The Consumer Awareness and Financial Enlightenment Initiative (CAFEi) has emphasized the gains of building sustainable savings culture by Nigerians.
In a statement to mark the 2019 Global Money Week, CAFEi President, Otunba ‘Debola Osibogun said building a sustainable financial future requires adequate planning.
She said: “If you want to build a great structure, you first have a design and a plan. Same way it is with having a great financial future. Many people think that financial plans are only for people with so much money, they don’t know what to do with it. But, a comprehensive financial plan can benefit people at all income levels. It helps you to start making smart financial decisions very early in life. Creating a financial plan helps you see the big picture and set long and short-term life goals, a crucial step in mapping out your financial future. When you have a financial plan, it’s easier to make financial decisions and stay on track to meet your goals”.
According to her, the sooner one starts making smart decisions, the sooner he/she knows where to go, and if such person has a plan to get there, the more likely he/she will get to the destination.
“If you start in your youth, you don’t need to have millions to start saving. The longer you wait, the more you must save to make that goal, this is because the more time investments have to grow, the less money an individual need to put away to achieve the same returns as someone who gave their money less time to grow,” she said.
Osibogun said a typical financial plan helps to first outline where one stands right at present. “The second contains your top financial goals, or where you want to go. The third is a simple net worth statement.
The fourth lists the steps you must take to achieve your goals. It includes your income and expenses, an overview of your debts/obligations, a section on retirement planning, and a section on estate planning. Finally, the fifth section is usually a separate document, your Investment Policy Statement, which lays out how your portfolio is to be invested.