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
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 0.65 per cent gain on Friday, December 13, boosted by three equities admitted on the trading platform.
On the last trading session of the week, Okitipupa Plc appreciated by N2.70 to settle at N29.74 per share versus Thursday’s closing price of N27.04 per share, FrieslandCampina Wamco Nigeria Plc added N2.49 to end the session at N42.85 per unit compared with the previous day’s N40.36 per unit, and Afriland Properties Plc gained 50 Kobo to close at N16.30 per share, in contrast to the preceding session’s N15.80 per share.
Consequently, the market capitalisation added N6.89 billion to settle at N1.062 trillion compared with the preceding day’s N1.055 trillion and the NASD Unlisted Security Index (NSI) gained 19.66 points to wrap the session at 3,032.16 points compared with 3,012.50 points recorded in the previous session.
Yesterday, the volume of securities traded by investors increased by 171.6 per cent to 1.2 million units from the 447,905 units recorded a day earlier, but the value of shares traded by the market participants declined by 19.3 per cent to N2.4 million from the N3.02 million achieved a day earlier, and the number of deals went down by 14.3 per cent to 18 deals from 21 deals.
At the close of business, Geo-Fluids Plc was the most active stock by volume on a year-to-date basis with a turnover of 1.7 billion units worth N3.9 billion, followed by Okitipupa Plc with the sale of 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with 297.3 million units sold for N5.3 million.
In the same vein, Aradel Holdings Plc remained the most active stock by value on a year-to-date basis with the sale of 108.7 million units for N89.2 billion, trailed by Okitipupa Plc with 752.2 million units valued at N7.8 billion, and Afriland Properties Plc with a turnover of 297.3 million units worth N5.3 billion.
By Adedapo Adesanya
The Naira appreciated further against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) by N1.50 or 0.09 per cent to close at N1,533.00/$1 on Friday, December 13 versus the N1,534.50/$1 it was transacted on Thursday.
The local currency has continued to benefit from the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) this month.
The implementation of the forex system comes with diverse implications for all segments of the financial markets that deal with FX, including the rebound in the value of the Naira across markets.
The system instantly reflects data on all FX transactions conducted in the interbank market and approved by the CBN.
Market analysts say the publication of real-time prices and buy-sell orders data from this system has lent support to the Naira in the official market and tackled speculation.
In the official market yesterday, the domestic currency improved its value against the Pound Sterling by N12.58 to wrap the session at N1,942.19/£1 compared with the previous day’s N1,954.77/£1 and against the Euro, it gained N2.44 to close at N1,612.85/€1 versus Thursday’s closing price of N1,610.41/€1.
At the black market, the Nigerian Naira appreciated against the greenback on Friday by N30 to sell for N1,650/$1 compared with the preceding session’s value of N1,680/$1.
Meanwhile, the cryptocurrency market was largely positive as investors banked on recent signals, including fresh support from US President-elect, Mr Donald Trump, as well as interest rate cuts by the European Central Bank (ECB).
Ripple (XRP) added 7.3 per cent to sell at $2.49, Binance Coin (BNB) rose by 3.5 per cent to $728.28, Cardano (ADA) expanded by 2.4 per cent to trade at $1.11, Litecoin (LTC) increased by 2.3 per cent to $122.56, Bitcoin (BTC) gained 1.9 per cent to settle at $101,766.17, Dogecoin (DOGE) jumped by 1.2 per cent to $0.4064, Solana (SOL) soared by 0.7 per cent to $226.15 and Ethereum (ETH) advanced by 0.6 per cent to $3,925.35, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Dipo Olowookere
For the fourth consecutive trading session, the Nigerian Exchange (NGX) Limited closed higher on Friday by 0.63 per cent on sustained renewed buying pressure.
Apart from the energy and industrial goods sectors which closed flat, every other sector ended in the green territory, according to data obtained from the bourse.
Business Post reports that the insurance index appreciated by 1.52 per cent, the banking space improved by 0.63 per cent, and the consumer goods counter expanded by 0.46 per cent.
As a result, the All-Share Index (ASI) gained 617.47 points to settle at 99,378.06 points compared with the preceding day’s 98,760.59 points and the market capitalisation went up by 375 billion to close at N60.242 trillion, in contrast to Thursday’s closing value of N59.867 trillion.
The volume of transactions on Customs Street yesterday grew by 11.13 per cent to 544.2 million shares from the 489.7 million shares transacted a day earlier.
The value of transactions increased during the session by 49.30 per cent to N10.6 billion from N7.1 billion and the number of deals went up by 1.93 per cent to 8,464 deals from the 8,304 deals posted in the previous trading session.
The busiest equity for the trading day was Japaul with the sale of 71.7 million units valued at N158.0 million, eTranzact exchanged 70.7 million units worth N477.5 million, Tantalizers sold 57.3 million units for N101.2 million, FCMB traded 33.0 million units worth N297.3 million, and Universal Insurance transacted 27.1 million units valued at N9.6 million.
A total of 36 stocks ended on the gainers’ chart, while 15 stocks finished on the losers’ table, indicating a positive market breadth index and strong investor sentiment.
The trio of Aradel Holdings, Ikeja Hotel and Caverton gained 10.00 per cent each to trade at N550.00, N8.80, and N1.98, respectively, as Africa Prudential rose by 9.87 per cent to N17.25 and Golden Guinea Breweries soared by 9.64 per cent to N8.64.
On the flip side, Austin Laz lost 10.00 per cent to close at N1.62, ABC Transport crashed by 8.00 per cent to N1.15, Royal Exchange slumped by 7.69 per cent to 60 Kobo, Secure Electronic Technology plunged by 5.26 per cent to 54 Kobo, and The Initiates crumbled by 4.26 per cent to N2.25.
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