Personal Finance

Guide for Millenials

 Personal Finance
Guide for Millenials
INTRODUCTION

2020 was a challenging year,

by any standard.

We were rocked by the In it, we have outlined a few

COVID-19 pandemic, which things to get you started, keep
locked the entire world down you focused and accountable
for months. That, in turn, led to as you set out to achieve your
an economic crisis, lost jobs, financial goals in 2021.
and some industries have been
irreversibly changed. We hope you have a great year
marked with achievements and
One takeaway from this is the financial success.
need to have money kept aside
for eventualities—a decent sum. Above all, we want to walk with
Besides, we need to educate you as you become a better
ourselves continually. person daily.
Are you ready? We are!
Who knows what 2021 will
bring? Now smash those goals.
We are rooting for you!💚
This journal will help you on
your journey to financial literacy
and freedom this year.

Copyright 2020 by Money Africa.

All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including
photocopying, recording or other electronice or mechanical methods, without the prior written permission of the publisher, except in
the case of breif quotations embodied in critical reviews and certain other noncommercial uses permitted by the copyright law.

Printed in Lagos, Nigeria

ABOUT MONEY AFRICA

Money has been around for thousands

of centuries in one form or another. We
deal with money every day, yet it is one
of the most misunderstood subjects to
a vast majority.
To the average person, money is We believe that Money should
physical, it’s merely a paper with bring you freedom, and it should be
value. To the financially literate, taught and talked about often.
money is both physical and
abstract. Fluid. It flows from one Money Africa is a financial literacy
point to another. Only those that platform that teaches you
know how to, makes it flow in the everything you need to know about
right direction. You can do the same. personal finance. We are committed
to ensuring that you are well
In 1997, hip-hop rapper, Notorious informed and equipped to make the
BIG (real name Christopher Wallace), right financial decisions and make
released a hit single titled “Mo money flow in any direction you
Money, Mo Problems.” Sadly, this want.
became the mantra for most salary
earners. We’ve built a platform and
community to delve into all of this in
Over two decades later, many detail. Just for you.
people still believe that more money
brings more problems, and that Register at themoneyafrica.com to
money is a private affair that should get started.
not be discussed. Perhaps that is
why personal finance is not being Regardless of what you earn, your
taught in our schools. age, profession, or experience
handling money. There is always
At Money Africa, we believe something new for you to learn at
otherwise! Money Africa.
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FINANCIAL GOALS

What are your fears about money?

Why don’t you have a budget?

What are the challenges you have with

sticking to your budget?
Financial Goals for 2021
New year resolution is a common thing. Some work, and more than
half fail. What makes the difference are actionable steps. Not only
do you know what you want to accomplish, but you have a process
guaranteed to get you there. Here are tips that will help you achieve
your financial goals this year.

1. WRITE IT DOWN 2. DRAW A BUDGET

A short pencil is better than a long memory. Earning is never the problem. Your earnings and profits
Write your plans for the year. Be very specific. are clear. You get an alert when you are paid. Spending is
Doing so forces you to think through and be realistic. always the troublesome part. The money keeps trickling
It also serves as a great mental reminder. Besides, it’s out. Before you know it, it’s finished. That is why you
tough to forget in entirety what you wrote. need to draw up a budget. A budget does not mean you
can’t spend on the fun stuff. It just helps to make your
spending more orderly and sustainable.

3. BUILD AN EMERGENCY FUND 4. INVEST IN A MUTUAL FUND

You never see emergencies coming. The rule of thumb If you are new to investing, a money market mutual
says you should have at least six months of your fund is a great place to start. It is relatively affordable.
monthly income in an emergency fund. The figures You also don’t have to bother yourself with the day-to-
could, however, rise if you have a family. The mix of day management of the fund. Asset managers send a
currencies could also change if you have obligations quarterly report, which you can go through.
outside the country.

5. BUILD A STOCK PORTFOLIO 6. START A SIDE HUSTLE

Stocks are a great way to diversify one’s portfolio. Extra money is always a great thing. You can start a side
Treasury bills are currently yielding single-digit returns at hustle in 2021. A side hustle does not mean that you
the moment. Some stocks have dividend yields as high have to be physically active. You can do something as
as 13% to 15%. An ideal portfolio should have a bit of simple as reviewing CVs or even teaching classes on
everything. WhatsApp and Telegram.

7. READ AND LISTEN TO PODCASTS 8. INVEST IN PERSONAL DEVELOPMENT

There are two things you do not completely outsource Personal development is the most significant investment
your finances and your health. You are the one most you can make. The returns are infinite. Take a course,
affected by the ups and downs in your finances, so you read a book about your career, watch videos, or listen to
need to know your numbers. Read books on personal podcasts. Finish the year strong.The higher your earning
finance, watch videos, or listen to podcasts. capacity, the higher your income, and ultimately the
larger the amount of money you can save/invest.

9. ACCOUNTABILITY PARTNER 10. REINVEST YOUR RETURNS

Have you made previous resolutions and failed to If you keep spending the returns on your investment,
keep them? You should get an accountability partner. it’s like planting a seed and then digging the soil. The
An accountability partner is someone who will help seed will not do very well. Compounding is a powerful
you stay focused on your goals and encourages you principle.
to stay on track. An ideal partner should be someone
who understands your goals and weaknesses. They
should also have goals they are aiming for, so you are
motivated.
Financial Goals
Short-term goals

Mid-term goals

Long-term goals
Money Habits
What are the money habits you learned from your parents that you want to keep or do
away with?

This is a critical question as many people learned their money habits early from their
parents/guardians consciously or subconsciously. Be deliberate and aware of the good
and bad money habits you’ve picked up from your parents and how you will break free
from it or inculcate it.

Good Habits

Bad Habits
What have you learned about
budgeting, and how will you
improve it?
Net Worth Calculation
ASSETS VALUE LIABILITY AMOUNT

Cash Credit Cards

Current Personal
Account Loans

Savings Bank
Account Loans

Investment Car Loans

Accounts

Real Estate Mortgage

Investments Balance

Other Other
Investments Loans

Personal Other
Property Liabilities

Other
Assets

TOTAL TOTAL
ASSETS LIABILITIES

TOTAL ASSETS:
- TOTAL LIABILITIES:

= Net Worth:
Q1 Financial Goals
Goals

Action Plan

Milestones

An investment in knowledge pays the best interest. –Benjamin Franklin

January
January Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. –Ayn Rand
Jan 1-7

1.

2.

3.

4.

5.

6.

7.

Try to save something while your salary is small; it’s impossible to save after you begin to earn more.
– Jack Benny
Jan 8-14

8.

9.

10.

11.

12.

13.

14.

Wealth is the ability to fully experience life. –Henry David Thoreau

Jan 15-21

15.

16.

17.

18.

19.

20.

21.

You must gain control over your money or the lack of it will forever control you. –Dave Ramsey
Jan 22-28

22.

23.

24.

25

26.

27.

28.

Investing should be more like watching paint dry or watching grass grow. If you want excitement, take
$800 and go to Las Vegas. –Paul Samuelson
Jan 29-31

29.

30.

31.

Additional notes

Never spend your money before you have it. –Thomas Jefferson
January Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

It’s not how much money you make, but how much money you keep, how hard it works for you, and how
many generations you keep it for. –Robert Kiyosaki
JANUARY

Budgeting: The 50:30:20 Rule

50% 30% 20%

Needs Wants Investments
30%
Rent Travel Shares
Electricity Movies Mutual Funds
Utility Hangouts Real Estate
Bills Drinks Agric Tech
Transportation Aso Ebi
Food Dinner
Insurance Bridal Showers

People fear budgeting for many reasons.

Some see budgeting as a restriction instead of something that puts the power in
our hands because essentially, that’s what it is. You get to sit in the driver’s seat
of your resources. Some others associate budgeting with penny-pinching. This is
likely as a result of growing up with little resources or witnessing money being spent
uncontrollably. Such that money is only available at different intervals for a short period
in a continuous cycle.

However, budgeting is simple. Picture this:

You want to make a dress, and no measurements were taken. The tailor has no idea of
your look, height, preferred colors, materials cost, or delivery time. It would take a miracle
for that tailor to make a dress for you and an even bigger miracle for that tailor to make
a dress you like. A proper tailor would decide on the fabric and style with you, take your
measurements, give an estimate of cost, and a timeline for delivery. What that tailor has
done and what you need to do with your money is the same thing. Call it planning or
budgeting. You both arrive at the same destination.

It would be best to have a rough idea of how much you make, how much you spend,
and where that money goes. If you don’t have one, your finances will end up like that
impossible dress.
JANUARY

Budgeting: The 50:30:20 Rule

The first misconception to clear is that budgeting means a life of penny-pinching. Not at
all. You can and should have guilty pleasures; you work hard for your money. Enjoy it by
all means. What we should strive for is balance. The first step in budgeting is to answer
the question: How much do you make?

If you earn a salary and work in a reasonably structured place, it’s easy. Check your
transaction alerts or account statement. For a businessperson, it can be tricky. Pay
yourself a salary; if not, you’d be spending directly from the business pot. We should
always remember that the business is a separate identity from the owner, so the money
should be separated. If you don’t have a business account by now, please make moves
to open one. Now you know how much you earn.

Where does the money go? Again, apply the same principle. to track your spendings.
You’ve figured out how much you earn and how much you spend. Does the equation
balance? At its most basic, personal finance is hinged on this equation: Income -
Expenses = Savings/Investments.

Suppose your expenses are consistently more than your income. That’s a problem. Note
the word consistently. Occasionally, big bills may come up that throw your budget off
balance. This is known as emergency expenses.

If your expenses leave you with little or nothing left, that’s also an issue. You are walking
a tightrope. If you fall sick or have a significant emergency, you will end up in distress.
That’s a mentally exhausting place to be.

If your income is much more than your expenses, that’s a good start. It can be better. The
goal is to have sufficiently more than you spend monthly.

Examine both sides again. What are you spending on? How much are you making? Start
with the bare necessities, housing, clothing, food, kid’s education, etc. Can your income
cover that? If not, you need to increase your income and cut down on expenses.
JANUARY

Budgeting: The 50:30:20 Rule

What is a Recommended Budget?

A rough rule of thumb is to spend:

50% of your after-tax income on expenses.

30% of that on your wants.
20% on savings.

50% - Needs - 50% of your monthly income should go towards your needs. Needs are
things you can’t do without, such as shelter, clothes, groceries, utility bills.

30% - Wants - 30% of your income can go towards your wants. Wants are things you
can live without, such as entertainment, travel.

20% - Investments - 20% of your income should go towards your savings/investments.

You have several options: mutual fund, treasury bill, equities, etc. You can also automate
your investments. Every time you invest, you pay yourself first.

Where Should Charity Go?

What segment should I place my charitable giving? Needs or wants? This is a commonly
asked question. Depending entirely on your belief, if the charity is a need, you can place
it under the needs segment. If you believe giving is a want, you can put under the wants
segment. The same would apply to tithing.

No Hard Rules

While the 50:30:20 rule is the right formula for spending, you can always adjust the
formula. You could increase your investment to 30% and cut down on wants. You can
leverage technology to track your expenses. There are several apps to help achieve this.
Your windfalls also should be apportioned in the same manner. Don’t blow it. They will
take you far in life—that extra 10k, 50k, or 100k. Earn 10% on it and check back in three
years. You will value it.
February
February Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

If you don’t value your time, neither will others. Stop giving away your time and talents. Value what you
know & start charging for it. –Kim Garst
Feb 1-7

1.

2.

3.

4.

5.

6.

7.

The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of
order, trains to forethought, and so broadens the mind. –T.T. Munger
Feb 8-14

8.

9.

10.

11.

12.

13.

14.

Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” –Joe Biden
Feb 15-21

15.

16.

17.

18.

19.

20.

21.

Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate.
Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you
die, give. –William A. Ward
Feb 22-28

22.

23.

24.

25

26.

27.

28.

A successful man is one who can lay a firm foundation with the bricks others have thrown at him.
–David Brinkley
Feb 29

29.

Additional notes

Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones
you did do. –Mark Twain
February Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

Don’t let the fear of losing be greater than the excitement of winning. –Robert Kiyosaki
FEBRUARY

How to save?
This assumes you have drawn up a budget and you are able to keep some money aside.

If you barely earn enough to meet your basic needs, you can explore how to make more
money. It’s either a spending problem, an earning problem, or both.

Depending on where you spin the globe, the word “save” originates from the Latin word
“Salvus,” the late Latin form is the word “Salvare.” Old French takes the word “Sauver.”
In plain English, the word “save” means to rescue, deliver from danger, and make safe
or secure. You get the gist. Savings, in effect, are a backup plan. Everyone should have
savings as no one is immune to having emergencies. How much should one save? There
is no hard and fast rule.

Here are a few steps you can follow.

STEP 1 - Set your goals.

How much do you intend to save? How long do you think it would take you to attain it?
Whenever we hear of savings, we are thinking of saving for the next ticket item; however,
a portion of our savings should be targeted towards long-term investment. That portion
gives room for compounding to do its job.

STEP 2 - Break goals into small steps.

Achieving small steps encourages you to keep on.

STEP 3 - Automate your savings.

Leverage technology to help you achieve your goals, this eases the process. Have a
particular sum deducted either weekly or monthly. If you have a regular pay structure,
you can afford to take the sum at once to align with when your income arrives. If you are
a business person, you can set your deductions when you receive your company’s salary.

STEP 4 - Save to reward yourself.

Everybody needs a reward for adhering to their budget.
The goal of saving is to protect your tomorrow by making smart decisions today.

STEP 5 - Invest in a money market mutual fund to save.

You can invest in a fintech which offers double digit returns, as a means of earning
returns close to the inflation rate. For money you do not have immediate use of, you can
also try periodic dollar savings.
March
March Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it
daily. –Zig Ziglar
Mar 1-7

1.

2.

3.

4.

5.

6.

7.

If plan A fails, remember there are 25 more letters. –Chris Guillebeau

Mar 8-14

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14.

A journey of a thousand miles must begin with a single step. –Lao Tzu
Mar 15-21

15.

16.

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18.

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20.

21.

Do the one thing you think you cannot do. Fail at it. Try again. Do better the second time. The only people
who never tumble are those who never mount the high wire. This is your moment. Own it. –Oprah Winfrey
Mar 22-28

22.

23.

24.

25

26.

27.

28.

Believe you can and you’re halfway there. –Theodore Roosevelt

Mar 29-31

29.

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31.

Additional notes

When buying shares, ask yourself, would you buy the whole company? –Rene Rivkin
March Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks. –John Bogle
MARCH

What kind of spender are you?

Balancing between splurging and spending responsibly isn’t easy, but knowing what
kind of spender you are can help you make better financial decisions.
There are different ways to classify people’s spending habits. They are:

Minimalist Spenders
Chidi is a minimalist spender. He will only spend on the bare necessities, data, and
upkeep for the family. Being a minimalist does not make him stingy. He just can’t be
bothered by spending. He’s used the same iPhone for five years, and it’s working fine.
Why should he change it? Why go for a vacation when he can spend his leave watching
television at home?

Consumers
Lara is a consumer. They are easy to spot. Once iPhone 12 is out. It’s time to get it.
Samsung Galaxy S20+ is out. I need to buy it. Lara is a part of the #fitfam gang. Every
time she feels down, she buys a new pair of footwear. Last year she bought 6, and she
is yet to use 5 of them. Consumers base many of their spending decisions on emotions.
Consumers are at risk of spending at the detriment of their well-being.

Investors
Joy is an investor. She’s perpetually searching for where she can keep her money.
Conversations with her always have to do with money. Joy’s also good at bargaining—
every percentage matters. To most people, there’s no difference between 14% and 15%.
What’s the big deal? Joy will instead settle for 14.5% instead of 14%.

Everyone is a mix of all.

No one is solely one type. Truth be told, there is a bit of every character in each of us.
Some people are minimalist with spending on themselves, but consumers with family
and friends. Others are consumers with large sums, but minimalist with regular income.

How we spend is key to building wealth. The most important thing is balance.

Chidi can combine his vacation time and a short course program to avoid wasting
money. It’s okay for Lara to change her phones frequently. She just doesn’t need to own
the latest Samsung and iPhone at the same time. She can also wait a few months after
launch to buy.

Joy can invest and go to the cinemas, or have a fancy dinner. She doesn’t have to
sacrifice one for the other.
Q2 Financial Goals
Goals

Action Plan

Milestones

It takes as much energy to wish as it does to plan. –Eleanor Roosevelt

April
Apr Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

Fortune sides with him who dares. –Virgil

Apr 1-7

1.

2.

3.

4.

5.

6.

7.

Become financially secure that you forget it is pay day- unknown

Apr 8-14

8.

9.

10.

11.

12.

13.

14.

Beware of little expenses, a small leak will sink a great ship. - Benjamin Franklin
Apr 15-21

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20.

21.

Money speaks one language: “if you save me today I will save you tomorrow” - unknown
Apr 22-28

22.

23.

24.

25

26.

27.

28.

It is not you salary that makes you rich, it is your spending habits. - Charles A Jaffe
Apr 29-30

29.

30.

Additional notes

Do not save what is left after spending, but spend what is left after saving. - Warren Buffett
April Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

Make investments to create a second source of income. - Warren Buffett

APRIL

Why you need an emergency fund

What Is an Emergency Fund?

An emergency fund is approximately 3 to 6 months of your monthly income stashed

away in an accessible account for the unforeseeable. If you earn, say N100,000 a month,
have at least N300,000 in an emergency fund. However, note that if you have a family,
you will need a much larger emergency fund compared to a single person.

Why Do You Need an Emergency Fund?

The biggest reason you should have an emergency fund is that it serves as a cushion
if you cannot work for an extended time. Yes, you may have an insurance policy. An
emergency fund is, however, accessible immediately.

Downsides of Not Having an Emergency Fund

Without an emergency fund, you are left at the mercy of short-term loans with high-
interest rates. Microfinance Banks, for example, charge as high as 5% per month on
loans. Taking high-interest loans could easily lead one into a debt trap.
Going into debt is not a bad thing, but ideally, it should be for productive use and at a
competitive market rate.

Cutting Your Coat

Taking an emergency loan could mean a downward adjustment to your lifestyle while
you repay the loan. If you can not repay the funds, the relationship between yourself and
the borrower may end up strained.

Is My Emergency Fund My Savings?

An emergency fund is meant for expenses that hit one from the blues. Regular expenses
can be taken care of from your current income or a savings account dedicated to that
purpose.
May
May Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

Never depend on a single income. - Warren Buffett

May 1-7

1.

2.

3.

4.

5.

6.

7.

If you buy things you don’t need, soon you will have to sell things you need. - Warren Buffett
May 8-14

8.

9.

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11.

12.

13.

14.

A budget is telling your money where to go instead of wondering where it went. - Dave Ramsey
May 15-21

15.

16.

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18.

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20.

21.

Price is what you pay, value is what you get. - Warren Buffett
May 22-28

22.

23.

24.

25

26.

27.

28.

Budgeting isn’t about limiting yourself - it’s about making the things that excite you possible
- Unknown
May 29-31

29.

30.

31.

Additional notes

Unless you control you money making more won’t help. You will just have bigger payment -Dave Ramsey
May Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

Success at anything always comes down to this: focus and effort and we control both. - Dwayne Johnson
MAY

Factors to consider when

buying a stock
So you’ve opened a brokerage account, and you want to invest. What stock should you
buy? Here are several factors to consider when picking a stock.

Management

Management is the most significant factor to consider when buying a stock. Is the
management experienced?
Does the management adhere to the highest levels of corporate governance? Are they
prudent in decision making? Is the management centered on one person? That’s known
as critical man risk. If such a person dies or exits, the company could stumble. Also,
consider whether or not a scandal could harm the company.

Market Structure

What kind of market are they operating in? Are they the dominant player? Can they set
prices? Are there many players in the industry? Is the industry a duopoly? A company
that is a dominant player in an industry where there are very few operators could be a
stock pick.

Dividend History

Long and consistent dividend history is a crucial factor to consider when picking a stock.
While capital appreciation is key, price movement can often be volatile. The regular
dividend payment is thus a very good cushion in bear markets.

Do They Benefit or Suffer From Macro Factors

Nigeria’s economy mostly depends on crude oil revenue for a variety of reasons, as a
key source of government revenue and foreign exchange for importing finished goods
and raw materials. Swings in crude oil prices lead to sharp devaluations in the exchange
rate. Banks benefit from the revaluation of their dollar holdings. For companies in the
consumer space, that means higher costs.
MAY

Factors to consider when

buying a stock
Land border closures, for instance, have been beneficial to companies operating in the
oil palm space. Smuggling of products has dropped, leading to increased domestic
demand. On the flip side, companies in the manufacturing space have struggled with the
higher costs of importing raw materials by sea and air.

How have the firms reacted to past swings? Did they make money or lose money? You
can look at past annual reports.

For advanced markets, the US-China trade war was a big challenge. At its peak, we had
both countries slamming tariffs on imported goods. You also had the US slamming tariffs
on imports from Europe. That makes goods more expensive. (Olu please edit)

The Covid 19 pandemic and the lockdowns (full and later partial) are also macro factors
that affected (and still affect) businesses. Businesses that require a high level of human
interaction such as hospitality and sports were hit hard and may take a few years to
recover.

Prompt Reporting

Law mandates listed companies to provide quarterly reports and announce any key
changes. Some companies are prompt with reporting. Others are notoriously late.

Do Your Leg Work

Before investing in any stock, do your leg work.

Talk to professionals in the industry, especially their competitors. Competitors tend to
give an unbiased assessment. Visit the company if you can.
If it is a consumer goods firm, talk to the middlemen and women. What goods are selling
in the market?

Listen to investor calls. An investor call means the company’s management talks about
their recent results and plans ahead, on a conference call with investors and media. Join
the call to ask your questions, get answers, and learn.

Company events such as Annual General Meetings (AGMs) and Facts Behind The Figures
are also good sources of information. This is not an exhaustive list.

You’d love it!

June
June Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

The first wealth is health. - Ralph Waldo Emerson

Jun 1-7

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2.

3.

4.

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6.

7.

Don’t let money run your life, let money help you run your life better. - John Rampton
Jun 8-14

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Start where you are, use what you have, do what you can. - Unknown
Jun 15-21

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Stop buying things you don’t need to impress people you don’t even like. - Suze Orman
Jun 22-28

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Budgeting isn’t about limiting yourself - it’s about making the things that excite you possible. - Unknown
Jun 29-30

29.

30.

Additional notes

Everyday is a bank account, and time is our currency. No one is rich,no one is poor,we’ve got 24hrs each
- Christopher Rice
June Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

Many people take no care of their money till they come nearly to the end of it,and others do just the same
with their time - Johann Wolfgang von Goethe
JUNE

The ABCs of Mutual Funds

A mutual fund is a collective investment scheme run by an asset manager. It’s called
a collective investment scheme because lots of people bring in varying amounts of
money, this is then used to purchase a variety of assets. The company that picks the
assets and coordinates the fund is called an asset manager.

Not everyone can be an asset manager.

The company has to be licensed by the Securities and Exchange Commission (SEC), the
government agency in charge of the entire market.

Types of Mutual Funds

We can categorize mutual funds depending on the assets they are dominantly invested
in.

Money market funds which are the most popular in the country, invest in money market
securities. These are debt instruments with a duration of one year or less. Money market
funds usually make a quarterly payment, which you have the option of reinvesting.

Fixed-Income Funds invest in assets such as federal government bonds and company
bonds. These instruments have a duration of one year or more. Some fixed-income funds
pay dividends twice a year, while some pay once a year.

Equity mutual funds buy shares of companies listed on the stock market. Equity mutual
funds usually pay investors once a year, except if they made no money that year.

Eurobond Funds invest in Eurobonds issued by the government and private firms. An
Eurobond is a debt instrument issued in another country (most often the US dollar).

There are mutual funds that are known as ethical funds. They invest in shares of
companies that are Shariah-compliant, and interest assets that don’t charge interest.

You also have mutual funds that invest in more than one asset class. In reality, most
mutual funds invest in several asset classes. However, they have limits to which they can
invest in a particular asset class if they are mixed.

So you can have a mutual fund that invests a maximum of 90% in equity and a maximum
of 10% in money market securities. That’s still an equity mutual fund.
JUNE

The ABCs of Mutual Funds

Advantages of Buying Units of a Mutual Fund

There are several advantages of using a mutual fund, but the biggest is management.
If you don’t have the time or expertise to manage your money, you can buy units of
different mutual funds periodically. Asset managers are mandated to provide periodic
reports on their performance. So you can compare and contrast.

Low entry cost is also a benefit of investing in a mutual fund. A mutual fund has a lower
cost of entry for retail investors. Some mutual funds have a minimum investable amount
of as low as N5,000.
N5,000 invested in equities may not buy much. Same with bonds. It also won’t get you
treasury bills, which go for a minimum of N100,000.

Mutual funds are also a great way to diversify your portfolio. Rather than hold only
shares, money market securities, or treasury bills, you can buy units of mutual funds that
invest in all these assets. Fund managers know when to move in and out of each asset
class.

Downsides of Investing in a Mutual Fund

While there are several benefits to investing in a mutual fund, they also have their
downsides. For example, the equity mutual funds may be better off buying units of an
individual stock. Mutual funds are also low to medium-risk investments. If you want a
much higher return, you need to invest individually in other asset classes.

How to Pick an Asset Manager

Returns on most classes of mutual funds are usually about the same. This is because
they essentially have to pick from the same group of assets. The top factor to consider
when picking what firm to use is customer care and management fee. Customer care is
very key to investing. Before you open an account, go online and check reviews. Call or
email their customer care representatives, and gauge their response. Then the fees are
very critical, that way it doesn’t erode into your returns.

ABC’s of ETFs

Closely related to mutual funds are Exchange-Traded Funds (commonly known as ETFs).
ETFs work in the same manner as mutual funds in terms of composition. However, you
can buy/sell them on a stock exchange. These also serve as a relatively low-cost way to
have exposure to a variety of assets.
Q3 Financial Goals
Goals

Action Plan

Milestones

Money is only a tool. It would take you wherever you wish, but it would not replace you as the driver
- Ayn Rand
July
July Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

Formal education will make you a living;self education will make you a fortune - Jim Rohn
Jul 1-7

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How many millionaires do you know who have become wealthy by investing in savings account?I rest my
case - Robert G. Allen
Jul 8-14

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Rich people have small TVs and big libraries,and poor people have small libraries and big TVs - Zig Ziglar
Jul 15-21

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If you don’t get serious about your money you will never have serious money.
Jul 22-28

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It always seems impossible until it is done. Unknown

Jul 29-31

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Additional notes

The goal isn’t more money. The goal is living your life on your own terms. - Chris Brogan
July Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

Don’t think of saving money as a punishment. Think of saving money as a lifestyle change and a means to
freedom. - Emily G Stroud
JULY

How to Deal with Black Tax

Did you know that people living in emerging economies have an average of 3 to 5 people
that are depending on them? There’s a saying in Africa that a village raises a child, in
this case after the child is grown, there’s an expectation that the child gives back. This
expectation is seen as a tax, black tax.

How Do You Manage Black Tax? It can be very hard turning down relatives who ask for
money. It’s even much harder because they are the same folk you see often. So how do
you manage black tax?

Here are a few steps, you can take:

Draw up a Budget - If you have several relatives dependent on you for their sustenance,
you should draw up a budget for them. Depending on how much you earn, you can
budget a portion of it. Once you exhaust the portion, please be firm except it is a life-
threatening issue.

Sign up for Health Insurance - A large chunk of many black taxes goes to healthcare. You
can sign up for a health insurance package that covers some members of your family.

Empower - For family members that are willing and able to work, you can teach them
how to fish instead of just giving them fish. Not only will they be self-sufficient, but they
can also pass the favour on down the line. This can come in the form of enrollment in
short courses, building a competitive CV, acquiring new skills, etc.

Let Management Handle it - If you are a popular figure, for example, you can refer such
requests to either your financial manager or advisor. That lessens the pressure on you
and makes the person consider their requests carefully before making them.

Say No - While the word NO has a negative connotation, sometimes you need to make
use of it. If you cannot afford a bill from a family member, please decline. Let go of the
guilt as you can not pour from an empty cup
August
August Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

If you can’t pay cash, you can’t afford it. - Unknown

Aug 1-7

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Compound interest is the eight wonder of the world. He who understands it earns it...he who doesn’t...
pays it. - Albert Einstein
Aug 8-14

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The more you learn, the more you earn. Warren Buffett
Aug 15-21

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If you make meaning, you’ll make money. Guy Kawasaki

Aug 22-28

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Earn with your mind, not your time. Naval Ravikant

Aug 29-31

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31.

Additional notes

Money moves from those who do not manage it to those who do. Dave Ramsey
August Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

Wealth is not about having a lot of money; it’s about having a lot of options. Chris Rock
AUGUST

Times and seasons in investing

In the same way there are climatic seasons, so also it applies to investing. There are
times and seasons for investing. Some assets are best bought at some periods, while
others should be exited at particular times.

Here we’ll look at four different scenarios in an economy, and how you should apply
them when investing.

Rising Growth - In periods of rising growth in a country, you can buy virtually any asset
and it will appreciate. Stocks do well in a period of rising growth as companies make
much more money. Please carry out due diligence before you invest.

Rising Inflation - Rising growth is often accompanied by rising inflation. Inflation is the
rate at which the prices of goods and services increase over time. Stocks are a good buy
at this time, as historically they track inflation.
Debt instruments are also a good buy when inflation is rising, as investors will not buy
them if the return is below inflation.

Falling Growth - In periods in which growth is falling, debt instruments are often a good
buy as they serve as a haven.
Stocks do poorly because companies struggle, as consumer spending is much lower.

If the drop in growth becomes pronounced, or results in a recession, cash and foreign
currency-denominated instruments are the best options to hold. Commodities such as
gold are a good investment option, in times of uncertainty.

Debt instruments such as treasury bills and bonds are also a good asset to hold, as the
government increases borrowing in a bid to spur growth.

Falling Inflation - In times when inflation is falling, but growth remains on the upside,
stocks are a good asset to buy. A buoyant economy means companies are still doing
well. Dollar instruments are also a good asset for hedging in times of falling inflation.

Agri tech ventures are worth investing in as offtake agreements are locked down. Please
do your due diligence before you invest, as rules regulating crowdfunding are still in the
works.

Money market instruments such as treasury bills and money market mutual funds in
theory tend to align with inflation rates. In the last year, however, we have seen them at
sub inflation levels.
September
Sep Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

Invest in as much of yourself as you can, you are your own biggest asset by far. Warren Buffett
Sep 1-7

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Rule No. 1: Never lose money. Rule No. 2: Never forget Rule No. 1. Warren Buffett
Sep 8-14

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It does not take money to make money. Robert T. Kiyosaki

Sep 15-21

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Money grows on the tree of persistence. Japanese proverb

Sep 22-28

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If you cannot control your emotions, you cannot control your money. Warren Buffett
Sep 29-30

29.

30.

Additional notes

There is gold everywhere. Most people are not trained to see it. Robert T. Kiyosaki
September Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

It’s simple arithmetic: “Your income can grow only to the extent you do”. T. Harv Eker
SEPTEMBER

10 side hustles that can

earn you money
We all need a bit of extra money, as the bills keep increasing. A side hustle is a job or
vocation you take up outside your working hours.

Here are 10 side hustles you can take up to make some money.

1. Ride-Hailing/Airbnb - If you own a car, you can sign up with one of the popular ride-
hailing apps and work during the weekends or public holidays. If you have a spare room,
you could spice it up and give it a Pinterest vibe. Location and demand play a role in how
much revenue you could earn. Both assets can be utilized to earn an income.

2. Social Media campaigns - Do you have a large following on any of the social media
platforms such as Twitter, Instagram and Facebook? Are you witty and able to strike
conversations online? You can run social media campaigns for companies promoting
their goods and services. The nice thing is that your time is flexible. You can run it any
time of the day.

3. Makeup - Are you good with makeup? Good, not by your definition, but comparable
to some of the popular makeup artists. You can do makeup on the side. Weekends are
usually filled with events and ceremonies. You can do this part time. It shouldn’t be so
hard to combine with your job.

4. Fashion Ecosystem - People’s love for fashion is an undeniable fact. The vibrant social
life means many people have to get new clothes regularly. If you are good at any aspect
of fashion design, be it tailoring, sketching or retailing it could be a profitable week for
you.

5. Photography - Do you have a creative mind and have an eye for excellent shots?
Photography might be a profitable side hustle for you.

6. Proofreading - Do you have a good command of written English? You can help writers
proofread their work on the side. The explosion of social media means so much written
content is churned out daily.
Many freelancing platforms have this skill in demand.

7. Master of Ceremonies - Being a master of ceremonies or MC is a side hustle you

can easily combine with a day job. Please note that an MC is not a comedian, so you
don’t need an endless supply of jokes. You can even focus on your niche. So if you’re a
seasoned lawyer, you can MC law events as a side hustle.
SEPTEMBER

10 side hustles that can

earn you money
8. Teaching - No matter your area of expertise, there is always someone willing to learn.
You can hold regular classes, teaching people what you know. Classes also don’t have
to be physical. COVID-19 has shown us that lots of content can be taught via virtual
classes using apps such as Zoom and Google Meet. You can hold classes on WhatsApp
or even shoot videos and release them on a scheduled basis. Teaching with social media
is incredibly useful, so jump on your preferred platform(s) and get started.

9. Drop Shipping - Dropshipping is a retail fulfillment method where a store doesn’t

keep the products it sells in stock. Instead, when a store sells a product using the
dropshipping model, it purchases the item from a third party and ships directly to the
customer.
Magenta, Woocommerce, Shopify are e-commerce platforms to consider.

10. Remote Work - India is the largest supplier of online freelance workers.
Kenya and Nigeria are sitting pretty in the top fifteen. This is a reminder that you
shouldn’t limit your target market to Nigeria. The world is a global market. You can
sit in Nigeria and have your clients overseas. Freelancer, Upwork, Fiverr, Craigslist,
Peopleperhour, etc are some platforms to consider.
Q4 Financial Goals
Goals

Action Plan

Milestones

Where the determination is, the way can be found. George S. Clason (The Richest Man in Babylon)
October
October Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

Someone’s sitting in the shade today because someone planted a tree a long time ago. -Warren Buffett
Oct 1-7

1.

2.

3.

4.

5.

6.

7.

Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give
money back and have money to invest. You can’t win until you do this. -Dave Ramsey
Oct 8-14

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The most important quality for an investor is temperament, not intellect. -Warren Buffett
Oct 15-21

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The four most dangerous words in investing: ‘this time it’s different. -Sir John Templeton
Oct 22-28

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Never invest in a business you cannot understand. -Warren Buffett

Oct 29-31

29.

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Additional notes

If a business does well, the stock eventually follows. - Warren Buffett

October Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

If you aren’t thinking about owning a stock for 10 years, don’t even think about owning it for 10 minutes.
-Warren Buffett
OCTOBER

7 Steps to get out of a debt hole

John has formed the habit of leaving home early and coming back late at night. John’s
office is a few blocks from his house. He doesn’t work on a night shift and hasn’t been to
his office in six months.
He has adopted that pattern because he is owing to millions of Naira.

He had brought in banned items, which were seized at the border. Unfortunately, this
was his most significant consignment. He borrowed N5 million from a microfinance bank
at 60% per annum, N2 million at 20% per annum from another bank, and N3 million from
family and friends.

Here are 7 Steps he can adopt to get out of debt.

1. Acknowledge it - Pretending you don’t owe money won’t make the debts go away.
They will keep compounding. To get out of debt, you must face reality.

2. Collate Your Debt - Add up ALL the debts you owe. Big or small. Taken from family
or financial institutions. By not paying back loans taken from family and friends, you
destroy your social capital.

3. Prioritize High-Interest Loans - For instance, the repayment of a loan with an interest
rate of 60% per annum from a microfinance bank should precede a bank loan with an
interest rate of 20% per annum.

4. Draw a Timeline - Draw up a timeline and ensure it is affordable and practical, so you
do not sink back again.

5. Cut Down on Frivolous Expenses - At times of emotional and mental stress, some
people embark on frivolous expenses. Excess food or alcohol. You are merely digging
yourself into an already deep hole.

6. Maintain Contact with Your Creditors - Let your creditors have a clear picture of what
you are facing and inform them of any repayment plans. Some may be gracious enough
and decide to either waive part of it or forgo it entirely.

7. Change your Habits - You must change the habits that got you into debt. Do thorough
due diligence before committing funds to anything. Have a session with a counselor if
there are deep-seated habits you need to change.
November
Nov Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in
the absence of any market. -Warren Buffett
Nov 1-7

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Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble. - Warren Buffett
Nov 8-14

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Let him who would enjoy a good future waste none of his present. -Roger Babson
Nov 15-21

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Budgeting isn’t about limiting yourself - it’s about making the things that excite you possible
- Unknown
Nov 22-28

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25

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28.

It’s only a person that’s alive that can enjoy the wealth built. Invest in your health, take care of yourself.
-Money Africa
Nov 29-30

29.

30.

Additional notes

Start investing early. Start with what you have. -Money Africa
November Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

Personal development is one of the best singular investment you can make. It grows by over 1000% during
your lifetime. -Money Africa
NOVEMBER

Currency Risk
If you invest N20,000 monthly at 10% per annum in your 20s, you’ll have N211 Million
when you retire. If you invest $50 monthly at 5% per annum in your 20s, when you retire,
you’ll have $101,000.

If you’re looking at it from today’s point, you’re probably thinking. No way, I should invest
in Naira as my return is about five times more. But the most significant risk here is the
currency. For you to match the person investing in dollars. N2089 per dollar is the desired
rate in 45 years. But imagine if the rate is N5,000 to the dollar. You’re significantly worse
off than the person investing in dollars.

What’s the message?

If you’re earning in an emerging market’s local currency, diversify your investment to
have some foreign exposure.

AGE $50 $100 $150

20 $101,211.10 $202,422.20 $303,633.29
30 $57,501.79 $115,003.59 $172,505.38
40 $30,688.07 $61,336.14 $92,004.22
50 $14,194.50 $28,388.99 $42,583.49

This chart shoews you how much you will have at the retirement of age of 65, if you start saving stated
amounts at stated ages. Assumptions - Investor is consistent, 5% Interest rate, Inflation is constant.

AGE N20,000 N50,000 N100,000

20 N211,397,117 N528,492,794 N1,056,985,589
30 N76,565,534 N191,413,835 N382,827,670
40 N26,757,806 N66,894,517 N133,789,034
50 N8,358,485 N20,896,213 N41,792,426

This chart shoews you how much you will have at the retirement of age of 65, if you start saving certain
amounts at certain ages. This assumes that all investors start with zero naira and that interest rate is 10%
annually
December
December Budget
INCOME DATE AMOUNT SAVINGS NEEDED
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:
FOR:

FIXED EXPENSES DUE DATE AMOUNT BUDGET ACTUAL

BUDGET ACTUAL What have you learnt about budgeting?

How will you improve it?

A man in debt is so far a slave. -Ralph Waldo

Dec 1-7

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2.

3.

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7.

He that is of the opinion money will do everything may well be suspected of doing everything for money.
Opinion Doing Will - Benjamin Franklin
Dec 8-14

8.

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14.

A good reputation is more valuable than money. - Publilius Syrus

Dec 15-21

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No one’s ever achieved financial fitness with a January resolution that’s abandoned by February.
-Suze Orman
Dec 22-28

22.

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25

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28.

Every financial worry you want to banish and financial dream you want to achieve comes from taking tiny
steps today that put you on a path toward your goals. -Suze Orman
Dec 29-31

29.

30.

31.

Additional notes

The thing I have discovered about working with personal finance is that the good news is that it is not
rocket science. Personal finance is about 80 percent behavior. It is only about 20 percent head knowledge.
- Dave Ramsey
December Overview
How much money came in? How much did you save?

DATE INCOME AMOUNT AMOUNT:

WHAT FOR:

TOTAL:

Money you consistently spent that didn’t vary How much should you spend next month?

DATE FIXED EXPENSES AMOUNT FUNDS AVAILABLE - SAVINGS = TOTAL PER MONTH

TOTAL + NUMBER OF WEEKS = WEEKLY BUDGET

WEEKLY BUDGET + 7 = DAILY BUDGET

Notes

TOTAL:

How much do you have available??

INCOME - FIXED EXPENSES

My mission in life is not merely to survive, but to thrive; and to do so with some passion, some compassion,
some humor, and some style. - Maya Angelou
DECEMBER

How to conduct a yearly financial

review
Naturally, the end of the year is when people take stock. It’s a process people shy away
from, either because they feel they haven’t done well or found it challenging. If we fail to
address mistakes from the past, we will be bound to repeat them.

Here Are 4 Easy Steps You Can Follow:

Step 1 - Be honest with yourself.

Avoid the temptation of focusing on inconsequential things. What did you do right, and
what did you do wrong? Do a check of all your assets and liabilities.
Are you owing to people? Stop dodging their calls. Chin up and sort it out.

Step 2 - Enjoy your wins

So you did not have a great year. That’s okay. Embrace the little things that you did well.
They will give you the strength to work on being better.

Step 3 - Set new goals

To do better, aim higher. Draw up a ten-year plan. Don’t be content with yesterday’s
wins. A new year is always a great time to make changes to your plans. Lots of things
would have changed. Have you upgraded jobs? That’s more pay and a higher propensity
to consume. Did you have another child? That’s more expenses that will kick in.
For guidance, book a session with a personal finance coach.

Step 4 - Get an accountability partner

If you would do better next year, try getting yourself an accountability partner—someone
who nuzzles you towards your goal.
Net Worth Calculation
ASSETS VALUE LIABILITY AMOUNT

Cash Credit Cards

Current Personal
Account Loans

Savings Bank
Account Loans

Investment Car Loans

Accounts

Real Estate Mortgage

Investments Balance

Other Other
Investments Loans

Personal Other
Property Liabilities

Other
Assets

TOTAL TOTAL
ASSETS LIABILITIES

TOTAL ASSETS:
- TOTAL LIABILITIES:

= Net Worth:
©