Economy
A Comprehensive Approach to Personal Financial Management
By Kenechukwu Aguolu
In today’s world, where financial stability is essential for a secure and fulfilling life, personal finance remains a glaring omission from most educational curricula. For many individuals, the journey towards financial literacy is a self-taught endeavour, with only a fortunate few benefiting from mentorship. However, the consequences of poor personal financial management are severe and multifaceted, ranging from stress and health issues to strained relationships and even untimely death.
The repercussions of inadequate financial management cast a dark shadow over one’s life, permeating every aspect with stress, anxiety, and, at times, despair. The inability to meet financial obligations, including essential healthcare expenses, can have dire consequences, exacerbating existing health issues and perpetuating a cycle of distress. Furthermore, the lack of foresight due to financial constraints stifles personal growth and obstructs opportunities for prosperity, creating barriers to realizing one’s fullest potential.
Discipline and the influence of social circles play pivotal roles in the journey towards financial freedom. According to Jim Rohn, “You are the average of the five people you spend the most time with,” underscores the transformative power of surrounding oneself with individuals who prioritize financial literacy and responsible money management. Discipline extends beyond mere budgeting and saving—it encompasses resisting the allure of impulse purchases and steering clear of detrimental habits like substance abuse and gambling. By carefully selecting friends and associates, individuals can leverage positive influences to stay committed to their financial goals and aspirations.
While increasing income and enhancing earning potential are essential components of financial stability, these pursuits should never compromise one’s health and well-being. Strategies such as upskilling, and advancing in education can increase one’s earning potential while pursuing additional employment opportunities can augment income streams. Moreover, cultivating mindful spending habits, identifying and rectifying financial leaks, and prioritizing savings constitute fundamental pillars of sound financial management. Effective debt management is also paramount to ensure that individuals do not become ensnared by the burdens of indebtedness, but achieve true financial freedom.
Building an emergency fund is a prudent strategy to mitigate unforeseen financial setbacks. Accumulating savings equivalent to six months’ worth of living expenses provides a safety net during periods of job loss, health emergencies, or other crises. Once an emergency fund is established, investing becomes the next logical step towards wealth accumulation. Diversifying investments across various asset classes such as stocks, bonds, real estate, and retirement savings accounts is essential for long-term financial growth.
Insurance is a crucial safeguard against unforeseen events, providing financial security and peace of mind. Policies covering health, life, property, and income protection offer invaluable protection. By securing comprehensive insurance, individuals can mitigate potential losses Unfortunately, this aspect of personal finance is often overlooked. However, recognizing the importance of insurance and obtaining suitable coverage are essential steps toward safeguarding financial well-being and preparing for future uncertainties. Top of FormBottom of Form
At the heart of prudent financial management lies budgeting—a roadmap guiding individuals toward their financial aspirations. A well-constructed budget aligns expected income with anticipated expenditures, providing clarity and accountability. It enables individuals to track spending, identify areas for improvement, and make informed decisions about their finances. Moreover, adhering to a budget instils discipline and cultivates responsible money habits, laying the foundation for sustained financial success and empowerment.
In conclusion, the necessity of personal finance education cannot be overstated in today’s complex world. It is not merely a luxury but a fundamental tool for navigating life’s intricacies. By embracing discipline, surrounding oneself with positive influences, and prioritizing budgeting, individuals can overcome financial hurdles and pave the way for a brighter future. However, to truly thrive financially, there must be a paradigm shift—a recognition that personal finance education should be seamlessly integrated into educational curricula, and accessible to all regardless of background or circumstance. Seeking professional advice, especially in areas; like investing and debt management, is crucial for making informed decisions and maximizing financial potential. With budgeting as a guiding principle and professional guidance as a compass, financial freedom ceases to be an elusive dream but a tangible reality for all who dare to pursue it.
Kenechukwu Aguolu is a Business Analyst, Project Manager, Chartered Accountant, and Public Affairs Analyst from Abuja. He can be reached via [email protected]
By Adedapo Adesanya
Three bellwether stocks lifted the NASD Over-the-Counter (OTC) Securities Exchange by 0.62 per cent on Friday, December 12 with the NASD Unlisted Security Index (NSI) jumping by 22.20 points to 3,600.43 points from 3,578.23 points.
In the same vein, the market capitalisation of the trading platform increased by N13.28 billion to close at N2.154 trillion from the previous day’s N2.140 trillion.
During the session, Central Securities Clearing System (CSCS) Plc went up by N2.53 to close at N39.71 per share compared with the previous day’s N37.18 per share, Geo-Fluids Plc added 35 Kobo to its price to finish at N5.00 per unit versus Thursday’s closing price of N4.65 per unit, and FrieslandCampina Wamco Nigeria Plc appreciated by 23 Kobo appreciation to sell at N60.23 per share versus N60.00 per share.
It was observed that yesterday, the price of Golden Capital Plc went down by N1.05 to N9.45 per unit from N10.50 per unit, and UBN Propertiy Plc declined by 21 Kobo to N2.01 per share from the N2.22 per share it was traded a day earlier.
There was a significant improvement in the level of activity for the day, as the volume of transactions increased by 6.2 per cent to 37.4 million units from the previous day’s 35.2 million units, the value of trades went up by 265.1 per cent to N4.9 billion from N1.4 billion, and the number of deals soared by 13.80 per cent to 33 deals from 29 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc ended the last trading day of this week as the most active stock by value on a year-to-date basis with 5.8 billion units valued at N16.4 billion, the second spot was taken by Okitipupa Plc with 178.9 million units traded for N9.5 billion, and third space was occupied by a new comer in MRS Oil Plc with 36.1 million units worth N4.9 billion.
InfraCredit Plc also finished the session as the most active stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units valued at N420.3 million, and Impresit Bakolori Plc with 537.0 million units sold for N524.9 million.
By Dipo Olowookere
The bullish run on the Nigerian Exchange (NGX) Limited continued on Friday with a further 1.00 per cent growth buoyed by gains recorded by Guinness Nigeria, Champion Breweries, and others.
Data showed that the consumer goods space expanded by 1.53 per cent during the last trading session of the week, as the insurance counter grew by 0.51 per cent, and the industrial goods sector marginally gained 0.01 per cent.
However, the banking index depreciated by 0.54 per cent due to a pocket of profit-taking, and the energy industry shrank by 0.09 per cent, while the commodity sector closed flat.
Guinness Nigeria gained 10.00 per cent to trade at N217.80, Morison Industries rose by 9.84 per cent to N4.69, Champion Breweries jumped by 9.69 per cent to N14.15, Austin Laz grew by 9.66 per cent to N2.27, and C&I Leasing appreciated by 9.62 per cent to N5.70.
Conversely, eTranzact lost 10.00 per cent to finish at N12.60, Chellarams slumped by 9.00 per cent to N13.20, Eunisell depleted by 9.89 per cent to N75.15, Africa Prudential moderated by 9.77 per cent to N12.00, and DAAR Communications decreased by 9.18 per cent to 89 Kobo.
The busiest stock on Friday was Access Holdings with 107.6 million units sold for N2.2 billion, Consolidated Hallmark traded 59.9 million units worth N245.8 million, Zenith Bank transacted 48.2 million units valued at N3.1 billion, Transcorp Power transacted 42.8 million units for N13.1 billion, and Champion Breweries exchanged 36.4 million units valued at N510.2 million.
At the close of business, a total of 602.8 million units worth N30.7 billion exchanged hands in 20,550 deals yesterday, in contrast to the 529.7 million units valued at N12.3 billion traded in 18,159 deals on Thursday, representing a surge in the trading volume, value, and number of deals by 13.80 per cent, 149.59 per cent, and 13.17 per cent apiece.
Business Post reports that the All-Share Index (ASI) soared during the session by 1,485.89 points to 149,436.48 points from 147,950.59 points and the market capitalisation moved up by N945 billion to N95.264 trillion from N94.319 trillion.
By Adedapo Adesanya
An intervention of the Central Bank of Nigeria (CBN) in the foreign exchange (FX) market eased the pressure on the Naira on Friday.
The apex bank sold forex to banks and other authorised dealers in the official window to defend the domestic currency, helping to calm the FX demand pressure, with the Nigerian currency appreciating against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) by 0.11 per cent or N1.57 to sell at N1,454.50/$1 compared with Thursday’s closing price of N1,456.07/$1.
Also, the domestic currency improved its value against the Pound Sterling in the official market yesterday by N3.95 to close at N1,946.15/£1 versus the previous day’s N1,950.11/£1 but lost 10 Kobo on the Euro to quote at N1,706.46/€1 compared with the N1,706.36/€1 it was exchanged a day earlier.
At the black market segment, the Nigerian Naira maintained stability against the Dollar during the session at N1,470/$1 and also traded flat at N1,463/$1 at the GTBank forex counter.
Despite the sigh of relief, demand pressures outweighed the robust supply from the CBN and inflow from offshore players looking to participate at the OMO bills auction.
Gross FX reserves increased for the twenty fifth consecutive week, growing by a strong $396.84 million week-on-week to $45.44 billion.
As for the cryptocurrency market, it was down on Friday as pressure remained after Federal Reserve chair Jerome Powell’s speech on Wednesday, which hinted at a possible rate cut pause in January. As a result, markets now expect only two rate cuts in 2026 instead of three.
However, Chicago Federal Reserve President Austan Goolsbee, who was against a December rate cut, said he expects more in 2026 than the current median projection.
Ethereum (ETH) slumped by 5.1 per cent to $3,090.61, Solana (SOL) declined by 4.5 per cent to $132.79, Cardano (ADA) depreciated by 3.8 per cent to $0.4103, and Dogecoin (DOGE) dropped 2.5 per cent to trade at $0.1373.
In addition, Bitcoin (BTC) lost 2.4 per cent to sell at $90,342.74, Litecoin (LTC) tumbled by 1.9 per cent to $81.86, Binance Coin (BNB) fell by 0.6 per cent to $886.93, and Ripple (XRP) slipped by 0.5 per cent to $2.02, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
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