Article

5 Ways To Avoid Sapa

Posted on: 3rd Sep 2021

Sapa

“Sapa” is a state of being broke and if not handled well can lead to poverty.

Money is a depletable resource that needs to be well managed so when the unexpected happens you will always have something to fall back on. Here are 5 ways to optimize your monetary resources and ultimately avoid “Sapa”.

1) Create a Financial Plan/Budget

The first step towards making better financial decisions is creating a spending budget. If you are spending as much as or more than you earn, that is a sure way to invite “Sapa”. Having a spending budget enables you to track your expenses which can help you spend better.

2) Save a portion of your income

If you are an income-earner, you understand that your salary is usually accounted for, from buying food items to utility bills and supporting your family, you see that it might be difficult to reach the goals you have set if you are not disciplined.
It is advisable for you to save at least 10% of your monthly revenue. So if for instance, you earn N100,000 every month, your monthly savings should be at least N10,000. Investing in our Money Appreciation Plan (MAP) is a good way to start a rewarding financial journey.

3) Avoid Debt

Debt is one of the enemies of building wealth. Although, it is quite understandable that there are cases where requesting a loan or borrowing money seems justified, however, it is highly advisable that after a debt has been procured, you should start taking deliberate steps towards clearing the debt.
We advise that you choose our African Alliance Investment Plus (AIP), a plan that will give you access to loans when you invest with us.

4) Have an Emergency fund

An emergency fund is a personal fund set aside as a financial safety net for future mishaps or unexpected expenses. An emergency fund can be funding either from your savings or directly from your monthly income. You can dedicate about 10% of your income after savings into your emergency fund.

Our Esusu+ plan is a safe and secure emergency fund that includes a life cover.

5) Diversify your income

You can avoid “sapa” totally when your income is greater than your expenses. With this in mind, the two ways to attain freedom from poverty is a) Reducing your expenses. b) Increasing your income.
Although the first approach helps, it has been discovered that the second approach is far more effective for achieving financial freedom.

In the end, the guiding factor to avoid “Sapa” is to make better financial decisions. Our Money Appreciation Plan (MAP), Alliance Investment Plus (AIP) and Esusu+ are viable pathways to achieving financial freedom.

To get started, send us an email at customer@africanallianceplc.com.

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