World Health Day is celebrated each year on 7th April to raise awareness on different health issues. Stress has long been identified as one of the causes of ill health. Indeed, stress that is left unchecked can contribute to health problems, such as high blood pressure, heart disease, obesity and diabetes. Stress kills.
We also know that financial concerns are a leading cause of stress. Indeed, for millions of Nigerians, it is the topic that they think about most, on a daily basis. This preoccupation can grow into a significant problem. You will probably find your major source of financial worry in this list:
Problems making ends meet
Retirement numbers not adding up
Rising costs of education
No emergency fund
Cost of accommodation
Cost of transportation
Overwhelming debt
A volatile stock market
Unemployment
When you are faced with rising inflation, you wonder how you will make ends meet and how you will be able to meet your financial goals and obligations. Inflation hits items that you buy on a regular basis, including food, but it seeps through and affects nearly every purchase that you make. Don’t rely on debt to cope with the rising cost of living; you must take steps to handle it.
One of the best ways to beat inflation is to follow a budget. Set spending limits and stick to them. By tracking your expenses for a period, you can identify what is coming in and where it’s all going. Your budget will help you to prioritize your spending. Financial discipline ultimately is what will help you to cope during times of economic uncertainty.
Not ready for retirement?
If you have fallen behind on your retirement savings and the numbers just don’t add up, don’t despair. So many people in their fifties are in the same situation and really can’t afford to retire with looming retirement being one of their major worries.
You do need to start saving aggressively and cut back on your lifestyle costs. Save regularly and face your financial fears head-on. You also could benefit from getting professional help managing your accounts. In your fifties, you are likely to have had decades of experience, making you an expert in your field of endeavour; this is the time to bring it to bear. Enrol in some formal training either on line or in the classroom and start to leverage on your talent and experience. If you are doing something that you love, are passionate about, and are good at, you should be able to earn from it, and with pleasure.
Costs of Higher Education
Paying for their children’s higher education is one of the greatest worries parents face. Keeping up with the rising costs is difficult even for families that have saved diligently for college over several years. Those with children being educated abroad face the additional challenge of sourcing for foreign exchange at a time when the naira has depreciated in value.
How much can you afford? You must be realistic in answering this question and consider less-expensive options if you are unable to keep up with the school fees. To help cover some of their living expenses, encourage students to compete for scholarships and grants. Students must also try to seek part time employment on campus or other opportunities to help to cover some costs.
No Emergency Fund
Not having some money tucked away to serve as a buffer should something unexpected happen such as a medical bill, repairs, or job loss makes a bad situation much worse. Start to build an emergency fund of about six months of your basic expenses. By setting aside a buffer, should you face a financial emergency, you will be better able to cope without selling assets or borrowing.
Overwhelming Debt
Debt will not go away until you tackle it head on and give it some focus. Budget for your debt. Set aside an amount each month that goes towards reducing your debt particularly the high interest debt. Where your debt becomes overwhelming, approach your lenders and see if you can renegotiate the terms to make them more palatable. Don’t ignore the debt; it only makes things worse and it will continue to mount.
Volatile Stock Market
Volatility is a given in stock market investing and comes with risk. Before you invest it is important to determine your risk tolerance; how much risk are you comfortable with and can you afford to take? This has to do with your age, stage, responsibilities and financial situation. To reduce your exposure to risk, build a diversified portfolio and maintain a long-term outlook.
No Financial Plan
Without a clear plan in place that you are working towards, you really are steering through life aimlessly like a ship without a rudder; this must be very stressful. Seek professional advice; a professional will look at your unique situation and help you design a financial plan that addresses your biggest money problems and leads you closer to achieving your goals.
One of the best ways to combat financial worries is to take action. Instead of worrying about money, do something about it. Fear will get you nowhere, what will turn things around is taking action and planning ahead. Make a change. As you start to plough your way out of your financial problems, and it wont be easy, but you will feel a sense of accomplishment.
Nimi Akinkugbe has extensive experience in private wealth management. She seeks to empower people regarding their finances and offers frank, practical insights to create a greater awareness and understanding of personal finance.
For more personal finance tips, contact Nimi Akinkugbe:
Email: info@moneymatterswithnimi
Website: www.moneymatterswithnimi.com
Twitter: @MMWITHNIMI
Instagram: @MMWITHNIMI
Facebook: MoneyMatterswithNimi
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