You’re probably familiar with courses like English, maths, biology, or economics if you went through the Nigerian educational system but not these priceless facts about money.
These are some facts about money not found in textbooks you should know about if you wish to improve your financial literacy.
1. Budgets make life easier
Setting a budget is the key to managing money well, but it takes discipline and practice. A budget is basically a guide to how you want to spend your money each month so that you can keep track of your finances.
The important thing is finding a budgeting system that works for you and sticking to it.
2. Investing is different from saving
You typically save money in a bank account. It may earn little interest and you can access it whenever you need it. On the other hand, investing money allows you to grow your money exponentially over time.
Both saving and investing can contribute to your financial education and plan, but investing will help you build long-term wealth and reach your financial goals.
3. Starting early pays off
One thing everyone should learn about money is that time really works in your favour when it comes to investing. Investing money for a long period of time allows you to benefit from compound interest (you earn interest on your interest).
Saving and investing early, even if it’s just N5,000 or N50,000 monthly, will put you in a much better financial position the longer your money compounds. Visit www.overwood.ng to safely enjoy daily compounding interest on your investments.
4. Not all debts are the same
Not all debt is bad debt. A mortgage is generally considered a good debt due to its low-interest rates, whereas credit cards and loans fall under the bad debt category.
Managing your debt is important because it directly impacts your finances and mental health, and this can adversely affect your quality of life.
5. Earning money isn’t limited to a 9-to-5 job
Getting a good job can keep you financially stable, but it’s not the only way to earn money. Investing and starting a side hustle have become popular ways to earn extra income and protect yourself in the case of job loss.
Building long-term wealth can be accomplished in more ways than one. Don’t limit yourself to one option.
The process of financial education never ends. Educating yourself about money will help you manage it better.