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Money Management Strategies For 2020   
 
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25-Feb-2020  
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Money is important and the start of a new year is generally a good time to make some solid resolutions to manage your personal and family finances as well as business. While you need not take any giant leaps, you must start with some simple steps to manage your money well. This edition of Money Wisdom takes a look at some strategies you can use to manage your finances. We will look at just two of the most important strategies.

Take Away to get started for 2020 by JJ.Afolabi

v  Eat and Workout well for good HEALTH

v  Work hard for WEALTH

v  Smile, Travel, Meet up & have Fun for LOVE

v  Do what makes you Happy for HAPPINESS

Continue to Invest Systematically

The Ghanaian financial markets have been volatile. In 2019, and most banks, investment companies and fund managers have been facing challenging times.

But here’s some good news. According to a recent study, the chance of your investments earning negative returns is nil if the holding period is five years. On the other hand, it is as high as 25 per cent if the horizon is just one year. It is always recommended that investors opt for equity mutual funds through systematic investment plans (SIP) with a horizon of five to seven years.

Fortunately, investors understand this. In 2019, despite volatile markets, investors have continued to try make the best decision for their clients.

 “There is no reason, especially for salaried employees with monthly cash inflows. If the money stays put in your savings account, it will not fetch returns capable of beating inflation,” says J.J.AFOLABI, a financial/economic analyst.

Choose Your Bank Wisely & Diversify Your Investment Portfolio 

The logic of opening a bank account just because the direct sales agents are visiting your office every day or right next to your society, has gone a toss. Most customers of banks now had opened accounts in the bank because the branches were conveniently located and the staff served them with a smile over the years. The bank’s books, however, were allegedly cooked over the years and sadly the customers didn’t smell the stench till the bubble burst and the banking crises. A lot of people have LOST cash.

While we can agree that not many banks have gone bust over the years, the reality is that there are no guarantees. “For one, do not be swayed merely by the additional half or one percentage point interest rate. The financial strength of the bank should be the primary factor for you choosing to invest or do business with them. You could also look at spreading out your deposits across two or three banks. This will provide protection against any future bank like crisis, where the deposit insurance cover cannot be invoked at the moment as the bank is not facing liquidation yet.

 

©Jerry.J.AFOLABI is a Financial & Economic expert who believes that ordinary people can do extraordinary things when given opportunity. He is a leader in his field and his community. His passion is to empower young people, adults, entities today with a love of learning and self-determination to become effective and self-reliant citizens Email; [email protected], Tel; +233541238987. #MONEYTALKGH SHOW#
 
 
Source: Jerry.J.AFOLABI
 
 

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