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Follow Your Money: Slay Your Bills, Not Your Vibes.
Issue 2: Slay Your Bills, Not Your Vibe: The Art of Budgeting: Maximizing Your Money.
Happy Tuesday. Welcome to Issue 2.
This week, we are exploring a popular topic—budgeting. Get ready for an exciting read as we also delve into the latest financial buzz from South Africa, Egypt, Kenya, and Nigeria. Lessgoo! 🚀🚀
Issue 2: SLAY YOUR BILLS, NOT YOUR VIBES.
The Art of Budgeting: Maximizing Your Money.
In a world where the destiny of e-commerce websites lies on the shoulders of your purse, it is crucial to slay your bills even as you elevate your vibes.
Behold the open secret equation of budgeting…
Budgeting = Money + Balance.
But hold on, now that you have the money, how do you plug in the balance? Say no more!
💫Introducing the 50/30/20 rule popularized by Senator Elizabeth Warren in 2005…
🤌🏾The 50/30/20 rule suggests that you allocate
50% of your income to "essentials" like rent, utilities, and groceries.
30% to "wants" like dining out, entertainment, and shopping, and
20% to "savings and debt repayment" like emergency funds, retirement accounts, and paying off debt.
This way, you balance meeting your basic needs, enjoying life, and saving for the future. 😊
🎯If you’re reading this newsletter, you definitely already know about budgeting. But as you are well aware, the proof of knowledge is action.
In addition to what you already know, think of budgeting like doing your laundry. You may not necessarily want to do it now, but you also don’t want to do it 10 minutes before your prom date night.😉 It’s one of those things you have to worry about now if you don’t want to worry later.
Like laundry, budgeting may not be the most exciting task but trust me, it slowly but surely keeps your finances fresh and clean.
FINANCIAL NEWS & TRENDS in AFRICA
…connecting the dots across frontier markets in Africa.
Africa: Ever wonder what the future of payments in Africa is? Well, it’s estimated to reach $230 billion in revenues by 2025, according to a report by Mckinsey.
Southern Africa: In 2018, the South African Investment Committee promised to attract about $65B in investment✨. Last month, the President announced the close of roughly $81B (26% more) in private investment into the country. 😯But that’s not all, the investment committee has set an audacious goal to attract over $108B to South Africa over the next 5 years. 💪🏾
🎯Even though S.A. may not be where we all want it to be, the country is for sure not where it used to be. Moves like these scream possibilities for tremendous economic development- no wonder South Africa has been consistently ranked one of the leading (if not the leading) markets in Africa. Without South Africa, the future of payments in Africa is only at $150B by 2025. With South Africa, it goes up to $230B.
West Africa: Fidelity Bank Plc, one of the big boys in the Nigerian banking sector plans to make five more acquisitions in Africa after buying out its rival, Union Bank Plc in the U.K in 2022.
🎯This move brings up mixed feelings—on one side, buying out your rivals partly convinces the rest of the world that mergers and acquisitions in Africa, though few and far between, are fairly common. On the flip side, it brings up the question of ownership & access. If the majority of banking institutions are owned by the same entity, then the fate of historically underbanked and unbanked communities lies in the hands of the monopoly. This is why I’m bullish about the rise and future of fintechs in Africa and if you are not into it yet, please consider reading reports like this one here.
North Africa: Despite inflation and a sharp plunge in currency valuation, Egypt is starting to see high interest from investors with more than $900M deployed into the Egyptian foreign exchange market. ✊🏽
🎯Just like South Africa, Egypt is a frontier market in Africa and news like this shows one or two of many things— on one side, this is good progress. Yet, the issue here is currency devaluation. Foreign investments should complement the country’s GDP not replace or save it.
In East Africa, Kenya is washing hands to receive $1 billion of financing from the World Bank. 😋
🎯Again, foreign investments should complement the country’s GDP not replace or save it. Given the recent innovation development in Kenya, it is fair and reasonable to assume that this move will only accelerate the innovation we are already witnessing.
General Takeaway: The next five years seem like a perfect time to be building in any of these frontier markets. Like it or not, Africa is definitely on the rise. It is not a question of if, but when it all comes together.
Here are some exercises on budgeting.
I'm an unexpected expense that can cause a fright. You should plan for me with all your might. By setting funds aside, you'll be ready to pay, and won't be caught off guard when I come your way. What am I?
I'm a secret code for budgeting success. Three kingdoms hold the key, no less. One for needs, one for wants, and one for savings. What am I?
Nora wants to save a total of $150. She saved $50 in the first week. Each week, she saved $20 more than the previous week. How many weeks did it take for Nora to reach her goal of $150?
Scholarship & Fellowship Opportunities
If you’re a changemaker from any of these countries- Nigeria, Kenya, Mali, Mozambique, Morocco, Niger, Nigeria, Senegal, Somalia, Sudan, South Sudan, Tunisia, or Uganda, here’s a chance to attend the 2023 One Young Summit in the U.K. on a fully funded scholarship.🎯🎯
👉🏾That’s all for this week and to wrap up, here’s our QOTW.
I couldn’t see it with my eyes. I couldn’t feel it with my hands. So I had to believe it with my heart.
Until next time,