…. Urges youths to self invest, avoid get–rich-quick schemes

At the start of a year, people easily set goals but few months down the line, the goals become difficult to accomplish. In this Interview with Financial Planning professional, Ifeoluwa Adegoke, she gives practical steps on how to follow through one’s goals.

What practical steps can people take to follow through with their yearly financial goals?

What differentiates those that achieve their financial goals from the people that are unable to reach them is quite simple- A plan. A plan is what transitions a goal from a dream, a desire to a reality. For example, you have a financial goal to double your income, my next question to you will be “How?” Are you getting new certifications to up-skill, charge more for your services or create new streams of income? I will say the simple practical step to achieving your financial goals is to have an actionable plan that will help you reach the goal.

What is the best way to go about creating financial goals?

Financial goal setting is an exercise you need to make out time to do. It’s not an emergency exercise where you just scribble something on a piece of paper without intentional thinking. I don’t believe your financial goals can only be set at the beginning of the year, but any day, any minute, any second you can make the decision to change your current financial reality. So here are some effective pointers to help you set achievable financial goals;

Be very specific about what you want and by specific I mean state the numbers. It is only by being specific that you will be able to measure your progress as you go.

Your goals need to be realistic, you can’t lie to yourself. Be true to your goals and commit to them.

Set feasible timelines. It will be overwhelming to try to achieve a long-term goal in the short-term.

Lastly, believe! Truly believe you can reach your goals and you will.

What is the financial outlook for 2023 in Nigeria?

Some significant financial difficulties from 2022 followed Nigerians into 2023, such as Hyperinflation, fuel scarcity and price hike, and the new problem every Nigerian is battling right now is Cash scarcity. These current realities have greatly impacted the productivity of SMEs which are one of the backbones of economic growth in Nigeria. It is no surprise that the IMF has projected that the Nigerian economy will shrink by 3.2% in 2023. I remember driving through the streets of Abuja a few weeks ago and seeing many shops closed, the once boisterous streets quiet and felt scanty, and I realised more than ever how these difficulties have impacted businesses. There are currently many uncertainties about how we will rise above these as a nation especially due to the leadership change we are about to experience as a nation.

What inspired you into becoming a financial planner?

My personal journey while trying to change my financial reality inspired me to follow this path. You see, I wasn’t born into money. I was born into the loving home of a hard working civil servant father and a tenacious mother with a small business. Growing up I experienced the effects of unstable income, living from paycheck to paycheck, debt, lack of financial planning etc. Over a decade ago, I saw the same pattern starting to emerge in my own finances and I made a decision to change it. I applied financial principles that has set me on a path of lasting financial stability, now I have made it my purpose to help people do the same: Achieve financial stability, build wealth, and overall live a fulfilling life.

What practical solutions can Nigeria adopt to the current cash crisis?

First, I will like to acknowledge the good CBN and the government were aiming to achieve with the Currency change. I believe if we are able to do this successfully, it will greatly help to curb hyperinflation, currency exchange issues and corruption. Although, currency change is not enough to achieve these, it must be backed by sound macroeconomic policies.

Looking at the current cash scarcity crisis, I believe this good intention the government and CBN had has been executed poorly. Let’s take inference from a country that successfully implemented a currency change in the past, Turkmenistan. This Asian country was able to execute a currency change from 2007-2010, unlike the crash implementation the CBN of Nigeria has tried to do. The solution our government can infer from countries like Turkmenistan that have done it effectively is to keep circulating the old and new notes simultaneously, and systematically mop up the old notes has they replace it with the new. I believe this will greatly reduce the financial tension all Nigerians are feeling.

What are some of the best investments a young person should consider?

The best investment that pays the highest dividends for life is the investment we make in ourselves. So, I will say every young person must never stop investing in themselves; invest in your education, experiences and development. I also particularly like investments in assets like stocks and real estate because I believe if done properly, they can provide returns for a lifetime and still be passed to the coming generation.

What terms should guide a person’s investment decisions?

I will say; Start early, invest wisely, invest consistently, have a plan and diversify your investments.

What is the importance of embracing modern day investment opportunities?

Our world has become a fast paced global village due to the easy flow of information and technological development. People like my father had to go through a long and tedious process to invest in stocks back in the day but now we can access all that with a few taps on our phones. There are many new innovations that have brought many investment opportunities and it will be a personal disadvantage for anyone to decide to completely shut themselves off such opportunities. My only caution will be that you do your research, ask questions or hire professionals to do the research for you before investing.

What is your opinion on leveraging loans for startups?

I think leveraging on loans can be a great catalyst for the scaling and success of startups. However, I do not believe in taking loans when there is no proof of concept or when there is lack of traction to show that the startup has a good foothold in the business world. I will say before any startup tries to leverage on loans, there should first be clear goals set for the funding because a loan gotten without set goals will most likely end up as a waste of financial resources.

What is the implication of black tax on one’s finance?

By definition black tax is a financial burden borne by people who are perceived to have achieved a level of financial success with an obligation to provide support to less financially secure family members. It can be daunting to say no to struggling family members when you are making a sustainable income, nobody wants to be perceived as the heartless son, daughter or sibling etc. Black tax can easily cause financial stress and make your own financial goals suffer especially in cases where there are no clear boundaries set between you and your family members. We all get black tax, it’s almost unavoidable, the best you can so your finances does not suffer is to set clear boundaries and include a set amount for it in your budget.

We see how a lot of youths want to attain wealth quickly. Is that sustainable? If no, why?

The answer is No, it is not sustainable because building wealth is not a get-rich-quick scheme. Building wealth is a journey that involves developing yourself, growing your intellectual capacity, building relationships, engaging your creativity to add value to the world etc. if anyone cuts this process because they want quick wealth, they will not have the substance to sustain and grow the wealth. It is easy to get rich quick by investing in PONZI schemes and other fraudulent shortcuts but real sustainable wealth comes from thinking long-term and staying true to the process. This is what will stand the test of time.

Do you think Nigerian stock market is getting all the attention it needs?

No, I don’t think so. I believe there is still a huge gap between Nigerian stock market and the retail investors in Nigeria. Our stock market has grown exponentially since the crash in 2008/2009 and with the wave of financial education awareness in our country more people are interested in investing their money into legitimate opportunities like stocks. Unfortunately, foreign stocks have gotten all the attention while our stock market gets little interest. I think the leadership of the Nigerian Stock Market should partner with people like me to help create more awareness about our own stock market. I also believe they need to do more with technology, sponsor or create FinTech platforms that provide easy access and information to trade the stocks.