5 Common Money Mistakes People Make

We’re all guilty of it at one point or the other, but if we want to have more control over our finances and make money work better for us, it is best to learn to avoid these common money mistakes that can have such detrimental effects on our finances. Here are 5 common mistakes people make when they travel.

Spending Money You Don’t Have Yet

You might be tempted to splurge on one or two things and tell yourself you’ll replenish the money with your next income, however when the income comes, you quickly realize other pressing commitments come up which you have to take care of. Ultimately, you end up overspending and being broke till the next paycheck comes. This will then put you in a tight and very uncomfortable financial position in the meantime and you might even end up borrowing to make ends meet; this is likely to launch you into a vicious cycle of debt (unless you’re able to discipline yourself enough to make the necessary sacrifices to get out of it).

Forgetting that Small Purchases Lead up to Big Expenses

Spending N500 here for a biscuit, then another N500 there for an exotic drink, might not seem like such a big deal at first especially when chilling on vacation. If you continue spending that way for a week, you would have spent N2500 more than you budgeted for and, though little, it can easily become a significant amount of money if you continue spending that way for a month. Little purchases add up, and rather than spending money frivolously, you can be using it to take care of important expenses like groceries. Pay attention to your ‘little’ expenses, if not you’ll be surprised at just how big they can become.

Not Keeping an Emergency Fund

Never make this mistake because when these inevitable times come, they can leave you completely destabilized if you’re not adequately prepared for them. It is best to have some money saved in an emergency fund or bank account, which you can earn interest on, till an emergency occurs. On the bright side, if an emergency never occurs, you would have accumulated a significant amount of money that you can enjoy or re-invest wisely to make more money.

Spending More Than You Earn

You either spend less than you earn or earn more than you spend- this is the simple principle. Your spending should never be equal to your earning (because you need to keep some money aside for emergencies) or exceed your earning (because this can lead to debt and avoidable ‘gbese’). Living from paycheck to paycheck (that is, spending as much as you earn) or accumulating debt because you spend more than you earn, are very inconvenient ways to live. The importance of being disciplined with your spending cannot be overemphasized and you should make the necessary sacrifices or lifestyle changes to make your spending align better with what you earn.

Not Having an Allowance for Entertainment Spending

There really isn’t much more that can be said on this topic than for you to ensure you have a budget for your entertainment expenses, which you must be disciplined enough to strictly adhere to. One thing that can help in creating an efficient budget for your entertainment expenses, is to understand your entertainment needs and set up a budget based on that understanding. Discipline then comes in, to help you determine the things you can in fact do without and the things you have to do without because you can’t afford them. You can then comfortably settle at a middle point, setting aside an average range for your entertainment expenses that you’re more likely to adhere to.

6 Things to Do Before Starting a Business

Creating or starting a business is a huge commitment. It’s not an uncertain path, and often features details you may never have considered. To make sure you have covered all your bases before kicking off your business adventure, Jumia Travel , the leading online travel agency, shares some of the things you must do before starting a business.

Do your research

One of the essential things to do before starting a business is to research the competitive landscape. You do not venture into a business because you have a brilliant idea. If you can’t offer something better or cheaper than your competitors, you may want to re-think starting a business in that area.

Ask yourself why

Every entrepreneur should be able to answer the question, Why are you doing this? It seems like a simple question, but you may be going into it for the wrong reasons. It does not matter if it is for money or for the passion. What is needed is for you to have both and maintain focus. Outside of that, you are probably wasting your time.

Network

Networking helps you get potential partners and investors. You need to attend events where you will need to talk with many entrepreneurs, who have either succeeded or failed. The most helpful advice to learn is the impact of their lifestyle including finances, personal relationships, and health.

Get a mentor

A new business owner should have a mentor. The mentor will offer his advice as well as experience to keep you on track and ensure you do not lose focus.

Survey your target market

Determine and survey a focus group of the target demographic for the service or product you are offering. You must ensure that you are delivering what your customer wants, not what you want.

Seek legal advice

This is another important point entrepreneurs must take note of before officially opening a new business. They should seek legal counsel. Do not make the assumption that legal counsel is only necessary when you get into trouble with the law.

PPPRA to sanction oil marketers over price malpractices

Ossai Ovie Success Blog

PETROLEUM Products Pricing Regulatory Agency, PPPRA, has restated its resolve to sanction oil marketers who exploit motorists and other consumers of petrol, while assuring that once the sector is deregulated, petrol pump price will go below N145 per liter.

The acting executive secretary of the agency, Victor Shidok, stated this in Abuja. According to him, “PPPRA will ensure effective monitoring of petroleum products’ distribution and compliance with pricing template and PPPRA will not allow long queues at filling stations because of speculations that pump prices may be raised.’’

Shidok lamented the loss of lives resulting from scarcity due to diversion, adulteration and storage of fuel in homes. He said: “Since the PPPRA was established 16 years ago, Nigeria has not witnessed the perennial scarcity of petroleum products apart from occasional hiccups from supply challenges.

In distribution, PPPRA has been able to establish stability in the downstream sector. “We can say that we have not fully deregulated, but I am bold to say that we have achieved 75 percent of downstream deregulation, making it possible to buy fuel without long queues at filling stations.”

He noted that countries with deregulated regimes had mechanism to protect consumers from exploitation. In a fully deregulated regime, the PPPRA, he said, would ensure the effective distribution of petroleum products.
 

Naira appreciates to N454/$

Ossai Ovie Success Blog

The naira yesterday appreciated against the dollar by N6 in the parallel market due to expectation of further intervention in the foreign exchange market by the Central bank of Nigeria (CBN). Vanguard investigation reveals that the parallel market exchange rate dropped to N454 per dollar at the close of business yesterday from N460 at the end of last week.

A BDC operator who spoke to Vanguard on condition of anonymity said that market activities were stagnant with an atmosphere of suspense as BDCs are yet to receive communication from the CBN about the amount of dollars that t would be sold to each of them BDC this week.

The CBN sells $8000 per week to each BDC at N381 per dollar, mandating them to sell at N400 to end users. But last week, President of Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe announced that the apex bank will this week increase weekly dollar sale to $15,000 per BDC.

however gathered ABCON yesterday sent message to its members to address the apprehension over dollar sale from the CBN this week. Confirming this to Vanguard, ABCON President, Gwadabe said: “It is true that the CBN is yet to communicate the amount they will sell to each BDC this week, but we are sure they will do so before the weekly cut off time of 12noon tomorrow. We have told our members not to panic and engage in speculation.”

On Sunday the CBN indicated it’s willing to further conduct intervention dollar sales in the foreign exchange market this week. In a statement issued on Sunday, Acting Director, Corporate Communications Department, apex bank said: “said that bank was determined to sustain the provision of liquidity in the foreign exchange market in order to enhance accessibility and affordability for genuine end users.

Mr. Okorafor also cautioned dealers in foreign exchange not to engage in any unwholesome practice that is detrimental to smooth operations in the market, warning that the CBN would impose heavy sanctions on any organization or official involved in such act. Since Monday February 20th 2017, when it announced new measures to boost dollar supply and forestall the declining fortunes of the naira in the parallel market, the CBN has injected $1.3 billion dollars by intervening in the forex market seven times as follows:

Tuesday February 21st, $417 million; Thursday February 23rd, $231 million; Monday February 27th, $180 million; Friday March 3, $350 million; Monday March 6, N367 million; Tuesday march 7, $100 million and on Thursday March 9, $195 million. Also during the week, the CBN increased weekly dollar sales to Bureau De Change (BDCs) by increasing the number of BDCs that have access to the dollar sales to 3,114 from about 2000.
 

Naira appreciates to N455/$ as External reserves hit $30bn

Ossai Ovie Success Blog

Hopes of further appreciation of the naira brightened yesterday as the nation’s external reserve rose to $30 billion, the highest in 13 months. Consequently, the external reserve has risen by $4.2 billion since the beginning of the year, and by $6.2 billion since October 19th, 2016 when it commenced its upward trend. Meanwhile, the naira yesterday appreciated to N455 per dollar in the parallel market as the Central Bank of Nigeria (CBN) injected another $195 million into the foreifn exchange market.

The apex bank sold $100 million in wholse forwards, $70 million to meet demand for personal and business travel allowance and $25 million to bureaux de change (BDCs). President, Association of Bureaux De Change (ABCON), Alhaji Aminu Gwadabe, confirmed this development to Vanguard, saying 3,114 collected $8,000 each from the CBN yesterday. The dollar supply prompted the parallel market exchange rate to drop to N455 per dollar from N465 per dollar on Monday, indicating N10 appreciation.

This development was in sharp contrast to the N17 depreciation suffered by the naira on Monday against the dollar, due to upsurge in demand by importers travelling to China. Gwadabe expressed optimism that the naira will further appreciate in the coming week, based on expectation of increased dollar sales to BDCs by the CBN. He disclosed that the apex bank in furtherance of its intervention in the foreign exchange market has decided to increase weekly dollar sales to each BDCs to $15,000 from $8,000.

Since Monday February 20th 2017, when it announced new measures to boost dollar supply and forestall the declining fortunes of the naira in the parallel market, the CBN has intervened in the forex market six times as follows: Tuesday February 21st, $417 million; Thursday February 23rd, $231 million; Monday February 27th, $180 million; Friday March 3, $350 million, Monday March 6, N367 million; and on Tuesday with $100 million. Acting Director, Corporate Communications Department, CBN, Isaac Okorafor, said that the move by the intervention by the CBN was to fund the commercial banks with enough forex to cater for the request of customers to meet personal travelling allowance (PTA), basic travelling allowance (BTA), medicals and tuition fees. Commending the move, market analysts observe that it will further create problems for currency speculators who are yet to recover from the sudden appreciation of the Naira.

According to the former Economic Adviser to the President and Minister, National Planning Commission, Professor Ode Ojowu, “It appears this time around, the CBN has decided to become smarter than the market manipulators, by putting on its cap of authority to look beneath the market forces” It will be recalled that the CBN, in February 2017, changed its forex rule supply to guarantee supply to both small and the big end-users.

The policy has restored stability and bolstered market confidence which has ultimately boosted the value of the Naira. Operators in the market have also commended the efforts of the CBN in ensuring the continuous appreciation of the naira. This they attributed to good policy and effective communication strategy, which has witnessed increased dollar supply to the market through a deliberate policy of the apex bank.
 

1 Dollar equals N465 as at today

Ossai Ovie Success Blog

The Naira on Friday depreciated against the dollar at the parallel market after posting days of appreciation, the News Agency of Nigeria (NAN) reports.

The nation’s currency lost N7 to exchange at N465 to a dollar after closing at N458 on Thursday, while the Pound Sterling and the Euro traded at N542 and N480.

At the Bureau De Change (BDC) window, the Naira traded at N399 to a dollar, CBN controlled rate, while Pound Sterling and the Euro closed at N610 and N520.

Trading at the interbank market saw the Naira sold at N305.25 to a dollar.

NAN reports that the CBN injected over 500million dollars into the market, to boost liquidity, but the Naira continued to depreciate.

Traders in the market expressed concern about the depreciation of the Naira in spite the gains earlier recorded.

Alhaji Aminu Gwadabe, President, Association of Bureau De Change Operators of Nigeria (ABCON), said there was need for a review of the distribution mechanism.

Many banks are selling to only clients with current accounts and not to savings account holders and there is also increasing demand for forex from our neighbouring countries.

“The different applicable exchange rates and volumes with Travelex and banks need to be harmonised and with that of BDCs to reduce friction,” Gwadabe said. 

Naira loses to dollar, while the Pound Sterling and the Euro traded at N542 and N480.

Internet association maps out strategies against ponzi schemes like MMM, Twinkas and the others

Lagos – The Nigeria Internet Registration Association (NIRA) on Friday, said it had mapped out strategies to deal with issues of internet abuse by various forms of Ponzi schemes. Mr Sunday Folayan, the President of NIRA, who made this known in a statement in Lagos, said that the association had established a Law Enforcement Desk to handle complaints on Domain Name abuse.

He said that NIRA had also developed an Internal Procedural Process to manage and deal with such complaints received. He said that NIRA would work in conjunction with relevant law enforcement agencies to stem the tide. ”If you discover any form of Internet abuse with .ng websites please send an email to abuse@nira.org.ng. We will deal with it.

”Together we can make the internet safe for us and our children,’’ he said. According to him, most Nigerians are being defrauded by various forms of Ponzi schemes while the fraudsters are operating under various names and platforms. He explained that a ponzi scheme was a fraudulent investment operation where payment to its initial investors was from the payments made by new investors and not from profit earned through legitimate sources.

Folayan said that in recent times, Nigerians had varied experiences to narrate on the matter of ponzi schemes. According to him, while a few testify to the benefits derived from the scheme, majority are lamenting because they are have been left high and dry. He said that many had fallen victims as the schemes had impoverished more people than they claimed to have helped. He, however, said that the scammers were feeding on the greed of the people and the poor economic situation to lure more victims. He added that this was in spite of warning by the Federal Government that Nigerians should not invest or get involved in such fraudulent schemes. Folayan said that recently, innocent people’s contact details such as phone numbers and emails, were being used as administrative contacts for these schemes.

According to him, the victims of the identity theft only get to know when defrauded victims start calling and demanding for payments. He said that several people had received threatening phone calls regarding their fate, if they do not pay up. Folayan said that NIRA had taken concrete steps to further assist law enforcement agencies to deal with the menace.