As part of the Global Media Alliance Broadcasting Company (GMABC) ‘Financial Literacy Month’, the Managing Director (MD) of Ecobank Development Corporation Investments (EDC), Paul Kofi Mante, sat down with Brown Berry on ‘Ryse and Shyne’ in an interview to give tried and tested tips on money-making through the right investments.
GMABC set aside the month of June as Financial Literacy Month to have in-depth discussions with resource persons on all issues that border on finance and money-related topics and their impact on the Ghanaian economy. This forms part of the company’s themed month series that started earlier this year.
The MD used the ‘Parkinson’s law’, which states that our expenses (work) will expand to fill (consume) the money (time) available for its completion (execution). As long as one’s expenses are not under control, one’s salary will not be enough.
“As the salary is increasing, their lifestyle changes. I tested that at a church in Tarkwa; I spoke at the church and asked ‘if you struggle with your salary, raise your hand’. They all did, and I told them to own up if they felt when their salaries are doubled it would be enough.
“I asked 10 people to come out, and I gave them pieces of paper to write their salaries. The least among the 10 was on a salary of GH¢350 – and that person felt she would be satisfied with double of that, which is GH¢700. Among them was another on a salary of GH¢1,500 which is four times the first amount of GH¢350, but it was not enough. There was another salary of GH¢11,000 – and it was not enough.
“Let me shock you: among the 10, the highest was on a salary of GH¢20,000 – and that was not enough. Savings must become a habit, because salaries will not be enough,” he explained.
He also gave five tips he believes will inculcate a culture of saving in the youth:
“Save before you spend; your salary must dictate what you eat, not your appetite. Choose your financial system; the hunter system lives on salary, or the breeder system wherein you invest. Take a decision to become financially independent; lack of money is the major issue in our lives and relationships. Almost all things physical can be solved with money. Money will give you access to good health.”
He also encouraged listeners to launch ‘operation one million’ through the EDC income fund. “Everybody can make one million, it only depends on your income; someone can make it in five years another person can make it in 20 years.”
He also advised listeners to eschew procrastination, excuses and blame, because they are a self-imposed limitation.
Ecobank Development Corporation (EDC) Ghana is the securities, wealth and asset management subsidiary of the Ecobank Group in Ghana.