Protect your Money

The rate at which people lose their hard-earned incomes in Zambia, be it, through fraud schemes, wrong investments or even inflation is worrying. It is no secret that people are always seeking ways to secure money for use now and in the future. Money holds a unique position in our lives—it's not the most important aspect, but it undeniably impacts different facets of our existence. In line with this background, Zambia celebrates this year’s financial literacy week under the theme “Protect your Money, secure your future.” While this may seem like a bare statement, it has a lot of implications for the future and hence the need to discuss how to be financially deliberate to secure a better life.

Futuristic planning

There a lot of regrets around past choices surrounding money. Stories of retirees failing to complete building houses despite having earned substantially during their working lives, parents failing to pay school fees for a child they could have been saving for, or individuals borrowing without proper repayment plans and subsequently losing properties. These situations are common but the narrative needs to be changed.

Being financially deliberate involves making intentional and informed decisions about how you earn, spend, save, and invest your money. It goes beyond just earning a paycheck and paying bills; it's about having a clear plan and purpose for your financial resources. In our earning and spending choices, it is important to ensure that we always have the future in mind. Avoid spending on things that do not align with your financial goals and also avoid impulsive buying at all costs.

We need to always remember that how we use money now has an implication on the future, thus always evaluate your habits now and determine whether they help to secure a better life.

Avoid shortcuts

A friend of mine had been saving some money to purchase a plot. However, before he could finalize the payment to the seller, a relative convinced him to invest in precious minerals, promising to double the money within a week or two. My friend borrowed more money and invested it, but unfortunately, he never heard from his relative again. He lost over K100,000 and ended up in debt. His story is similar to many.

In an era where people are accustomed to fast cars, money, food, and other luxuries, it has become fashionable to seek ways to get rich quickly. In protecting your money, it is important to avoid such schemes and never entrust your money with someone whose investment ability you have no clear record or is questionable.

You cannot pray yourself into wealth and so, do not give your hard-earned money to spiritual leaders to grow it, they will dupe you, like many others have.

Remember also that no one will dish free money and so, avoid all appearances of financial scams, especially those that say you have won money without doing anything. Protect your money at all costs.

Protecting your money

Protecting your money does not just entail safeguarding it from losing it but rather ensuring that it is made sufficient to help meet financial goals. It is also about making the best use of the resources that you earn so that they better your life, both in the short and long term. Some of the things you can consider are:

In protecting your money, always safeguard your sensitive information such as passwords, bank account details and others that can give someone access to your money.

i)??????????????????? Education insurance

One of the biggest financial costs giving many parents headaches is the cost of education, especially at tertiary level. The solution lies in having education insurance which allows you to plan and save for future educational expenses for your children. This works by you making periodic contributions to an investment company for a specified period and getting a lumpsum amount at the end. The earlier you start, the better it will be and you may never have to worry about educational costs. A number of companies in Zambia offer this.

ii)????????????????? Mutual funds

While not everyone can be investment minded, putting your money in mutual funds could help grow it overtime and protect it against inflation. Mutual funds work as an investment vehicle that gets money from many people and invests in different things such as stocks, securities, real estate, among others and it is managed by a professional fund manager. This is a good way to protect your money in that your risk is spread and a professional manages your money.

iii)??????????????? Diversify investments

Avoid putting money in a single investment because you have a higher risk of losing it all when something happens. To protect it, try different investments that are not exposed to same type of risks.

iv)??????????????? Plan retirement

Switching from regular income to none has been a cause of depression for people who did not adequately plan for retirement. One day, you will no longer have the strength to work and your regular income will not be available, it is thus important to protect your money and secure your future. Have a pension plan and invest in passive income streams that will sustain your life in future.??

v)????????????????? Insurance

Insurance is one sure way of protecting your money in that it helps reduce costs in the event of disaster, accident, or insured incident. Be it health, car, or property insurance, its value is often only considered when one has to incur significant costs that are avoidable by insuring.

In conclusion, protecting your money requires intentional and informed financial decisions, all aimed at securing a better future and avoiding financial regrets. As we celebrate financial literacy week, this is also a call to financial providers to do their part in providing financial knowledge, and investment vehicles and help people protect their money.