Business Week: Better Your Budget!

Day 2 of Business Week At Tribe Appeal is here!

Before any business is brought to life finances must be in place, in most cases projected ahead of time. As a young woman in these trying economic times it may be hard to come up with the capital to begin turning that business idea in your head into reality. While there are many ways to gain financial assistance when starting a business (grants, loans, angel investments etc) you must have good money management skills or else that money will disappear with little to show for it. Budgeting money for your business is extremely important and it starts with you as a person. Here are six very easy steps to budgeting your money in a positive way!

Step 1: The 30-Day Look-Back

It’s up to you to keep track of your money, as well as your spending. So, how do you determine whether or not you’re in a good position when it comes to your money? Well, you’re the best judge when it comes to how you feel and your own spending behavior. Therefore, it’s a must that you know exactly how you’ve been dishing out that cash. And, according to Dominique Reese, there’s a fool-proof technique to help you get some insight on the way you spend. She calls it a ‘30-Day Look Back:‘

• Pull out all of those receipts and your bank statements for the last 30 days.
• Make categories for all the stuff you spent money on, including the total amounts of each. Be sure to include electronic transfers, ACH debits and checks written (if you still write those).
• Include a category to track income for those 30 days, as well.

Step 2: Track Your Spending

Tracking is a personal finance technique Domonique Reese  uses to help clients understand their spending behavior. She calls it the “holy grail of budgeting.” It’s extremely simple to do, once you get in the habit. The hardest part in the beginning is simply remembering to write down everything you spend. But, once it becomes habit, you will start to see results.

So, how does tracking your spending work?

• Every single time your bank account sees an outflow, such as an ACH, electronic transfer or you write a check, track it by writing it down.
• Each and every time you spend any amount of money, track it.
• When the week ends, categorize all of the money you spent that week, including the dollar amounts.

Step 3: Update Your Written Budget

The only way for you to practice budgeting is to actually create a budget. What is a budget?Simply put, it’s a written document outlining:

• All incoming money
• Where it’s all coming from
• All money going out
• What it’s going out on/for/to

One of the biggest keys to creating a budget is understanding that it must be in writing. Having your budget in your head is not effective. And, you will never reach your budgeting goals that way.

So, with that said, now it’s time for you to update your budget using the tips you’ve learned so far in steps 1 & 2:

• Update your expenses categories on your 30-Day Look Back
• Make sure there is a total dollar amount for each expense category of your 30-Day Look Back
• Create a written budget
• Transfer the expenses dollar amounts from your 30-Day Look Back to your written budget

Step 4: Determine Your Budgeting Frequency

Hopefully, you’ve already taken the steps laid out for you in steps 1, 2 & 3. If not, you really should before moving on to determining your frequency. Now, let’s focus on the budgeting techniques that will win you the very best results.

You have to determine how often you will do you budgeting. As of now, you have data on your income and expenses for the last 30 days. For the average working woman, that equals out to two pay periods worth of expenses and income. In that case, you would create a budget every two weeks.

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However, it is advised that you start off budgeting personal finances every week. Then, once you’ve become comfortable going through the steps about 3-5 times, then you can switch it up. From there, you can do you budgeting bi-weekly, monthly, even quarterly, if that’s what’s best for your personal finance needs.

You must determine your budgeting frequency, based on what’s best for you, financially. If your financial situation is a hot mess right now, then go with budgeting everyday if you have to, then graduate after a few weeks. Starting off budgeting daily can really help to improve your personal finance situation. Either way, no matter which budgeting frequency you choose, make sure it’s one you can commit to, and do it consistently.

Step 5: Choose the Right Type of Budget for You

Now, you have to determine the type of budget that’s best for your personal finance needs. Here are a few common choices for creating personal finance budgets:

• Pen and paper
• Excel spreadsheets
• Access database
• Personal finance software (Quicken)
• Personal finance app (Mint)

In time, as you review your budgets and 30-Day Look Backs, you will start to notice spending patterns. Your budgeting results will reflect your spending behavior, as well as your saving behavior (if it exists). But, until you put your personal finance budget in writing, there’s no way to visually “see” the ups and downs of your saving, spending and budgeting.

Step 6: Pay Attention to Your Money Story

“Your money tells a story and the numbers never lie.” So, what is the story your money has been trying to tell you? What’s your money story?

Well, now you have numbers (exact amounts spent) to track your spending. And, you know exactly what you spent your money on (expenses categories). So, what’s the personal finance money story?

• How much was your total income?
• How much of that (and more) did you spend?
• Are you spending more than you’re earning?
• On what people, places and things do you spend the most?
• On what people, places and things do you spend the least?
• What about your spending behavior shocked you?
• Do you often spend on the exact same things?
• Are there things you can avoid spending on or at least reduce the amount spent?
• Did you find that certain expenses had emotions tied to them?
• Were you able to notice a drop or spike in your spending?
• If so, how many times did the drop and/or spike occur? And, why?

Answering the questions above will help you write your own money story. Once you’ve written your money story, we’d love for you to share it with us.

Be a Boss Build An Empire For The Single African Woman

great advice for the single woman about money management.

 

I came across this great article written by Arese Ugwu the other day and felt it was a must to share. This is the 2nd  part of her “Nigerian Women and Money” series and it is geared towards the single African woman.  There are many of us working day in and day out, but still living from paycheck to paycheck. Smart Money With Arese is here to eliminate that cycle especially within the African community. Useful information follows I advise you read every word if you are not happy with your bank account.

For the Single girl: be a boss …build an empire

Tinuke makes N10m from a contract. She’s excited and wants the world to know she’s arrived, so she’s thinking, now I can afford all the things they said I couldn’t have. She buys a car (N4m), she moves into a flat in Lekki phase 1 (N2.5m p/a) that Ada girl has a Chanel bag collection to die for, so I can’t buy ‘ordinary’ Chanel, I have to buy Hermes (N2m). ‘won ma gba’. This iPhone 5 is no longer ‘it’, I have to upgrade to an iPhone 6+. *insert Jennifa hand gestures*. 

At this point, she remembers that ‘they said its good to invest’, so she puts N200k in a fixed deposit. She figures she’s good, after all she still has an income of 150k coming in every month, so what was left would be more than enough to survive.

However, her new ‘millionaire’ status means that, when her friends invite her out, she can’t ‘slack’! She has to look the part, dress the part and spend the part. Eight months later, when she has to liquidate her fixed deposit and borrow money from Sade to pay her mechanic and service her generator. She is back to living from paycheck to paycheck and soon realizes that, Louboutin is an expensive habit.

 This is NOT a judgment against expensive cars, Chanel bags or Louboutin shoes. Trust me, I LOVE these things too. It is about a lack of understanding, when it comes to how money works. I believe in spending your hard earned money on the things you like but finding a balance by accumulating assets along side them.

Let me explain! If you make N10m and you spend N10m, what you have left is zero! People might perceive you as rich but you are no longer ‘in the money’ because you have spent it all, with the hopes that you will make more. Maybe you do, may be you don’t but it becomes a never ending, fruitless cycle of spending more than you earn.

This stems from one simple fact. We grow up knowing we need to make money to be successful but we are not taught in any formal framework, how to manage our finances. So as a result we know how to make money, but not how to keep it, build it or grow it.

I point this out not because it doesn’t apply to men, but because women with money and women with power are two ideas our society is uncomfortable with. Therefore, it has become extremely important to empower women by teaching them how to spend and invest to ensure that they build wealth that lasts.

What the Single girl needs to learn about money to get ahead….

You are probably in your mid 20s, out of university, decent starter job, living at home with no real responsibilities. You feel like your whole life is ahead of you, so investing and saving can come later. The truth is there is no better time than now to set financial goals and learn about what investment opportunities are available to you.

Get Money

In order to maximize your earning power and have the ability to invest, you need to pursue a career you are passionate about and create multiple streams of income. This does not necessarily mean you have to become an entrepreneur. The reality is, not everyone is cut out to be ‘their own boss’ and you need to learn this early on.  Being a boss is not about working for yourself and avoiding the discipline of a 9-5. It is about adding value and being a high performer, wherever you are. There are two ways to be stuck. (and you don’t want to be stuck in your 30s or 40s) Stuck in a 9-5 job you hate and stuck in an entrepreneurial role you can’t do. Turning your passion into a paycheck is more complex than it sounds. You need to figure out what comes naturally to you, than it does others. Just because you liked planning your wedding, does not a wedding planner make. Liking something doesn’t mean its your passion, being good at it and willing to do what it takes to sharpen your skills, is what will turn your passion to profit.

Create a game plan for your money.

In order to take control of your money you need to devise a strategy that helps you allocate your resources efficiently and cultivate the habit of spending less than you earn and investing the rest in assets that generate income. (i.e mutual funds, real estate, money market products) The longer you leave your money invested the better your average annual returns will be, so time is on your side.

Change your money mentality: Again, if you earn a N100m and you spend a N100m, what you have left is zero. You need to derive the same amount of joy from investing, as you do the Pigalles 120mm, it hurts but it’s worth it right?

People are generally good at working hard and earning money but they are terrible when it comes to scaling their consumption. If you can spend N250k on shoes, you should be able to make N250k in investments to match it.

Establish your Net worth: Aliko Dangote (yes, I’m a bit obsessed loll) is not the richest man in Africa because he earns $23.5 bn as his salary. He is the richest man in Africa because his net worth (assets- liabilities) is $23.5bn. Therefore, building wealth is about using the money you earn to make more money by investing in building assets. For example, Tinuke makes N10m, invests N3m in land and spends the rest, assuming she has no liabilities and no other assets; Her net worth has gone from N0 to N3m. It’s not the number that matters but the progress. Set a goal to increase your net worth by 10% every year.

 

Your budget is your friend not your foe

Stop thinking of a budget as something that restricts you; instead think of it as something that tells you all the things you CAN do with your money. An easy way to achieve this is dividing your income into three parts. Long-term financial goal, (20%) short-term financial goal (10%) and living expenses (70%).

Cultivate the habit of investing at least 20% of your income before you spend 1 kobo every month. It doesn’t matter if 20% of your income is N10, 000 or N100, 000 if you are saving and investing consistently you will definitely be richer in a few years than you are today.

Run your own race

Nigeria is fast becoming a place where, it’s more important for people (women especially) to be popular and LOOK like they have money, when in actual fact, they are struggling behind closed doors, to uphold an image they can’t keep up.

Buying things just so that you can look as though you have as much money as someone else is silly. When Tinuke buys a bag to top Ada’s bag collection, what she doesn’t know is, Ada owns several properties, as well as an investment portfolio worth 80m, so she won’t be ‘soaking garri’ after she buys a designer bag. Sometimes, the grass is actually greener so don’t compare your beginning with someone else’s middle.  Instead of competing with her, use her as a point of contact “Baba God, my own go betta’.

If you are caught up in this mentality its important to focus on surrounding yourself with winners. Friends, who genuinely support you in your endeavors (because friendship is not a competition) and mentors who can guide you on your walk to greatness.

Money and relationships 

It is great to be Mrs. somebody but its even better to be a force in your own right so you can be a value addition to the right man. Even if your goal in life is to marry a rich man, being financially literate could help you see through the smoke and mirrors ‘before you go enter one chance.’ Some rich men are not necessarily generous  (you don’t want to be the woman who can’t top up her phone without asking her husband) or in some cases not necessarily rich because the more you look, the less you see.

There are many instances of women who ‘thought’ they were marrying into wealth or miscalculated because they saw Family money, a Range rover and a Rolex, that are now ladened with the sole responsibility of paying the rent, staff salaries and children’s school fees.

The bible says that it is the man’s responsibility to provide. 1 Timothy 5: 8 ‘ A man that does not provide for his family is worse than an unbeliever’. So being financially independent is less about not needing a man and more about learning to be self sufficient like the Proverbs 31 woman and at the very least having plan B, because even the most independent woman appreciates a good man to depend on.

We need to raise a generation of women who are financially literate. So that they are likely to become beacons of hope for survival in times of strife as opposed to cautionary tales of helplessness.

 

Arese Ugwu is the Head of Wealth Management at Partnership Investment Plc, and is responsible for building the company’s wealth management division, through business development and growing existing client relationships.

Travel Tips For The Diva On A Budget

Get ready to travel the world on a dime (well not exactly)

Travelling is something I love to do, exploring new places is exhilarating  Booking and researching travel is actually very fun for me. So here’s some tips for you based on my experience with making reservations. Finding a quality travelling arrangement for little to nothing is always great. Here are a few tips for the divas and divos on a budget who want to see the world.  It is possible to travel and travel in style without breaking the bank, people do it everyday and now you have an open gate to the knowledge.

Cheap days to book…

Flight prices change by the minute. There’s talk about there being cheap days and expensive days to book, and although I have noticed trends, its still not concrete. It really depends. Tuesday through Thursday are the cheapest days. Flight prices normally start to drop on Tuesday. By Wednesday they are usually the cheapest. But Thursdayis tricky. It can stay the same as Wed, go down, or go back up. Really depends, but tues/wed are “safe” days. I do notice that Friday thru Monday is usually expensive. And Jet Blue usually has some sort of sale every Tuesday.

Booking flights

Do not book a round trip ticket together. Here’s why. People seem to think that a round trip ticket is “cheaper” if you book the flights going and coming in the same transaction. That’s not true. Its the same exact price as 2 one ways separate. But here’s why I book separately. I do my research on flight prices one way so I can see how or why the round trip is the price it is.

For example. A round trip could be $500. But the one way going could be $110 and the return could be $390. I want to see the price of each so I can compare airlines. The main reason I do NOT book roundtrip is because they usually give you both flights on the same airline. The 3rd party sites rarely mix and match for the lowest price. So I rather just do it myself. Basically going, could be $150 on Delta and coming back could be $300 on Delta. But coming back on Continental or US Airways could be $170 coming back. This is the reason why I rather search tickets “one way”.

After much research,  I basically know what’s a “good price” and what’s not. So for example, a “good price” flight from NYC to ATL is $110 one way. That’s when I’m jumping up and down and typing in my info at lightning speed. But on a “bad price” day, it could be $430 one way. That’s when I sit my ass home and wait for it to drop. For $430 I could been to and from Cabo, Mexico. Also, I do NOT usually use 3rd party sites to book flights. Booking directly from the airline is cheaper and “safer”… People who book directly with the airline have priority just in case of any “emergencies”… Example: when the swine flu hit Mexico. But there ARE times that 3rd party sites have their own sale prices on flights. Such as cheaptickets.com or orbitz.com … ALWAYS be SURE to open the confirmation email that you receive from company after booking. The email COULD be saying that your flight was NOT successfully booked. You don’t want to be at the airport and hear your ticket has not been booked! This has happened to many people in the past, CONFIRM, CONFIRM,CONFIRM!!

I use Kayak.com to compare the different airlines tho.

Every flight does not have the same amenities. You can choose which aircraft you want to be on, on the website for most airlines. For example, you can see which flight has wifi, personal tvs, and outlets when you’re booking your flight via the delta website. I personally don’t care about tvs but I need wifi. And the outlets are so helpful.

Flight Trick

Do NOT do this all the time. They could potentially catch on to your pattern. A connecting flight is USUALLY cheaper than a non stop. So with that said, if I REALLY need to get on a flight that I feel is too expensive one way, non stop, then I look for a connecting flight to somewhere else, stopping in the city that I want. Example: Sometimes when I’m going to ATL the one way is over $200. And that’s a little pricey. So I’ll search for tickets to other cities connecting in ATL, such as orlando. A connecting to Orlando from NYC could be $120. The flight will be going from NYC to ATL then to ORL but i just get off in ATL. So I still get a nonstop flight to Atlanta and for $120. Make sure you check to see where which state the flight connects in. Don’t just choose ANY flight. It needs to connect in the city you are trying to get to.

There’s a few things you need to know about doing this… This is ONLY for CARRY ON LUGGAGE. You CAN NOT do this if you checked a bag. Your checked bag will go to your final destination on the ticket. You can NOT be late for the plane. If you are one of the last people on the plane then there may not be any overhead space for your bag. If that happens, they take your bag and check it, which means it will be going to the FINAL destination. Lastly, you can NOT get on the 2nd leg of the flight. So for example. You can not book a ticket from NYC to MIA, connecting in ATL and get on in atlanta. Once you miss the first leg of your flight, the second one automatically gets canceled.

Miles and Points

Miles and points SURE do come in handy. So it does pay to use the same airline as often as possible. I personally like to try different ones Sometimes to see if I like it but I mainly use delta. Now although delta DOES have their annoying things about them, they go most places so the points accumulate. But with Delta you can’t use your points until you have accumulated 25,000 UNLESS you have a delta credit card. So yo have to wait. So if you don’t travel that often AirTran might be a better choice for you because they’re point system is better. You can book a flight with as little as 6 credits. Their points do expire tho, as well as Jet Blue’s points. Everyone hates American Airlines these days but their point system is ok. Just try to stick to A few airlines so that you can get the extra perks.

How should I book hotels?

Hotels are tricky also, just like flights. For example. If a plane has 40 seats, 5 seats are for expedia, 5 are for travelocity, 5 are for whatever.com … Same with hotels. So if a hotel has 100 rooms. 10 are for expedia, 10 are for orbitz, etc… So the 10 or so that each 3rd party has, can kinda make the room whatever price they want. That’s why it could be $179 a night on Travelocity and $489 on Expedia. The 3rd party website could have their own sale going on for that hotel. So you seriously have to compare a lot of sites when it comes to hotels for the lowest price.

Here’s the tricky things about hotels. Booking straight from the hotel website is usually cheaper but that’s because they don’t charge you the rest of the fees til you check out. When you book the hotel on their website, you’re not being charged. Its just a hold on your card. They don’t charge you til you leave. So sometimes you may have THOUGHT you paid for the hotel and go and spend that money and get surprised when they hit you with the bill at checkout.

Now on the other hand, when you book your hotels through third party websites, all the taxes and hotel fees are included in the price and your room is booked and paid for up front. Nowadays guests are being hit with $60 a night resort fees that are in FINE PRINT somewhere on the website. When guests check out, they had NO clue about these fees. Make sure you find out what the extra fees are when you book through the hotel’s website.

Me personally, I HATE all inclusive resorts. I HATE the “orange juice eggs”. Lol. I really don’t like the food. They barely want you to leave the resort to experience the native life. I want native food and local fun. Let’s be real, most resorts are old married couples.

Always make sure you check the guest reviews. Of course everyone’s experience and taste is different but if 5 people say that the carpet stinks… Guess what, the carpet stinks. The guest reviews will tell you how far or close everything is from the hotel usually. They’ll either love it or be complaining about it.

Lastly, don’t forget about the “incidental hold”… On most hotels they put a hold on your credit card for any damages or charges to the room. This charge can range from $25 to $200 a NIGHT. The W hotel can be $200 a night. They release the hotel when you check out. It takes 3 days for the money to be available on your card again.

And yes, booking flight and hotel together is Usually cheaper. Still make sure you do your homework on the flights though so you know how much you’re REALLY paying for the flight.

Happy Travelling!

Purse Appeal: Make Your Dreams Come True & Achieve Your Billions

Folorunsho Alakija is an inspiration to us all! #GOALS

A few years ago Folorunsho Alakija of Nigeria made headlines when she surpassed media mogul Oprah Winfrey as the richest black woman in the world. This amazing woman worked her way up from being a bank secretary to the executive vice chairman of one of Nigeria’s biggest oil and gas companies Famfa Limited and managing director of the Rose of Sharon Group. This business woman has had great successes in the oil, print and fashion industries through her very hard work and dedication. According to Forbes Mrs. Alakija is worth 2.6 billion dollars.

Along with her extreme wealth she is also a great philanthropist who created the Rose of Sharon foundation. The foundation eases the burdens of existence for widows and orphans. Alakija’s road to success is a very interesting story and we can all learn a thing or two from her business savvy. Here are some great clips of Alakija explaining her story from the beginning to the success she is now. Make sure you take some notes!

Proof that if your mind can conceive it you can achieve it!! Now thats a #GIRLBOSS

Purse Appeal: 20 Successful Habits Learned After Working For Two Billionaires (Link)

Purse Appeal: 20 Successful Habits Learned After Working For Two Billionaires

This article gives an account by Paul C. Brunson on what he learned after working for Oprah and Enver Yucel. The habits are very helpful and are all things we should all start this minute. Remember to read part 2 which is at the end of the tenth habit. Let’s move on down the road to financial freedom!

Purse Appeal: #GirlBoss Nasty Gal CEO Sheds Some Light On How To Succeed In Business

 

Nasty Gal is a very popular online retailer that provides an array of stylish and unique fashion clothing, shoes and accessories. I personally love the store because everything you find there is unlike anything else on the web. This company began as a successful Ebay store that specialized in vintage items. Once the Ebay store became very popular and profitable the website NastyGal.Com was born.  The popular American online retailer has gained a heap of success, being named “fastest growing retailer” by INC magazine in 2012. Nasty Gal made a revenue close to $100 million  in 2013, not bad for a company with Ebay beginnings.

The success of Nasty Gal is almost as interesting as its Greek American founder Sophia Amoruso. Amoruso’s story is so intriguing that she knew she had to write a book, #GirlBoss,  for women aspiring to achieve their dreams. Amoruso started her Ebay store by herself, she styled, photographed, captioned and shipped each product herself. Her one woman show  grew into a multimillionaire dollar business. Now we all don’t have millionaires we can call for some advice, but we sure can go to Amazon.com or Barnes & Noble and pick up #GirlBoss! This “Rags to Riches” or what I like to call “Fab to Fab with Riches” story is a great motivator for anyone to put their grown up drawers on an GET TO WORK!

 

Extravagant Life Appeal: How To Become A Millionaire By Age 30 (Link)

Extravagant Life Appeal: How To Become A Millionaire By Age 30 (Link)

Today I ran across a very interesting article over at businessinsider.com on how to become a millionaire by age 30. As Africans it is not uncommon to be asked by your parents at age 7 or 8 “How do you plan  to become a millionaire?”. For those that did not have an answer to the question or who are currently working on their genius ___ year plan Grant Cardone is here to help. Cardone suggests investing early, getting a millionaire mentor and making your money work for you through stocks, real estate and other avenues.( Click On The Link Above To Read The Article)

So what is stopping you from becoming a millionaire by age 30? Absolutely nothing! Get out there and make that million dollar dream or idea your REALITY!