willingness to do a little | | | | a high-interest savings account or a money market |
| reading and a pint of motivation – remember the | | | | account. Otherwise, inflation will erode the value of |
| winning boxer is the most motivated boxer. | | | | your savings. |
| To help you get started, we'll take a look at few of | | | | 5. Start Saving for Retirement Now |
| the most important things to understand about | | | | Just as you headed off to nursery school with your |
| money if you want to live a comfortable and | | | | parents' hope to prepare you for success in a world |
| prosperous life irrespective of whether the Nigerian | | | | that you are yet to fully encounter, you need to |
| government has you in mind. | | | | prepare for your retirement well in advance. Because |
| 1. Learn Self Control | | | | of the way compound interest works, the sooner |
| If you're lucky, your parents taught you this skill | | | | you start saving, the less principal you'll have to |
| when you were a kid. If not, keep in mind that the | | | | invest to end up with the amount you need to retire |
| sooner you learn the fine art of delaying gratification, | | | | and the sooner you'll be able to call working an |
| the sooner you'll find it easy to keep your finances | | | | "option" rather than a "necessity". |
| to yourself. Although you can effortlessly purchase | | | | Company-sponsored retirement plans, compulsory |
| an item on credit the minute you want it, it's better | | | | pension funds are a particularly great choice but what |
| to wait until you've actually saved up the money. | | | | if you don't like the fund manager used. Most |
| Banks don't tell you all the truth involved in mortgage | | | | companies even start a retirement plan just to abide |
| payments. I mean the hidden charges and non | | | | by government polices. But to retire early and |
| compliance policy. | | | | comfortable, you need to choose your own fun |
| If you make a habit of putting all your purchases on | | | | manager (if you don't like your employers choice) and |
| credit, regardless of whether you can pay, you might | | | | also start a more aggressive contribution that meets |
| still be paying for those items in 10 years. It is better | | | | your old age aspiration without adverse effects on |
| to pay in full 5 things you can afford now than pay in | | | | your present age needs |
| part 10 things you can't afford. In an economic | | | | 6. Guard Your Health |
| meltdown, you might loose all 10. | | | | If meeting monthly health insurance premiums seems |
| 2. Take Control of Your Own Financial Future | | | | impossible, what will you do if you have to go to the |
| If you don't learn to manage your own money, other | | | | emergency room, where a single visit for a minor |
| people will find ways to (mis)manage it for you. | | | | injury like a broken bone can cost thousands of |
| Some of these people may be ill-intentioned, like | | | | naira? If you're uninsured from your work place, don't |
| unscrupulous commission-based financial planners. | | | | wait another day to apply for health insurance with |
| Others may be well-meaning, but may not know | | | | an HMO; it's easier than you think to wind up in a car |
| what they're doing, like Aunty Sola or Grandma who | | | | accident or trip down the stairs. You can save |
| really wants you to buy a house even though you | | | | money by getting quotes from different insurance |
| can only afford a treacherous adjustable-rate | | | | providers to find the lowest rates, and try having a |
| mortgage. | | | | conversation with any of their clients. Also, by taking |
| Instead of relying on others for advice, take charge | | | | daily steps now to keep yourself healthy, like eating |
| and read a few basic books on personal finance. It is | | | | fruits and vegetables, maintaining a healthy weight, |
| also easier to bear when the mistake was made by | | | | exercising, not smoking, not consuming alcohol in |
| you. Once you're armed with personal finance | | | | excess, and even driving defensively, you'll thank |
| knowledge, don't let anyone catch you off guard - | | | | yourself down the road when you aren't paying |
| whether it's a significant other that slowly siphons | | | | exorbitant medical bills. |
| your bank account or friends who want you to go | | | | 7. Guard Your Wealth |
| out and blow tons of money with them every | | | | If you want to make sure that all of your |
| weekend. Understanding how money works is the | | | | hard-earned money doesn't vanish, you'll need to |
| first step toward making your money work for you. | | | | take steps to protect it. If you rent, get renter's |
| (If you're new check out our investment 101.) | | | | insurance to protect the contents of your place from |
| 3. Know Where Your Money Goes | | | | events like burglary or fire. Disability insurance |
| Once you've gone through a few personal finance | | | | protects your greatest asset - the ability to earn an |
| books, you'll realize how important it is to make sure | | | | income - by providing you with a steady income if |
| your expenses aren't exceeding your income. The | | | | you ever become unable to work for an extended |
| best way to do this is by budgeting. Once you see | | | | period of time due to illness or injury. |
| how your evening bottles of small stout adds up | | | | I had a friend whose boutique was burnt down in |
| over the course of a month, you'll realize that making | | | | Port-Harcourt, southern Nigeria, when I saw him, he |
| small, manageable changes in your everyday | | | | wasn't perturbed as I expected. But later found out |
| expenses can have just as big of an impact on your | | | | that the whole complex was insured. So you get my |
| financial situation as getting a raise. In addition, | | | | point |
| keeping your recurring monthly expenses as low as | | | | A Financial Basis for Life |
| possible will also save you big bucks over time. If you | | | | Remember, you don't need any fancy degrees or |
| don't waste your money on a posh apartment now, | | | | special background to become an expert at managing |
| you might be able to afford a nice house of your | | | | your finances and ensuring a future for you and your |
| own before you know it. | | | | family. If you follow these financial rules for your life, |
| 4. Start an Emergency Fund | | | | you can be as personally prosperous as the guy with |
| One of personal finance's oft-repeated mantras is | | | | the hard-won MBA. |