Building long-term financial security

When it comes to saving and investing, most of us are not as disciplined as we would like to be. Some set some money aside for some months and then nothing at all for several others. Indeed after the stock market decline in 2008 many people stayed away from the market completely afraid of further losses; sadly they were still out of the market when it started to pick up and have already missed out on some of the gains from stocks that were selling at significant discounts. For the vast majority of people, the only way to achieve your financial goals is by earning through the dint of hard work and saving and investing in a systematic, disciplined way over several years.

Cost averaging, is a simple approach to saving and investing that helps you to save regularly whilst at the same time building long-term financial security. It involves investing a fixed amount on a regular basis rather than a lump sum, even when your finances are stretched, and no matter what the market is doing. This could be monthly, quarterly, or whatever suits you; you do not have to time the market or look for the best entry point, you just invest regularly.

Even for the most seasoned investor, it is almost impossible to time the market as it is challenging to anticipate correctly its peaks and troughs. For the average investor, and particularly for the smaller investor who does not have lump sums to invest, what is required is an investment strategy that allows you to maintain an even keel in rising, fluctuating and falling markets. Cost averaging accomplishes this and if you manage to apply this strategy to even a small amount of money, with ease and efficiency, you will have a better chance of achieving your goals.

Cost averaging is a particularly useful tool in choppy markets as it provides a buffer for volatility. Even though the value of your overall investments will fall as stock prices fall, remember that you also bought more shares at lower prices. As you will be drip-feeding your funds into the market at different times, you will be picking up investments at a range of prices; this reduces your overall average cost.

How much you can afford to set aside each month? The amount you choose will depend on your own particular situation. This could be a fixed amount each month, or you might prefer to invest a percentage of your income, so that you invest more as your income increases; try to invest at least ten percent of your income.

By Nimi Akinkugbe

ASUU’S LINGERING STRIKE ACTION IN A COUNTRY OF PLENTY. Contd.

Now back to the strike action, imagine were our legislators collect HARDSHIP ALLOWANCE amongst other senseless allowances they collect.  What! HARDSHIP ALLOWANCE! Seriously? All this is going on in the midst of poverty and pain in the land. They collect all these allowances and added to their armed robber salaries which are raised to the power of 10 plus commissions from inflated contracts which they carry-out haphazardly or are abandoned, and still move around with so much air around them, while the plight of the nation’s future leaders that are at home and on the streets being lured into so many vices means nothing to them. I just wonder what manner of corrupt and inept leaders we breed in this nation. But the truth be told, these leaders are from our stock, they grew up among us and were bred by Nigerian parents and not Foreigners. So if we are going to get things right in this country, we must first start by re-structuring the system, starting with the family unit, at least that is the basic. Someone once said, “garbage in, garbage out”. What we feed into the system is what we get out of it. So I think all these blame game should rather be halted and let’s start finding solutions before we run our nation underground. Because we really can’t continue like this. If you want to change the world, first start with the man in the mirror.

HAPPY INDEPENDENCE DAY NIGERIA! (And while you celebrate, remember your schools are still on strike.)

ASUU’S LINGERING STRIKE ACTION IN A COUNTRY OF PLENTY.

The recent and ongoing strike action by the academic staff union of universities is not only an aberration but is also appalling. Imagine a country that prides itself to be the “GIANT OF AFRICA!” the question would be, “Why is Nigeria finding it so difficult to maintain its so-called future leaders in school? At least that’s what they call us, FUTURE LEADERS!” A country that prides itself as the world’s 13^th largest oil producer cannot even invest the recommended United Nations 26% of its annual budget on education for the enlightenment and preparation of its so-called FUTURE LEADERS. This is such a shame! It now goes on to tell us that our leaders just pay lip service to education. My people perish because of ignorance, is a very popular saying. But it seems most people just recite it without actually putting it into context in the daily running of our lives and the nation. A saying also goes thus, “if you consider education to be expensive, try ignorance.” There is no doubt that ignorance is a much worse disease than poverty itself. I stand to be corrected, but to me poverty is the result of ignorance. Ignorance as defined by the dictionary is the condition of being uninformed or uneducated, lack of knowledge or information. Let me seize this opportunity to remind us that information rules the world?

If our leaders decide to pay lip service when it comes to investing in her peoples education, doesn’t that tell something? They very well know that Knowledge is Power, and that when people are informed, it will be difficult to pull wool over their faces. So in order to keep us wallowing in the dark, and for them to have enough space to steal and embezzle our monies unhindered, they decide to leave a very large part of the populace uninformed. At least that’s what the military era used in combination with brute force to keep the people loyal to their government of plundering. Another pain I feel is that these same leaders that are purposely keeping the people backward will rally round their uninformed people during electioneering to act as political thugs and, trust the uninformed, they will give in. To be continued...

What if we could turn back the hands of time?

Mosttimes memories of the past, cherished moments, sour moments and embarrassing moments revolve round in our heads. And we are like, "i wish that event happened more often  or i wish that event never came  ". Now the question is, what if we lived in a world where one could rewind time, would it or wouldn't it be great?