Personal Financial Planning by Abdullahi Abubakar
Modern men are only clever at shifting blames from their own shoulders to those of others. This happens often even though the faux pas could actually be from us. However, this article is not to exonerate government 100% of avarice, but to hold us too, the basics of Financial Planning. Whether you want to or not, you will grow old and feeble if you live long enough and your family, relatives and friends will need your financial support – hence the need to plan your finances.
Financial Planning is the process of meeting your life goals through the management of your personal finances. It is about setting out short and long term life goals and developing strategies to achieve those goals – life goals can include buying a home, saving for your child’s education, planning for retirement or estate planning to mention a few.
Are you surprise when Bugatti Veyron was spotted in Abuja? This is why I’m compelled to writing this piece. The inherent display of Profligacy is on the rise and alarming. Nigerians rushing into buying Blackberry may be absurd, but its sense of fashion in the country is spot on and that explains why RIM is expanding its market in Nigeria. Just yesterday, I came across 5 users of BB Z10 just few weeks after it was launched in the Americas. My conclusion is that if this is already happening in Kaduna, only God knows how many of such users are already in Abuja, where ‘wealth’ are displayed with careless abandon amongst those that have it.
Now, simply because a friend or a colleague uses a BB Z10 shouldn’t fan the fire in you to do same. Don’t easily forget that even though you are equally born, you are not equally affluent.
You may be earning the same salary at month end; this doesn’t mean that you shoulder the same responsibilities. He or she might have other sources of income (legitimate or otherwise) that you are not aware of…so why not face the reality of life instead of running after someone’s arrant display of extravagance.
Cultivate a sound habit of savings instead of buying smart phones that you will not fully utilize its applications.
You don’t need that MTV crip in Victoria Island, Asokoro or Maitama which is permanently under lock and key except for your once a year visit. Lease it out and make out some cool cash or better still, give it out to your relations living in abject penury to stay in.
You don’t need those hours of discussion with a girl on phone except it’s going to bring about some monetary benefits. Cut your spending…Chat if possible
Never lend monies to your friends and families unless duly signed or until you are ready to write it off as most of such soft loans tend to go bad.
However hard it might be, save. Saving requires serious discipline and sacrifices. As long as the elementary principle of insatiability of human wants in economics is still valid, one wants would always outweigh his income.
No one’s salary is always enough. If your salary is increased today, you would only appreciate your management that month, the second month; your expenses would adjust in response to the increase in your salary and so will it be if it decreases.
To the best of your ability, avoid spending what you would have tomorrow, today. The only thing you have is what you have today – use it judiciously. Do not make loans/credits your means of livelihood. This is simply, an indication that you are living above your means.
PLAN YOUR PERSONAL FINANCES
? Educate yourself,
? Pay yourself first,
? Give reasonably (pay your tithes, zakat)
? Invest in real estates,
? Invest in Angel capitals (small businesses),
? Invest in Agriculture (farming/poultry/fish farming),
? Read more books about Financial Planning.
Whether you are tired or not, you will retire or be retired from your job, so plan, even though Almighty God is the Best of all planners.
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