Category: Personal Finance

  • Four ways to stay debt-free

    Imagine “Oga Landlord” comes knocking at the door one fateful Saturday morning and you lock yourself in because you have spent your rent money, which you borrowed from Tola, to pay up Funke whom you borrowed money from six months ago.

    As funny as this situation sounds, this has become the lifestyle of many people who live in an unending circle of debt. Achieving a debt-free life is possible if one is intentional about it. Here are ways to achieve it:

    Have self-control: In a world where businesses do not have the luxury of monopoly, products are literally thrown in the faces of people thereby spiking impulse-buying. Technology has not helped in this area as advertisements pop up every now and then on mobile devices with an easy option of free house delivery. So you can easily find yourself buying a shoe you do not need when that money could have been used wisely to prevent borrowing money in the near future.

    Save: Very linked to having self-control, you must learn how not to make purchases just because you have money at hand. It is very easy to be tempted to spend because you know money is sitting in the account. However, saving money for rainy days such as unplanned hospital expenses is very important.

    Be ready to make sacrifices: Eating out, expensive data subscription, premium cable package and going to the cinema are some sacrifices that need to be made when trying to be debt-free. If it is not necessary, stay away from it. You must be ready to deny yourself of some things to avoid being in the situation described above.

    Read Also; Six unconventional ways to survive in Lagos

    Be goal-driven: Being debt-free is a goal. To achieve it, you must have a financial objective in front of you. Calculate your earnings, draw up a budget and stick to it. Know what you want to do, have a strategy and make it happen. It is not enough that you draw up a plan. You have to make sure your plan is specific, measureable, achievable, relevant and time-bound.

    You must realize that those that run into debt worth millions probably started with a few thousands. This means that falling into debt can happen to anyone. That is why you have to make that deliberate and conscious effort today.

    Warm regards,

    Kehinde Oluwafisayo Matthew

  • ‘Skill acquisition vital to economic recovery’

    ‘Skill acquisition vital to economic recovery’

    Mrs Janet Jolaoso is the President/Chairman of Council, Nigerian Institute of Training & Development (NITAD). In this interview, she says no organisation can grow without continuous training of workers. She speaks with Assistant Editor Okwy Iroegbu-Chikezie

    What does Nigerian Institute of Training & Development (NITAD) have to offer to industries in these days of recession?

    The institute has a vision, which is to be a world-class body in learning, training, facilitation and development. Our main focus is to develop and maintain best practices in these four areas by providing mandatory, continuous professional education to our members, so that they can  deliver effectively when they have clients. I believe knowledge is light.When they deliver effectively, there will be increase in productivity and we will also be able to influence our environment through this positively. It is about ensuring that people change for better, so that the economy can improve.

    When you talk of ensuring best practices, is it in the private or the public sector?

    It is for both the public and private sectors. Training and development cut across everything in life. After your education in the university, nobody actually gather people to teach them management. You begin as a professional medical doctor, engineer or whatsoever your field is. But as time goes on and you acquire more experience and prove yourself to be good, you begin to manage people. So, NITAD is to ensure that you have effective management of people, so that they can deliver.

    You have talked about increasing productivity and the Gross Domestic Product (GDP). In practical terms, how can you achieve this?

    In this age and time, people need to look inwards to see what they can do. We come in by helping to see how attitudes, skills and knowledge can increase.The more knowledgeable you are about a certain job, the better you become in doing it and when you sharpen your skills, it helps in cost reduction. Money and jobs are scarce in the country but improving skill and attitude can go a long way to being cost effective and   affording people the opportunity to afford a particular product against its competitors. All these can curb recession. The idea is that if your price does not increase much and the value that people are getting from your products on the other hand is increasing, no matter how bad the recession period may look, you will still keep being in business. So, these are the areas we come in to improve the skills, knowledge and attitude of people through effective training packages.

    How do you structure your training to fight poverty? Does it include those in the lower rung of the ladder?

    We have postgraduate diploma in various courses that can help to upscale people, especially in lower management cadre and we have also developed what we call a finishing school. So, if one has a School Leaving Certificate, for instance, and is seeking admission and may be without money to do anything for yourself, we will be able to help you look inwards for what you can do. Many young people roaming the streets find it difficult to articulate their thoughts and see where their passion lies. When I was in secondary school in Mayflower, we had different societies – shoe making, wrist watch repairing, and catering. We were taught how to repair shoes, wrist watches, change bulbs, etc. Some who couldn’t get admission into tertiary institutions for one reason or the other went into these businesses and some of them are very successful cobblers today. Our desire is to help to pursue their passion; our belief is that it is not a university degree that can make one successful. We not only train people on lucrative skills but also help them raise funds and expose them to markets. And for the young graduates, a lot of them don’t really understand what etiquette is all about. For instance, you want to go for interview, how do you prepare yourself for people to see you as the preferred candidate above and among others? So, we prepare them in terms of dressing, approach, mannerisms. Some people fail interview because of their mannerisms, dressing; when you see green on red, you wonder where to start. All these are things we are packaging because it is a big market and it is a large gap from coming out of the university. That’s why we say education does not make a man. It is not only in character alone, it is also in your appearance and mannerisms.

    Most organisations lack the basic rudiments of ethics.Does your institute  address these?

    We organise learners’ forum at least once in a year and we look for a topic that is germane to situations in the country. Corruption is endemic and is not allergic to any sector, people tend to see corruption as a public sector thing but l disagree. The only difference is that in the private sector, the likelihood of the owners of a business challenging a manager, for instance, is high unlike in the public service. Due to bureaucracy and nepotism, people are not held responsible for whatever job they are given. To tackle corruption in Nigeria, we need to attack the mind-set. Once we can address the inner man to start thinking differently, they will behave differently.

    As the president of the institute, what are your achievements?

    When we came on board, we set up an eight-point agenda. One of them is to complete our chartered status processing.  Currently, our Bill has gone through the first and second readings in the House of Representatives and public hearing. We will be at the Senate in a few weeks. This is very significant because if we are not backed by law, we will not be able to regulate training, development, facilitation and learning in the country. When we are chartered, before anybody can engage in consultancy or training as a means of reward profession, he must register with us. For example, if a woman wants to cook, there are some steps you must take. If you don’t take those steps, the result will not be the same. If you want to be a trainer, there are steps you must take and there are certain principles you must know to effectively deliver the value that the client is expecting. Aside from the fact that we regulate that, and make sure that when you are buying into anybody’s services, you ask for evidence of being a member of NITAD because any member of NITAD must have gone through training the trainer. We also produce the membership directory and categorise our members as part of the agenda. The other thing is to also improve the soft skill areas of training. Whether you are working in a company or you are manager, you need management skills to manage your people effectively. What happens is that some people are promoted but this intervention is not there so when they become executive directors for instance, they will lack managerial skills. In that situation what you see is a executive managing the job instead of managing the people who will manage the job. In most cases, you will see some bosses go over their immediate subordinates because nobody taught them to manage the people, but only trained to manage the job.Another achievement is that we have raised our acceptance index. We now see people calling us, obtaining out forms at very high profile level. We have people from the National Assembly, director-generals and Heads of Service that are willing to join us.

    What is your advice to the government in terms of job creation?

    The government needs to come up with a policy, including creating a body that will look into skill acquisition and implementation. There must be a body, an independent agency, that should be dedicated to skill acquisition and full implementation. Furthermore, when people have acquired the needed skill, avenues must be created to empower them until they practise what they have learnt. Many youths are frustrated because they have gone ahead to acquire skills without funding for them. Our proposition to the government is to come up with an interest-free loan with less stringent conditions. This will help create entrepreneurs who will be employers.

    What role is NITAD playing to regulate learning and development?

    We are kick-starting our mandatory continuous professional examination this month for our members. And, invariably, when you are chartered, if you want to be a training consultant, you must be our member. Not only that, you will go through training the trainer course, but you also have to have this mandatory continuous examina-tion. You must know what is going on in other countries and you must know the best way to deliver the value that your clients are expecting from you. We keep upgrading our knowledge and we also want to pass this on to our members.

    Who are these members?

    We have various members, such as those training for reward in the administrative sector and those heading training departments. Our members cut across all professions but mainly those who are into training and development either for reward or for where they are working as leaders. We also have student members. They go through the PostGraduate Diploma (PGD). In addition we are also collaborating with the University of Ibadan (UI), where people can come for our course and use it to obtain a degree.

  • CBN cashless expo holds in Lagos

    CBN cashless expo holds in Lagos

    As Africa’s payment landscape is bursting with enterprise and innovation, that energy has inspired fresh engagement among youths.

    CardExpo2017 is planned to bring under one roof, for two days, a charged atmosphere where ideas are brewed in a most compelling way that can give you e-banking business and payment services.

    The seventh edition of the Central bank of Nigeria’s (CBN) Cashless CardExpo Africa, which is scheduled to hold in Lagos will aggregate the energies of this era and capture the waves of technology and lifestyles, as well as present an encompassing worldview for the emerging approaches to payment and enterprise.The annual

    The annual event, according to the organisers, the African Destination Trade Show for Payment and Allied Industry will hold on June 13th to June 15th June 2017 at Eko Hotel and Suites, Lagos.

    CardExpo2017, in line with continuing its tradition, will presents avenues to harvest the opportunities being offered in this demography, particularly in a peculiar economy in recession. Never in the history of theAfrican Continent has technology and society had such a seamless relationship as it is today as the activities of citizens, companies and governments continue to tilt towards untraditional approaches to the solution.

    The theme; Millennials in the Marketplace: LifestylesRiding on Disruptive Payment, influence is a global phenomenon and figuring out millennial, has all the elements of a gold rush in the making.

    Disrupting everything from how you work, to how you buy groceries. This demographic group is even now redefining how businesses are done.

    This will prove crucial in the next several years, as young professionals represent both the future of enterprise and commerce in Africa.

    Happening along with this bold in-road into the millennials demography are the collocated events happening simultaneously at CardExpoviz The Start-Up Challenge which will give an opportunity to Millennials with Fintech ideas to pitch their solutions and stand a chance of being incubated at a national hub.

    Others include the Data fiesta an initiative promoting global connectivity and access to the internet and the IGR Forum all of whose Sponsors will be announced in due course.Trailblazers’ and culture influencers in this category, whose lifestyle and choices are being mirrored by

    Trailblazers’ and culture influencers in this category, whose lifestyle and choices are being mirrored by a peer will be given the platform to lead them into their disruptive turf, where banks and businesses can spy at evolving trends, observe the winning norms and adapt to change.

    This will prove crucial in the next several years, as young professionals represent both the future of enterprise and commerce in Africa.

  • How to Manage Your Family Budget in Tough Times

    How to Manage Your Family Budget in Tough Times

    That the country is going through a recession is no longer news, but any parent can testify that children don’t know or understand what that means so meals have to made, the rent and utility bills have to be paid; in short the family wheels must continue to turn. Here are a few tips to help families survive these times.

    Buy what you need not what you want

    There are so many things people spend money on that can be avoided, things like Aso-Ebi, unnecessary socials, trips, in short anything you don’t need (like your life depends on it) can/ should be cut it out of your budget.

     

    Buy the cheapest options for your usual expenditure

    In buying basic necessities like foodstuff, toiletries, and utilities, ensure that you buy the cheapest version of what you need. For instance, if you love eating fish, go ahead and indulge yourself, only buy the most affordable option for your budget.

    Spend Less Than You Make

    Learn to spend less than you earn especially when times are tough. Cancel your credit card and pay cash for purchases to avoid running up debt. If you have to go into debt to acquire things, it might be best to wait until things get better before buying big budget items.

    Ruthlessly Cut Down Waste

    Most households have ways in which money is wasted; it could be food, utilities, shopping e.t.c. For instance take the time to carefully measure out food items into portions before cooking. Store leftover food in the fridge/ freezer. You can also incorporate left-overs in the next meal. For instance, if you have left over beans from an earlier meal, incorporate it into another meal. Also buy only what you can use, especially perishables. When foodstuffs go bad because they aren’t eaten in good time, money has been wasted.

    Never put your Children In Schools You Can’t Afford

    Quite a number of parents are guilty of this, its normal to want to give the best education, but it should be what you can afford. How do you know the school is beyond your means? If you are always terms behind in payment, then the school is beyond your means. Most parents who put their kids in high brow schools are only paying for atmosphere. So don’t get into debt simply for real estate, or to keep up with the joneses’.

     

  • Why You Need the 50/30/20 Budget

    Why You Need the 50/30/20 Budget

    We are in the opening quarter of a recession year, which instead of easing off, seems to be biting harder. However, the best way to survive in times like this is to strictly manage your finances. There are two types of people when it comes managing finances; those who like to face things head on, and those who choose to bury their heads in the sand like ostriches.Surprisingly, quite a number of ladies belong to the latter group, and are not independent when it comes to managing their finances, even when part of a couple.

     

    Find out about the 50/30/20 budget and learn how it can help you get a clearer understanding of your expenses.

    50%: The basics

    This is not quite as exciting as it sounds, even though fun money, and miscellaneous expenses fall into this category. Essential bills for things like your cable and mobile phone bills belong here. This is however the most flexible of the three, as the more you can save here, the more you will have to add to the other two groups.

     

    20%: Savings

    The lion share of your income goes into the basics. These are the things you simply can’t live without. They include things like food, housing, transportation, and utility bills. If for instance you live in Lagos, and drive you will spend more on transport than someone who lives in Minna. How you manage your income to cover the basics is your choice, but 50% should be left when taking out the basics.This rule will also set a good benchmark for the cost of living for items like transportation, and housing.

     

    30%: Personal Expenses

    This category gets the least percentage, but is simply the most important. Savings should be done after taking care of the basics, and before personal finances are tackled. This is the most goal centred part of this budget system. Should your job permit you to divide your salary into two different accounts, this is an uncomplicated way to send 20% of your money into your savings account without thinking about it. Adding to your investments and paying debts also counts towards this 20%.