She Leads Africa

5 Reasons Why Your Budget Is Not Working

Sis, let’s be real. Since you created that budget, you probably haven’t used it more than once or twice. If you are like me, you sat down when you were extra broke and created that “wonderful” budget that accounted for every single thing- including chewing gum. Once you got a little money, you forgot all about it. I know it is tempting to spend. Most of us have the spending bug somewhere in our systems but we must learn to control it. Here are 5 budget mistakes and tips on how you can fix them. You made it too generic So, remember how you went online to download xyz’s budgeting template and never bothered to make it suit your own spending habits? Yeah, this is a common budget mistake. On a general level, we may have the same basic needs- food, housing, transport- but Akosua from Ghana’s expenses can never be the same as Sheryl’s from Houston.  You have to modify your budget according to your location, lifestyle, and personal needs. Should you be budgeting for a gym membership when you work out at home right now?  You do not have your day planned “What is the connection between planning my day and budgeting my expenses?” You may be wondering.  Planning your day helps you recall those activities that will eventually require you to spend. Create a daily plan around work, chores, cooking, and transport and see if that impacts your budgeting. Your budget is set in stone Ah, this one. I’ve been guilty of this too many times to count. I would piously create the most frugal budget known to man and then wonder why I was so miserable after. See babe, budgeting like every other planning endeavour, ought to make your life simpler. Create a realistic budget that factors in enjoyment. That aspect of your life is hella essential too! The danger of creating a frugal budget is that at 2 AM one day, you may snap and treat yourself to natural hair products you don’t even need. At the beginning of each month,  add a treat to your budget- a book you want to read, fancy skincare stuff, bralettes, etc. Pick one thing and treat yo self! You have not adjusted your budget in forever You still have the same budget since last year and you wonder why it is not working for you. If you work from home or you are bored in the house, bored in the house, bored, I am guessing that certain expenses are on pause while others (like grocery expenses) are being incurred.  If this is true for you, then you obviously should not budget the same amount that you did for transportation last year. Evaluate your budget at the beginning of each month to see if it is realistic to your current lifestyle.  You have barely used it since you created it This is another common budget mistake you could be making. What is the use of having a budget if you won’t use it? If you barely use the budget after creating it, consider setting a good ol’ reminder for checking your budget. And girl, when that alarm goes off, make sure you check, okay? Join our community of young, ambitious African women to step up your budgeting AND money game! 

Investing Tips for the Millennial woman

Our 20s are hard, but being in your 30s presents a whole new set of challenges. Women in their 30s are expected to achieve more and therefore, they find themselves going down life paths differently. The great thing is, your 30s bring a greater level of self-awareness and since rethinking about the future tends to take a centre stage for most, this is the perfect time to choose the best investment opportunities.  We’ve all heard the stereotypes: Women are shopaholics racking up credit card charges to add one more pair of shoes to an already overflowing closet, while men bring home the bacon and are savvy investors that understand how to manage money and take advantage of opportunities. These clichéd images have overtime been reinforced by the media and popular culture. When it comes to investing, a number of studies have revealed that men and women invest differently. Gender differences in investment approach, perspective and experience can enhance long-term investing success. Women have been classified as being less confident, not keen on investing in the stock market and massive spenders. Whilst on the other hand, the same women can be seen as being more open to seeking guidance, more patient and a trend has been seen on millennial women who are investing more than their predecessor. Well, to the millennial women in their 30s who are seeking to change the narrative this year and START, here are a few tips on investing: Before going big on investment: 1. Educate Yourself Before diving into strategies that claim to give you a better financial future, carve out some time to learn about money management and investments. 2. Set Clear Financial Goals If you don’t have a set goal to work towards, it can be hard to find the passion or drive to save. Whether it’s a house you’ve been eyeing or your retirement, carefully defining these goals and figuring out how much you’ll need to save can help you craft a better plan for getting there.  3. Make a budget and stick to it.  The first step is to gather all your bills and pay remains, then plan your budget for the month according to your income and your expenses.  4. Save for Retirement:   Let’s get real, we are all getting old, why not start saving now so that we are not drowned in worry later! 5. Avoid Consumer Debt Some debt like mortgages and student loans are OK to take on if they fit in with your overall budget. In a consumer-driven society, it’s incredibly easy to live beyond your means; a good rule of thumb is to try and save at least 15% of your income  and always spend less than you make. 6. Use Missteps to Help You Learn and Grow As the famous saying goes, experience is the best teacher. Instead of being ashamed of past financial missteps, learn from them and make better decisions. 7. Put Your Savings on Autopilot Have your savings contributions automatically deducted from your paycheck and/or direct deposit into an investment account. If you put money aside before you even see it, you’ll tend to not miss it. 8. Always Take Free Money: You should never turn down free money—your nest egg will grow faster, if your employers march a percentage of your benefit contribution, take it up sis! 9. Don’t Let the Financial World Intimidate You A good percentage of personal finance is not financial education, but financial behaviour. If you can modify your behaviour with your finances, you can modify your financial future.  Contrary to popular belief you don’t need to be a financial expert to start investing, budgeting or preparing for emergencies. All you really need to do is work on building a solid plan and committing to it. As the American poet Carl Sandburg said, “Money is power, freedom, a cushion, the root of all evil, the sum of blessings.” Have an investmentfull year! 

Finance Tips for Startups Trying to Survive the Pandemic

Someone said, saying “when the pandemic is over” is starting to sound a lot like “when Rihanna releases a new album” and lol, I couldn’t agree more. We should start adjusting to what life looks like now, instead of making plans for when the pandemic ends, because we have no idea when that might be. Everything around us is constantly changing, including the way we do business. The World Economic Forum says that the businesses that are most likely to survive this pandemic are the innovative ones. I also believe that businesses that have made good financial decisions in the past (have emergency funds) are most likely to survive the pandemic.  For businesses that are still in their infancy stage, this might be a very tough period as they don’t have a pool of savings to tap into and unfortunately have to depend on their creativity. We’ve come up with a few finance tips and tricks that businesses can utilize to not only survive the pandemic but operate smoothly even after it is long gone. 1. Don’t put your eggs in one basket You have probably heard this piece of advice a thousand times before, but you need to listen to it now more than ever. With so many businesses closing their doors, the least that you can do as a business owner is diversify your income. Depending on one source of income/sales is way too risky, you need to start thinking of how to improve the customer experience and in turn, get more sales. What else do your customers need apart from what you already provide? Can you provide that product/service? Try by all means to think of ways to introduce new offerings to your existing customer base or start providing something new to a new clientele. 2. Everything is becoming virtual, why aren’t you? This tough period has forced so many business owners to think on their feet and execute immediately. We’re also seeing so many businesses hopping onto the online scene and honestly, it makes so much sense! Think about it, do your customers need to visit your office for all of your products/services? Is there a way that you offer your services online? Can customers order and have your products delivered to them? If there is even the slightest chance that you can continue with some parts of your business online, then GO FOR IT! You don’t have much to lose, setting up an online platform is less costly and has higher returns, in most cases. 3. Make Smarter Budget Choices for Your Business We need to make smarter money moves this year and that starts by budgeting better. Also, try by all means to increase your income and decrease your expenses. The first thing you can do is ask yourself; what costs can you absolutely live without? Think of all the costs that are not vital to your business operations and all the costs that are unnecessary now that some employees are working from home. For example, you no longer have to buy coffee and tea because, if no one is in the office, no one needs these during coffee breaks. Most landlords can give their tenants payment holidays and cuts on their rent, you will never know if yours is keen unless you ask them. Administration costs such as stationery can lower your spending, see how much money you can save by not buying these. To save the company from costs of petrol, try to arrange all meetings online so you don’t have to travel to any venues or offices. The last thing you can cut out of your budget are events (if you’re still having those), as great as they may be for employee morale, the business can do without it for now. 4. Invest in learning new skills When push comes to shove, become the jack of all trades. For the time being, try not to outsource services such as Marketing and Finance. Tough times call for tough measures, so as a team, this is the time to invest in a new set of skills. There are a lot of free online courses, make use of them. Take a social media course and handle your own social media, this cuts out the Marketing consultancy fees you pay. Your finance team should also try to learn how to create professional and accurate annual financial statements, that way you can pay less on finance fees to other businesses.  We’re all trying to survive the pandemic so we need to do business better, the key is to try and see if you can do some things in-house instead of outsourcing. 5. Apply for relief grants Do your research and find out if your local government and banks are still offering relief funds. If they are, take full advantage of this opportunity. Apply for your business and hope for the best. After all, who doesn’t like free money? I hope you find these tips helpful, here’s to successful and thriving businesses in 2021!!!

FCMB Commemorates World Women’s Entrepreneurship Day with Loan Facilities in Ogun State

This article is sponsored by the FCMB SheVentures proposition. FCMB SheVentures is empowering female entrepreneurs, helping them build their businesses, and improving the overall success rate of businesses owned or run by women. Please click here to learn more about how FCMB SheVentures can support you and your business.     In commemoration of this year’s World Women’s Entrepreneurship Day, FCMB SheVentures in collaboration with the Office of the First Lady of Ogun State, has granted zero interest loan facilities to women business owners in Ogun State. Additionally, the beneficiaries received the opportunity to participate in capacity building initiatives, to ensure they scale up and become positive contributors to the growth and development of the Nigerian economy. At the presentation event which held on Thursday, November 19, 2020 in Abeokuta, the First Lady of Ogun State, Mrs. Bamidele Abiodun commended FCMB for its commitment to ensuring that female business owners are not left out in the success story of the Nigerian economy.   Similarly, the Executive Director, Business Development, FCMB, Mrs. Bukola Smith assured the female entrepreneurs that they can count on FCMB’s continued support as they pursue the growth and profitable expansion of their businesses. Also present at the event were the Former Deputy Governor of Ogun State, Alhaja Salmot Badru; Former Speaker of the State House of Assembly and Commissioner for Trade and Investment, Mrs. Kikelomo Longe; the Iyalode of Yorubaland, Chief (Mrs.) Alaba Lawson; The Regional Director, FCMB South-West, Mr. Emanuel Comla; and Head, FCMB SheVentures, Mrs. Yetunde Moito.

FCMB Supports Women Led Businesses With The She-Ventures Program

This article is sponsored by the FCMB SheVentures proposition. FCMB SheVentures is empowering female entrepreneurs, helping them build their businesses, and improving the overall success rate of businesses owned or run by women. Please click here to learn more about how FCMB SheVentures can support you and your business.   We’ve seen time and time again that we are only going to be able to move forward as a community, if we all use our skills and talents to support each other.  Over the past three months, several incredible women served as mentors for the FCMB SheVentures Program. These experts shared, connected, and bonded with the fourth cohort of this mentorship program supporting women-led businesses in Nigeria.   Some of the feedback from the mentees, shows how impactful this program was to entrepreneurs across Nigeria.       To learn more about how SheVentures supports the growth and aspirations of Nigerian women in business, visit www.fcmb.com/she-ventures.

When it comes to money, A Little Extra goes a long way

Most of the time, the people we think are extraordinary are actually quite ordinary. The difference in most cases is the discipline and consistency they’ve applied to achieve their goals. This includes millionaires. Rolling your eyes already? Well just listen, I’m going somewhere with this. The Book “Everyday Millionaires” by Chris Hogan sheds a bit more light on this. While doing the research for this book, Mr. Hogan assessed more than 10,000 people whose net worth was over $1 million, and what was interesting is that most of these people were pretty ordinary folk that applied these two qualities to their money habits. The outcome of his research was in contradiction to most of the perceptions held by Americans about millionaires.  Contrary to popular belief, only 3% of the millionaires he studied had received an inheritance at, or above $1 million. Actually, the vast majority of the millionaires he studied did not get any inheritance at all. It turned out that most of them held ordinary jobs – they were teachers, farmers and lawyers. No fancy titles! No fancy education! Just simple ordinary folk.  Mr. Hogan found that these “ordinary people” who had built wealth over time had focused on these four things to achieve their financial goals:  Taking Responsibility The people who participated in the study were driven by the fact that they are solely in charge of their financial destinies. They realised that they could not depend on the government, their employers or their families to attain financial independence.   Practicing Intentionality This category of people recognized that how they live and the decisions they make daily have a direct impact on their financial independence. As such, 94% of them lived below their means and 95% of them planned ahead and saved for big expenses compared to 67% of the general population.  Being Goal-Oriented The men and women who participated in this study had a vision of their future lives and consequently put the necessary plans in place to get them to this desired future. This vision helped to steer them everyday, to keep them working towards their goals. This vision restrains them from buying the next shiny object that comes into the market.  Being Consistent  Consistency is what brings it all together. Day by day, month on month, year on year the participants in the study invested a portion of their income, saved a portion of their income and stuck to the budgets they created. They put in the relevant mechanisms to ensure this happens on a monthly basis.  Seems easy, doesn’t it? It’s easy to say that this is an American based study and is therefore not applicable in the African context.  But in my opinion, this could not be further from the truth. I am sure that each of us knows or has heard of ordinary people who hold ordinary jobs in our own communities, yet have excelled financially. To drive the point even further home, some of these people we know or have heard of, do not have a formal education.  Isn’t it amazing what discipline, consistency and commitment can do for your financial goals? We unnecessarily complicate financial matters by getting entangled in jargon and “big investments” we do not understand. In the quest to obtain wealth, some of us even end up getting caught up in ponzi schemes.  You can start small. Develop a budget. Live within your means. Make sure you save a portion of the income you make. Invest only in things you understand. Have a financial plan.  Just a little extra discipline, goes a long way!

SAFE SPACE WEBINAR WITH TOLULOPE FABOYEDE: HOW TO INVEST (SEP 18)

It’s time to get your finances in check! So you’re one of the people who finds themselves drifting off thinking about how to build wealth with their monthly income? Don’t just sit there daydreaming, here’s a chance to actually do something about it! Or maybe you think you need to have a ton of money to start investing, think again. This and other investment myths are some of the topics we’ll be covering in our webinar titled Safe Space – A No BS Guide on How to Invest.. On September 18, 2020 at 5PM WAT/ 6PM CAT/ 7PM EAT, Tolulope Faboyede of FSDH Asset Management will be taking you through everything you need to know to build wealth and invest. What’s more? You’ll be able to get started after the class! Here are some of the topics we’ll cover at the webinar: How to design and execute an investment plan What to look out for when building your investment portfolio How to evaluate your financial situation Compounding interest: What it is and how to evaluate it Common myths about investing Register below to access the webinar! Webinar details: Date: Friday, September 18, 2020 Time: 5PM WAT/ 6PM CAT/ 7PM EAT Location: Click here to register for the webinar on Zoom About Tolulope Tolulope Faboyede is a Business Development and Wealth Management expert at FSDH Asset Management Limited. She holds a Bachelor of Science in Economics from the University of Lagos and has completed a CFA Institute Investment Foundations Program. Tolu has over 12 years experience in the Nigerian Financial markets and has attended various professional courses and training in Portfolio and Wealth Management. She has worked with several individuals and companies to grow their wealth.Tolu is passionate about providing financial literacy to both individuals and corporate organisations.

4 Ways You’re Losing Money Without Realising It

[adrotate banner=”4″] Money is such an inexhaustible topic – we talk about earning it, investing it, spending it, and even sometimes losing it. We’re usually focused on the first three and barely pay any attention to the likely ways we have been losing cash. Most of us don’t have trust funds waiting for us, so every naira counts. Being on the lookout for money-sucking expenses can go a long way in increasing your disposable income. I’m going to let you in on things you’re doing too much of or not doing at all that could cost you some dollar bills (or whatever currency you spend). [bctt tweet=”Tracking your expense schedule, asking for a discount and buying items in bulk can help save up cash and thereby reducing the risk of losing money – @adeyojuwon” username=”SheLeadsAfrica”] 1. Bank Charges It’s so funny that the banks are starting to do the exact opposite of what they’re meant to be doing- helping people save money. The Fix You probably have more than one bank account/debit card. Each account attracts individual maintenance costs. A simple solution to ridiculous bank charges is trying as much as possible to have one savings account and one debit card. This will help eliminate charges that may arise from owning multiple accounts. You can reduce constant cash transactions and erase the need for unnecessary bank fees by having a budget that’s restricted to how much you’ll need for a week. 2. Delay in Paying Off Debts While taking a loan isn’t a big deal, delaying pay-off is quite a big deal. Especially when it has interest attached to it. Interest accumulates over time so delaying your debt pay-off inevitably increases the amount you’ll pay eventually. This means you’re gradually losing money. The Fix Once you have an inflow of cash probably due to holiday bonus or a salary raise, it is advisable you pay off your debt as soon as possible. This could give you a little extra to spend on other things and potentially save you a lot in interest payments. 3. Avoiding Negotiation Another money-draining factor that might not have ranked high on your list is negotiation. A lot of market vendors on this side of the world rarely quote the actual prices of their products. Most of the time, you’re expected to bargain and beat down the prices a little bit more. This negotiation rule also applies to the professional world. You’re expected to negotiate your salary and not simply accept what you’re initially offered when you apply for a new job. According to a paper by Harvard Business School, women are most likely to agree to the first offer on the table and lose money in the process, as well as better chances for career growth. It is time we change the narrative. The Fix Weighing other options available to you by knowing what prices other vendors are offering will go a long way when it comes to saving money. This also applies to knowing what other employees earn before you take a new job. This similarly applies to online stores, when I was buying my new phone, I checked a couple of online and physical stores to get the best price and avoid being overcharged. Always remember that avoiding negotiation comes with a price! 4. Subscriptions Technology comes at a cost. There is a cost attached to watching an endless stream of movies and listening to your favourite music. There’s a long list of other subscriptions- magazines & newsletters, fitness groups, diet plans and a whole lot more. It’s easy to forget what you’re subscribed to when payments are done automatically. The Fix You should only subscribe to plans you use regularly. This will help you avoid wasting money on plans you don’t get the most from. Certain subscriptions can be done with a group of people to save money on the total cost. Other significant ways you might be losing money includes wasting food, cancelling your Uber or Taxify rides, and impulsive spending.  Interested in contributing for She Leads Africa? Click here.

Here’s how to switch up your money management style!

[adrotate banner=”4″] [bctt tweet=”Much of our anxiety stems from the fact that we just don’t know what’s going on with our money” username=”SheLeadsAfrica”] Have you ever interrogated your feelings about money? How would you define your relationship with money management; comfortable, in control, dysfunctional? Even with solid financial advice, some people still feel a level of anxiety around personal financial management. Sadly the topic of money is still viewed by some as ‘the last taboo’, and as a result, many of the attitudes we have towards it go unexplored. As budding #MotherlandMoguls, building a healthy mindset around money management should be a priority. Here are a few tips to help you to make peace with your bank balance, manage your personal finances and develop a healthy money mindset. Determine your ‘money personality’ A useful place to start is to try and understand how you instinctively relate to it. Similar to taking a regular personality test, this will help you to understand some of your predispositions toward money management. You can find a whole bunch of free ‘money personality’ tests here. Keep good records, make good plans Recognizing your financial patterns and setting financial goals is the key to building a healthy relationship with your money. Much of our anxiety stems from the fact that we truly just don’t know what is going on with our money. Sound daunting? Don’t worry, we are here to simplify the struggle. Finance guru and friend of SLA Samke Ndlovu Ngwenya put together this worksheet to help you think through your goals, and keep track of your personal financial management. While you are doing this, take a look back at money management mistakes, or successes you have made and look out for patterns and lessons. Figure out your conditioning We all have a certain level of conditioning when it comes to money which has been proven to affect how we relate to it. For example, if you sincerely believe you deserve to make money, and that you are able to do so, this conditioning is considered positive. It can also be negative and limiting, for example, thinking about money with fear or scarcity. This conditioning is the filter through which you interact with your money. Money coach Lynette Khalfani-Cox says, “You have to ask: what falsehoods and ideas am I believing that are actually sabotaging my efforts, or keeping me from fulfilling my potential?” Work to change these ideas. You could even try out money affirmations if that’s your thing. To help you out with all the serious introspection you are about to do, I caught up with two savvy businesswomen. They gave me some insight into how a successful entrepreneur relates to their money. [bctt tweet=”Money means the ability to uplift – Carol Bouwer” username=”SheLeadsAfrica”] Carol Bouwer is the Founder and CEO of Carol Bouwer (CB) Productions. This pioneering businesswoman is a committed champion of women. Her company PB Productions is behind The Mbokodo Awards which celebrate the work of South African women, as well as The African Odyssey experience. What does money mean to you? For anyone with an entrepreneurial spirit and a desire to be part of shaping our community for the future- money gives you the ability to uplift. Materially and psychologically- money gives you the opportunity to create employment and empower others. It gives you the ability to inspire others to see what results could be possible if they apply the same level of discipline. Money is not the goal but it helps you achieve the goal. Is there a specific event/lesson that has shaped how you relate to your money? Losing it young. Some of the mistakes I made with money management as a youngster have been the greatest gifts in my financial life. The lessons are etched in my mind so they can never be repeated. My big thing with this as in everything in life- don’t lose sleep and lose the lesson- lose the former and gain the latter at all times! What do you wish you knew about money management when you received your first salary/ paycheque? Budgeting! I had a whole list of needs and wants but lacked the wisdom to differentiate between the two. To this day I remain grateful for being raised by an “interfering mom”… many of the mistakes I could have made did not happen thanks to her wise interventions. What habit have you formed, or what trait do you possess, that you believe helps you with your finances? Sobriety and respect. This applies to finances and many other aspects of life. It is easy to be impulsive but the most important trait one requires is respecting the work that goes into building one’s wealth. Being mindful of the energy you put into making every cent is what makes you more discerning about the choices you make when parting with it. Mindless spending is sometimes unavoidable in our youth but in this day, if I am not mindful of what I am spending my money on then I don’t deserve a cent of it. [bctt tweet=”If I’m not mindful of what I’m spending my money on, I don’t deserve a cent of it- Carol Bouwer” via=”no”] Where do you go to get sound financial advice? I could tell you to get a financial adviser or acquire financial planning services but I am not one to say that. My answer is, go internal. You inherently know what to do. You had the wisdom to acquire it, trust in your wisdom to grow it. Read and study the markets. Even when you go to your broker, ensure you are not solely an audience but participate. This is even more important for times when there are losses. It allows you to feel you made empowered and informed choices rather than blaming those to whom you hand your money over. [bctt tweet=”Be honest with yourself and those who need your financial support – Nicolette Mashile” username=”SheLeadsAfrica”] Nicolette Mashile is a social entrepreneur, property investor