Wednesday, January 13, 2021 / 6:29 PM /
Ayomide Oguntoye for WebTV / Header Image Credit: WebTV
In a recent conversation on “Personal
Finance Management in 2021” Elizabeth Ekpo a Chartered Financial Analyst, CFA,
highlighted ways in which women could achieve financial liberation in a year
shaped by the uncertainties of COVID-19.
According to Ekpo financial goals are important because in helping women set clear paths towards what they
seek to achieve in the future.
She said, “If you are in a state where you are just
growing your career, the goal you set for yourself will be different from
someone who is in a stage where they are set to retire and are already thinking
of transferring wealth either to their children or to charities”.
The financial planner stressed that it was important
for women to set important goals that included establishing emergency funds.
She noted that 2020 brought to the fore the importance of having an emergency
kitty to meet disruptions such as COVID-19.
She encouraged women to give priority to creating and
managing emergency funds in 2021, and also to work at ensuring a debt-free
experience through the year.
Looking at the issues of impulse buying and frivolous
spending, she advised women to be true to themselves and acknowledge that it is
an issue that needs to be addressed. According to her not acknowledging it
means it will fester a snowball into a major fiscal problem for them and their
“Overcoming the habit of impulse buying requires a
disciplined mind and the setting of boundaries. You must have a plan and draw
up a priority list and separate your needs from your wants” she said.
Speaking on the importance of an ‘accountability
partner’, she said they are vital to the process of achieving goals, as
they check on their partners and hold them accountable for financial goals that
have been set.
She added, “Likewise, in a community of like-minds
where everyone tends to be working towards achieving the same goal, discussing
achievements and your challenges can serve as a motivation”.
In the area of financial products that women can
invest in for wealth creation in 2021, she said it would have to take into
account the unique circumstances and situations of women.
“For instance, you need money to pay school fees from
time to time from the money you’re investing. Then you are looking at
Investments that pay dividends regularly, like bonds or dividend-paying stocks
or commercial real estate that brings in rental income yearly or monthly. The
goals would be different for a person who has money that she just wants to set
aside for the next two to three years”.
Other options she listed include; treasury bills, and
commercial real estate investments.
On the other hand for high-risk-takers she said they
could consider cryptocurrencies, which could be very volatile and ill-advised
for people in need of a steady and predictable stream of income.
Providing insights into how mothers could inculcate
good financial habits in their children, like saving and investing, she made
the following points;
- We must begin to teach our children and help them
develop good money habits and have the financial discipline that they need
to survive in the future because the girl child of today will become the
mother of tomorrow.
- One practical way is to lead by example, ‘practice what you preach’. Children learn by imitation.
- Another way is to regularly enroll them for
financial education, such as financial boot camps for children that have
themes that address personal money management matters.
- Also, the traditional way of buying children
piggy banks could be explored.