Ember season beckons: To save, spend or splurge?

The Ember season is almost here! The season, which comprises the last four months of the year that end in the ‘e.m.b.e.r’ letters, is acclaimed for its frenzied build-up to the yuletide and other end-of-the-year festivities. But most importantly, it is a season that embodies decisions, resolutions, milestones, and plans.

However, with the first bustling eight months of the year still pumped with resolutions and targets laid out to be achieved, these final four months are filled with mixed feelings – positive for those who have several ticks on their plans and cynical for those who feel underachieved.

But the true determinant of how well an Ember Season evolves is down to how much and how well one plays the finance game. With finances, it is a question of whether to save, spend or splurge? With the socio-economic jeopardies of the COVID-19 pandemic, this question will need a well-guided, almost like a pro to navigate an outcome set against the backdrop of economic uncertainties. This edition of the ‘Insuring Happiness’ series will provide the insights to guide your answers.

1. To Save?
Many understand the vital role saving money plays in protecting ourselves against future money worries, while others see the process as hoarding money for a rainy day that may never come, thereby leaving one unable to get the most out of life. After all, life is short.

According to the Federal Reserve Bank and the United States Bureau of Economic Analysis recorded that “in April 2020, the personal savings rate surged to 33.7 per cent. The rate pre-pandemic, in December 2019, was 7.2 per cent, and the rate has hovered around 6 or 7 per cent since January 2013.”

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This report indicates that those caught unawares by the pandemic break have learnt from not preparing for the rainy day. That is because it does not announce an entrance.

2. To Spend?
Senator Elizabeth Warren’s book “All Your Worth: The Ultimate Lifetime Money Plan” popularized the 50-30-20 rule to guide how to spend and spend from your income. She suggested that 50% of your earnings should be allocated to needs, 30% on wants, and at least 20% on savings. Needs are obligations that you must meet, such as rent, bills, food, utilities, while the things you consider essential but nice-to-have come under the Wants category. They may include getting a new gadget or accessory, subscription for entertainment platforms, leisure moments, clothes, to mention but a few.

3. To Splurge?
Many understand the need to save for the future, but the emotional rush from spending freely or splurging is irresistible and can be justified as “living in the now”. One may even argue that splurging is synonymous with the Ember, Yuletide, and the festive holiday season.

However, instead of making impulsive purchases for the adrenaline pump, you can still do the on-the-budget spending and still stay hip and cheer. Nothing feels better than going shopping and coming back to the reality of some cash reserve.

4. To Plan?
Leveraging a financial tool and plan that helps you plan your finances properly without stress– paying your bills or saving for short term or long-term goals should be a priority during these times. One of the tools to engage as you seek to balance the urge to save, spend or splurge is the Leadway Smart Cash Plan.

This financial plan allows you to save money ahead of stormy, rainy, or splurging days, with the advantage of gunning for a financial goal. Within a minimum of one year, you can save for either your education, payment of bills, buying that new car or whatever your short-term goals are. The product also provides you with the opportunity for easy cash management by allowing monthly, quarterly, semi-annually, or annually instalment contributions.

That’s not all; unlike most savings plans, this Plan provides additional financial protection with a life cover that ensures that your beneficiary gets compensated of up to N500,000.00 in addition to the accumulated savings, should death occur due to natural causes, accidents or COVID 19 during the savings plan tenure. This additional provision means that those you love get the benefits of your exemplary proactiveness and not an unknown third party. Some call it creative wealth transfer.

Want to know more? You can visit www.leadway.com/leadway-smart-cash-plan or please call the Leadway Assurance customer care helpline on 01-2800-700. You can also send an email to [email protected] for professional advisory or request a call back by visiting www.leadway.com/call-me.

We are within your reach on our social media outlets – @LeadwayAssurance on Facebook & Instagram, @Leadwayinsure on Twitter. You can send a DM, and we would revert with all the information you require.