LESSON LEARNED FROM THE RECESSION: WHY YOU NEED AN EMERGENCY FUND
James Rufai had risen through the ranks and file in his bank from being a teller through 25 years of hard work and personal sacrifices to becoming a manager. Today, his years of hardwork have come to nought; the Human Resources just served him his discharge letter.
James has four children in one of the international schools at Lekki Phase I, Lagos. Among his first decisions was the withdrawal of his children from the international school because he would no longer be able to afford the requisite school fees, change of neighbourhood from posh to less posh (Lekki to Egbeda), sales of some of his exotic household furniture and car, to enable him weather the economic storm occasioned by the looming economic recession.
Nigeria is technically in an economic recession and at the brink of an economic precipice. Its massive effect is spreading across every sector of the most populous country in Africa, particularly education. There are many similar stories in Nigeria today which could have been avoided with a comprehensive financial plan. The sooner you start making smart decisions like planning for the future, the less worried you will be when events take an unexpected turn.
Financial planning enables you track your expenses and set aside funds to cover plans for retirement, education and emergencies such as medical needs or Job loss. Many wrongly believe financial plans are only for people with so much money but simple economics dictates that planning should be paramount when resources are scarce.
At ALM Trustees we understand that being prepared for anything is an essential part of financial security and the only way you can create the future is to plan for it.
Talk to us about setting up the ALM Education Trust Fund and/or ALM Target Saving Trust.
Part of the story is culled from pg.25 BusinessDay, Tuesday 06 Sept. 2016.visit us at http://www.almconsultingltd.com for free consultations and advisory service.