DO YOU HAVE A SAFETY NET?

She searched frantically in her red Versace bag “there has to be some money or change I left in this bag!” This was her last hope as she had searched all other bags and found nothing but receipts of various extravagant purchases, some luxurious spa treatment and the likes....

She cried out “how on earth did I get myself into this  situation despite working over thirteen years of my life with no spare money”.. Nothing could control the tears as they flowed down swiftly in quick succession.

Let me back track and tell you a bit about my friend Tonye.  She started her career in the world of Banking and rose through the ranks from being a bank teller to becoming an Assistant General Manager. Having gone through various trainings at work and being involved in the start-up of a number of  banks and financial institutions , she had acquired the skills and know-how of being a very seasoned finance professional, yet had neither proof of that knowledge nor mastery of it in her own personal finances. 

Despite years and wealth of financial, banking and investment experience as well as interactions with professional counterparts, she had no "safety net"

If only she had a SAFETY NET.

You need to have a private/personal "nest egg". In other words money or funds set aside for a rainy day should anything happen to your spouse, children, loved ones in general, your present earnings, income stream or job or even your health. Trust me Ladies, the "rainy day" ALWAYS comes.

Your nest egg is your SAFETY NET, which is that savings or funds that you have full and sole control over. It is fully within your control and only one trusted person who is able to discourage you from dipping into it at the slightest whim, would have knowledge of it. This is different from your regular savings or investments. This is purely what I would like to term as “tranquility zone" that is, a state you get to that gives you financial peace against unforeseen circumstances”

Literally, a Safety Net means: “a net placed to catch an acrobat or similar performer in case of a fall”. “A safeguard against possible hardship or adversity”. In other words, something you can rely on to help you, should you get into difficult situations......Collins dictionary

By the way Ladies, has it ever occurred to you - how it is that when ever you are in dire straits, you hardly find anyone to help you or come to your rescue? Food for thought

Seven ways to build your Safety Net are:

1. Be very truthful to yourself about your financial status

2. Put your income into perspective: organise both income and expenditure while pruning your wants and even your NEEDS.

3. Set aside a fixed amount from your salary or income, (which you‘re comfortable with)  and save every day, week or month without defaulting. If possible, set up a direct debit on your account so it becomes non-negotiable even when other pressing needs arises. Also make sure there are no ATM cards, internet banking or apps connected to this account to discourage all forms of withdrawals and temptations that may arise.

 

4. Join a financial cooperative preferably one with constitutions, fully regulated with by-laws, bearing in mind that you are in it for a long term. Ensure you carry out your due diligence before you commence this journey.

In the absence of the above option, join a thrift or contribution scheme that will enable you discipline yourself to set money aside.

5. Learn about investments: Take baby steps but be steady and decisive in these areas. Find low or no risk investments (not affected by inflation) you can research and embark on, with long term proof of reliability and results. Once armed with proper information,  start investing IMMEDIATELY.

6.Find an Accountability partner (one who is financially prudent and highly disciplined) to discuss with, and give updates on your finances. If you can afford it, seek out or hire a finance coach with track record of results.

7. Start by saving N1,000 every day for the rest of the year. It could be more or less depending on your income but make sure it is consistent and steady. You can increase your daily savings as income stream increases or improves but avoid reducing.

Note: No income is too small for you to save from.......NONE