PERSONAL FINANCE: BUDGET

PERSONAL BUDGET

This year is coming to an end, whether you have New Year resolutions for the coming year or not, it is an apt time to think and take action on your personal budget.

A personal budget will let you know how you are spending what you earn. It will help keep your expenses to the barest minimum so that you can maximise your savings.

Regular saving of a part of what you earn is what will keep you secure when you are retired or when you are faced with unexpected expenses. Do not say “I don’t earn enough to save”; What ever amount you earn you can still form the habit of saving by minimising expenses.

How do I minimise expenses, I spend money only on necessities? There are necessities for which the amounts are fixed, there are necessities for which we pay a discretionary amount and there are  non-essentials on which we also choose to spend.    

 

Examples of fixed necessities include:

• House rent, security
• Utilities like electricity,water rate
• Car maintenance (service, insurance)
• Compulsory religious obligation (Zakat, Tithe)
• School Fees, Day Care
• Taxes
• Subscription to professional body
• Savings/Investment

 

Examples of necessities on which we spend discretionary amounts:

• Food
• Clothing
• Handsets
• Call and data credits
• Fuel for car
• Fuel for generator
• Entertainment and Relaxation
• Hobbies
• Gifts and Charity
• Subscriptions to professional bodies (is membership of this body necessary? What are you benefitting as a member?)

Examples of Non-essentials on which we choose to spend:

• Designers labels or luxury brands for necessities
• Eating lunch at restaurants and fast food outlets (take your lunch to work, it is cheaper and could be healthier)
• Club memberships that you do not make use of (e.g. golf club)
• Cable TV (are you paying for premium subscription while the channels you watch are available on basic subscription)
• Drinks (alcohol, packaged fruit juices, soda and the other equally unhealthy lot)
• Tobacco products

To start a personal budget:
1. Determine how much you earn. (If you run your own business, pay all your sales or revenue intact into the bank and withdraw for yourself a salary for each month)
2. List out your expenses into ‘Fixed Necessities’ and ‘Necessities with Discretionary Spend’ as outlined above.
3. At the end of each day, record the amount you spend on each item for the day
4. At the end of the month compare:

• Your total income with total expenses
• Your estimate for each item with the actual   

At the end of this exercise you will discover:

• If you are living within your income
• Which items you are spending too much on and from which you can make adjustments to enable you save more.

You can record these using pen and paper or you can use spreadsheets. You can develop an Excel template or you can download at:

http://www.halalstocksnigeria.com/blog/free-resources/

The most important thing about having a personal budget is the discipline to keep to the budget. Daily recording of expenses helps in maintaining this discipline.

If you are celebrating the season, Compliments of the Season.

By Lateefat Oba

 

Source: www.halalstocksnigeria.com

What to consider before renting or buying a house

 

Investing in real estate has proven to be profitable – however, a good knowledge of what to buy or how to invest in the property market is crucial to avoid unwanted expenses in the future. Lamudi Nigeria lists a couple of tips and ideas to consider when planning to enter the property business.

Your budget

Set yourself a manageable budget and stick to it. Agents usually market rental properties by stating the yearly rental price. For those who want to buy, be clear about what type of property you want. Is it for personal use or investment purposes? Try not to be tempted to look at properties beyond what you can comfortably afford.

In addition to your rental costs, you will also need to budget for other related expenses. These might include service charges if the property is in a block of flats or on an estate, so clarify with your agent or landlord whether they are included in the rent or are an additional charge. Other expenses to consider are the refundable deposit, moving costs, decoration of the property, furniture, or generator.

Location

There are plenty of factors to consider when thinking about the location of a property. It is important that you prioritise what is the most important to you in terms of location before starting your search, as this will save you time in the long run. For example, how important are the local amenities to you?

Check the distance to your workplace and schools, access to shopping areas, and public transport, closeness to friends or relatives. It is worth prioritising those and any other factors that may be relevant to you to help you determine your ideal location and to make your search as clear as possible.

Other considerations

There are plenty of options for those looking for property to rent or purchase, in terms of the types of accommodation. Much will depend on your personal circumstances and your life stage, i.e. position at work and most importantly your purchasing power.

Searching for the ideal property

In addition to the internet, which has much information within a mouse click, there are a number of other ways you can search for property. These might include newspapers,  but be aware that by the time many papers are printed, some properties may have already been let. You can also contact well-known developers or estate agents directly.

Call the estate agents and ask for details of relevant property, and if it sounds interesting arrange a viewing. It pays to contact a few agents to give you the best chance to find the right property. Drive around the area you are interested in and have a look at any “To Let” or “For Sale” signs and write down the contact details. Keep in touch with agents regularly, as rental properties tend to come and go quite quickly, particularly in some popular areas.

Costs

Be aware that once you have found a property, agents and solicitors will charge you a fee. These can range from five to 10 percent of the total costs depending on the agents, the property and the location. Try to establish and negotiate these costs with the agents in advance as they may vary.

Overall, before you begin the task of viewing a property, make sure you clarify with the agent that the house or flat meets your requirements, the costs and the fees so that you would not waste your time.

By Yinka Kolawole

 

World Bank asks other countries to emulate NDIC Target Fund Ratio

World Bank

The World Bank has described the Target Fund Ratio Framework, TFRF, of the Nigeria Deposit Insurance Corporation, NDIC, as a model which should be emulated by other deposit insurance institutions across the globe. Mr Julian Casal who led the World Bank technical team on a 4-day working visit to the corporation on a formal presentation of the Target Fund Ratio Framework and staff capacity building said that each deposit insurer needed a robust fund with which to meet demands of its mandate.

According to him, the NDIC’s TFRF was suitable in determining the adequacy of the Corporation’s Deposit Insurance Fund (DIF) He said that the bank would adopt the document as a benchmark for other African deposit insurance Corporations. Responding, the NDIC’s Managing Director of NDIC, Alh. Umaru Ibrahim expressed appreciation to the World Bank for its continuous support towards the Corporation’s capacity building initiative and effective discharge of its mandate.

He assured that the corporation would continue to welcome inputs from the global institution towards creating an atmosphere of confidence in the Nigerian banking industry.

TFRF is the ratio of fund that determines the optimal fund level that enables a deposit insurer to effectively meet its obligation to depositors. The International Association of Deposit Insurers (IADI) Core Principle 11 for Effective Deposit Insurance System, provides that the Fund Reserve Ratio should be based on clear, consistent and well developed criteria.

The development of the Target Fund Ratio by the Corporation was premised on the recommendation at the end of an IADI international workshop on the “Methodology for Assessing Compliance with the IADI Core Principles for effective deposit insurance system which was hosted by the Corporation in 2011.

The Corporation was advised to comply with some Core Principles, among which was Core Principle 11 on funding. Consequently, the Corporation approached the World Bank for technical assistance towards the development of the Target Fund Ratio and the request was granted in 2014 under the World Bank Financial Sector Reform and Strengthening (FIRST) Initiative.

The World Bank team, comprising Messrs Julian Casal, Jan Philipp Nolte and John O’Keefe interacted with the NDIC staff from relevant departments with a view to clarifying the data and other issues considered in establishing the target fund ratio framework.

By Emma Ujah,  Abuja Bureau Chief

HP proffers solution for advanced IT businesses

L-R : Enterprise Account Manager, Hewlett-Packard (HP); Ade Akinlade, HP District Sales Manager, Print and Personal Systems (PPS) Africa, Jean Panc-Pinto; Permananent Secretary, Ministry of Science and Technology, Lagos State, Nike Animashaun; Commercial Director, Middle East and Mediterranean Africa, HP, David Rozzio, and Public Sector Account Manager, HP, Emmanuel Eze, at the opening of the HP Technology Tour 2015 in Lagos.

The recent technology tour organised by Hewlett  Packard (HP) Nigeria, a global Information Technology (IT) company has once again elucidated the potentials leap  in successful business operations available for entrepreneurs in Nigeria who appreciate the power of modern day technology.

The tour which held in Lagos and Abuja was an opener for multinationals, big corporations and SMEs which are discerning in their approach to getting  businesses done fast with less cost.

Declaring the Technology Tour open in Lagos, the Permanent Secretary, Ministry of Science and Technology, Lagos State, Mrs. Nike Animashaun, said businesses around the world need advanced technology as a way of reducing the cost of doing business while also churning out high scale productivity that redefines economies globally.

“As a responsible government, we are aware that with information technology, business transactions have become seamless globally, reducing physical presence and creating breathtaking pace of information exchange. The Lagos State government is happy to be part of the HP Technology Tour 2015”, Animashaun declared.

She further stated that “an event of this magnitude will boost Nigeria’s ICT sector and enhance greater technological advancements through extensive brainstorming on pertinent issues within the IT industry alongside exhibition of the latest advancement in computer technology.”

Growing businesses globally, HP recognizes these intrinsic potentials of IT and has consistently re-innovated to ensure its customers are not left behind, especially the businesses which dare to survive the very challenging global economic terrain.

Cloud, big data, security and mobility are reshaping the way technology businesses are done in the IT industry. HP technology tour offers incredible depth of information and access to experts from its partners and other professionals. Whether as a business or individual trying to get the next project off the ground to bring new ideas back to the organization, HP technology tour provides the answers.

The continual improvement in technology, particularly Information Technology, over the decades has shown that people embrace technology not just as an innovation but as part of socio-economic activities. Businesses around the world have been helped by advance technology, which is the overall, and has reduced cost of doing business while also turning out high scale productivity that drives economies.

The technology tour by HP was aimed at providing Nigerian businesses and IT professional, the opportunity to tap into the latest technology and improve the performance and overall profitability of businesses while also guaranteeing security of business intelligence.

The HP Technology Tour presently being conducted across the globe is another giant move by the company to bring its customers closer to the latest in information technology.

Starting off in February 2015 in Saudi Arabia, technology industry watchers were propped up for what would be one of the best showcase of world class IT product across the world.

The Tour which held in Saudi Arabia had in attendance top Managing Directors and Chief Executives of blue chip companies, IT companies and government officials. During the Nigeria tour, the HP team, led by Senior Vice President, Enterprise Group and Managing Director HP EMEA, Mr. Peter Ryan, showcased the latest of its technology that expressed the company’s claim of “doing things that makes things better”. The tour has also been held in Paris, Germany, London, India, China and Brazil.

Interestingly, with the new entrants, HP is creating the new style of IT which is the new style of business, spanning over its 75 years of existence as a world class company. Investing over 10 per cent of its income on research and development in 2014, the company is focusing on creating values for businesses, ensuring mobility,  with enhanced security features that makes every of its product unique.

Visitors at the tour were thrilled at the array of products that simply made life easier and work better to achieve the best, such like the Pavilion Mini PC which turned out to be a competent small-form factor desktop PC with basic features and 4GB memory which allow the users to explore. The Pavilion operates a Window 8.1 with a 3-in-1 memory card smaller than a man’s hands. This new CPU can connect to 2 PC monitors at a time, saving space and energy

The Intel Pentium 3558U with Intel HD Graphics (1.7 GHz, 2 MB cache, 2 cores) features on the Mini PC give users near life graphical presentation. While at work, users can plug in their headphone and enjoy cool music. The Pavilion Mini PC is the digital of SMEs which really care about their budgets.

In order to meet the growing request by its customers for simple and seamless work station, guests at the tour were pleasantly surprised with the introduction of the HP Spectre X360.

Designed for business and enterprise and individuals who dare to be different with aesthetics, the HP Spectre X360 gave visitors at the exhibition a new orientation about what simplicity is all about. The Spectre X360 is a perfect blend of world class technology that simply brings convenience and efficiency. Also operating in a Windows 8.1, 64 bits system, Spectre X360 has an 8 GB memory that allows large storage of graphics”.

NSE: Top 10 performing stocks for the week ended 26th June, 2015.

News Released: 30th June, 2015.

Neimeth Plc, led the cream of price gainers on the Nigerian Stock Exchange, NSE last week as it appreciated by 11.72 per cent or N0.15 per share to close at N1.43 per share from N1.28 per share it closed penultimate week.

Nigerian Stock Exchange

The company led the top gainers as twenty two equities appreciated in price during the week under review, lower than twenty eight equities of the penultimate week. The difficult economic challenges bedevilling Nigeria has stunted the growth of Neimeth.  Analysis of the financial statement shows for the period ended December 2014, the company’s net income dipped by 190 percent to N68.09 million from N75.76 million the same period of the corresponding year (Q1) December 2013, while sales fell by 43 percent to N269.26 million.

Gross profits margin reduced to 38.74 percent compared with 54.95 percent the last year, while gross profit fell by 59.48 percent to N104.31 million. The falling gross profits mean Neimeth is not able to produce at relatively lower costs.

Operating expenses margin increased to 53.53 percent in 2014 as against 34.50 percent in the preceding year, while operating expenses fell by 12 percent to N144.14 million. Net margin, a measure of profitability and efficiency, increased to 25.28 percent from 16.17 percent the preceding year. Neimeth’s total assets rose slightly by 1.43 percent to N2.82 billion compared with N2.78 billion the preceding year. The company’s share price closed at N0.74 on the floor of the exchange while market capitalisation was N1.16 billion.

Trailing Neimeth Plc was Mobil Oil Nigeria Plc which surged by 6.61 per cent or N9.85 per share to close at N158.85 per share from N149.00 per share it close penultimate week.

For the financial year ended 31st December, 2014, Mobil Oil Nigeria Plc grew after tax profit  in 2014 by 84 per cent to N6.392 billion from N3.480 billion reported in 2013.  Top line growth was however flat as revenue increased by a marginal 1% from N78.744 billion in 2013 to N79.583 billion in 2014.  Direct cost remains flat at N68.846 billion so also is Admin expenses at N7.342 billion.

Finance cost however rose significantly by over 200% from N50.592 million in 2013 to N158 million in 2014.  Gain on non-current asset held for sale in the sum of N2.851 billion in the year under review was largely responsible for the jump in profit. The board of directors of the company did recommend payment of final dividend of N6.60k to shareholders, a marginal difference from the N6.00 per share the company paid in dividend in 2013.

AIICO Insurance Plc occupied the third position on the gainers chart rising by 5.43 per cent or N0.05 to close last week at N0.97 per share from N0.92 per share it close penultimate week.  AIICO Insurance financial statement  for the first quarter ended March 31, 2015 shows that revenue declined by 9.9 per cent to N7.940 billion from N8.811 billion recorded in the corresponding period of 2014;  Profit after tax dropped by 51.6 per cent to N443.047 million from N914.933 million in 2014.

Trailing behind AIICO was Askaka Cement Plc which rose by 5.12 per cent or N1.10 per share to close at N22.60 per share from N21.50 per share penultimate week.

 The NSE recently published Ashaka Cement’s (Ashaka) first quarter,  Q1 2015 result showed that Profit Before Tax,  PBT fell by 59 per cent  Year on Year, y/y to N1.2billion. 

The y/y decline in PBT was driven by a combination of factors including a 30 per cent  y/y reduction in sales to N4.6bn, a 1,319bp contraction in gross margin to 35.7 per cent  and  N211million in other operating expense (compared with a nil charge on the same line in Q1 2014). To a lesser extent, a 48 per cent y/y reduction in net interest income also contributed to the y/y decline in PBT.

These negatives completely offset a 39 per cent y/y decrease in Operating Expenses, opex. The company recorded a lower tax rate of 23.4 per cent compared with 31.9 per cent in Q1 2014, the decline on the PAT line narrowed slightly relative to that on the  Profit Before Tax, PBT line to 54 per cent y/y.

 Seplat Petroleum Development Company Plc occupied the fifth position on the price gainers chart to close at N331.25 per share from N315.80 per share, representing a rise of 4.89 per cent or N15.45 per share. The company’s Gross revenue for the first three months ended March 31, 2015  was US$ 131 million (N25.6 billion) as against US146 million (N22.7 billion in the corresponding period of 2014.

 Crude revenue (after adjusting for changes in lifting) was US$ 120 million (N23.4 billion) in the period under review,  a 16 per cent  decrease or US 142 million (N22.1 billion ) in the corresponding period in 2014 . This according to its management was mainly due to the significantly lower oil price, partially offset by increased sales volumes; Gas revenue was US$ 11.0 million (N2.2 billion), a 170 per cent increase from the same period in 2014 mainly due to increased production capacity resulting from wells and work-overs completed by the company in the latter parts of 2014 and higher offtake from the gas buyers.

 Meanwhile, Nestle Food Nigeria Plc, Portland Paints and Products Nigeria Plc, Presco Plc, Learn Africa and Trans Nationwide Express Plc were among the top ten gainers.

 Specifically, Nestle rose by 4.88 per cent to close at N891.45 per share from N850.00 per share followed by Portland Paints which went up b y 4.71 per cent to close at N4.45 per share. Presco  garnered N1.50 per share to close at N33.50 per share, followed by Learn Africa which went up by N0.05 per share to close at N1.26 per share from N1.21 per share, while Trans National Express inched up N0.05 per share to close at N1.27 per share from N1.22 per share.

Source: Vanguard

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