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Question
I am a mother of two adorable children who is planning to relocate to the UK next year via the study route. As a family, we have been consciously saving towards this goal. However, after going through the course on inflation, I have a rethink that my purchasing power is reducing by just keeping such funds in the bank. Is it financially wise to invest money meant for tuition? If yes, which investment platform will you suggest?
Answer
It can be a smart move to invest money you’ve saved for a specific goal, such as tuition, for a move to the UK, in order to potentially increase your purchasing power and offset the effects of inflation. However, it’s also vital to consider the risk involved with any investment and make sure it aligns with your overall financial goals and risk tolerance.
Some investment options to consider:
Mutual funds
Mutual funds are a type of investment that pools money from many investors to purchase a diversified portfolio of stocks, bonds or other securities. They are managed by professional fund managers and can be a good option for those with little investment experience.
Real Estate Investment Trusts (REITs):
REITs are a type of investment that allows individuals to invest in income-producing real estate, such as commercial properties, without the need to buy or manage property themselves.
It’s critical that you consider consulting a financial advisor like the experts in MoneyAfrica before making any investment decisions, so as to provide you with personalised advice based on your financial situation and goals.
You should also ensure that you have enough funds to cover your immediate expenses, such as rent, food and other bills, before investing.
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Question
I have a burden that has kept me awake for some days. We are expecting our first baby in a few weeks, and we would also be paying our rent by the first week in April. Presently what we have is less than 300k. We have spent close to N1m buying some baby clothes and other things we will need.
I earn 250k monthly, and my wife earns 350k. Our house rent is roughly N1.7m, and she’s talking about us budgeting close to N1m for dedication. The goal for this year is to refrain from borrowing from anybody.
My wife is someone who likes classy and fancy things. The house rent is a big load on its own and we don’t have any other source of income. How best can I manage this situation?
Answer
You seem to be in a challenging financial position as you get ready for the arrival of your child and still have to make your rent payment in a few weeks.
Creating a budget and following it strictly would be one way to handle this scenario. Make a note of every expense you have, such as your rent, childcare costs, and any other recurring bills. Then, look for areas where you can minimise costs by comparing that list to your revenue. Take into account strategies to cut back on unnecessary costs, such as decreasing your entertainment or dining out.
Having a discussion with your wife about establishing sensible financial objectives and coming to an agreement on spending may also be beneficial. Teach her to control her urge for ostentatious items and ensure that it doesn’t put a strain on the family budget.
Prioritise important expenditures (such as rent and child care costs) over less important expenditures.
It’s a smart idea to look into other sources of income in addition to budgeting and cutting back on spending. For instance, you can look into working for yourself, getting a part-time job, or renting out a room in your home.
Although these are challenging circumstances, you should be able to make it work with careful planning and budgeting.
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We often get questions regarding how to plan your finances to align with your relocation plans, especially for students seeking to further their studies. As always, we have heard you, and we have put together an e-book to help you navigate this. Follow this link, to get your FREE copy of the e-book: The Japa Encyclopedia.
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