any one can change. @ kanwuliaJara

I was talking to a friend and she said she does not believe in savings & investment. She argued that she will rather put her whole money into a business and get her returns. She went further to say that the future will take care of itself and she went all religious.

I told her all she needed to build her retirement/ kids college educational account was a few years of continuous savings. I shared a simple compound interest calculation with her and she was amazed. Compound interest is simply interest on interest. According to Wikipedia, Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of interest to the principal is called compounding.This makes the principal to grow at a faster rate than a simple interest.

One thing about savings and investment is that it is never too early to start and it is never too late to start. Lets look at 2 scenario of 2 different investors that both started working at age 24.

Investor A starts saving and investing N200,000 yearly at the rate of 8% immediately he started working. He consistently saves N200,000 each year for the next 8 years and stops. His investment however keeps running at a compounding interest for the next 19 years.

Investor B is a spend thrift and does not see the need to start saving and investing. He realizes at the age of 32, that he has to start planning for his future. He saves N200,000 each year at the rate of 8% for the next 19 years.

They both decide to retire at the age 50 having worked for 27 years. Who do you think will have more money in their investment account at the end of the 27 years?

Years Age Investor A Investor B
1 24 200,000.00 216,000.00 0
2 25 200,000.00 449,280.00 0
3 26 200,000.00 701,222.40 0
4 27 200,000.00 973,320.19 0
5 28 200,000.00 1,267,185.81 0
6 29 200,000.00 1,584,560.67 0
7 30 200,000.00 1,927,325.53 0
8 31 200,000.00 2,297,511.57 0
9 32 0.00 2,481,312.49 200,000.00 216,000.00
10 33 0.00 2,679,817.49 200,000.00 449,280.00
11 34 0.00 2,894,202.89 200,000.00 701,222.40
12 35 0.00 3,125,739.12 200,000.00 973,320.19
13 36 0.00 3,375,798.25 200,000.00 1,267,185.81
14 37 0.00 3,645,862.11 200,000.00 1,584,560.67
15 38 0.00 3,937,531.08 200,000.00 1,927,325.53
16 39 0.00 4,252,533.57 200,000.00 2,297,511.57
17 40 0.00 4,592,736.25 200,000.00 2,697,312.49
18 41 0.00 4,960,155.16 200,000.00 3,129,097.49
19 42 0.00 5,356,967.57 200,000.00 3,595,425.29
20 43 0.00 5,785,524.97 200,000.00 4,099,059.32
21 44 0.00 6,248,366.97 200,000.00 4,642,984.06
22 45 0.00 6,748,236.33 200,000.00 5,230,422.79
23 46 0.00 7,288,095.23 200,000.00 5,864,856.61
24 47 0.00 7,871,142.85 200,000.00 6,550,045.14
25 48 0.00 8,500,834.28 200,000.00 7,290,048.75
26 49 0.00 9,180,901.02 200,000.00 8,089,252.65
27 50 0.00 9,915,373.11 200,000.00 8,952,392.86


Are you shocked at the result? Investor A’s investment account balance is higher than that of Investor’s B by N962,000.

This shows us the power of compound interest. The trick is to start saving and investing early. With just a little discipline, we can all achieve financial freedom.

To see more personal finance management tips, do visit www.akaglue.com

I run a thrifty blog. kindly review. www.akaglue.com

@ coogaluta.

Thank you.

It happens to me sometimes, getting to the counter and realizing I have gone over board my budget, I simply return the items that I can do without. biko, I can't shout.

@ sirviktor . thank you.

Looking for thrifty tips. do visit the tips section of my blog.

http://akaglue.com/category/tip-of-the-day/

-I cut open my toothpaste at the end and scooped the hidden remains. (Don’t deny it, am sure you have done this at some point in your life).

– The night before, I turned my body lotion upside down , so that the remaining lotion drains down.



-I stepped on and battered my empty can of insecticide so as to get out the last bit of spray. (This trick also works with body sprays too, you will be shocked at how much spray comes out after you stump on the can).

-I recycled the smoked fish head that I used to cook by first drying it, then I blended it. This powered smoked fish gives an amazing flavor to your dishes. (Most people throw theirs away, please don’t anymore, learn to recycle like AKAglue).

-I bought commercial ice blocks to keep my deep freezer cool. (Well, we usually power the deep freezer with the generator, but due to fuel scarcity, I had to think of ways to conserve fuel). So share with us, what thrify things did you do last week?

To read more thrifty things I have done in past weekends, visit. http://akaglue.com/six-things-i-have-done-this-week-that-non-thrifty-people-will-find-amusing/

Shirt dresses are currently in fashion, and as a nursing mother I am always on the look out for cloths that allow for convenient nursing. However, the thing about casual cloths for me, is that I don’t like spending too much on them because I only get to wear them a few times during the year . (I work five times a week in a corporate environment that doesn’t permit casual dressing).

Having convinced myself that I need a shirt dress , I went online searching for one. Sadly, my search was not very fruitful because the least I saw was priced for N6,500 and my budget was less than N5,000. As a savvy spender, I try as much as possible to always stick to my budget.

read more on http://akaglue.com/category/dress-for-less/

When I was much younger without responsibilities, I was a spend thrift. Then I got married and carried on with the same attitude. I receive a monthly house keeping allowance from my husband and I have a house keeping budget that equates it. Each month I promise myself and my hubby that I would stick to the budget. But hard as I try, I just could not stick to it. Once I get into the supermarket / open market, I shove my grocery list into my back pocket and pile up my trolley.



Two weeks into every new month, the allowance is all expended. I end up having to ask my hubby for additional house keeping allowance. Initially, my tears and promises to be more prudent worked on him, and I’m able to extort more money. Yay! But along the line he stopped giving me additional allowances and encouraged me to practice my profession at home. (I am an accountant and budgeting and budgetary controls are my main KPI).

So I did a bit of reminiscing and came up with the following tips which greatly helped me;
1.Always take stock of the food stuffs and house hold supplies before heading out to shop. With this, I know what I have left and ensure I buy exactly what I need.
2.Always make a shopping list and include the budgeted price of each items and resolve to stick to it.
3.Leave my debit card at home and withdraw the cash I want to spend. The amount I have should equate the amount on the shopping list. No extra cash, no impulse buying.
4.For some items, I ditch the big brand names and go for cheaper brands. They almost taste as good as.
5.I don’t waste any food. I make only what we finish and freeze any leftovers which most times I get creative and recreate into another meal.
6.As a small family, I stay off Bogof for fresh food items! (BOGOF stands for ‘buy one, get one free’). They always end up in the bin because I didn’t need that much in the first place.
7.I never shop when hungry. Hunger sparks off my impulse buying.
8.For items other than household supplies, e.g cloths/ shoes. etc. I window shop before the actual buy.

Want to find more tips, deals and advice. do visit http//:www.akaglue.com

Did you find any of these tips useful or do you have any tips to share?

Some people are born money managers while some are not. For those that are not a born money manager like me, the skill needed to manage money can be learned.

One good thing about learning is that it is never too late to learn no matter how old you are. However in learning a skill, we sometimes tend to over-learn. Like me, I over learnt money managing skills, that I became an AKAglue.


You all will agree with me that money is never enough, we always want more money and our wants are always on the increase. Paying bills if not well managed can be stressful and it can put a strain on an individual/family. However, with proper planning such financial stress can be eliminated. So, if you are looking at cutting back on some of your expenses, or you just want to transit to a savvy spender( see my post on it),http://akaglue.com/want-to-be-thrifty-spender-top-tips-on-becoming-a-cash-savvy-spender/. Drawing up a budget is a good place to start. A budget is a fantastic planning tool that can help one track his/her expenses. Some people believe it is an old fashioned tool, but for me it is a very useful tool in managing my finances.

A budget should be simple to use and need not be complicated. You can draw up your budget using a spreadsheet or you can simply use a note book/diary. Follow this simple steps to achieve a realistic personal/family budget. For a practical budget spreadsheet see attached.

Step 1: Determine your total income.

Step 2: Set aside a percentage of income as your savings. Remember to save first before spending, rather than spending first and saving what you have left. (Your savings could be for investment purpose, or for a major project).

Step 3: List your total expenses. e.g
◾Tithes & offering.
◾House rent/mortgage.
◾School fees.
◾Food
◾Utility bills ( water, electricity, phone bills, internet, etc)
◾Car ( Fuel, insurance, maintenance)
◾Personal (Hair, clothings, entertainment)

Step 4: Have a column were you will input the planned amount you want to spend on each expense head. Resolve to stick to the planned amount.

Step 5: Have another column were you will input the actual amount you spent on each expense head. Your actual spend should be less than your planned spend. Remember the objective of drawing up a budget is to be financially disciplined, so ensure your live/spend within your planned budget.

Step 6: Monitor your budget on a monthly basis so as to track your progress. It’s ok to tweak your budget as the need be.

Remember, your total money income should be greater than your total monthly expense.

more tips? visit www.akaglue.com

Shirt dresses are currently in fashion, and as a nursing mother I am always on the look out for cloths that allow for convenient nursing. However, the thing about casual cloths for me, is that I don’t like spending too much on them because I only get to wear them a few times during the year . (I work five times a week in a corporate environment that doesn’t permit casual dressing).

Having convinced myself that I need a shirt dress , I went online searching for one. Sadly, my search was not very fruitful because the least I saw was priced for N6,500 and my budget was less than N5,000. As a savvy spender, I try as much as possible to always stick to my budget. See my related on it.

http://akaglue.com/category/dress-for-less/

When I was much younger without responsibilities, I was a spend thrift. Then I got married and carried on with the same attitude. I receive a monthly house keeping allowance from my husband and I have a house keeping budget that equates it. Each month I promise myself and my hubby that I would stick to the budget. But hard as I try, I just could not stick to it. Once I get into the supermarket / open market, I shove my grocery list into my back pocket and pile up my trolley.



Two weeks into every new month, the allowance is all expended. I end up having to ask my hubby for additional house keeping allowance. Initially, my tears and promises to be more prudent worked on him, and I’m able to extort more money. Yay! But along the line he stopped giving me additional allowances and encouraged me to practice my profession at home. (I am an accountant and budgeting and budgetary controls are my main KPI).

So I did a bit of reminiscing and came up with the following tips which greatly helped me;
1.Always take stock of the food stuffs and house hold supplies before heading out to shop. With this, I know what I have left and ensure I buy exactly what I need.
2.Always make a shopping list and include the budgeted price of each items and resolve to stick to it.
3.Leave my debit card at home and withdraw the cash I want to spend. The amount I have should equate the amount on the shopping list. No extra cash, no impulse buying.
4.For some items, I ditch the big brand names and go for cheaper brands. They almost taste as good as.
5.I don’t waste any food. I make only what we finish and freeze any leftovers which most times I get creative and recreate into another meal.
6.As a small family, I stay off Bogof for fresh food items! (BOGOF stands for ‘buy one, get one free’). They always end up in the bin because I didn’t need that much in the first place.
7.I never shop when hungry. Hunger sparks off my impulse buying.
8.For items other than household supplies, e.g cloths/ shoes. etc. I window shop before the actual buy.

Did you find any of these tips useful or do you have any tips to share?

For more thrify tips, deals, and tips. do visit http://akaglue.com

Very correct.

You can read more tips on becoming a cash savvy spender here.

http://akaglue.com/how-i-changed-from-a-spend-thrift-to-a-thrifty-person/

My name is AKAGLUE, my friends call me stingy, but I prefare to be called thrifty. After years of being an impulse spender/spend thrift, I had to come to terms with the fact that I have a spending problem. I resolved within myself to make a change.

I bring you loads of money saving tips, discounts, my thrifty adventures and advice. Join me at http://akaglue.com/

Question for the day? How much do u spend weekly on recharge cards? I spend N500 weekly.

Let's see who spends the least.

If you live and work in Lagos, then you are used to the traffic situation. However, Apapa has a special kind of traffic. I work in Apapa, and what we experience in Apapa is called a gridlock. It is not the normal lagos moving traffic, it is a complete lock down of the road and all intersections. Imagine being on one spot for hours, surrounded by oil tankers, trailers and their containers that can fall at any moment. This is the kind of traffic that we have been experiencing in Apapa for the past 2 weeks.

On a good day, from my house to work is approximately 15-20 mins but any time there is a lock down, I spend 3/4 hours on Ijora bridge just to get to work. Sometimes, I park my car at a public car park and trek to work, but the distance is so long that I am usually so tired and sweaty by the time I get to work. Some of my colleagues take a bike to get to work, but I am so scared of riding a bike on the bridge and it is quite expensive. In this period of fuel scarcity, they charge as high as N1,000 just to get you across Ijora Apapa bridge.

As an AKAglue, I am always looking for good deals/alternatives, and in my quest for a cheap, safe alternate way to commute to work, I discovered that there is a Jetty at CMS, Lagos and various private companies run ferry transportation services. The ferries ply various routes as CMS-Apapa, CMS-Victoria Island, CMS-Ikorodu. etc. I was a bit skeptical the first day, but on getting there I was impressed at how organized they were.

There are two main Ferry company that plies the CMS-Apapa route, Texas Connection Ferry Service and Sea Coach Ferry Service. They both charge N150 only for a trip and both provide you with a life jacket which you must put on before entering the ferry.

The Texas Connection has 2 big ferry coaches with a capacity of 80 passengers, their ferries are neat and the seats well padded. The journey was slow but steady and took about 7 minutes .

The Sea coach has various new ferries, they are more like speed boats, smaller in capacity and much faster. The journey was fast, bumpy and took about 4 minutes.

I enjoyed both rides, but I will be sticking to the slow steady Texas Connection Coach Ferry.

Are you tired of driving/ sitting in traffic? You may want to try water transportation. Please note that there are so many locals that offer water transportation, however their ferries are more like canoes and not upto standard. Kindly stay clear of those.

http://akaglue.com

Everyone is a spender, we spend money on food, cloths, rent, mortgage, school fees. etc. But a savvy spender knows what they are doing financially. They make their choices carefully. Are you thinking of how to curtail your expenses? Or maybe you just want to be a better saver and investor? Do you want to be a savvy spender?

My first tip to becoming a savvy spender is what I will call ‘Purchase with a main purpose’. Over the years, I have learnt to attach a purpose to every expense that I have to make. So, before I purchase an item/pay for a service, I always ask yourself this question. What is the main purpose?

Take for example, I need to buy a phone. So, I ask myself, what is my purpose in getting a phone.

1. I want to make voice calls and have access to the internet.

Then I walk into a phone shop and I am faced with so many options, however my budget is N30,000 . I refuse to get tempted with all the lovely phones because I keep reminding myself, my main purpose in getting a phone. I know people that take a loan to purchase really pricey phone, yet they have never used 1/8th of all the phone functions. I say it again and again, you do not need to impress anybody. Live within your means.

You can apply this principle to any area.

What is your main purpose in making your hair? To look pretty right? So, do you need to overspend and overshoot your budget just to get a human weave when there are so many other lovely weaves? NO!

What is your main purpose in wanting to purchase a car? To move from point A to point B? So, do you need to overspend and strain your finances so as to acquire a state of the art? NO!

What is your main purpose in having a wedding? To be legally married to my spouse right? So, do you need to overspend and spend millions which you do not have on a wedding and still be in debt after your wedding? NO!

Got more tips for me? Feel free to share and stay tuned for Tip 2.

http://akaglue.com/want-to-be-a-savvy-spender-tip-1-purchase-with-a-main-purpose/#more-185

God bless the inventors of wigs. As a working mum, sometimes I get so busy and tired that there is no time to make my hair during the weekend. I do not also like spending long hours at the salon and yes I also dislike spending so much money on weaves, so I love wigs.

I carry my weaves for a timed period (couple of weeks), sadly I had to remove my weave over the weekend because it was smelly (exhaust fume) and dusty from the whole Apapa traffic stress of last week. You can read about it here. http://akaglue.com/my-ferry-experience/Sunday night I still hadn’t made my hair so I resolved to rock my wig all through the week. Then I remembered I gave out 2 of my best wigs and the only wig I had was worn out. I was desperate because it was already too late to get to the salon. I started researching on how to revive a dead wig, and was pleased to stumble on the boiling method. So here you go.

Things you need.
1.Wig
2.Leave in conditioner / shear butter
3.Rollers

Step 1: Detangle the wig


step 2: Roll the wig around the rollers.

Step 3: Add leave in conditioner or shear butter to a pan of water and bring to boil. (I used shear butter).

Step 4: If its a synthetic wig, immerse into the pan of boiling hot water for 2-3minutes, but if its a human hair wig boil on low heat for about 15mins.

Step 5: Leave to air dry over night.

Step 6: Remove the rollers when wig is fully dried and style as desired.

So, next time your wig has lost it’s va-va-vroom, don’t be quick to throw it away, revive it and save your self some money!.

http://akaglue.com/how-to-revive-a-dead-wig/#more-326