After graduating from the university, there is a list of "next steps" you create which may include getting a job, creating a budget, or even stomping new grounds. However, there's one more thing you ought to add: Investing.
We understand. Retirement seems way far off and you think now is the time to just enjoy your earnings. However, as the old saying goes, little drops of water make a mighty ocean. The sooner you begin investing for a better future, the better it'd be for you.
In this article, we'd discuss a few points on how to start investing even if you're a fresh graduate.
Invest in yourself

After graduating from the university, you probably aren't earning so much money so the first thing you'd need to do is ramp up your income stream as quickly as possible. This can be achieved in numerous ways:
Improve your skill set -Take classes to learn new skills, earn certifications.
Get a good-paying job and work hard enough to get promotions and raises -Be known for doing excellent work until you become indispensable.
Get advanced degrees -Go the extra mile in boosting your perceived value which will, in turn, boost your earning capacity.
Start a business on the side -In essence, build a 5-9 asides from your 9-5 and grow it. It may be tough, but it'd pay off at the end if you tend it properly.
It is imperative to make money first before you can begin investing a meaningful amount. Do something to earn an extra income that you can invest.

Minimize lifestyle inflation
You're probably wondering how you'll get the extra money to invest with. It is not as hard as you think. Minimizing lifestyle inflation is just as important as investing is. Track your expenses to know how you spend your money, then cut back on the excesses.
Many people spend more when they make more money. Avoid this trap and invest the extra money instead. It may either be by curbing the impulse to spend on perceived value rather than the actual value or turning down the offer to spend excessively on an outing with friends. Whatever it may be, cut down on expenses that don't add value to your life.

Start now
There are so many benefits to getting a jump on investing at a young age. Since time is on your side, your money will grow very quickly over time with the power of compound interest. Compounding is the eighth wonder of the world. Due to its power, a single penny can grow into millions over time.

Asides from the power of compound interest, starting early will help you develop the habit of investing. Saving for the long-term is a key part of wealth-building, so you'll want to get comfortable with it early enough. Make saving and investing mandatory and be consistent with it. Start your investment journey with Overwood(www.overwood.ng).

Creating a family budget may seem like a difficult task as it entails balancing the financial needs of your family with yours. This is why many families operate without a household budget, and those who create a spending plan may not be doing it right.

However, planning a family budget in Nigeria goes beyond tracking spending habits and keeping receipts. Here are four steps to planning an effective family budget.

 

1. Set financial goals
This is the first and most important aspect of planning a family budget. You must first have an end goal before setting on a journey. Think for a while on the financial goals that align with every member of the house, then write them down. You may need to negotiate with them but make sure to set goals that everyone agrees to, else it’d be difficult to maintain the budget.

The goals you set are the targets that’ll help build your plan. Determine the amount you’d need to reach each goal, and how you wish to accomplish that goal. Examples of goals you can set are to get out of debt, save towards your children’s future education, retirement planning, or saving towards buying a house. Make sure to set short-term, medium-term, and long-term goals.

 

2. Evaluate your current financial situation
The next step is to evaluate the financial situation of your family by tracking your income and expenses. Make a list of your household income sources and recurrent expenses and their amounts. Then, track your expenses for two to three months, to understand your family’s spending habits. This gives you a clear picture of your net income and possible expenses to budget for.


3. Prioritize needs over wants
Once you know how much you have and what your goals are, choose a budgeting method that works best for you. As you track your finances, you’d notice the categories you do not need (or where you need to trim costs). To create an effective family budget, it is important to prioritize needs over wants and cut off the excesses in your expenses. This will allow some excess cash that you can save. Consider using the 50-30-20 budget rule to manage your finances.

4. Allocate funds
Start allocating funds to the essentials before moving on to the nice-to-haves and non-essentials. Fixed expenses are easier to list since the cost is usually the same month-to-month. For variable expenses, you’ll need to do some math to find the average.

5. Build your savings

Every family needs to have savings; a stash of funds towards meeting a financial goal. Even if you’re focused on paying off your debt, make sure to open an emergency fund and save three to six months of your family’s living expenses. Afterward, you can then start saving a particular amount each month, and invest your savings in a safe, high yield investment instrument like www.overwood.ng.

Now that the brunt of the pandemic is beginning to wear off, businesses are back in operation, and we are adjusting to what seems to be our new normal, taking the time to manage your money better can pay off.

Important money habits are built over time, so managing your time effectively will improve the state of your finances. Ask yourself, What are your financial goals? What do you need to change or improve on to manage your finances better? Just like with any other goal, by consciously building these healthy financial habits, you’re bound to get your desired results.

Create an additional source of income
An additional source is an integral step in escaping the rat-race (living paycheck to paycheck). The pandemic might have given you free time into figuring out how to generate extra income. Your next step is to come up with a plan and put your plan in motion.

From starting a side hustle to building a diversified investment portfolio, multiple income streams will always lead to healthier finances, especially when combined with smart and healthy spending habits.

Build a buffer
Now is a good time as any to practice frugality. Avoid impulse buying, create a budget that works for you, and stick to it. By implementing a budget, you can avoid money pits and save up spare cash for emergencies.

Those that had a previously established emergency fund when the pandemic hit can testify to how having one softened the blow on their finances. Try as much as possible to replenish what has left the fund, and if you don’t have an emergency fund, now is the time to start building one in a savings account with high interest.

Get rid of bad debt
Being debt-free is a lifetime commitment that requires you to always live below your means. However, some extenuating circumstances can land you in a pile of debt. The best thing to do? Start prioritizing paying them off! Pay off your high-interest debt first and try as much as possible not to incur any more debt.

Track your spending by creating and following a budget. This will help manage what you have more effectively. Once your overall spending falls in line, you’d be able to find the balance between paying off debt and working towards financial stability.

Invest
Most people have bad savings and investing habits that inadvertently reflect on the state of their finances. A healthy financial life requires you to allocate 20% of your earnings to your savings and investments.

Take advantage of the opportunities Fintechs in Nigeria, like Overwood, offer to make investing easier. Start your investment journey with OVERWOOD www.overwood.ng.

If you’re finding it difficult to save and invest diligently, modify your lifestyle to support investment and savings automation. This is one of the best ways to simplify and improve your financial health.

Educate yourself
The more you improve on your financial knowledge, the better you become at managing your finances. Reading a personal finance book is a great way to start, and the knowledge you’ll gain will prove invaluable.

You can also take courses focused on an area of financial development you’re interested in, and talk to professionals in the finance industry. Spending time to learn more about your personal finance can be enlightening, and when this knowledge is strategically implemented, the effect will be transparent.

To be a successful investor, you need to determine the right asset allocation to reach your set investment goals. An investment portfolio is a mix of various financial instruments like stocks, bonds, mutual funds, and treasury bills. It is a group of assets that investors use to make a profit, diversify their risks, and grow their investments consistently.

Creating an investment portfolio could be overwhelming and time-consuming; in this article, we will discuss some essential steps to make this process easy.

Determine the right asset allocation for you

There are four factors to consider when determining your asset allocation. They include your financial goals, risk tolerance, age, and time horizon.

Before you start investing, you need to have a financial goal in mind. Your goals will define the right financial instruments you need to invest in. Also, to determine your asset allocation. you will need to define your risk tolerance. Your risk tolerance is your ability to handle losses that come with the volatility of some financial instruments. Another factor to consider is your age and how much time you have to grow your investments.

Build your portfolio

After you have determined the right asset allocation for you based on the factors mentioned above, the next step is to choose instruments that will help you achieve your goal.
The common types of investments include:

Stocks: A stock is a share of ownership in a company held by a group or individual. They are also known as equities. Stock investors earn money from capital appreciation, cash dividend, and bonus issues.

Bonds: A bond is a loan to a company or government that essentially pays investors a fixed rate of return for a certain number of years. Bonds are less risky than stocks because you know when and how much you will earn; bonds are also called fixed-income instruments.

Mutual funds: Another way to invest in Nigeria with a small amount of money is via mutual funds. A mutual fund is an investment vehicle where investors pool in funds to invest in various securities. Mutual funds help investors to diversify their investments due to the different types of instruments involved. A diversified portfolio leads to a lower risk of losing your funds.


Reassess your portfolio weightings

Now that you know the available instruments you can invest in, you’ll need to decide on how much of each asset class suits your risk tolerance and investment goal. Asset allocation is deciding how to split your portfolio between different asset classes. A balanced portfolio is the best way to obtain higher returns and low risks due to diversification.

Types of investment portfolios:

Aggressive portfolio: This is suitable for investors with high-risk appetite and a long term horizon. The portfolio has a very high risk and higher returns. It could consist of 70% stock and 30% bonds.

Moderate portfolio: This is a balanced portfolio for investors who want higher returns with low risk compared to the aggressive portfolio. It could be a mix of 60% bonds and 40% stocks. You can achieve a diversified portfolio with OVERWOOD. OVERWOOD https://overwood.ng is a safety-first investment platform that offers an interest rate of up to 15% per annum on their products.

Conservative portfolio: This is suitable for investors with low tolerance and a short time horizon. The portfolio offers low risk and low returns. It could be a combination of 80% bonds and 20% stocks.

Budgeting is the easiest way to stay on top of your finances and take control of your money. There are different budgeting methods available depending on your preference and financial goals to help you manage your money effectively. You must first establish your goals before you create a budget. Knowing how to budget is key to helping you achieve important financial milestones. Here’s how to create a monthly budget based on your income and expenses.

Determine your total budget number
The first step is to calculate your net income, which is the amount of money you earn less taxes. If you are self employed or don’t receive a regular paycheck, you’ll need to estimate how much you’ve earned in the past months and subtract taxes from the average. This gives you a clear picture of your take-home pay.

Decide on a budgeting system
Once you know how much you have and what your goals are, choose a budgeting method that works best for you. Try out the different budgeting methods and tailor your budget to your specific needs and goals.The popular options are the zero-based budget (income minus expenses equal to zero), 50/30/20 Budget (50% to needs, 30% to wants, 20% to savings and debt repayment) and the Envelope system(form of zero-based budget that’s focused on using only cash).

List your potential expenses
The next step is to list out all the things you’ll need to spend money on for the month and label whether they’re fixed or variable. Fixed expenses are bills you can’t avoid while variable expenses are more flexible. Once that is done, start grouping your expenditures into categories. Then prioritize each category into essentials, nice to haves, non essentials.

Allocate funds
Start allocating funds to the essentials before moving on to the nice-to-haves and non-essentials. Fixed expenses are easier to list since the cost is usually the same month-to-month. For variable expenses, you’ll need to do some math to find the average.

Adjust and update budget
The last step in creating a budget is to compare your net income to your monthly expenses and make necessary adjustments. If your expenses are higher than your income, look for categories you can cut expenses on. Consult your budget always before spending and reallocate funds if you under or over spend. Review your budget always to ensure you’re on track with your goals.

The best budget is the one that you’re able to stick to. It's easier to budget if you visualize its long-term benefits. You can track your spending with budgeting apps or even with a simple spreadsheet. Whatever your financial goals may be, having and sticking to your budget will lead you to success. Improve your finances this year with OVERWOOD www.overwood.ng

Most people struggle with debt at some stage in life. The best way to get out of debt is to include an actionable debt repayment plan in your finacial plan and stick to it. It is easier to get into debt than to get out of it. Most times, debt can be incurred in a matter of minutes while it could take months or years to pay it off.
It's always best to avoid getting into debt but if extenuating circumstances arise, you should prioritize paying it off to ensure you have healthy finances.

If you are currently struggling with paying off your debt, here are some steps you can follow to become debt-free:

Stop incurring more debt
The first step to getting out of debt is to stop accumulating debt. Getting out of debt will be harder if you keep incurring more. Avoid borrowing money from your family, friends, banks, etc. This step will not eliminate your debt but will help in the process of getting out of debt. Try to avoid getting yourself in situations that'll get you deeper into this financial pitfall.

Organize your debt
You can do this by calculating how much debt you currently have, then arranging your debt according to priority so you will know which ones to pay off first. You will need to list the amount you owe, the interest payable, and the monthly minimum payment on each loan. It is easier to develop a debt repayment plan when you have all this information available. Choose a debt repayment strategy that works for you. Either by paying off debt with higher interest rate first (Debt avalanche method) or by paying off debt in order of balance amount(Debt snowball method).

Increase your monthly payments
If you can pay more than the monthly minimum on your debt, you will get out of debt faster. Interests can exponentially increase the timeline you have for paying off debts. Assign extra money received towards debt repayment to get out of debt faster. Try to increase your monthly payments on smallest debt to be debt-free faster.

Build an emergency fund
Having an emergency fund is necessary when trying to get out of debt, it prevents you from incurring more debt. Unexpected or unplanned expenses might be the reason you are in debt; an emergency fund will take care of such expenses so you do not end up borrowing again. Include this on your financial plan as a safety net.You can take advantage of OVERWOOD's www.overwood.ng high-interest rate to build your emergency fund. An ideal emergency fund has up to 6 months of living expenses saved up.

Have multiple income streams
Building multiple sources of income is a necessary step to get out of debt and avoid living paycheck to paycheck. An extra source of income will help you pay off your debt faster than you expect. This could involve starting a side hustle, getting a part-time job, or selling products online. Using the extra money you earn to pay off your debts is key to getting out of debt faster.

Change debt-enabling habits
You will need to cut down on your expenses as much as you can if you want to pay off your debts faster. The fact is, more than half of Nigerians spend more than they earn each month. Once you track your spending habits, you will be able to cut off the excesses so you can live frugally. You can achieve this by replacing paying for DSTV with GOTV, cooking home food rather than eating out, and reducing your data consumption. Just try to live below your means for as long as possible until you can pay off your debt.

Live within a budget
One of the reasons most people run into debt is because they do not know how to manage their expenses. To get out of debt, you need to be in control of your personal finance and the best way to achieve this is by budgeting. You need to live within a budget and cut down on your expenses to stop accumulating more debt.



Getting out of debt can be a difficult task but by practicing these habits and being disciplined, you will get out of debt in no time!

The most popular and easiest way for investors to invest in the stock market is through mutual funds. In Nigeria, most people do not have the necessary knowledge about the stock markets or how they operate; this could prevent them from investing. With mutual funds, people can have investments that are managed by professionals.

If you are looking to invest in mutual funds, this article will help you understand what they are, how they work, and the benefits you earn from investing in them.

[size=14]What are mutual funds?
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A mutual fund gathers money from multiple investors to invest in financial instruments such as stocks, shares, treasury bills, government bonds, etc. Mutual funds are beneficial to investors who do not have the required minimum capital to invest in some of these instruments. Mutual funds reduce the risk to investors because they consist of different investments.

What are the types of mutual funds?

In general, there are four broad types of mutual funds:

Money market mutual funds
These funds invest in short term fixed-income assets like government bonds, treasury bills, etc. They are relatively less risky compared to the other mutual funds and offer the lowest returns.

Equity mutual funds
These funds are also known as stock funds. Equity funds invest in stocks of publicly traded entities and it makes the fund the most volatile, compared to the rest. They offer the highest returns because of the high risk involved.

Fixed income funds
Also known as bond funds, these funds invest in corporate and government debt intending to pay a fixed income to investors. Bond funds have higher returns than money market mutual funds but not as high as stock funds.

Balanced funds
These funds invest in a combination of stocks and fixed income instruments. It is a diversified portfolio with high returns and lower risk. Balanced funds typically consist of 60% bonds and 40% stocks. www.overwood.ng is an example of a safe high yield mutual fund in Nigeria that offers compound interest rates of up to 15% annually.


How do mutual funds pay?

The two ways to make money on a mutual fund include:

Distributions: Depending on the type of mutual fund you invest in, you could get the distribution of dividends, interests, or other income the fund receives.

Capital gains: You could make money from selling the mutual fund for more than you initially paid for it.

What are the benefits of mutual funds?

1. Mutual funds help investors diversify their investments due to the different types of instruments they invest in. A diversified portfolio leads to lower risks of investments.
2. Professional fund managers are in charge of mutual funds. This means investors do not have to actively monitor their funds and they can trust the professionals to invest in the right mix.
3. Mutual funds are very affordable, there are some online platforms in Nigeria that allow you to start with a minimum of ₦100.

Mutual funds are perfect for long term investments and growing your wealth.

Diversifying your streams of income is just as important as diversifying your portfolio, especially in difficult times. Building multiple sources of income is a necessary step to avoid living paycheck to paycheck and the pathway to attaining financial freedom. Having an extra source of income is the most efficient way to build wealth over time.

According to research, most millionaires have at least 3 sources of income. Building multiple streams of income is now a necessity and your salary should not be your only source of income. Here are 4 income streams you should work towards:

Profit Income
This is money you earn from selling anything at a profit. This is the entrepreneur’s forte. By identifying a need and catering to it, you can earn a little more than just extra petty cash. At some point, most people want to move from their salary to profit income but do not, due to the risks involved. The key is to start small and monitor the growth of your business consistently. This might take a lot of your time initially, but once you’ve found your balance and learned to manage it properly, the profits will keep seeping in.

Interest income
This is the passive income you earn from your investments or money saved in online savings platforms. Having this source of income is beneficial to you because it does not require active work. When interest income is combined with the power of compound interest, your finances will grow speedily over time. At Overwood, we offer daily compound interest to all our investors. Start your investment journey with www.overwood.ng.

Dividend income
This is money you gain as a result of owning shares in a company. Dividends are payments made to investors by listed corporations for putting their money into the company. Next to interest income, this is probably the most commonly known passive income source. Dividend investments include stocks, mutual funds, exchange-traded funds (ETFs), etc. While it can be risky, the payouts can contribute immensely to building your wealth over time.

Rental income
This is the income generated from renting a property. Rental income is a must-have because there is and probably always will be a strong need for real estate rentals. If you are interested in fixing up property or managing spaces, owning real estate rentals might be the thing for you. It’s one of the most reliable sources of income, but one of the drawbacks is the amount of money required to build/acquire an asset that can generate regular rental income.

As a beginner, saving your money could seem like a hard nut to crack. However, knowing the right steps to take will ease the burden off your shoulders as you work towards reaching your financial goals.

If you are looking to start saving for the future, this article will guide you on the step-by-step procedures you need to take.

1.   Create a budget
First, analyze your income and expenses, then create a budget that suits your needs. The 50-30-20 budget rule (https://blog.overwood.ng/index.php/2020/06/29/the-50-30-20-budget-rule-is-a-simple-way-to-manage-your-finances/) is a simple guide to manage your finances effectively. It states that 50% of your income should be spent on needs, 30% on wants, and 20% on savings and investments.

You can also decide to spend 50% on needs, 30% on savings and investments, and 20% on wants. Just ensure that you create a budget that suits your financial goal.

Make a list of all your expenses and itemize them in their different categories (needs, wants, and savings/investments). Then, stick to your budget.

2.   Limit your expenses
If your expenses are extremely high, you will need to cut down on the excesses to enable you to save a little extra. Identify the non-essentials in your expenses and reduce the amount of money you spend on them.

3.   Automate your savings
To keep your savings plan in check, it is advisable to automate your savings. This would help reduce the temptation to spend excessively.

4.   Invest your savings in different asset classes
After saving a significant amount of money, the next step is to invest. Make sure to choose assets that suit your risk tolerance, and diversify your investment. Diversification is the best way to play the investment game. It will help minimize the risk of losing your funds while still earning good returns.

At Overwood, we invest pooled resources in mutual funds, government bonds, money market instruments, capital market instruments, credit-backed instruments, and treasury bills. However, our investments are weighted towards money market instruments and bonds, because we are safety-first. Start your investment journey with www.overewood.ng
and earn compound interest rates of 8 -15% per annum.

One of the most experienced challenges with personal finances is excessive spending. To attain financial freedom, there are certain principles to consciously abide by. A journey towards financial freedom requires being consistent with managing your finances effectively.  This article focuses on five basic steps you can take to carefully cut down on excessive spending.

Avoid impulse spending
Effective money management is finding the balance between your earning, spending, savings, and investment routine. Impulse spending is simply an unplanned purchase that is not in your budget. It can be as minute as re-subscribing your monthly data plan to buying a dress. When you consciously stick to your budget, you’ll most likely have more money to save and invest in the long run.
 
Stick to your budget
The essence of having a budget is to spend on the most prioritized needs per time. When you spend outside of your budget, you are gradually robbing yourself of other necessities. To stick to your budget is to simply tell your money where to go at any given time.

Stop using your credit card
A credit card allows you to buy things you did not prepare the liquid cash for at the moment, which results in spending outside of your budget. Having your credit card with you often can lead to overspending. It can also lead to deduction of credit card charges which when added in the long run would lead to another major expense.
 
Automate periodic savings
Periodic savings on any online savings platform will help you to be consistent with your monthly savings.  You can as well automate other necessary payments, basically, payments that do not reoccur often.

Avoid money pits
Money pit is simply a major leakage on your financial resources and this is a result of impulsive spending. One of the most important steps to avoid a money pit is to carefully assess your financial plan and set aside a certain amount for emergencies.
To cut down on excessive spending, you will have to consciously go about it the right way. With these steps, you can consciously cut down on excessive spending and avoid the spending temptation.

With the rise in Ponzi schemes, choosing the right investment product can seem like a daunting task. However, if you do it the right way, you will reap the benefits of your investment in the long run.

If you are looking to invest your money wisely in Nigeria, there are some steps you will need to carry out to ensure that you’re making the right decision.

1.   Invest in products you understand
Many first-time investors delve into the investment game with little or no knowledge of the products they are investing in. The right way to invest your funds is by investing them in different instruments that you understand, or with a company you trust. If a deal is too good to be true, it most probably is. Only invest in products you fully understand.

At www.overwood.ng, we help our members to invest their funds in safe, high-yield investment products by conducting due diligence on multiple investment products, then selecting the best and safest.

2.   Research on a company before investing
Many people concentrate on products rather than the company providing the products. It is important to first carry out due diligence on a company before investing with them. That way, you would understand the model and intricacies of the investment before venturing into it.

3.   Understand your risk appetite
Everyone has a capacity of risk they are willing to take. An aggressive investor is one who prioritizes high-risk investment products to low-risk products, while a conservative investor prefers to invest in low-risk products. Knowing your risk appetite will guide your investment decisions. The higher the risk, the higher the returns, and the probability of losing your funds.

After deciding on the amount of risk you are willing to take, make a list of your investment options and categorize them according to their risk levels (high, medium, or low-risk). Then, choose the right investment mix that satisfies your goals and risk profile.

4.   Create an investment portfolio

Diversification is the safest way to play the investment game and this is why you need an investment portfolio. An investment portfolio is a set of assets owned by an individual (investor).

To create your investment portfolio, split your investment fund into three buckets, and maintain at least a 5% difference of each bucket.

5.   Monitor your investment

As you invest in different instruments, don't forget to monitor your investments. You can also rebalance them when you go above the percentage you want to hold, and then diversify your investment again.

Are you able to keep track of every amount that goes in and out of your account? Do you find yourself living from paycheck to paycheck and unable to save money?

The truth is, most of us are unaware of how much we need to live comfortably each month and this could lead to stress when paying bills. To manage your money effectively, creating and sticking to a budget is essential, and a zero-based budget will help you account for every single kobo you earn or spend.

In simple terms, a zero-based budget is your income minus expenses equal to zero (i.e. I - E =0). With zero-based budgeting, you will understand how your hard-earned Naira is being spent (expenses, debt, and investments).

Creating a zero-based budget might seem tasking, however, using the right digital saving and banking tools will make the process easy to start.

How to make a zero-based budget

List all your income sources
When making your zero-based budget, start by adding your possible sources of income. This can include your salary, income from your side hustle, cash gifts, residual income from investments, etc. You can do this with a sheet of paper, excel spreadsheet, or online savings platforms.

Write down your monthly expenses
Before the month begins, write down every planned or recurring expense starting with food, utilities, shelter, and transportation. Also, include a category for miscellaneous (unplanned expenses). Don’t forget to add your periodic savings to your budget too; saving money should be a priority.

Compare your cash inflow and outflow
Remember the goal of a zero-based budget is to have a balance of zero at the end. If your income and expenses do not equal zero that means you will need to increase your income or reduce your expenses, or both.

The desired outcome of the zero-based budget is to have every Kobo accounted for. This does not mean you will have zero Naira in your bank account, it means that you will have zero Naira left in your budget.

If you have a ₦20,000 excess in your budget, you will need to assign it to something profitable. For example, an investment platform like www.overwood.ng will help you earn compound interest on idle funds.

The biggest advantage of adopting a zero-based budget is that it gives you control over what is happening with your money. A zero-based budget will direct you on how to spend your money the right way.

Most people's reality has been altered by the effect of the pandemic either mentally, emotionally, or even financially. A lot of companies were affected negatively, and the ripple effect caused salary reductions, job losses, and the worst case, the company folding. According to quartzafrica, “In Nigeria, the unemployment rate came in at 27.1 percent just in the second quarter of 2020, which is the highest on record so far.”.

If you’ve been lucky enough to hold on to your job, you have to take strategic steps to keep it. More importantly, prepare your finances for the unexpected. The workforce is always vulnerable to cutbacks due to unpredictable economic downturns, but by improving your professional stability, you can weather any unemployment storm. These steps can also help protect you.

Grow your professional Network
There are long-term benefits in growing and maintaining a professional network. While nepotism can be seen as a foe to many, building positive relationships with people in your field can help get your foot in a door that may otherwise be closed. This step can be considered being proactive, and the internet age has made it easier to connect with professionals using social media platforms like LinkedIn and Twitter. Take advantage of this opportunity.

Make yourself indispensable
Companies are looking for strong leaders, and the only way you can become one is by practicing good work ethics. Show up on time, be a team player, and do your job to the best of your ability. Focus on contributing positively to the company and showcase your value. By surpassing the “model employee”, your chances of being laid off will be low, especially when unemployment starts lurking. It may sound like additional pressure, but it will pay off.

Make saving a priority
Saving money in Nigeria with the current economic situation can prove to be a difficult task, but building up your cash reserves right now is paramount. Beef up your emergency fund and find ways to cut your expenses. It is vital to have constant periodic savings to protect your finances. If you struggle with saving consistently, take advantage of the digital savings platforms in Nigeria and put it on automatic.

Invest, Invest, Invest
Investing here goes beyond your personal finance. While it is always advisable to build a diverse investment portfolio in a safe, high-yield investment vehicle like overwood.ng, the best investment has always been in knowledge. Any amount spent on training is an investment in your best product, yourself. Take classes to improve your qualifications. Examine your options and determine the right move for you. Invest your time and money in upping your skills, so you're more employable.

Start a side hustle
Another way to protect yourself from unemployment is to ensure financial stability by starting a side hustle. With this, no matter what happens, you’re not solely reliant on your job for income. Start with finding a part-time job or monetizing your passion. Take advantage of the information available to help turn that idea into a money-making engine. Earning extra income opens the door to the possibility of unexpected success, which is great for your financial health.