THE SMART MONEY WOMAN

It’s a book about money - making it, spending it, investing it and growing it. Every woman that’s aiming for financial stability and independence should read it. Now, you are thinking, ‘oh, not another book on finance,’ especially in these times when many people, who probably don’t know what they are doing, want their names on a book.

Well, this book is different. Even if you are not a habitual reader, this will blow you away. It’s fiction, a story about how women (and men) should manage their finances, with thought-provoking, priority-reordering and action-motivating lessons that will change the way you look at yourself and money. It will draw you in till you turn the last page. The author, Arese Ugwu, was in Warri weeks ago for the Book Signing hosted by Orode Okpu. I was there and here is a bit of what she said about managing your personal finance.

THE TRUE MEANING OF WEALTH

In the African context, to be financially successful, we are told to make money but we are not taught how to grow or manage it. Being wealthy translates into how much you have in your bank account, but in the real sense of it, being wealthy is how much you are able to keep in terms of assets that can pay you an income in the future. That is why people in our society rise from nothing to something and become broke again in no time due to lack of financial management skills.

THE SMART MONEY WOMAN

Though the principles in the book are universally applicable to both men and women, the book targets women because they are more vulnerable. Women are generally viewed by the society as frivolous. Even the disciplined women that save, do so to spend later. Women are groomed to get married and support their family by paying fees, rent etc. These things are not assets. African women should be taught how to build their financial future alongside their husbands.

TIPS ON HOW TO TURN YOUR MONEY INTO ASSETS

Goals

Many people don’t have goals. They make money but cannot articulate what they want the money to do for them. Nine of ten people do not have goals; what they have are wishes. A goal is making plans to get assets, researching on how to get those assets, budgeting, knowing what your limited resources can and cannot afford.

It is important to know that no matter how wealthy you are, your resources are limited. So, you must allocate them appropriately. You must ruthlessly cut unwanted expenses and prioritize your needs.

Income

Divide your income into three parts. 70% for living expenses, 20% for long term financial goals (that is to build your assets) and the remaining 10% towards short term goals like buying a car, a bag, etc.

Grow your business

It is important to reinvest, but drawing the line between saving and reinvesting is knowing that you are a separate entity from your business. Calculate your income from the business, pay yourself a salary and re-invest in the business. The salary will help you to build other assets different from the business. In this way, you are diversifying your risks.

Arese’s book addresses many more money issues like managing your debt, tracking your expenses, having a workable budget and of course investing in your financial future. Honestly, as an African woman, if you are looking for a way up the financial ladder, read The Smart Money Woman.

Grace Olumayowa Aideloje

Grace is a Writer, Editor and Proof-reader. She teaches Writing Classes and motivates young writers to follow their dreams until they see their names on books people rate as excellent. Her passion is to empower people through knowledge sharing. She is the initiator of the Christian WAR Forum.

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