In light of the fact that we are approaching another New Year, I feel it might just be in place to talk about the above topic. A respected sage once said that you would be able to judge just how investment-savvy you have been by looking at how well your money has worked for you (i.e. how much your investments have earned for you) in the course of the year.
So how hard have you worked in the year and how well have you made your money work for you in your quest to become truly financially independent and secure?
Could you have done better?
Many of us will agree that we could have worked harder and smarter and saved/invested more from our earnings in the course of any given year. But then, this is no time for regrets. Rather, it is time for genuine reflections and learning from our past strengths and weaknesses.
It’s not too late to start a (better) savings and investment programme. Remember the outgoing year will just be like another blink ago and it would soon be totally gone. Whether you like it or not, so will each New Year come and end like the twinkling of an eye; so start to plan for it now. It is said that the bad news is that time flies but the good news is that you are the pilot! What follows are a dozen tips on just how to pilot each New Year aright.
1. Resolve to save nothing less than 10 to 20 per cent of your total income during the year. No truly wealthy person failed to pass through the road of savings; no corporate body or nation ever became wealthy without saving a good part of its income. Economists agree that no nation can truly break away from the shackles of poverty without saving between 12 and 15 per cent of its total income. You have no excuse for not saving as long as you earn money. This is the bottom line. Savings is not about ability; it’s rather a matter of habit. If you earn much, save much; if you earn little, save little but save you must!
2. Join that cooperative society now and/or increase your savings
Cooperative societies have been in existence as far back as man can remember and they have been sustained this long because of the obvious advantages they offer the low- and middle-level income earners. As long as you can establish that the cooperative society is well run, ‘close your eyes’ and sign away at least 10 per cent of your income to be deducted from source each month. You will be the better for it, I assure you.
3. Start some equity investment: Buy into a public offer whenever one is available, even if you know little or nothing about stock investment. Public offers are among the several you can employ to commence your trip into the lucrative world of stock investments. You may then graduate into secondary market purchases for speculative purposes as you garner more information, knowledge and ‘suaveness’ about the market.
4. Get some investment education by reading books, attending seminars, visiting websites, using professionals and joining an investment club, etc.
5. Make plans to move towards owning your own home. It was the late Nelson Mandela of South Africa that said a man ought to own his home at age 35. Even if you missed that age, start making plans now. The advantages are obvious and cannot be overemphasized in a developing country like ours, which lacks adequate social security arrangements.
6. Improve your intellectual worth; get better educated in your area of specialisation, make a move towards getting that professional qualification. Make moves to improve and not compromise your mental and physical health.
7. Commit yourself better to your job and spend your time wisely; start practising prudence in time management.
8. Practise multiple streams of income; start a business of your own even while in paid employment.
9. Make integrity your watchword throughout the year.
10. Pray like never before
11. Practice praise and thanksgiving; be generally more open-handed. 12. Start living for something greater than yourself; something that will benefit humanity around you and outlive you.
