Don’t Get Caught Off Guard ….If you Lose Your Job…..

So I know, you will ask what is my own with job losses. Well there are certain things that i believe are inevitable in life. A job loss is one of them. A little birdie told me that a bank in Nigeria laid off about 800 people last week and is looking to layoff another couple of hundreds this week for the second bank which it acquired under alleged questionable circumstances in 2014. The head of the said bank also contributed billions of NGN to the sitting president’s campaign under “xyz and friends”. He also contributed money under different banners to the “change party”. If you haven’t figured it out by now, i cant help you. I am still too fresh to be politically prosecuted and sent to jail abeg.

So in having a conversation with a friend who works for the entity above, some people should have gotten their sack letters as we speak. Some people’s world literally come crashing dwon when they lose their jobs. To a certain extent it means that person was living just for work. It calls into question, their financial knowledge, and skills acquisition mindset. My friend was now telling me that he knows how to drive a forklift, i almost fell out of my chair. He is a banker, what business does he have with a forklift? His standpoint was basic – he can work anywhere at this point in his life, and manual labour is not a problem for him. Often times you hear people who are panicked because they pretty much spend their entire salaries – maintaining a lifestyle, and when the job is gone, they start begging within the next month.

For entrepreneurs its even dicier. You don’t know when your next paycheck is coming in, and you aren’t too sure how much it is going to be. I fall into this category. So when you have the money, it is important to be wise. This one I am very guilty of- at least in the last two years, i haven’t been as prudent as i should be, neither have I been as investment savy as i could be. But i noticed i have a bigger appetite for investments than i do savings – I am more of a gambler – I have been known to buy things i haven’t laid my eyes on and so far so good lol. My mother for instance is an absolute saver, the most she will do is buy life insurance, the fact that she could lose money in the stock market absolutely terrifies her.

So Suze Orman says you should have eight months 0, but its Nigeria so lets even say six months.

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Please answer the poll i am curious, the applied mathematician in me is curious.

Also share your thoughts on saving versus investing and how you go about organizing your finances.

The giveaway for the week is an Insignia flex 10.1 tablet- 16GB.

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Please note the community member with the highest number of comments in total for the week – on all the posts from 11 May 2015 t0 16 May midnight wins the tablet as pictured above. Good luck to everyone. Item will be picked up either in Ikoyi or Victoria Island or Lagos Island by the winner.

 

NESTR
OAD

 

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58 Comments on Don’t Get Caught Off Guard ….If you Lose Your Job…..

  1. The 8 to 12 months cushion is a great idea. Getting a job in this nation is not a child’s play and as such, should be prepared for. It takes the average Nigerian about 3 months to land a job (not neccessarily one of their choice). To land a choice job might take longer, and that’s where the emergency fund comes in.

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  2. Concerning the battle between savings and investments, to me, they go hand in hand, but the former should be done consciously. Most people save and save and keep saving all their lives just to have some physical cash in the bank to look at and feel proud of, which is wrong. This money can be multiplied, and it should be. Savings is good, but it should be directed something that would produce more. A multiplier, which is the investment.

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    • Yea the multiplier effect is quite unknown in that economical way to the average Nigerian , the average man/woman wants to have money somewhere to meet unexpected needs when they arise not necessarily to feel proud about has you mentioned.
      You see most Nigerians on the average have a warped saving attitude, most people have money saved from their monthly salary only to spend it all when a family occasion arises

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  3. Christian Best // May 13, 2015 at 09:30 // Reply

    Wonderful write up Ma’am!
    It’s pitiable that, working under someone or rather working for someone, Your Job is not ‘secured’. You can lose it at any time. But being an Entrepreneur, you’re your own boss, You don’t have a Salary, You don’t have to live a 8-6 life. You’re free!

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  4. Spot on Christopher
    We should focus more on investment than savings
    Thou saving is alot more easier cos investments most times involves risks which most people dont like to take

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  5. Original fear fear. Invest what? My only investment is my 401k.

    I know savings don’t make no money. High risk, high return. I’m just too scared. Still a work in progress.

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  6. So many things is wrong with this country and it get worse everyday. Over 800 staffs laid off? Now they will add to the number of unemployed on ground, Na wa o. You wake up every morning to work hard for someone and at the end of the day you are still scared of what tomorrow will bring. Its so pathetic.
    I tend to do more of investing than saving,generally speaking if you save,its ok but then the money can’t multiply but if you take the risk and invest then you are sure of more savings in your account. Life is all about risk and the earlier you start taking risk,the better. One thing I have learnt with investment is the idea of investing where people don’t naturally swing to, for example,small scale businesses people tend to overlook them because the profit is not huge and some times slow but then again is it not better to invest and cash in slowly than invest and run at loss fast??? These are some of the areas I look out for.

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  7. Talking about investment, the stock market especially left a family-friend of ours impoverished during the recession and till date the family has not recovered. The husband just retired at the time and his pension was invested prior to the recession, when the hit happened they lost all he’s worked for
    Such stories makes one weary of investing you see.

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    • Well, the golden rule of investment has to be “do not put all your eggs in one basket”

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    • Mutekuro // June 18, 2015 at 23:03 // Reply

      Same happened to my dad. Not improverished but not as comfortable as he used to be.

      In a country where there is no protection of the common investor, it’s scary to invest in nigeria. Especially considering the scam a lot of stock brokers played during the recession and even till now where you buy the stock and they won’t send the stock certificate, you’re then watching the stock nose dive, all the rich folks who drove the price up are able to pull out quickly because they are in cahoots with the stock crooks. By the time you get your stock certificate, what was originally thread for close to or over 100 naira could now be worth less that the paper the certificate was printed on!

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  8. I think savings if done properly, could be multiplied into investments. So for me starting with savings and multiplying into investment is a nice way to go. Depending though, on the size of the savings. And as for the retrenchment, these things are gonna keep happening. Even when you own your own fit. Nothing is certain. So we should always think ahead in terms of diversification of our portfolios for soft landing.

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  9. Sadly because i hate to spend, i do. Hoping to find a cure soon tho. Pynk i made a request as a response to your comment on my blog. Oya perform

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  10. lucynthia // May 14, 2015 at 09:41 // Reply

    So saving is good, but investment is BETTER. That’s my policy. Why should I leave money sitting somewhere when I can make it ‘grow’. Lol. You should save enough and invest more.

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  11. lucynthia // May 14, 2015 at 09:52 // Reply

    So all this banks sacking people na wa! However, this should speak to us . I strongly believe EVERYONE should have ‘handwork’. Be it tailoring, hairdressing, catering etc. That’s where the money + peace of mind is. Own a business no matter how small nd invest while you can. There is no amount too small for you to invest.

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  12. www.thelmathinks.com // May 14, 2015 at 21:23 // Reply

    What can I say OAD, I’m so thankful that I’ve left the higher percentage of my income to myself and I cannot lay myself off. LOL. I feel so terribly sorry for the people being laid off, I really can’t imagine what they must be going through right now; the fear, the uncertainty, the confusion…

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  13. lucynthia // May 16, 2015 at 21:51 // Reply

    800 people! So how many people do we’ve left on the banking sector! My fellow Nigerians, always have a PLAN-B.
    Christopher that’s true. If u cant find a JOB, find WORK.

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  14. These things are very scary when one thinks about it. Getting a job these days is by God’s intervention. Besides, it gets harder to save now these growing responsibilities. God help us

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