Good Morning 😃
How are you doing?
Since the beginning of the year, a series of significant events have unfolded in Nigeria, ranging from cash scarcity to elections, to the inauguration of a new president, and to the implementation of various policies such as the removal of oil subsidy, exchange rate unification, and the lifting of forex limits. In fact, I joined many Nigerians in echoing the “let the poor breathe” slogan. The new government has been launching policies back to back for an entire month, which can be quite overwhelming for analysts and even individuals. Just as you are strategizing to overcome one situation, another one arises. This has particularly impacted our goals. I’m sure in January, you had a clean slate and plans to start afresh, including personal, financial, or professional goals for the year. I had similar aspirations.
However, despite these circumstances, some people have managed to achieve their goals, while others have not taken any action, citing a lack of financial resources or “sapa.” Another group faces challenges with execution. Regardless of which category you fall into, it is crucial to review your goals before entering the second half of the year.
In this article, we are going to discuss four main issues you should review before we start the second half of the year.
- Review your goals, income and expenses
Given the current inflationary situation, it’s likely that your budget from January can no longer align with the present situation. It’s important to reassess your financial standing and determine your current position compared to your initial expectations.
Take this opportunity to identify areas where you can reduce expenses if you’ve exceeded your initial projections. For instance, you can cut back on dining out, cancel underutilized subscription services, or minimize your generator usage. It may be necessary to curtail any excessive spending to accommodate the higher costs of essential purchases.
Additionally, if you set financial resolutions or goals earlier this year, it’s essential to evaluate your progress. Have you saved the intended amount for retirement or an emergency fund? Are you making satisfactory strides toward debt repayment? Take the time to review these aspects of your financial plan.
- Review your debt
Managing debts has become more challenging due to rising interest rates, especially for variable interest rate debts. Unless you are taking on debt for income generation or other beneficial purposes, it is not advisable to borrow at this time. The costs associated with taking on debt would outweigh the benefits. If you have existing debt, prioritize paying off the debt with the highest interest rate first before moving on to the next. For debts with fixed interest rates, focus on consistent repayment to avoid accumulating additional debt. Instead of taking on more debt, consider starting to save now to achieve your goals. Did you know that with Ladda, you have the opportunity to earn up to 10% interest when you save with us? If you haven’t started taking advantage of this opportunity, click the link below to get started today. Download the Ladda app for Android users; https://play.google.com/store/apps/details?id=com.ladda.ladda
And for iPhone users
https://apps.apple.com/ng/app/ladda/id1531879570
- Plan for festivity from now
Considering the potential impact of new policies on inflation and the subsequent increase in prices, it is advisable to create a shopping list from now and carefully assess how much you can afford to spend. Take into account the projected total cost with inflation factored in. Once you have an estimate, start setting aside the required money at regular intervals, whether it’s weekly, monthly, or based on a schedule that suits you best. Automating your transfers can help you maintain consistency in saving. Additionally, if it is within your means, purchasing the items you need in advance can be a sensible approach to mitigate the effects of potential price increases in the future.
- Review your investment portfolio
Probably you’ve bought one or two stocks since the year started, or even invested in mutual funds, commercial paper, bonds and the rest. It is important you review your portfolio to see how your investments are performing. Reviewing your portfolio allows you to assess the performance of your investments, evaluate their alignment with your goals, and make necessary adjustments. One aspect of this review is performance assessment, where you evaluate how your investments have performed against your expectations and identify any underperforming assets. Another important consideration is rebalancing your portfolio to maintain the desired risk-reward balance. If certain investments have experienced significant gains or losses, adjusting your asset allocation ensures proper diversification. Additionally, staying informed about market and economic changes is crucial. This knowledge helps you navigate potential risks and seize emerging opportunities through necessary adjustments. It is also important to realign your financial goals and ensure your investments support them as circumstances evolve.
It is important that you seek professional guidance from financial advisors who will provide valuable insights and recommendations tailored to your specific situation, help you identify areas for improvement and make informed decisions about your portfolio. If you would like to speak to one of our financial advisors, then click the link below to register your interest.
Happy Salah to all our Muslim friends!
Happy holidays to everyone!
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