Money wisdom

In 2019, I encountered Sola, a diligent and financially astute young lady who owned a beauty salon in Lagos. Despite having only completed primary school, she exhibited remarkable money management skills. Curious about her background, I asked her how she acquired such enviable skills. I discovered her grandmother was the source of her financial wisdom.

Sola recounted her grandmother’s teachings, particularly emphasizing the practice of allocating received money into various percentages. The allocation involved setting aside 10% for religious purposes, 10% for a traditional savings and credit association known as Ajo or Esusu, another 10% for charitable giving to the less fortunate, and the remainder for personal needs.

The revelation stemming from Sola’s story served as a powerful reminder that effective personal financial planning is not confined to the realms of formal education. It underscored the significance of life experiences, informal mentorship, and traditional wisdom in shaping an individual’s fiscal acumen.

Sola’s grandmother, though devoid of any formal financial training, illuminated the path toward sound money management. Her teachings were rooted in practicality, emphasizing the allocation of funds for various purposes, and reflecting a subtle understanding of savings, charity, and personal needs.

This timeless wisdom passed down through generations, highlighted the essence of disciplined financial practices ingrained in culture and familial teachings.

The understanding of one’s financial aspirations is the initial step in personal financial planning. It’s crucial to recognize that each person’s plan is unique, and tailored to their personal financial goals and situation or circumstances. Comparing oneself to others or striving to replicate someone else’s financial blueprint can be counter productive.

Women often express desires to emulate their mothers or friends financially, overlooking their own distinct circumstances and opportunities. The key is to learn from them, then define individual aspirations confidently and commit to achieving them.

A timeless principle from the book “The Richest Man in Babylon” underscores the significance of discipline, organization, and planning in wealth accumulation. The book advocates concepts like paying oneself first, living within means, making informed investments, emphasizing long-term savings, and homeownership.

Approaching the new year, establishing a solid financial plan becomes imperative. Wealth doesn’t happen by chance; it’s a product of deliberate planning, anticipation, and hard work. Setting clear and measurable financial goals is essential, whether it’s saving for a vacation, a wedding, education, starting a business, or any other ambition.

Taking stock of the year ahead requires envisioning its conclusion and setting tangible targets to guide the planning process. For instance, aiming for a vacation costing a million naira might involve saving one hundred thousand naira monthly, ensuring the goal’s achievement in ten months. Such targeted goal-setting applies to various aspirations, ensuring a focused and structured approach. Most financial service industries call this “Target Savings”; with a target in mind, you are able to focus on what you need to do to meet your financial target.

Embrace the new year with a fresh start and a commitment to financial planning. Sharing your progress and initial steps can be liberating and motivating in this journey towards financial empowerment. Let’s hit the year ready and live intentionally. All planning should start this year in readiness for the new year.

Don’t be carried away with the festive activities. A lot of activities will be calling for your money this period, spend wisely.

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