Posted on: 21st Jan 2019
One of the very first lessons you learn before going into a business of any kind is that of the risks involved. The risk of doing business varies depending on the type of business you choose to go into. However, one thing seems to be quite consistent when doing just about any kind of business and that is the inevitable possibility of running into debts.
Nevertheless, for every problem, we like to think that if you search hard enough, there is always a solution lurking. So what is the panacea to this fiasco? How can businesspersons save to pay off their debts?
We are going to highlight a few ways business people can save up in order to be debt free and have their businesses continue to progress smoothly.
Of course one of the first and foremost ways to save is to first of all cut down on your business expenses. Analyze or audit, but just be sure to shave off all the unnecessary costs. What may seem small now, may be costing you a lot when summed together. Therefore, it is quite pertinent that for you to start saving, you must attempt to stop spending; at least on things you can do away with. This way you can redirect monies saved to paying off debts.
A lot of debt is incurred by business people when they attempt to acquire new clients. This can be quite expensive and in order to save up to pay off debts, a business should concentrate more on customer retention. That is to say, their focus should be directed at already existing or old clients, as it is far cheaper to get them to do business with you again than acquiring new clients. On the road to saving to pay off debts, this method will prove quite effective in doing so.
Good businesses make investments as a form of financial security. Investments made by business people should be such that it can generate interests that will serve as savings. So that in cases where the business is in debt, there is a viable source to obtain money to pay up these debts.
At African Alliance, there is an investment scheme called the “Investment Plus Plan”. This investment category allows for a businessperson to earn up to 5% interest on savings. From as low as 5000 naira, businesspeople can begin to save up funds for the rainy day bearing two things in mind; the first is that they are entitled to an interest rate they most likely won’t get in commercial banks, in addition to the free life insurance cover that comes with this product. It is a package deal with a life cover up to the tune of 1 million naira. Note that you become eligible to request for policy loans as well which can also enable you to pay up debt.
The mere mention of debts can cause some people to immediately develop high blood pressure and this is because it can be quite an uncomfortable position to be in. It is even dicey and a bit more serious when it is a debt owed due to the cost of doing business. But with these few tips we’ve highlighted above, you should be one step closer to solving your debt problems.
Posted on: 19th Nov 2018
If you’re a great spender during the Christmas season and it makes you miserable afterwards (especially when January becomes as dry as Harmattan), then this article is for you.
You can attribute it up to being over-excited or just a general lack of financial discipline, but whatever the case is, it turns out people just find it difficult to save during the Christmas season.
So, how can you make this Christmas different from all others?
Let’s Make A Budget.
Ask yourself – what’s the target? How much do you need to spend and on what items?
Create a list of things you need to spend on. Cancel out those that seem frivolous.
There will be expenses that tend to emerge out of the blue this period, so prepare for them by making room for what is typically referred to as “miscellaneous”. Be careful not to over-extend your budget as this is another common mistake that makes people to go overboard.
Trim Down the Budget.
Many people end up buying more than they need or buying what they don’t even really want.
For you, this is not going to happen, right?
Before you add all the items in the world on your budget, stop and think – do I NEED this or do I WANT this?
Review your current holiday traditions and note where you have excesses. Having figured this out, you need to cut it. Keep in mind the whole time that the festive period is exactly that, a period – it will disappear as quickly as it arrived.
Stick to That Budget.
Ever walked down the street and then seen those nice pair of shirts or shoes that you know would look perfect on you?
Before you go too far, resist that temptation.
There will be temptations and you will feel the very persuasive need to reach in there and harm your savings. Do not succumb, take a few steps back and retreat. The trick is to pick up that budget wherever you have it spelled out and be reminded that you owe yourself a memorable Christmas treat this season. Pay a blind eye to the numerous holiday offers that will be floating around this season.
It’s nothing but a trap
Save in Bits for the Unforeseen
It is much easier to save N10,000 every month than it is to save N120,000 at a go. Try it and see. However, we know that plans go awry; sometimes, we do not plan things and they go South.
Who’s got your back during those trying times?
We recommend getting an investment plan that has life insurance features added. This way, no matter what happens, you will always have confidence to celebrate Christmas today and the years to come.
In summary, you need a healthy dose of financial discipline, self-restraint and good judgment. Apply these simple principles in addition to the tips above and if you are able to stick to them, you would be the happiest Christmas spender that ever liveth.
Do you have more ideas to include? Comment below.