3 Reasons why you are an impulsive spender and what to do about it: Lydia Chinery – Hesse

This September, we’re out here on these streets trynna secure the bag. If you’re an impulsive spender, this one is for you.

As a financial advisor working with Holborn Assets, Lydia Chinery-Hesse has helped clients put measures in place to control their spending while increasing their savings and growing their wealth.

She has been working with various nationalities to help them plan their financial future by giving them transparent, objective and honest advice. Lydia helps them visualize their personal (and business) goals and structure a plan towards achieving them.

Earlier this year, she created a Facebook group called Love Yourself Financially, a community of global women who are dedicated to being the boss of their finances.

Their goal is to be financially secure and free – which has a different meaning to each member.


The Scenario

You’ve just finished a successful meeting and decide to take a short walk through the mall, for some window shopping.

Before you know it, you’ve spent money shopping for more clothes you don’t need!

It’s 4:15 pm and you’re absolutely famished. While you could wait another hour to get home and eat some leftovers from last night’s home-cooked supper, you decide to order food that would cost the same amount as your groceries for the week.

Even if you haven’t found yourself in one of these situations before, you’ve definitely spent money impulsively in one way or another.

  • Why is this?
  • Why are we so impulsive? More importantly…
  • What can we do about it?

Here are the three main reasons for being an impulsive spender, and a few ways you can improve your spending habits.

1. You’re using a credit card

Studies show that when we pay using our credit card, we’re more likely to spend money. With a credit card, your thinking will be more along the lines of “out of sight, out of mind”, as you don’t see the money ‘leaving’ your wallet.

Conversely, when we spend with cash, it hurts a little, and you tend to think twice before spending it.

What should you do about it?

• Until you get to a point where you have significantly improved your discipline in this area, ditch the credit card.

• Ditching the card means spending cash only.

• Withdraw your cash allocation for the week, and carry only what you need on a daily basis.

2. Because money should be spent

If you’re able to spend money impulsively, consider yourself fortunate to have the money to do so. That being said, just because you can, doesn’t mean you should.

As an impulsive spender, It’s likely you’re not tracking your expenses by writing them down or through an app.

If you did, you’d be less likely to spend mindlessly as you’d always be aware of what you’re spending on and how much you’re spending. 

What should you do about it?

• Before you’re about to buy something, you want, pause. Wait a day, a week, a month or longer to determine if you really need it. Chances are you don’t.

• Track your expenses, create a budget and live by it.

• Get an accountability buddy. When you’re itching to spend, call a friend you trust who will talk to you straight.

• Meal prep. Don’t give yourself an excuse to buy a meal. 

• Try no-spend days a few times per month.

In addition to all of these, it’s worth considering…what else could you be doing with that money? This brings me to my last point:

3. You are not thinking long-term

Image result for African woman thinking gifs

Living for today will most likely mean scrambling or struggling in the future.

Perhaps it would be wiser to live according to this African Proverb, “For tomorrow belongs to the people who prepare for it today”. 

What should you do about it? 

• Set your savings goal and reward yourself for achieving them (without spending money – be creative!)

• Save towards future plans. Put some money aside monthly towards that goal, whether it’s a vacation, car purchase, etc.

• Be intentional about your long term goals. This begins by figuring out how much you’ll need to either live comfortably in retirement or to reach financial security (where passive income pays for your expenses).

Once you have that figured out, work backward from there to determine how much you should be saving (and investing) in order to reach your target.

Practicing delayed gratification improves your discipline and you’ll also enjoy the financial rewards in the future – @lydialydzzz Click To Tweet

It takes some self-reflection and being honest to admit that there are areas in which we need to be more disciplined in order for the impulsiveness to end. 


How are you improving your spending habits this month? Click here to share your story with us.

IT’S ALL ABOUT THE MONEY Goals

The year is drawing to a close and it’s the perfect time to start reflecting on the year. You need to be able to answer questions like:

  • What worked for you in 2018?
  • What did not work for you in 2018?
  • What do you need to start doing in 2019?
  • What do you need to stop doing in 2019?
  • How do you need to be in 2019 in order to attain your goals?

You probably think that it’s way too early to start planning for the next year. We all know though, that for the better part of December we get so caught up in the fanfare that comes with the holidays. We think that we do not have enough time to step out and plan adequately for the coming year.

Remember, if you fail to plan, you plan to fail - Prisca Motogwa Click To Tweet

Let’s go a step further by talking about money! Yes, money!

How many of us stop to reflect on how we are doing with respect to money matters?

  • Where are you financially?
  • Do you even know where you are at?
  • Are you happy with where you are at?
  • If you know where you at, did you get there by luck or was there a plan in place?
  • What do you want to achieve?
  • Are there some changes you need to make to your lifestyle to attain your financial goals?

Money is a complicated subject. It is an emotional subject. We all interact with it differently depending on our money personality.

If your money affairs are in disarray, it is highly unlikely that you will achieve your full potential - Prisca Motogwa Click To Tweet

According to Money Harmony – when it comes to money, you are either a hoarder, an avoider, a spender, an amasser or a money monk.

Hoarders view money as a form of security and work towards accumulating as much of it as possible. Avoiders, simply ignore money issues.

Spenders believe that they deserve every good thing and will have no qualms in buying things even when they cannot afford them.

Amassers like to have loads of money to either spend, save or invest.  Money monks view money as the root of all evil.

Which money personality are you? Find out your money personality here.

Bill Hybels says that self-awareness allows you to self-correct. When you know better, you ought to do better.

There is no ideal money personality. Each personality has its strengths and weaknesses. The most important thing is to identify which money personality you present, take advantage of the strengths that it brings and works on managing the weaknesses that it presents.

The starting point for all of us, regardless of our money personalities, is to prepare a financial plan for 2019 - Prisca Motogwa Click To Tweet

Research indicates that women are lagging behind men in financial literacy and that majority of women lack confidence with respect to money management.

Dear sister, it is very simple. If your money affairs are in disarray, it is highly unlikely that you will achieve your full potential. There will always be something dragging you back.

A study undertaken by Schwab in 2012 found that women who prepared a written financial plan were more confident with regard to money matters than those who did not.

Basically the starting point for all of us, regardless of our money personalities, is to prepare a financial plan for 2019.  Oh, and it is not enough just to put in place a financial plan, you need to live by that plan.

The Future is Female, but as females, we need to get control over our money.

After all, it’s all about the money!


 Now that you know your money personality, what are you going to do in order to attain your financial goals?

Quick Maths (4): How to build up an emergency fund for yourself with FSDH Asset Management

Save for the rainy day… it might take a little longer for the sun to shine!

Welcome to the final part of our Quick Maths series by FSDH Asset Management, where we’re giving you simple personal finance tips you can master, to achieve your financial goals.

In the last three series, we showed you how to generate income to start your business, how to diversify your income and how to get the best out of your net income and now we want to teach you how to save for the rainy day.

What do you have saved for the rainy day? Nothing?

We can plan for a lot of things in life, but sometimes, the unexpected just happens. These are the times you face bigger-than-expected bills, but having an emergency fund can make it easier.

An emergency fund is money kept aside in case there are emergencies or problems in the future. 

Now, listen! An emergency fund isn’t for your everyday needs or special wants, so leave your sinful indulgences out of it, and no! flash sales are not emergencies either.

We partnered with FSDH Asset Management Ltd to bring you this guide to help you understand why you need to have an emergency fund and how to start building up your emergency fund(s).

Having an emergency fund prepares you for the unexpected expenses yet to come - @fsdhcoralfunds Click To Tweet

Topics this guide will cover:

  • What is an emergency fund?
  • How much money should you have in an emergency fund?
  • The difference between emergency funds and investments
  • Ways to set aside emergency funds

After reading this guide, you would be one step closer to achieving your financial goals. If you want to keep slaying in your finances, be sure to read up on our previous quick maths series, you’ll be glad you did!
FSDH ASSET MANAGEMENT LTD  – FSDH AM is a wholly owned subsidiary of FSDH Merchant Bank Limited. They are one of Nigeria’s leading asset management and financial advisory firm.

FSDH AM is versatile in financial transactions and investment strategies that meet the need of investors in an emerging economy like Nigeria. They recognize that today’s investors need the services of dedicated and expert professionals to provide them with intelligent investment counsel.

Therefore, their strategies are dedicated to preserving investors’ wealth while maximizing the value that they receive.

Once you’re through with this guide, visit FSDH Asset Management Ltd to know more and get all your pressing questions answered.


Getting access to this guide is easy: just fill out the form below to join our community and get access to this guide. This is the final part of our series but you can get all three series here. By joining our community, you also get to enjoy our AWESOME weekly content as well.

Quick Maths (2): How to diversify your funds with FSDH Asset Management

Money is a tool…Use it wisely!

Welcome to the second part of our Quick Maths series. We’ll be sharing with you financial terms, tips, and tricks to get you ahead of your financial game.

In the first part, we discussed various ways for you to generate capital to start your business. In this downloadable guide, we highlighted high-level options you can explore to get capital. Catch up on part one by downloading it here.

Now, let’s talk about diversifying money. It’s important to keep tabs on your money, know where each penny is going, and how it will bring you more money because today’s economy is not smiling at all.

In this guide brought to you by SLA, in partnership with FSDH Asset Management Ltd, we’ll be showing you different ways to save, protect your savings, and why you shouldn’t have all your eggs in one basket.

If you’re wondering how to improve your finances, this guide will help you with some practical ways to get started.

Topics this guide will cover:
  • Diversification for low-income earners
  • How to diversify within an asset class

It doesn’t matter whether you are a salary earner or a business owner, as long as you have financial goals that you’re looking to achieve, diversifying can help you reach those goals.

Roll up your sleeves, tie your hair in a ponytail, grab your pen and journal and get down to work!

To keep getting your finances all the way to the top, make sure to follow up on the next guide.

 

FSDH ASSET MANAGEMENT LTD  – FSDH AM is a wholly owned subsidiary of FSDH Merchant Bank Limited. They are one of Nigeria’s leading asset management and financial advisory firm.

FSDH AM is versatile in financial transactions and investment strategies that meet the need of investors in an emerging economy like Nigeria. They recognize that today’s investors need the services of dedicated and expert professionals to provide them with intelligent investment counsel.

Therefore, their strategies are dedicated to preserving investors’ wealth while maximizing the value that they receive.

Once you’re through with this guide, visit FSDH Asset Management Ltd to know more and get all your pressing questions answered.


Getting access to this guide is easy: just fill out the form below to join our community and get access to this guide, remember this is only part 2, there’s more to come – so stay updated. By joining our community, you also get to enjoy our AWESOME weekly content as well.