Our lives are shaped by many different life events – Some exciting and happy, and some very difficult to endure; they all come with financial consequences. In this column, we will embark on a journey that embraces an extensive and varied range of issues related to your personal finances. Personal Finance involves every aspect of your life that involves money; your personal financial situation can affect your relationships, your lifestyle and standard of living and even your perception of yourself.
Life events range from the significant milestones of starting a first job, to getting married and starting a family, educating your children, losing a job, relocating, buying a home, caring for aging parents, losing a loved one, and planning for your retirement and your legacy. Too many of us get swept up in such events without being prepared financially. By planning ahead of such events, some of which can be anticipated, you can help preserve and protect your present lifestyle. The finer details of your personal finances will change as you start out and move from your 20s and 30s to your 40s and 50s and beyond, but the general principles remain the same.
There is no shortcut to financial independence. Unless you are lucky enough to win the lottery or happen to inherit a fortune, you will have to build your financial future systematically with careful planning, so don’t spend all your time looking to “get rich quick”. The key to securing your financial future is about taking many small disciplined steps over a long period of time. It is about having a plan, and a plan requires commitment, determination, discipline, consistency and time.
Nimi Akinkugbe has extensive experience in private banking and wealth management. She is passionate about encouraging financial independence and offers frank, practical insights to create a greater awareness and understanding of personal finance.