Estate planning and the benefits of writing a Will

This quarter, I will be sharing on a topic that is very important to me.

I will discuss estate planning and the numerous benefits of writing a Will, drawing largely on my experience when my father died ‘intestate’ (i.e. without a Will). I hope that readers of the Finance Coach Column will take some lessons and proactively take the needed steps to protect their Families, legacy and wealth.

 Many people work so hard in their lifetime but do not take the precaution to ensure their built-up wealth is properly managed after they have passed on. Some are fearful believing once they have written a Will, death is the next thing to happen. Death is a debt every living person will pay at some point. Writing a Will or planning your Estate does not attract death and the thought that a Will brings on death is far from the truth. This apathy for writing a Will is even more pronounced in the Nigerian culture where even the most enlightened and educated have a phobia for planning their Estates.

 People who plan their Estate are only being clever and belong to a minority who are aware of the benefits. It is wise to have a Will to preserve your hard work and it is also wise to have a Will to reduce the amount of tax you would otherwise have to pay.

What is Estate planning?

 Estate planning is the act of preparing (during a person’s lifetime) for the transfer of the person's wealth and assets after his or her death or mental incapacitation. (Mental incapacitation is defined as an absence of mental capacity and the inability to carry on the everyday affairs of life or to care for one's person or property with reasonable discretion). Estate planning is done with the objective of minimizing Estate or inheritance taxes and to avoid the resulting cost of obtaining a Letter of Administration if one dies intestate. The assets and liabilities of a person all form part of one's Estate. These include but are not limited to real estate, shares in companies, cash/bank balances, cars, life insurance policies, personal belongings, and of course bank loans and other debts.

Readers should note that Estate planning allows an individual to decide exactly who will benefit from his or her Estate, to what extent, at what time and upon pre-defined conditions. It also protects your beneficiaries from being exposed to avoidable government levies while ensuring they pay the smallest tax possible.

 Estate planning preserves your legacy according to your wishes and protects your loved ones from many uncomfortable and undesirable circumstances after your passing. Essential to Estate planning is the task of transferring assets to heirs with an eye toward preserving the value of the Estate as much as possible.

Consequences of not writing a Will

The unfortunate incident of not having a Will occurs amongst all classes of people.  Rich, poor, educated and uneducated. The negative consequences of not writing a Will should inspire anyone who has any tangible asset to write a Will.

Simple assets include your bank account balances, shares owned, share of a business etc. While your family may easily have access to houses on family owned land, they will not have access to cash in your bank accounts, your shares or legally documented assets.

I will now examine some of these consequences:

1.     PROCESSING A LETTER OF ADMINISTRATION 

When a deceased does not leave a Will, he/she is deemed to have died intestate requiring the heirs/next of kin to process a Letter of Administration (LOA) to access the deceased’s estate. The entire process of obtaining the LOA of an estate can be cumbersome and extremely exhausting especially for people unfamiliar with the procedure. It is even more daunting due to the unstructured processes in most states in Nigeria and the typical bureaucratic hurdles in government establishments.  

Readers should note that there are different guidelines in different states in Nigeria on how Estates which fall into intestacy can be administered by the deceased’s next of kin. I will recommend that the next of kin retains the services of a competent Lawyer to hand hold and guide him through the entire process of obtaining the LOA.

To reiterate, please note that seeking to obtain a Letter of Administration is:

·        Costly

·        Time consuming

·        Fraught with Delays

·        Cumbersome (identification and listing of deceased’s assets is a big task)

·        Emotionally draining and complex especially in Nigeria. This is because some offices you need to visit in order to process the LOA do not have proper structures.

           2.     REDUCTION IN VALUE OF THE ESTATE

           The Estate of a deceased person can lose value when no Will exists -

1.     The value of the Estate is automatically reduced by the percentage of Probate dues applied to the estate when processing the LOA.

2.     Also when a different person other than the owner of the assets is involved in the collation of the number and value of assets, there is the possibility of missing out on some valuable assets, which may have been known only to the deceased. This results in fewer assets listed than total Assets available.

3. Depending on the emotional stability of the heirs of the deceased and the circumstances of his/her death, the eligible Administrators may take some time to recover from the loss leading to some loss of value in the assets. In my experience, as a result of the shock and state of my emotions when my father suddenly died, it took me one year to consider processing the LOA and eventually deciding on Asset disposals. By the time we were ready to sell some of the cars, they had lost so much value.

4.     Inadequate knowledge on the steps to follow to obtain the LOA, funding required to access necessary legal support and

disagreement amongst heirs are some reasons that can delay execution and administration of the deceased’s estate exposing the estate to devaluation.

5.     Inability to access bank funds means that Administrators cannot take timely and best decisions regarding the funds, consequently these funds may not earn maximum interest income.

3.     NO WILL, NO PEACE

We can argue that it isn’t in all cases where there is no Will that the family resorts to ugly wars. However, there have been unfortunate instances where some rich and educated people ignored this simple task and ended up exposing their loved ones to very ugly and messy situations. There have been occasions where siblings from same parents could not agree on the distribution of a deceased’s assets. I have also seen where only one out of a deceased’s surviving heirs is interested in undertaking the Herculean task of processing the LOA required to access assets - resulting in the entire Estate being subjected to this one heir’s interest, availability, and competence.

SOME IMPORTANT ISSUES TO NOTE

JOINT ASSETS

Jointly owned assets require that each owner gives specific instructions on his/her share of such assets. You may own assets jointly, but your Will can only bequeath your share of the asset. In some circumstances, the legal documentation of the jointly owned assets may allow some ‘succession clauses’ which allows the full asset to devolve to the co-owner. Where such clauses are adopted, this must be recognised in the Will.

ESTATE PLANNING IS NOT ONLY FOR AGED

Estate planning is not for the ‘aged’ or retirees only. Anyone who owns any valuable asset, irrespective of age should wisely document his/her desire for the distribution of those assets after death. 

SHARES OWNED

One of the actions the administrators of an estate must take is to carry out a global search of shares owned by the deceased. Thankfully, the Central Securities Clearing System (CSCS) in Nigeria is very organised and a visit to their office will help in the asset collation exercise. The Administrators of the Estate will be granted access to the relevant records of the shares owned by the deceased on the presentation of the following key documents:

·        Death Certificate

·        Letter of Administration

·        Valid identification for the Adminstrator(s)

·        Power of Attorney where relevant

 CONCLUSION

I have attempted to bring attention to this topic and share in simple terms the disadvantages of dying intestate revealing that it is beneficial to plan your estate and pen a Will.

Let me end this article by asking ‘Do you have a Will?  Is your Will up to date? If you own any significant asset and are educated, you have no excuse not to have a Will. Be wise and act today. If you need free support, connect with me via E-mail Financecoach@thresholdresources.ng

***Bimbo Komolafe FCA, FCIB writes from Lagos. She has over thirty years’ experience in finance and business and has a passion for seeing people succeed in managing their finances.  For more Financial tips from the finance coach follow her on:

Instagram:@financecoachtoday /Twitter:@financecoachbk

E-mail:Financecoach@thresholdresources.ng

Website - https://financecoachbk.com/

Facebook : Finance Coach Money and Wealth

This article is dedicated to the loving memory of my Dad Mr ‘Biola Aturamu (Rtd. Police Commissioner) 1942 - 2011.

5 Valuable tips from the book of Proverbs

Today, I will share 5 valuable tips from the Book of Proverbs that have worked for me in attaining, retaining and sustaining my financial freedom. There is a popular saying: ‘No man was born to remain poor. ‘’If you are born poor it is not your mistake, but if you die poor it is your mistake’. These tips from the Biblical book of proverbs are some ways a man born poor can change his fortunes.

Always set goals – When we set goals, we work towards accomplishing those goals. Without goals, we leave everything to chance and end up spending our money, time and energy on whatever comes our way. Everyone should have some goals in life so he/she can deploy his/her resources effectively. Prov 24: 27- “Prepare thy work without, and make it fit for thyself in the field; and afterwards build thine house”. Proverbs 21:5 - “The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty.”

Be careful of ‘Greed’ - One definition of greed says ‘intense and selfish desire for something, especially wealth, power, or food’..

Greed is the reason many people make unfortunate investment mistakes. Greed beclouds their vision and they end up not understanding trade, business or investment opportunities, then they get swindled. The guiding principle against this vice is ‘never be in a hurry to make financial choices or decisions’. Be careful to ask the right questions always and refusing to get carried away with ‘bogus’ benefits these false opportunities offer. An investor who has an intense or selfish desire to ‘grab’ will not ask the right questions nor investigate properly when offered opportunities. If an investment sounds too good to be true, it is a red flag for you to investigate further. Proverbs 28:20- “A faithful man shall abound with blessings: but he that maketh haste to be rich shall not be innocent”.  Proverbs 11: 24-25 -“There is that scattereth, and yet increaseth; and there is that withholdeth more than is meet, but it tendeth to poverty. 25 The liberal soul shall be made fat: and he that watereth shall be watered also himself”.

Learn from other successful people. Over the years, I have identified a few successful people whose lifestyles challenge me and who I adopted as informal mentors. Some are aware they are my mentors while others don’t know me. There are some key characteristics to watch out for in people you want to adopt as Mentors and who you want to learn from. Integrity, knowledge and availability. There are two people who I share ideas with - while I am careful to get professional and expert support when needed for investment and business ideas, I still check with at least one of these individuals before I make a final commitment.  Proverbs 27:17- “Iron sharpeneth iron; so a man sharpeneth the countenance of his friend”. Proverbs 15:22- “Without counsel purposes are disappointed: but in the multitude of counsellors they are established”.

Do not sleep unreasonably. I define ‘sleeping unreasonably’ as sleeping at odd hours, lousing around when you should be working hard on your academic or work deliverables. While I am careful for my health and do ensure I get minimum required number of sleep hours, I try not to sleep ‘careless sleep’ as defined in Proverbs 24:33-34. (33- “A little sleep, a little slumber, a little folding of the hands to rest, 34 and poverty will come on you like a thief and scarcity like an armed man”). All forms of laziness and mis-use of time leads a man to poverty and far from attaining financial freedom. Valuable time spent on Social Media or excessive watching of television. Mis-use of time by unnecessary gisting or visiting can all be categorized as Non Productive Time (NPT) which could be better deployed. Time is money and the more you learn to efficiently and effectively manage your time, the closer you get to attaining financial freedom.

Pay good attention to your health. I have a target to eat and drink in moderation as I am careful not to do things that jeopardize my health. While like most people, I struggle with keeping to the right diet for my bodily needs, I am conscious and aware of the do’s and do not’s and focuses on eating/drinking right. I also know the value of exercise and constantly work on my target of minimum 30 minutes active exercise thrice a week. Proverbs 25:16- “Hast thou found honey? eat so much as is sufficient for thee, lest thou be filled therewith, and vomit it…”.

8 quick tips to help you achieve financial excellence in 2019

1.    Create a budget and a financial plan for the year
2.    Enlarge your knowledge of financial issues
3.    Keep good financial records
4.    Take Financial decisions promptly
5.    Know your worth - what you own and what you owe
6.    Keep Retirement plans in focus
7.    Diversify your portfolio
8.    Take care of your health

       

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Managing My Low Income

This quarter my article will focus on how you can manage better on a low income while working to improve your finances. I also hope the article will address some comments received from readers of this column resident in Nigeria.

“…I love that many people are promoting financial literacy in Nigeria but something missing in the conversation is how Nigerians have external families and dependents at every stage of their lives, that makes basic saving and wealth creation such a struggle….”

I have received some feedback (like the one above) suggesting that financial literacy efforts by finance coaches recommend tips on savings without considering the low income earned by many in this part of the world. My position is that “no matter the level of one’s finances, there is always room for improvement”, and this forms the basis of some of the tips I want to share. To move from one level of financial comfort to another, there must be sacrifices. It is dangerous to accept a low income as an irredeemable or permanent situation by saying “my income is insufficient and, therefore, I cannot improve my financial situation”. This article will discuss the little things that can be done to help people manage their income more prudently. Some avoidable habits can save unnecessary costs, thus freeing up more of your monthly income. There are also some habits that can be inculcated which can improve your current level of income. The Finance Coach will be sharing 12 simple tips that can be applied to better manage your “low” income.

Many of those who need these tips may not have access to this article, I, therefore, urge readers to share these tips with those who need to know in your immediate circle of influence. You can share in family meetings, religious gatherings and other social events.

 1.     Take personal responsibility for your finances. 

Do not make yourself a liability. Acknowledge that you are personally responsible for your financial circumstances and for improving this. Irrespective of your age, no one owes you anything. We must eliminate the entitlement mentality that is so common among us. This has the tendency to make folks dependent on family members. Knowing no one owes you anything keeps you on your toes and motivates you to work harder and make better choices. Do not live your life with your eyes set on a relative’s purse or financial status. It is even unsafe to put such reliance on a relative as disappointments from such sources can negatively affect your health.

2.     Handle family pressures with wisdom. 

Discourage impromptu requests from family members except for unavoidable emergencies. What you tolerate grows. Let them know your finances are organised and that you work within a budget. No matter what you earn, there are people around you who believe you are more comfortable than you are or should be and so can spare some money for their use. Unfortunately, the culture of family members expecting support from the perceived more comfortable relatives will not leave soon. However, you must balance meeting such requests with your personal needs. No one gives what he does not have. There is no need to feel guilty when you cannot immediately meet the demands of less privileged family members. A good approach will be to discourage impromptu requests. If you must assist, you should consider having a budget for requests like this. This guides you and helps you manage such pressures better. Be careful to ask questions and be sure that you are supporting genuine needs. Ensure that welfare support or financial support to family members are not mere handouts but targeted at improving their capacity to earn and empower them to generate income. Be careful to identify and differentiate lazy family members from those with genuine financial burdens.

 3.     No matter what you earn, put something away as savings. 

Most people say “how can I save anything when my pay packet is not enough to meet my immediate needs”. The truth is if you are earning 80 per cent of your current pay, you will still find a way to survive. It is important to make some sacrifice to “power” your next level by making some form of savings. Simple budgeting ahead of your next pay goes a long way in helping you to save. Allocating funds to the different classes of bills would be helpful in identifying excesses. Learn to allocate funds to basic expenses like food, transport, utilities, entertainment, miscellaneous and see the window for possible savings. For example, you are likely to stay within planned budget for telephone costs if you have a target figure for this than if you buy your phone credit as you exhaust it. If you have a budget for your telephone bills, you will not engage in frivolous telephone conversations or mischievous forwarding of text messages and video clips. One area of possible savings for folks in Nigeria is in the area of data costs. Some might say it is not a significant cost, but every kobo counts. Many  people who struggle to save are in the category of those who spend without a plan. Savings options include the popular “Ajo/esusu”, cooperative savings and target savings schemes. Another way to save is from unexpected financial bonuses and gifts. Instead of applying all of a bonus or gift to long-standing desires, a percentage can be saved.

4.     Cut your coat according to your cloth.  

I have noticed that most people come under financial pressures from expenses above their income levels. For instance, financial decisions relating to rent and child education. People are encouraged to put their wards in schools they can afford and also take apartments they can afford. This might be an uncomfortable but necessary sacrifice to move to the next level. It is also important not to follow the Joneses but to buy only what you need. There is no point buying expensive telephone sets with sophisticated facilities which you will not use. Such purchases mean you are tying down funds that can be put to better use.

5.     Get the best value for your 24 hours. 

My advice is that you get the best pay out of the utilization of your work hours. Try and avoid inadequate compensation for your time and labour. This means you should seek and commit to the employment that pays you the most out of your available options. For instance, if working on a building site as a daily paid labourer will earn you more money than sitting in an office as an office boy or a driver, by all means, go for it. It may also be more profitable to be a farmer than staying in the city to do lower paid office jobs. Where possible, combine two or more options to make the most of the available working hours in a day.

6.     Make more money! Seek multiple streams of income. 

For most people in Nigeria, one income stream is not enough; hence the recommendation to have more than one source of income. There is a better chance of coping with financial responsibilities and pressures when you earn from more than one source. Couples should both earn money for the family. Assets owned can be deployed to earn revenue. A lady in a paid employment registered her car with Uber and switches on the app on the way to work and after work. She also switches it on when free at weekends. This extra income goes a long way in meeting some of her needs, and she is able to save and improve on her current level. A young university graduate I know runs a photography/video service but also registered his personal car for Uber services. While the photography business keeps him busy at weekends, he switches on the Uber app during the week.

7.     Improve your skills, education and certification. 

It is important not to remain at the level of competence you were hired at. Your job is more secure, and you are a candidate for promotion if you demonstrate to your employer that you have invested in self-development. You also make yourself more marketable in the job market. Be eager to learn new skills outside your immediate area of responsibility. Make an effort to harness other skills to add to the single income stream or whatever you do. For example, do you work in a salon as a hair stylist? You can learn nail care, make-up skills in between assignments. This way, you can offer more than one service and become more valuable to your employer. Such skills are also available for you to render outside work hours. Money earned from such hard work will contribute to improving your financial status if well saved and not spent on frivolous things.

8.     Don’t accept a job if the salary won’t cover your expenses. 

Do not accept just any job. It gives you the false impression that you have a job and restricts your desire to get an adequately paying job. It is better to channel one’s physical energy to earn more as a labourer than be a dignified office worker in “shirt and tie” earning poorly. Recently, I was in a friend’s car and she wanted me to help counsel her driver who was constantly broke. Upon interrogation, I discovered the driver earns 35k with a wife and four children. The enormity of the financial pressures from home and the “helplessness” of his situation resulted in momentary outburst of tears. I analysed his situation and discovered his full-time job does not provide him with a reasonable pay to meet his family needs. My suggestion to people in this category is to seek temporary alternative jobs that will earn them more money, even if it is a daily paid job on a building construction site. This will earn him some respite until he can find a reasonably paid job.

9.     More than anything else, Stay healthy. 

Most people in the employment of private companies and individuals do not have a medical insurance cover or allowances. Consequently, in the event of illnesses, such people have to fund their medical costs. The safest way to avoid such expenses is to make the right choices to stay healthy. Eat right, exercise right and rest well. If you have been placed on regular medications to manage an ongoing ailment (diabetes, high blood pressure etc.), ensure you always have enough and do not stop these without a doctor’s approval. This may just result in being penny-wise, pound foolish.  In the event of occasional health breakdown, seek the attention of a proper doctor and not quack doctors or nurses. The cheapest medical option is to seek timely attention from government hospitals.

10.   Family planning. 

Gone are the days when your wealth was measured by the number of children you had. These days, even the wealthy are very careful about the number of children they have. Reasonable spacing is also important for the financial and physical well-being of the parents. It is cheaper to visit a hospital for a family planning session than to birth children that become heavy financial liabilities.

11.    Preserve your business brand. 

Do you own a business that renders services? You earn more when you keep your commitments, and you lose money when your clients cannot rely on you. Be conscious of delivering when you promise to and at the right quality. You are the best advert for your service or product. Once you deliver on your promise, the word is spread that you don’t fail on your commitments and people will seek you out. On the contrary, when you fail to deliver as promised, your clients also help you spread the news reducing your patronage. Everyone wants a service provider who will give good value for the money paid.

12.Understand that Time is Money.  

It is often said that time is money, but money is also time. Understand that your pay at the end of a period is tied to the working hours in that period. This requires that you spend with care bearing in mind the number of work hours behind every amount spent.  A man in paid employment who earns say, #90,000:00 a month, earns about #3,000:00 a day. So if such a man, out of impulse, buys an item he does not necessarily need for #6,000, he has thrown away two days of his thirty hard working days. Unfortunately, since he is in paid employment, the wasted two days will not be reimbursed till another payday. When a man keeps this in mind all the time, when spending, he will likely be more careful not to spend his money on frivolous things. The above points are not exhaustive, and I recommend that people should seek financial advice as often as possible. There are many free services available from experts.

           ***Managing My Low Income - FinanceCoach Quarterly  (Q4-2018)

       ***Bimbo Komolafe FCA, FCIB writes from Lagos. She has over thirty years’ experience in                    finance and business and has a passion for seeing people succeed in managing their finances.

 For more Financial tips from the finance coach follow her on:

Instagram  -@financecoachtoday

Twitter -@financecoachbk

Blog - www.financecoachbk.blogspot.com.ng

7 simple keys to your financial freedom

Everyone desires to be financially independent and able to meet their financial obligations from own resources. Everyone can have financial freedom. No one wants to be partially or wholly dependent on another person for basic needs and wants. However, many people remain in this unpleasant situation because of certain reasons, mainly ignorance. One of the definitions of ‘Independence’ given by Cambridge dictionary says  it is ‘the ability to live your life without being helped or influenced by other people’ while  ‘Freedom’ is defined as ‘the condition or right of being able or allowed to do, say, think, etc. whatever you want to, without being controlled or limited’. From these definitions, we can define financial freedom and independence as the ability to live and meet your financial obligations, without being helped or influenced by other people. We can also define Financial Freedom as ‘the condition or right of being able or allowed to do say, think, etc. whatever you want to (financially), without being controlled or limited’..There are many good habits we can adopt to help us live with financial discipline which in turn will allow us have financial freedom. These habits are applicable to those struggling financially as well as to those desiring a higher level of financial independence. The following 7 keys are some of the ways we can all have true financial freedom.

1.    Understand and value money.

A person who desires to have financial freedom must understand money and its’ numerous attributes. Money serves three main purposes; it is a medium of exchange, a store of value and a unit of account. In practical terms, everyone needs to understand and know how much they need to meet their immediate needs, how much financing they need for the future and how much they are currently worth. Understanding money means ‘understanding how much money you have and where it goes. It means being in a position to make the most of what you have. I love listening to the advert we hear in recent times  on the popular CNN program ‘Quest Means Business’  hosted by Richard Quest which says ‘Just a penny? The person who desires financial independence must know ‘it isn’t just a penny’ but that every penny counts. Knowing this guides your monetary choices and decisions. Most wealthy people do not waste funds. They get good value for every penny committed. They understand that money if properly managed has the tendency to grow. They also learn to pay themselves first by putting away a percentage of their earnings as savings. Another attribute of money is that it is not defined by the work done to earn it, so do not look down on any job. Be humble enough to do anything legal to earn some money. Lastly, treasure what you earn, no matter the sum.

2.    Create multiple streams of income

Multiple streams of income means that you have income from several different sources. If one source stops or is eliminated you can rely on another source. Most people do not maximise and generate income from the opportunities they have. Everybody has 24 hours in each day. The difference between the financially independent vs dependent man is the utilisation and application of these hours. Whether you work for yourself or for someone else, you can allocate more time to earning income in addition to your main source of income. What is important is that you do not breach the terms of your paid employment. Those with funds should diversify their investment portfolio by investing in a variety of income generating assets. Others with limited funds can learn a skill and equip themselves to offer a service in addition to their main jobs. Look around you and identify a need in your immediate community and find what you can sell, or the service you can render to generate additional income.

3.    Identify your money mistakes and weaknesses

A person who desires to have financial freedom must understand his weaknesses and be honest about past money mistakes, and be determined to overcome these weaknesses. Money mistakes range from living above one’s means, living extravagant lifestyles, not having savings, spending on impulse, borrowing to finance excesses, poor financial planning, poor knowledge of financial matters and others. Living for the moment and improper planning for future needs, complacency with current state of achievement are more examples of these weaknesses. Identify which bad habit you are struggling with and make deliberate efforts to stop this.

4.    Maximize your strong days (Make hay while the sun shines)

“Make hay while the sun shines" is a popular old saying that is essential for being in control of your own financials. To make hay while the sun shines means that you take advantage of the chance to do something while conditions are good. It also means you make good use of your time or make the most of an opportunity while you have the chance. To have financial independence irrespective of the stage of your life, requires that you sow the right seed at the right time. The financial seed sown today will grow and yield fruit down the road. Your financial decisions and choices during the years when you earn high income should tend towards saving maximally such that your savings and investments can finance your lifestyle when you have retired or left such high paying jobs.  It is important to be aware that whilst certain expenses during your active years (eg buying first home, children education) may not continue into retirement season, you pick up new expenses (medical bills from age related ailments, higher insurance premium etc) If we live below our means while the going is good, we will be able to live as if we never retired even after we have retired.

Shun the word ‘procrastination’ and take action ‘today’. Make every second count. Learn a trade/skill when you still have the physical strength and when fewer things are competing for your time. Sacrifice the leisures of today to study for a professional qualification, obtain additional certification that can boost your resume (worth). If you are an entrepreneur, build up your capital by increasing what you plow back (retained profits) into your business and see your business grow.  

5.    Look ahead

Financial freedom isn’t only for your days in active employment but includes  the season of life when you can no longer actively work. Everyone must take financial decisions consciously aware that Retirement is compulsory and will happen to every one. Retirement has been defined as ‘the action or fact of leaving one's job and ceasing to work’.

Even if you love work so much, your physical form will restrict you from working so hard in your later years. Some people have lived a life time of work with nothing to show for it, irrespective of what earned.

When you retire, savings from your active years should fund your living expenses. It is therefore important that from the date you start working, you set some funds aside for your retirement years. No matter your current level of income, it is essential to begin saving for retirement. If you have not started, begin now as it is NEVER too late.  There are many resources to support you in this area so seek professional advise where unsure.

6.    Your money, your relationship.  

Whether you are already married or planning to get married, it means you are in a serious relationship. Financial freedom requires that you and your partner are fully aligned on money matters. Transparency is essential and there should be no assumptions regarding what your financial goals are. There should be open discussions about your finances where both parties will agree on what strategy to pursue. Your financial freedom is incomplete if you have financial discipline while your partner is reckless. Your financial success is assured where you both have the same financial priorities and goals regarding spending and saving.

7.    Understand that everyone can have financial freedom.

No matter your current circumstances, understand that no man was born to remain poor. There is a popular saying, ‘If you are born poor it's not your mistake, but if you die poor it's your mistake’. Attain financial freedom by refusing to be condemned into living a life of poverty. With the understanding that your financial circumstances can change positively, begin to take little steps towards growing financially. Improve your knowledge of financial matters and apply the knowledge gained. Where possible seek expert support and guidance from professionals to enable you maximise the opportunities currently available to you.

***7 simple keys to your financial freedom - FinanceCoach Quarterly (Q3-2018)

***Bimbo Komolafe FCA, FCIB writes from Lagos and is a Fellow of the Institute of Chartered Accountants of Nigeria and a Fellow of the Chartered Institute of Bankers.