Are you one of those going from bank to bank seeking loan or looking for schemes and apps that can grab a loan from?
There is a better and more honourable thing to do that you should know.Â
The Nigerian economy has continued to experience slow growth occasioned by inflation and poor policy implementation from the Central Bank of Nigeria (CBN).
Nigerians have been advised to plan their personal finances in a way that it caters to their needs now and in the future without having to borrow.
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iBrand TV’s financial analyst and stock broker, Charles Fakrogha, gave the recommendation while sharing insights on the concept of ‘Personal Finance’.
Personal Finance
Experts define personal finance as all that an individual does to be free from penury.
The simplest definition that can be, but in there lies a whole lot that a Nigerian misses often times.
Personal finance is all about coming up with a financial plan that helps you accomplish your goals.
The plan could be saving, investing, keeping debt under control, buying a home and planning for retirement among so many others.
According to the financial analyst, “everyone should start developing their personal finance now, because the economy is not improving and any unnecessary spending at this time is not wise”.
Start With 5% Monthly
Fakrogha, advised Nigerians to learn to save at least 5% of their monthly income which is the minimum, but if you can afford to save more then go ahead.
“If your take home pay will not take you home, then add something extra, look for other jobs that will serve as extra source of income.”
He gave this advise while appearing on iBrand TV’s flagship programme iBrand DayBreak.
In his opinion, “it is better to save than to borrow because if you borrow, you will pay back with interest, but if you save, you will have something to fall back on in future”.
Remember that lenders are out to make profit so they use all means necessary to get their money and interest back in a way you might not appreciate.
Mortgage Is Another Way Out
Mortgage is an agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you borrowed plus interest.
These loans are used to buy a home or to borrow money against the value of a home you already own.
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Fakrogha, advised those who cannot save to go for mortgage, because at the end of the day, the mortgaged house becomes yours.
So a person can get a house on mortgage and continue to offset the mortgage plus interest gradually.
He emphasised that Nigerians must learn to save for rainy days, even as there are so many uncertainties in the economy presently.
Don’t try to be too flashy and expensive, be economically smart, get an extra source of income, save and invest in your future.
