Old Mutual Ghana, a subsidiary of pan-African investment, savings, pensions, insurance and banking group, introduces a new financial education series dubbed: ‘On The Money’, which seeks to educate and inform readers on how to save and invest money for the long term to live a fulfilled life in later working life and/or upon retirement.
The series focuses on the major African animals including the elephant, leopard, lion, buffalo and rhinoceros, and how each of these animals offers powerful retirement planning advice which can help you live the best retirement life.
In our last lesson, we learned about the secret of planning from the leopard.
This week, the focus is on the elephant.
It is said that the elephant never forgets. Elephants are known for having a great memory, and are careful to make visual notes of food sources along their migration paths. Its powerful memory helps it to survive in the jungle. The elephant can remember the last place it got water, food, and even the last places it encountered danger.
And that knowledge helps it to survive and thrive in the place that it is living.
What lessons can we draw from the elephant?
The secret of the elephant says that knowledge is power. Know and remember the details of your earnings and spending. Use this information wisely to plan your spending. Learn what you earn, know what you owe, and comprehend what you spend. Unlike the elephant, human memory is unreliable. Luckily, we can read and write to help us remember. So, with proper record-keeping, we can remember as well as the elephant. Collect the details of your income and spending – and write them down.
Proper record-keeping will help you understand your spending habits so much better. It might surprise you to see how much you spend on items such as transport, lunches, cell phones, relaxation, account payments, etc. Once you have recorded what you earn and spend your money on, you can plan how to change your spending to suit your income and future goals. This knowledge gives you the power to change. Budgeting is a skill that everyone can learn.
Importance of budgeting as a retirement planning?
Planning toward retirement? Budget. Plan your contributions toward retirement. Include it in your monthly budget and actively ensure money from your income is sent into your retirement fund.
Planning toward your desired retirement life increases your chances of enjoying your retirement life. Do not leave anything to chance. When budgeting each month, ensure retirement fund contribution is stated as a key expense. You can increase your retirement contributions when you start earning more.
Old Mutual Retirement Salary
The Old Mutual Retirement Salary is meant to help retirees have a sound and fulfilled retirement. All you need to sign on to the Old Mutual Retirement Salary is a lump sum payment.
But here is the best part, you need not make the lump sum available at once. When you choose your preferred retirement style, the Old Mutual Retirement Salary allows you to start saving toward the lump sum, or those on retirement can simply make the payment and plan for the monthly retirement salary they will be receiving.
In addition to the retirement salaries for retirees, couples can also enjoy joint spousal benefits when they take the policy together. There is also a funeral cover for all policy holders. The guaranteed term ensures that the regular retirement salary ceases after the death of the customer. Nevertheless, an annuitant is allowed to select a minimum period of years when the product is initially purchased for which the income is guaranteed to be paid even after death. The nominated beneficiaries can also receive the remaining income in the guaranteed term.
Closing comments
To sum up, one must learn this tip from the elephant. Knowledge is extremely important. Someone once said that an investment in knowledge is the best dividend; and so for you to be able to build powerful, strong, positive money habits, it is important that you start from a position of knowledge. Use a budget to help you remain focused on making your dreams come true.
